Effectiveness of risk capital (own funds) in the Polish banking sector in the years of 2002–2016

Abstract

The analysis of effectiveness of risk capital in the Polish banking sector have become the main aim of the study. In the article, statistical and econometric methods were used, based on a linear regression model of net profit in relation to the value of own funds of the banking sector in Poland in the years of 2002–2016. Next, through the quartile method, there were estimated the relations between effectiveness and a level of risk capital of the largest banks in Poland. Conducted research were aimed to verify the research hypothesis stating that in the Polish banking sector there is a positive correlation between net profit and banks’ own funds, which constitute an essential component of bank risk capital.