Background: As a complex socio-economic concept, financial inclusion is related to the improvement of access and use of formal financial products and services (such as bank deposits, loans, insurance, etc.) by all participants in the financial system. More inclusive financial systems contribute to poverty reduction, decrease in inequalities among different income groups leading to economic growth, and economies more resilient towards macroeconomic shocks. Purpose: This paper aims to assess the relationship between financial inclusion and inflation in Southeast European countries, focusing on Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Montenegro, North Macedonia, Romania, Slovenia, Serbia, and Turkey in the period from 2011 to 2021. Study design/methodology/approach: The financial inclusion index was constructed using Principal Component Analysis (PCA). The connection between the financial inclusion index and inflation was investigated using panel regression modeling (OLS, fixed-effect, and random-effect models). Findings/Conclusions: The research showed that countries with higher levels of financial inclusion are more resilient to inflation. This finding is consistent with other research implying that policymakers and other stakeholders within a financial system should contribute to promoting financial inclusion and building more inclusive financial systems. Limitations/future research: The main limitation of the research is related to data availability for multidimensional index construction. Future research should be directed to providing a better understanding of whether the relationship between financial inclusion and inflation is under the influence of other monetary policy instruments, such as interest rates.

This paper analyzes the linear and non-linear relationship between non-performing loans and bank profitability measured by the Net Interest Margin for a sample of 74 Middle Eastern and North African banks over the period of 2005–2020. We used the System Generalized Method of Moments (SGMM) as a linear approach and the Panel Smooth Transition Regression (PSTR) model as a non-linear approach. The empirical results of the SGMM approach indicated that the ratio of NPLs negatively affects bank profitability. The findings of the non-linear relationship based on the PSTR model confirmed the existence of a threshold effect. We found that below the threshold of 4.42%, the effect of NPLs is negative but not significant, while after surpassing this threshold, the effect becomes negative and significant. As for bank specifics, we revealed that bank size is positively and significantly associated with bank profitability. For industry factors, we found that more bank concentration decreases bank profitability. Regarding the financial environment, we concluded that the global financial crisis exerted a negative impact on bank profitability. Moreover, we revealed a positive and significant impact of GDP on bank profitability as well as a negative impact of inflation on bank profitability. This study has some limitations regarding the social, economic, and financial differences of the whole sample, which includes banks from the Middle East and others from North Africa. Hence, decomposing the whole sample into two sub-samples could improve the results of this paper.

The main purpose of this paper is to present a systematic literature review of studies on the determinants of non-performing loans (NPLs) published over the period 1987–2022. This paper reviewed 76 studies in 58 peer-reviewed journals. The provocation for this analysis is that the issue of NPLs is attributed to close attention from policymakers and is currently addressed with various measures. The authors synthesize the literature according to the following main boards: macroeconomic factors, bank-specific factors, and industry factors. This study tries to construct the main findings from the numerous studies that are performed concerning NPLs and their determinants. The authors’ motivation is to provide a detailed perspective on NPLs. Hence, this study provides a complete and coherent framework for the researchers to examine the varied NPL literature.

The purpose of this work is to show the development and evaluation of behavioural intentions of students by using mobile banking. The research goal is to explain determinants of students’ intentions towards the use of mobile banking. PLS SEM (partial least squares structural equation modeling) analysis was used for the model evaluation. The sample consists of 83 students from four higher education institutions operating in Bosnia and Herzegovina (B&H). Research results confirmed that subjective norm and attitude are significant predictors of the user’s attitude towards mobile banking acceptance, while the influence of self-efficacy was not determined. Attitudes related to mobile banking acceptance are primarily determined by perception of usefulness and self-efficacy, and to a lower degree by perception of privacy and security risk. Perception of mobile banking usefulness appeared to be the most significant predictor of attitudes, while simultaneously it influenced positively on acceptance of behavioral intention, including intervening effect of attitude variable. Digital literacy was proved to be a significant predictor for self-efficacy. From the perspective of banks, it is very important to see how a generation that a high potential for the use of modern technologies has perceives mobile banking, and what affects it to accept mobile banking. The results of this research are useful for banks to attract new younger users of mobile banking and increase their own benefits.

Abstract The main objective of this paper is to investigate determinants of non-performing loans in the Middle East and North Africa region by exploring the role of bank-specific and macroeconomic factors, particularly in the period of the global financial crisis, as well as the COVID-19 pandemic, as a health crisis that translates to an economic crisis. This study includes 74 banks belonging to 11 MENA countries over the period 2005–2020 and uses the two-stage system generalized method of moment estimator. To conduct a comparative analysis, the whole sample is divided into two sub-samples. The first one is related to the Middle East countries and the second one covers North African countries. The empirical findings indicate that the level of non-performing loans is more sensitive to bank specifics than macroeconomic factors. When it comes to macroeconomic factors, macroeconomic environment and institutional quality significantly affect the level of NPLs. However, no significant effect has been detected regarding the impact of the COVID-19 pandemic.

Under contemporary business conditions, there are numerous models used for the assessment of a company's financial situation and the prediction of the likelihood of its bankruptcy. These models have been mainly developed using the company's financial information. One of them is the Altman Z-score model. The model separates financially successful and stable companies from those having difficulties in business and headed for bankruptcy. This paper explains the importance of prudential information, basic financial statements and financial indicators and presents the research aimed at evaluating the applicability of the revised Altman Z'-score model in the Federation of Bosnia and Herzegovina (FBiH). Based on financial information, the paper analyzes the business activities of 50 large manufacturing companies in FBiH. The revised Z'-score model achieved a relatively good result in assessing the companies with business difficulties as it correctly classified 10 out of 20 companies; the other 10 companies were not incorrectly classified into the companies with the stable business but they were placed in the grey zone. The model proved completely reliable in the classification of all 30 companies with stable businesses. The research results indicate that the revised Altman Z'-score may be used as the predictor of the financial failure of manufacturing companies in FBiH. This model is definitely the tool that may assist while making business decisions. However, due to the specific business environment in FBiH, the model is recommended to be used as an additional rather than the basic indicator for predicting financial failure.

Organizations in today’s extremely competitive environment need to devote significant time, energy as well as human and financial resources to the measurement of their efficiency, in order to increase their profit, reduce costs, better plan their assets and manage their budgets, as well as to improve budget controls and risk assessment. Therefore, they need performance models, including the Balanced Scorecard. Primarily intended for profit organizations, the Balanced Scorecard is today used in the public sector, as well. This paper presents the research into the utilization of the Balanced Scorecard in the public sector, examining whether the performance of higher education institutions may be improved by the design and utilization of the Balanced Scorecard model.