Value changes in the real estate market affect both the quality of bank loan portfolios and financial stability and the real economy. The Republic of Serbia is one of the countries facing an upward trend in demand for housing. This paper investigates the impact of macroeconomic and banking variables on the real estate price index in Serbia for the period from 2014 to 2023 on a quarterly basis. Also, panel regression and correlation analysis are applied in this research. The selected independent (explanatory) variables are the gross domestic product, the consumer price index, the interest rate on bank loans, the exchange rate of the domestic currency against the Euro and household saving. The research results showed that the independent variable consumer price index had the most significant impact on the housing price index. On the other hand, the following independent variables had the most significant negative impact on the dependent variable (housing price index): interest rate on bank loans and the domestic currency against the Euro.

In terms of both developed and developing countries, banking regulations have a very important place for regulatory authorities and investors. The study aims to examine the effects of regulations on banking performance and profitability. The effects of regulatory indicators such as capital adequacy, liquidity, and total provisions on the return on assets of banks are examined. In this study, Annual data set of 53 banks operating in selected Balkan countries and Turkey was constructed for the study, and analysis estimation using the System Generalized Moments Method (SGMM) were carried out. In addition, GDP, Inflation, Total Assets, and Budget deficits are used as control variables. According to the findings obtained from the study, it has been ascertained that the primary determinant impacting the return on assets is capital adequacy as per the regulatory criterion. Apart from this, it has been concluded that liquidity, which is one of the other regulatory indicators, has a positive and a negative effect on its counterparts in terms of its effects on return on assets. According to the research analysis applied in the study, it has been concluded that the regulatory indicators increase the profitability of capital adequacy and liquidity.

The weighted average cost of capital is the rate that companies must pay to shareholders and creditors. Therefore, it is a risk-adjusted discount rate for the company's cash flows. The paper will calculate the weighted average cost of capital for a selected group of companies listed on the Sarajevo and Banja Luka Stock Exchanges, as well as profitability indicators such as: ROA, ROE and net profit margin. Therefore, the main goal of this paper is to investigate whether there is interdependence in the movement of the weighted average cost of capital and profitability indicators of the selected group of companies in the stock market indices SASX-30 and BIRS. The research results show that the WACC ranges from a minimum of 5.11% to a maximum of 10.87%. Likewise, the research results show that there is a negative connection and correlation between WACC on the one hand and a selected group of profitability indicators on the other hand.

The importance of minimum capital adequacy ratios in preventing banks from going bankrupt and losing depositor money is underscored by their ability to absorb a reasonable amount of losses. This work contributes to the literature on bank capital and, in particular, delivers a thorough analysis of bank capital in Bosnia and Herzegovina and Croatia contexts. This analysis refers to the strand of literature on non-performing loans and bank capital that has been of continuous interest to researchers. It is a relevant area of research because it discusses the most important part of the banking business, especially in the context of increasing global competition and crises. In this scientific area, we inquire whether and how leverage rate, gross domestic product rate, and return on equity affect the capital adequacy ratio. In this respect, this study advances the literature of effects on bank capital that have not been analysed by other scholarly contributions, especially as it discusses the impact of leverage rate, gross domestic product rate, and return on equity in the context of the entire banking systems of Bosnia and Herzegovina and Croatia. The study is limited to a six-year period from 2016 to 2021. Empirical evidence based on the application of a model suggests that both countries resulted in different correlations between countries. Modelling was done to determine the relationship between the independent variables LR, GDP Growth, ROE, and effect on CAR. In addition, the capital adequacy ratio proves to be more and more important for banks.

The main goal of this research is to evaluate the returns and risks of the following types of assets: Bitcoin, EUR Stoxx 50, gold, bonds: government bonds ICE Bof A 1-10 Year excluding Italy and Greece and the corporate bond index ICEB of A 1-10 Year AA. The paper tested a total of ten portfolios according to different scenarios for digital and financial assets. Also, in the paper, greater measures of risk and return were calculated with the aim of forming an optimal portfolio with minimal risk. The results of this research revealed that the correlation between Bitcoin and other forms of financial assets is generally low and negative, which can be a good instrument for portfolio diversification, and positively affect portfolio performance. Also, the results of this study showed that in terms of volatility and return measure of a total of ten portfolios, the second portfolio (whose structure consists of Bitcoin, Euro Stoxx 50, gold, government bonds ICE Bof A 1-10 Year - excluding Italy and Greece and the corporate index bond ICEBof A 1-10 Year AA) is the most optimal portfolio. The findings of this research can serve in risk and loss assessments of portfolio managers, investors, and regulators.

