Do Size and Origin Matter? Evidence from the Banking Market of Bosnia and Herzegovina

Dublin Core

Title

Do Size and Origin Matter? Evidence from the Banking Market of Bosnia and Herzegovina

Author

MEMIĆ, Deni
MEMIĆ, Nedim
PAŠIĆ, Sanela

Abstract

This paper supports research activities related to the performances of banks in Bosnia and Herzegovina. Observing diversified, decentralized and inhomogeneous banking market of Bosnia and Herzegovina arises questions such as whether large banks are better than small banks or whether foreign owned banks are better than locally owned banks. The main purpose of this study is to compare banks of different size and ownership origin in Bosnia and Herzegovina. The dataset includes 162 bank-years data and 24 financial ratios. The results show that small banks in Bosnia and Herzegovina have significantly higher net interest margin and are better capitalized than large banks. Large banks, however earn almost double interest revenue per employee compared to small banks. Foreign banks are significantly larger compared to local banks. It is also possible to discriminate between banks of different size and origin based on their financial performance. Keywords: Bosnia and Herzegovina, banking, profitability, efficiency, size and origin

Keywords

Article
PeerReviewed

Identifier

ISSN 1986 – 8502,

DOI

doi:http://dx.doi.org/10.14706/JECOSS16616

Publisher

International Burch University

Date

2016

Extent

3251

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