Determinants of the Profitability in the Czech Banking Industry
The aim of this paper is to estimate the banking profitability determinants of the Czech commercial banks during the period 2004-2014. For estimation of banking profitability we used three common measures, namely the Return on Assets, Return on Equity and Net Interest Margin. We est...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Finance and Administration
2016-12-01
|
| Series: | ACTA VŠFS |
| Subjects: | |
| Online Access: | https://is.vsfs.cz/auth/repo/5752/ACTA_VSFS_2_2016_paleckova.pdf |
| _version_ | 1828724773254856704 |
|---|---|
| author | Iveta Palečková |
| author_facet | Iveta Palečková |
| author_sort | Iveta Palečková |
| collection | DOAJ |
| description | The aim of this paper is to estimate the banking profitability determinants of the Czech
commercial banks during the period 2004-2014. For estimation of banking profitability
we used three common measures, namely the Return on Assets, Return on Equity and Net
Interest Margin. We estimated twelve determinants of banking performance. The effect of
the determinants of banking profitability is estimated using panel data analysis. The data
set is consists of seventeen commercial banks in the Czech Republic. The results show that
the profitability was positively influenced by the bank’s size, capitalization, credit risk, level
of concentration, ownership structure and bank’s market share. Number of branches of
the bank had the negative impact on ROA and ROE. on the other hand, the variables Gross
Domestic Product, interest rate, liquidity risk, riskiness of bank’s portfolio and affiliation
with financial conglomerate have not got the significant influence on profitability of the
Czech commercial banks. |
| first_indexed | 2024-04-12T13:14:26Z |
| format | Article |
| id | doaj.art-b446a2784655457f820656859bb45491 |
| institution | Directory Open Access Journal |
| issn | 1802-792X 1802-7946 |
| language | English |
| last_indexed | 2024-04-12T13:14:26Z |
| publishDate | 2016-12-01 |
| publisher | University of Finance and Administration |
| record_format | Article |
| series | ACTA VŠFS |
| spelling | doaj.art-b446a2784655457f820656859bb454912022-12-22T03:31:45ZengUniversity of Finance and AdministrationACTA VŠFS1802-792X1802-79462016-12-01102/2016142158Determinants of the Profitability in the Czech Banking IndustryIveta Palečková0Silesian University in OpavaThe aim of this paper is to estimate the banking profitability determinants of the Czech commercial banks during the period 2004-2014. For estimation of banking profitability we used three common measures, namely the Return on Assets, Return on Equity and Net Interest Margin. We estimated twelve determinants of banking performance. The effect of the determinants of banking profitability is estimated using panel data analysis. The data set is consists of seventeen commercial banks in the Czech Republic. The results show that the profitability was positively influenced by the bank’s size, capitalization, credit risk, level of concentration, ownership structure and bank’s market share. Number of branches of the bank had the negative impact on ROA and ROE. on the other hand, the variables Gross Domestic Product, interest rate, liquidity risk, riskiness of bank’s portfolio and affiliation with financial conglomerate have not got the significant influence on profitability of the Czech commercial banks.https://is.vsfs.cz/auth/repo/5752/ACTA_VSFS_2_2016_paleckova.pdfperformancereturn on assetsreturn on equitypanel data analysisbank-specific factorsmarket-specific factorsbanking sector |
| spellingShingle | Iveta Palečková Determinants of the Profitability in the Czech Banking Industry ACTA VŠFS performance return on assets return on equity panel data analysis bank-specific factors market-specific factors banking sector |
| title | Determinants of the Profitability in the Czech Banking Industry |
| title_full | Determinants of the Profitability in the Czech Banking Industry |
| title_fullStr | Determinants of the Profitability in the Czech Banking Industry |
| title_full_unstemmed | Determinants of the Profitability in the Czech Banking Industry |
| title_short | Determinants of the Profitability in the Czech Banking Industry |
| title_sort | determinants of the profitability in the czech banking industry |
| topic | performance return on assets return on equity panel data analysis bank-specific factors market-specific factors banking sector |
| url | https://is.vsfs.cz/auth/repo/5752/ACTA_VSFS_2_2016_paleckova.pdf |
| work_keys_str_mv | AT ivetapaleckova determinantsoftheprofitabilityintheczechbankingindustry |