Profitabilitatea societăţilor bancare din România – Evidențe empirice privind factorii determinanți
Profitability of Romanian banking companies – Empirical evidence of determining factors

Summary/Abstract: Using, as a starting point of this research, existing studies that address the profitability of banking institutions and the correlation of this indicator with their financial statements, this study analyses the factors that significantly influence the efficiency of banking entities, as well as the nature of these influences. It identifies the traditional determinants for the profitability of those specific entities, and includes them as input variables within the chosen modelling functions. The influence of national factors is also included, using specific variables that are tested on a sample of 8 existing financial-banking institutions, which act on the money markets and, partially, on the capital market of Romania, for a time period of 11 years, using the fixed effects modelling (FEM) technique. ROE and ROA, representing the profitability rates on equity and total assets are the dependent variables and, for the explanatory variables, this study uses liquidity, solvability and asset quality rates. For the multiple regressions, the profitability variable remains positively correlated with the previously mentioned variables, and the special cases will be discussed in the conclusions of this paper.

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