Determinants of bank profitability: Evidence from the Greek banking sector

This paper investigates the effects of bank-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct- Performance (SCP) hypothesis. A panel data approach has been adopted and effectively applied to six Greek banks...

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Bibliographic Details
Main Authors: Alexiou Constantinos, Sofoklis Voyazas
Format: Article
Language:English
Published: Faculty of Economics, Belgrade 2009-01-01
Series:Ekonomski Anali
Subjects:
Online Access:http://www.doiserbia.nb.rs/img/doi/0013-3264/2009/0013-32640982093A.pdf
Description
Summary:This paper investigates the effects of bank-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct- Performance (SCP) hypothesis. A panel data approach has been adopted and effectively applied to six Greek banks. The evidence generated suggests that for any consistent or systematic size the profitability relationship is relatively weak. Most of the bank-specific determinants were found to significantly affect bank profitability. A more ambiguous picture emerged when the macroeconomic factors were considered.
ISSN:0013-3264