European Financial and Accounting Journal 2010, 5(3):75-83 | DOI: 10.18267/j.efaj.56

Structural Determinants of the Total Loans Volume in the Czech Republic

Iveta Řepková
Ing. Iveta Řepková - Ph.D. student; Department of Finance at Silesian University in Opava, School of Business Administration in Karviná, Univerzitní náměstí 1934/3, 733 40 Karviná, Czech Republic; .

The aim of this paper is to analyze the structural determinants of the total loans volume in the Czech banking sector. Analysis of five selected characteristics is realized in period 2000-2008. It used the OLS regression analysis for estimate of model. The regression analysis showed that the concentration of the credit market and the profitability calculated as the return on assets (ROA) has positive impact to total loans and the quality of portfolio has negative impact to total loans. If the share of classified loans to total loans is decreasing, total loans volume is rising and if concentration ratio of the credit market and return of assets are rising, total loans volume is also rising.

Keywords: Banking sector, Concentration, Interest rate, Ordinary least squares (OLS), Profitability, Regression analysis, Return on Assets (ROA), Total loans
JEL classification: C58, G21

Published: October 1, 2010  Show citation

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Řepková, I. (2010). Structural Determinants of the Total Loans Volume in the Czech Republic. European Financial and Accounting Journal, 5(3), 75-83. doi: 10.18267/j.efaj.56
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