An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada
The 2008 financial crisis had a major impact on financial markets, especially on the banking system. Mortgage-backed security investments were among the causes that determined the tremendous shortage of cash. Before the crisis, American banks were considered important investors on these markets, as...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-12-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/9/24/3178 |
| _version_ | 1797502646668492800 |
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| author | Larissa M. Batrancea |
| author_facet | Larissa M. Batrancea |
| author_sort | Larissa M. Batrancea |
| collection | DOAJ |
| description | The 2008 financial crisis had a major impact on financial markets, especially on the banking system. Mortgage-backed security investments were among the causes that determined the tremendous shortage of cash. Before the crisis, American banks were considered important investors on these markets, as indicated by the structure of their assets and liabilities. How grounded were their investment decisions? To answer this question, the study examined the influence of financial performance on bank assets and liabilities of the most important 45 banks from Europe and Israel, United States of America, and Canada during the period 2006–2020. Through a panel generalized method of moments approach, empirical results indicated a strong impact of bank assets and liabilities ratios on financial performance indicators. The study emphasizes that bank managers, researchers, regulators, and supervisors should consider investment policies, especially for bank assets and liabilities. Therefore, a high level of interest income is an important tool for increasing assets and liabilities. At the same time, fees are other levers that could improve bank benefits and ultimately develop the lending activity when interest income enters a descending trend. |
| first_indexed | 2024-03-10T03:38:06Z |
| format | Article |
| id | doaj.art-65096bd656ef4107a1df94449b1d0436 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T03:38:06Z |
| publishDate | 2021-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-65096bd656ef4107a1df94449b1d04362023-11-23T09:25:17ZengMDPI AGMathematics2227-73902021-12-01924317810.3390/math9243178An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and CanadaLarissa M. Batrancea0Department of Business, Babeş-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, RomaniaThe 2008 financial crisis had a major impact on financial markets, especially on the banking system. Mortgage-backed security investments were among the causes that determined the tremendous shortage of cash. Before the crisis, American banks were considered important investors on these markets, as indicated by the structure of their assets and liabilities. How grounded were their investment decisions? To answer this question, the study examined the influence of financial performance on bank assets and liabilities of the most important 45 banks from Europe and Israel, United States of America, and Canada during the period 2006–2020. Through a panel generalized method of moments approach, empirical results indicated a strong impact of bank assets and liabilities ratios on financial performance indicators. The study emphasizes that bank managers, researchers, regulators, and supervisors should consider investment policies, especially for bank assets and liabilities. Therefore, a high level of interest income is an important tool for increasing assets and liabilities. At the same time, fees are other levers that could improve bank benefits and ultimately develop the lending activity when interest income enters a descending trend.https://www.mdpi.com/2227-7390/9/24/3178banking industryassets structureliabilities structureperformance |
| spellingShingle | Larissa M. Batrancea An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada Mathematics banking industry assets structure liabilities structure performance |
| title | An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada |
| title_full | An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada |
| title_fullStr | An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada |
| title_full_unstemmed | An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada |
| title_short | An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada |
| title_sort | econometric approach on performance assets and liabilities in a sample of banks from europe israel united states of america and canada |
| topic | banking industry assets structure liabilities structure performance |
| url | https://www.mdpi.com/2227-7390/9/24/3178 |
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