Determinants of Profitability of Commercial Banks
The paper is devoted to the identification of key factors which influence commercial banks’ economic profit. The data of 50 Russian banks from 2011 to 2020 are analysed. Among the determinants of banks’ profitability, the factors of operational, financial, and macroeconomic profile are investigated...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
EDP Sciences
2023-01-01
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| Series: | E3S Web of Conferences |
| Online Access: | https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/18/e3sconf_aquaculture2023_02013.pdf |
| _version_ | 1797843639520460800 |
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| author | Smolina Elena Markovskaya Elizaveta Krupnov Yuriy |
| author_facet | Smolina Elena Markovskaya Elizaveta Krupnov Yuriy |
| author_sort | Smolina Elena |
| collection | DOAJ |
| description | The paper is devoted to the identification of key factors which influence commercial banks’ economic profit. The data of 50 Russian banks from 2011 to 2020 are analysed. Among the determinants of banks’ profitability, the factors of operational, financial, and macroeconomic profile are investigated with the use the system generalized method of moments (GMM). The novelty of the study concerns the expansion of the existing list of determinants which influence the banks’ profitability with additional factors, such as the level of service, the type of business model, insolvency risk. Also, the paper implies the use of spread of Economic Value Added as a measure of banks’ profitability, which relates to rather new and less studied economic approach in the existing literature compared with traditional ROA and ROE indicators. It is important to establish that there are no actual studies of Russian banking sector in the existing literature. The obtained results of the current study of Russian commercial banks can be used for both internal and external purposes. |
| first_indexed | 2024-04-09T17:08:34Z |
| format | Article |
| id | doaj.art-5d686a55ece04dbab02ff7b27fd555ce |
| institution | Directory Open Access Journal |
| issn | 2267-1242 |
| language | English |
| last_indexed | 2024-04-09T17:08:34Z |
| publishDate | 2023-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | E3S Web of Conferences |
| spelling | doaj.art-5d686a55ece04dbab02ff7b27fd555ce2023-04-20T08:23:15ZengEDP SciencesE3S Web of Conferences2267-12422023-01-013810201310.1051/e3sconf/202338102013e3sconf_aquaculture2023_02013Determinants of Profitability of Commercial BanksSmolina Elena0Markovskaya Elizaveta1Krupnov Yuriy2The National Research University Higher School of EconomicsThe National Research University Higher School of EconomicsFinancial University Under the Government of the Russian FederationThe paper is devoted to the identification of key factors which influence commercial banks’ economic profit. The data of 50 Russian banks from 2011 to 2020 are analysed. Among the determinants of banks’ profitability, the factors of operational, financial, and macroeconomic profile are investigated with the use the system generalized method of moments (GMM). The novelty of the study concerns the expansion of the existing list of determinants which influence the banks’ profitability with additional factors, such as the level of service, the type of business model, insolvency risk. Also, the paper implies the use of spread of Economic Value Added as a measure of banks’ profitability, which relates to rather new and less studied economic approach in the existing literature compared with traditional ROA and ROE indicators. It is important to establish that there are no actual studies of Russian banking sector in the existing literature. The obtained results of the current study of Russian commercial banks can be used for both internal and external purposes.https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/18/e3sconf_aquaculture2023_02013.pdf |
| spellingShingle | Smolina Elena Markovskaya Elizaveta Krupnov Yuriy Determinants of Profitability of Commercial Banks E3S Web of Conferences |
| title | Determinants of Profitability of Commercial Banks |
| title_full | Determinants of Profitability of Commercial Banks |
| title_fullStr | Determinants of Profitability of Commercial Banks |
| title_full_unstemmed | Determinants of Profitability of Commercial Banks |
| title_short | Determinants of Profitability of Commercial Banks |
| title_sort | determinants of profitability of commercial banks |
| url | https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/18/e3sconf_aquaculture2023_02013.pdf |
| work_keys_str_mv | AT smolinaelena determinantsofprofitabilityofcommercialbanks AT markovskayaelizaveta determinantsofprofitabilityofcommercialbanks AT krupnovyuriy determinantsofprofitabilityofcommercialbanks |