Good day,

I have a sample of European countries and I'm analyzing bank profitability for EU banks with panel data. However, Italy is heavily overweighted in my sample, as it constitutes more than half of all observations. I suspect it's because there are many small Italian banks in the sample that are not very representative of the overall EU banking sector, but I was wondering if I can test this with a two-sample KS test? I have split the sample with a dummy into Italian banks and the rest of the EU banks and so if I test for difference in distributions, would this be indicative that I should drop some smallest banks in Italy? I have already performed ttests, but I was wondering if I can also supplement these with a two-sample KS test?

I apologize if this is a very basic question, but I would greatly appreciate your help!