Banks play an important role in a country’s economy because increasing savings and capital accumulation has a positive effect on economic growth and employment through the banks’ resource transfer function. The purpose of this study is to establish a cause-and-effect relationship between bank profitability and economic growth in three selected countries, including Bosnia and Herzegovina, Serbia, and Croatia. In this research, a panel causality test is applied to examine the cause-and-effect relationship for the time period from the first quarter of 2008 to the fourth quarter of 2020. Empirical findings in this study showed that the profitability of banks in selected developing countries (Bosnia and Herzegovina, Serbia and Croatia) has a positive effect on economic growth. Also, this research provides insight into in-depth analysis in terms of considering several countries through the use of a panel causality test, for the purpose of studying the relationship between bank profitability and economic growth. the first and second profitability indicators (return on assets - ROA and return on equity - ROE) with the indicator of economic growth expressed in real GDP. Therefore, this means that a high level of bank performance through bank performance affects the promotion of economic development, in line with the findings of Ayadi et al. (2010) and Yudistira and Ike (2014). Profitable banks are key drivers of economic growth. The results of the research suggest a positive relationship between bank profitability and economic growth. Therefore, the research results suggest that with an increasing the profitability of banks affects the increase in economic growth. Also, these results show that markets with a higher bank presence have a significantly higher growth rate. This further means that cooperative banks have a significant market share in lending to small and medium-sized enterprises, which are often recognized as drivers of economic development, especially in transition economies.

Non-performing loans are loans that do not generate income for banks and represent one of the most sensitive categories of a bank’s balance sheet. Their increase can affect both the liquidity and the solvency of banks. This paper investigates internal (specific) and external (macroeconomic) determinants of non-performing loans of the banking sector in Bosnia and Herzegovina for the period 2008: Q1 - 2020: Q4 including correlation and regression analysis. The results of the research showed that the following independent variables have the strongest impact on non-performing loans as a dependent variable: unemployment rate, provisions to non-performing loans, and real GDP growth rate. On the other hand, the independent variable return on equity had the weakest impact on non-performing loans.

Banks play an important role in a country's economy because increasing savings and capital accumulation has a positive effect on economic growth and employment through the banks' resource transfer function. The purpose of this study is to establish a cause-and-effect relationship between bank profitability and economic growth in three selected countries, including Bosnia and Herzegovina, Serbia, and Croatia. In this research, a panel causality test is applied to examine the cause-and-effect relationship for the time period from the first quarter of 2008 to the fourth quarter of 2020. Empirical findings in this study showed that the profitability of banks in selected developing countries (Bosnia and Herzegovina, Serbia and Croatia) has a positive effect on economic growth. Also, this research provides insight into in-depth analysis in terms of considering several countries through the use of a panel causality test, for the purpose of studying the relationship between bank profitability and economic growth.

The level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while on the other hand there has been an increased concentration of some larger banks in the system.The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model (FE model as well as GLS model). Both models were suitable for obtaining results via the Hausman test. The results of the research showed that the strongest (positive impact) on the first dependent variable, i.e., on return on assets (ROA), was achieved by the following independent variable: foreign-owned banks (FB). On the other hand, the strongest negative impact was recorded by the following independent variables: the size of the bank (BS) as well as the market concentration index for loans (HHI_loans). The strongest (positive impact) on the second dependent variable, i.e., return on equity (ROE), was achieved by the following independent variables: growth rate of total loans (GRTL) as well as the variable related to foreign-owned banks (FB). On the other hand, the strongest negative impact was recorded by the following independent variables: market concentration index for loans (HHI_loans) and bank size (BS). The third independent variable, i.e., net interest margin (NIM), had the strongest positive impact on the following independent variables: foreign-owned banks (FB) and credit growth rate (GRTL). On the other hand, the strongest negative impact was recorded by the following independent variables: concentrations for credit placements (HHI) and bank size (BS).

The main objective of this quantitative study is to examine the relationship between the following independent variables: capital adequacy ratio (CAR), liquid assets to total assets (LATA) and bank size (BS) and dependent variables: return on assets (ROA), credit worthiness indicator (Zscore) and return on equity (ROE) for selected Western Balkan bank countries. This model was estimated using a panel data methodology based on the assumption of a fixed and a random effect as decided in the Hausman test. The results showed that the variable size of the bank (BS) has a positive effect on the return on assets of banks in the Western Balkans, while the variable liquid assets to total assets (LATA) and capital adequacy ratio (CAR) have a negative impact. The results also showed that the variable share of liquid assets in total assets has a positive impact on the creditworthiness indicator of banks in the Western Balkans (ZScore). The third result is the variable return on equity (ROE) and it had the strongest positive impact with the independent variable size of the bank.

