ANALYSIS AND EVALUATION OF STRATEGIC MANAGEMENT IN THE GREEK BANKING SECTOR BEFORE AND DURING THE ECONOMIC CRISIS, 2000-2015.

ANALYSIS AND EVALUATION OF STRATEGIC MANAGEMENT IN THE GREEK BANKING SECTOR BEFORE AND DURING THE ECONOMIC CRISIS, 2000-2015.

TRIPERINA PANAGIOTA

Abstract

The banking industry has undergone significant growth in recent decades. These changes are in progress and are expected to continue in the future. Regarding the current study, one of the major elements of the analysis is the conditions and the development of the banking environment in Greece and the Balkan countries.
Having examined the external factors of the banking environment in Greece and the other Balkan countries, the current study examines three hypotheses: H1: GDP growth rate has a positive effect to banks’ profitability. H2: A higher capital adequacy ratio has a negative effect to banks’ Return on Assets and Return on Equity. H3. Total liquidity has a negative effect to banks’ Return on Assets and Return on Equity.
In the study, there is a regression analysis, for the four banks in Bulgaria and Romania –subsidiaries of Greek banks- in order to identify the relation between the performance of the banks. As indicators of performance are, in one case the Return on Assets (ROA) and in the other case the Return on Equity (ROE).
One key conclusion of the research is that Bulgarian and Romanian banks have higher efficiency than the Greek banks, which are the parent companies. Another key point that resulted in the financial problems of Greek banks was the fact that they were increasing their loans provided to the Greek governments.

Key words

Banks, Balkan countries, economic crisis, Greece

JEL Codes: G14, G20, G21, G30, G32, G34

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