Macroeconomic Determinants of Bank Profitability: Evidence from Georgia

Abstract

This paper examines macroeconomic impact on the profitability of Georgian banking sector during 2003-2017 years. The bank profitability variable is Return on Assets and as for macroeconomic variables they include gross domestic product, inflation, unemployment, foreign direct investment and exchange rate. Correlation analyses and regression analyses were done. Based on this, our results suggests that macro variables have week relationship with banks profitability variable.