Bancassurance is a term used to describe a partnership or relationship between a bank and an insurance company, where the insurance company uses a banking sales channel to sell insurance products. The implementation of banking insurance activities in the financial system contributes to the strengthening of the competitive environment, the development of new insurance products, and greater satisfaction of customer needs. The main goal of this research is to point out the importance and significance of the application of bank insurance for both financial institutions, through the analysis of financial performance indicators of both banks and insurance companies, through the aspect of income and expenses. Also, this research presents an econometric analysis that tests the impact of other income, profit/loss growth rate, as well as the cost-income ratio as independent variables and their impact on the dependent variable, i.e., return on assets of banks in Bosnia and Herzegovina. The results of the econometric analysis showed that other revenues have the greatest impact on the profitability of banks in B&H. The weakest impact on bank profitability has a cost-to-earnings ratio.

Abstract This research includes all banks in Bosnia and Herzegovina (B&H) and testing internal and external variables on bank profitability indicators. The primary goal of this paper is to determine, through correlation and regression analysis, the strength and significance of the external and internal variables on bank profitability in Bosnia and Herzegovina. Likewise, data were collected from quarterly reports of the Banking Agency of the Federation of B&H and the Banking Agency of the Republika Srpska for the period 2008 Q1 to 2019 Q4. The following dependent variables were used: ROA, ROE and independent variables: GRNGL, GRNPL, GRGDP, concentration ratio of loans of the largest banks in the system (CR Loans), concentration ratio of deposits of the largest banks in the system (CR Deposits), CAR and loan-to-deposit ratio. The study found that there is a significant statistical impact of the variables on ROA and ROE. In addition, this study points out the need for banks to properly select debtors, and control costs, toxic loans and provisions in order to increase profits and reduce costs.

This research was conducted to identify variables that affect the efficiency of banks in Bosnia and Herzegovina. The required data were collected from 30 respondents (banks directors and CEOs) and a targeted set of 20 questions. For the purposes of data analysis, the statistical technique of factor analysis was used with the help of principal components. In the process of implementing this technique, the general applicability of the model and each variable was tested in order to identify key indicators that affect the efficiency of bank operations. Therefore, the main objective of this research is to identify the factors that most affect the efficiency of banks in Bosnia and Herzegovina. The results of the research showed that the value of the Kaiser-Meyer-Olkin (KMO) is greater than 0.50, which certainly confirms the application of factor analysis, that is, the significance of certain variables on the efficiency and effectiveness of banks in Bosnia and Herzegovina. Also, the factor rotation matrix indicates that the following variables have the greatest impact on the efficiency and effectiveness of banks operations: the bank provides fast service (q8), the banks communication with clients is good (q9), to meet when granting loans (q19), banks provide different types of loans (q14) and banks offer moderate interest rates on credit placements (q15).

The optimal capital structure differs between companies and depends on the nature of the business, the characteristics of the business, etc. Usually when business income is higher, there is a reduction in business risk, while, on the other hand, higher profits and accumulated profits lead to an increase in investments and debt. In the research 10 companies of the power sector, representing the stock exchange index ERS 10 were examined. The following dependent variable was used: short term debt to total liabilities (STDTL). The following independent variables were used: current ratio (CR), return on capital employed (ROCE), earning before interest taxes depreciation (EBITDA), return on assets (ROA), return on equity (ROE),  the tangibility of assets (TOA), firm size (FS) and gross domestic product growth (GDP growth). The research period covered the years from 2008-2018 on a semi-annual basis. The total number of observations was 220. The main objective of the paper is to determine explanatory factors that influence the changes in short-term indebtedness and profitability of 10 companies within the power sector of Republika Srpska entity that constitute the stock exchange index ERS 10 in the period 2008-2018 on a semiannual basis (a total of 220 observations). The dependent variable is a short term debt to total liabilities (STDTL) while independent variables are as follows: current ratio (CR), return on capital employed (ROCE), earnings before interest, taxes and depreciation (EBITDA), return on assets (ROA), return on equity (ROE), the tangibility of assets (TOA), firm size (FS) and GDP growth. 

The phenomenon of financial stability has gained importance as monetary and fiscal policies aiming at price stability in the global crises are not sufficient to prevent financial crises. After 2007 global crisis, the importance of bank stability better understood. This paper investigates the determinant of bank stability in selected Balkan countries and Turkey. For this aim, we used to Z-score and NPL as dependent variables. We used bank performance, financial structure and macro variables as independent variables. According to ANOVA test and regression analysis, the strongest correlation between non-performing loans as the dependent variable of the Western and some EU Member countries (Bosnia and Herzegovina, Serbia, Croatia, Slovenia, Montenegro, Macedonia) and Turkey was achieved with the following independent variables: the total non-interest income to total income and foreign bank assets to total bank assets. Observed on the other hand, the weakest link between NPLs as a dependent variable was achieved with the following independent variables: the gross domestic product, the net interest margin ratio, Lerner index and the cost to income. Another dependent variable, i.e., Z-score was recorded the strongest correlation with the following independent variables in the model: the gross domestic product, the Lerner index, the net interest margin and the cost to income. The weakest link was achieved with the following independent variables: the total non-interest income to total income and the foreign bank assets to total assets.