<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The main motive of business operations of any bank is to achieve the highest profit possible and utilise it to increase dividends to shareholders, as well as to create conditions to increase their financial and credit potential by reinvesting in shares. The most important quality indicator of a loan portfolio is the share of non-performing loans to total operating assets and liabilities. In the first quarter of 2013, a trend of increasing non-performing loans in the legal entities sector increased by 2.6%, while there was stagnation with the population, i.e. slight decrease. The main objective of this paper is to examine the impact of the global financial crisis on the movement tendency of non-performing loans in the banking market in B&amp;H, and their interdependence with the movement of profitability indicators by a simple regression equation.</p></abstract>

The main motive of business operations of any bank is to achieve the highest profit possible and utilise it to increase dividends to shareholders, as well as to create conditions to increase their financial and credit potential by reinvesting in shares. The most important quality indicator of a loan portfolio is the share of non-performing loans to total operating assets and liabilities. In the first quarter of 2013, a trend of increasing non-performing loans in the legal entities sector increased by 2.6%, while there was stagnation with the population, i.e. slight decrease. The main objective of this paper is to examine the impact of the global financial crisis on the movement tendency of non-performing loans in the banking market in B&H, and their interdependence with the movement of profitability indicators by a simple regression equation.

Analysis Of Non-Performing Loans Movement And Profitability Of The Banking Market In BH

University of Zenica, Faculty of Economics, Zenica, BH

Economic Themes

This chapter is distributed under the terms of the Creative Commons Attribution 4.0 Public License.

ANALIZA KRETANJA NEKVALITETNIH KREDITA I PROFITABILNOSTI NA BANKOVNOM TRŽIŠTU U BIH

The main motive of business operations of any bank is to achieve the highest profit possible and utilise it to increase dividends to shareholders, as well as...

Analysis Of Non-Performing Loans Movement And Profitability Of The Banking Market In BH

Published Online: Oct 14, 2015

Page range: 332 - 350

Received: Dec 03, 2013

Accepted: Oct 10, 2014

DOI: https://doi.org/10.1515/ethemes-2014-0021

Keywords
non-performing assets, return on average equity, return on average assets, regression analysis

© 2014 Almir Alihodžić, published by De Gruyter Open

This chapter is distributed under the terms of the Creative Commons Attribution 4.0 Public License.

Analysis Of Non-Performing Loans Movement And Profitability Of The Banking Market In BH

Published Online: Oct 14, 2015

Page range: 332 - 350

Received: Dec 03, 2013

Accepted: Oct 10, 2014

DOI: https://doi.org/10.1515/ethemes-2014-0021

Keywordsnon-performing assets, return on average equity, return on average assets, regression analysis

© 2014 Almir Alihodžić, published by De Gruyter Open

This chapter is distributed under the terms of the Creative Commons Attribution 4.0 Public License.

Keywords
non-performing assets, return on average equity, return on average assets, regression analysis