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CONTEMPORARY ISSUES IN ECONOMY & TECHNOLOGY

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Financial ratios of commercial banks in the Republic of Croatia

Banks are an important part of the financial system and they have an important role in contributing to the economic development of the country. They play a vital role in the distribution of a country’s economic resources. Banks are intermediaries between savings and investors. If banks have poor indicators, it can have repercussions for the country's economy which leads to the conclusion that a safe and profitable banking system is of utmost importance to a country. The financial crisis has also affected the business operations of banks in Croatia. This paper examines the performance of commercial banks in the Republic of Croatia in the period from 2009. to 2014. Profitability, liquidity, capitalization and credit quality are shown through financial ratios analysis. The database used for the analysis was created from the annual reports of banks, the newsletters published periodically by the Croatian National Bank, and other publicly available information.

Author(s):

Branko Sorić    
University Department of Professional Studies, Split, Croatia
Croatia

Toni Šušak    
University Department of Professional Studies, Split, Croatia
Croatia

 

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