Correlation and regression analysis of Serbian banking sector

Abstract

Starting from the known elements of input and output of every bank it is important to track correlation between them, as is to determine their regression connections. For example, inputs could be the number of employees, capital and bank assets, and outputs could be profit prior or after taxation, or total bank revenue. Certain specific models will be analyzed in this paper. The emphasis is on measuring the correlation and determining the regression models between the most important figures of Serbian banking sector. The analysis encompasses all data from financial reports of the banks that were active in Serbia in 2010.