Paper Title
Estimation of Relationship Between The Dynamic Efficiency And Profitability in The Banking Sector

Abstract
The aim of the paper is to estimate the relationship between efficiency and profitability in banking sectors of Bosnia and Herzegovina, Croatia, Serbia and Slovenia within the period 2005-2014. First we estimated the efficiency and profitability of commercial banks of selected countries. For estimation of banking efficiency we employed the Dynamic Data Envelopment Analysis. For the measurement of profitability we use two common indicators: Return on Average Assets and Return on Average Equity. We estimated the relationship of efficiency and profitability using correlation coefficient and Granger Causality test. We do not confirm the relationship between banking efficiency and profitability of banking sectors. Index Terms- Commercial banks, Dynamic Data Envelopment Analysis, Efficiency, Profitability.