Open AccessEFFECT OF THE REGULATORY FRAMEWORK BASEL III ON BENEFITS OF THE BANKING SECTOR IN THE REPUBLIC OF NORTH MACEDONIA
Author(s) -
Zhelao Vytev,
Hazir Gashi
Publication year - 2019
Publication title -
knowledge
Language(s) - English
Resource type - Journals
eISSN - 2545-4439
pISSN - 1857-923X
DOI - 10.35120/kij310181v
Subject(s) - profitability index , basel iii , net interest margin , earnings , business , financial system , unit (ring theory) , asset quality , capital adequacy ratio , economics , industrial organization , finance , return on assets , capital requirement , microeconomics , profit (economics) , mathematics education , mathematics , incentive
Object of attention in the present work is the profitability and efficiency of banks in the Republic of Northern Macedonia. The subject of the study is focused on the strength and direction of influence of the new Basel III regulatory framework on their final financial results. The purpose of the paper is to reveal the effect of using modern regulatory requirements on the profitability of the country's banking system. The study includes observations on developments in the banking sector for the period 2007-2018. A coefficient of analysis is applied using a system of appropriately selected indicators: cost / income ratio, ROA, asset yield, earnings margin, unit costs, net earnings per share unit cost of staff efficiency factor. An analysis of real empirical data reveals that the implementation of the new regulatory measures does not have a negative effect on the final financial results of the banks, but rather a trend towards improvement of a number of their key financial indicators.