Title The impact of macroeconomic factors on the performance of commercial banks: the case of Lithuania /
Authors Giziene, Vilda ; Laskiene, Daiva ; Stravinskas, Tomas ; Petrike, Indre ; Juodzbalyte, Ineta
DOI 10.5755/j01.ee.35.5.37025
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Is Part of Inžinerinė ekonomika = Engineering economics.. Kaunas : KTU. 2024, vol. 35, iss. 5, p. 614-629.. ISSN 1392-2785. eISSN 2029-5839
Keywords [eng] macroeconomic factors ; banking sector’s performance ; loan portfolio ; interest income ; services and commission income
Abstract [eng] In recent years, the stability and performance of commercial banks have become increasingly intertwined with macroeconomic conditions. This study explores the complex relationship between macroeconomic factors and the performance of Lithuanian commercial banks. By analyzing empirical data, we seek to understand how fluctuations in various economic indicators affect interest income, service and fee income and loan portfolio size in the Lithuanian banking sector. There is a lack of such research, as the efficiency of banks' operations and the sensitivity of loan portfolio quality to changes in macroeconomic indicators depend mostly on the structure and characteristics of the banking sector in each country. The results of the study show that the impact of macroeconomic fluctuations on the Lithuanian commercial banking sector is relatively limited. Understanding the impact of macroeconomic factors on commercial banks is crucial for policy makers, investors, and practitioners. Identifying these linkages can improve risk management practices, strengthen regulatory frameworks, and promote financial stability.
Published Kaunas : KTU
Type Journal article
Language English
Publication date 2024
CC license CC license description