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. 

This research includes all banks in Bosnia and Herzegovina and testing internal and external variables on bank profitability indicators. In addition, the profitability of banks in B&H is also influenced by the financial result of operations, which is determined by price and interest rate risk. The primary goal of this paper is to determine, through correlation and regression analysis, the strength and significance of external and internal variables on bank profitability in Bosnia and Herzegovina. The research period covered from 2008: q1 to 2019: q4 on a quarterly database. Also, in this paper, the STATA 13.0 software package will be used. The following dependents variable were used: return on asset (ROA) and return on equity (ROE). The following independent variables were used: the growth rate of net gross/loss (GRNGL), the growth rate of non-performing loans (GRNPL), GDP growth rate (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), capital adequacy ratio (CAR) and loan-to-deposit ratio. The total number of observations was 48. The results showed that the significant influence on the dependent variables were the return on equity (ROE) and return on asset (ROA), which has been achieved by the following independent variables, such as the growth rate of net gross/loss, the growth rate of non-performing loans and concentration ratio of loans and deposit of the largest banks.

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.

U ovom radu fokusirali smo se na istraživanje odnosa između koncentrisanosti bankarskog sistema Bosne i Hercegovine i Srbije, te uticaj na zaposlenost/nezaposlenosti u obe posmatrane zemlje. Osnovni zadaci i ciljevi istraživanja se odnose na determinisanje uticaja internih faktora banaka na zaposlenost/nezaposlenost, te prepoznavanje efekata unutrašnjih faktora na stopu nezaposlenosti. Kao zavisnu varijablu u ovom istraživanju koristili smo stopu nezaposlenosti, dok su kao nezavisne varijable poslužile sledeće: HHI indeks koncentracije, stopa rasta ukupne bankarske aktive, stopa rasta likvidne aktive prema ukupnoj aktivi. U cilju proučavanja kointegracije varijabli korišćena je metoda automatske regresijske raspodele, kao i metoda korelacije i regresije. Period istraživanja obuhvata period od 2008q1 do 2018q4. Rezultati istraživanja su pokazali da najsignifikantniji značaj na smanjenje nezaposlenosti mogu imati sledeće nezavisne varijable: stopa rasta ukupnih kredita, stopa rasta bankarske aktive, koncentracija kredita i depozita (posebno slučaj banaka u BiH). S druge strane, preveliki obim likvidnih sredstava prema ukupnim sredstvima iznad zakonskog minimum može uticati negativno na privredni rast i zaposlenost.

In the last two years, the profitability of the banking sector of Serbia has indicated the occasional tendency to recovery. Viewed over the long term, profitability of the banking sector is primarily a function of an increase in lending activities with increased control in the field of credit risk because the credit risk is an essential problem of the banking sector in the Republic of Serbia, the region and individual EU countries. Unlike credit risk, liquidity risk is very insignificant. In this paper, through an approach that has been developed by Alberts, we will explore the correlation between return and risk for a larger group of banks in the Republic of Serbia. Therefore, the main objective of the paper is to determine whether factors such as the size of the bank, i.e. business operations, lending activities, the competitive environment and the style of management of the bank have an impact on the trade-off between return and risk. Keywords: Return on invested funds, capital risk, credit risk, financial leverage

Credit risk is the most important risk among all other risks in the banking business, because almost over 80% of bank balance sheets relate to this segment of banking risk management. One of the biggest problems of commercial banks in Bosnia and Herzegovina are non-performing loans whose share in total loans has increased significantly since the onset of the global financial crisis. The main objective of the research is to determine which of the macroeconomic variables have the strongest impact on the increase of return on average equity and whether it is possible to reduce the credit risk of banks with adequate legislation as the main factor in the slowdown in credit expansion. The main goal will be to divide the impact of an independent variable, i.e. the share of liquid assets in total assets and whether its increase indirectly affects the return on equity and indirectly, the credit risk. The quantitative model used in this study will be the Merton model. Testing will be conducted through multiple regression analysis for the period 2008-2016 with the help of the software package STATA.