EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA

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Erëza A. Arifi
https://orcid.org/0000-0001-5197-1606

Abstract

The core objective of this study is to explore whether the installation of automated teller machines (ATM) and commercial bank branches (CBB) affects the profitability of the banking systems in Kosovo and North Macedonia. Additionally, several influential variables, such as bank capital-to-assets (BCA), inflation (INF), and GDP growth (GDP_G), were used in the research. More specifically, the research deals with secondary data from 2010 to 2022 using the dynamic data analysis technique generalized method of moments (GMM). The evidence indicates that ATM adoption has a substantial positive influence on bank profitability. Similarly, BCA and GDP_G have a positive influence on bank profitability. Nevertheless, CBB and inflation have had a substantial negative influence on both metrics. The research’s scientific merit and novelty are derived from features unique to earlier studies. The study claims to open up new avenues of debate involving scholars and legislative authorities about identifying influencing components of profitability in the banking business.

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How to Cite
Arifi, Erëza A. 2023. “EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA”. Journal of Liberty and International Affairs 9 (3):154-70. https://doi.org/10.47305/JLIA2393136a.
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Author Biography

Erëza A. Arifi, College for International Management - Prishtina, Kosovo

Ereza Arifi completed her doctoral studies in the Department of Finance at the Faculty of Economics, University of Tirana. She started her professional career in the teaching process in 2018 at the College of International Management - GLOBUS and there she earned the academic title of Assistant Professor PhD. in the subjects: Corporate Finance, Banking Management, and Public Finance. So far, she has published several papers with international indexing. Mrs Arifi has shown professional skills in other government institutions, where she was the Manager of the Procurement Department within the Ministry of Infrastructure from 2010 to 2018. She has a considerable number of scientific publications and international reviews, mainly in the field of finance.