Bank specific determinants of EU banks profitability after 2007 financial crisis
The basic purpose of the paper is to research determinants on profitability indicators of the banks in the European Union. Analysed bank profitability indicators considered as a standard are: the return on total bank assets (ROA) and return on total bank equity (ROE). The research model of bank prof...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Split, Faculty of Economics
2020-01-01
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| Series: | Management : Journal of Contemporary Management Issues |
| Subjects: | |
| Online Access: | https://hrcak.srce.hr/file/347106 |
| _version_ | 1797207239499448320 |
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| author | Roberto Ercegovac Ivica Klinac Ivica Zdrilić |
| author_facet | Roberto Ercegovac Ivica Klinac Ivica Zdrilić |
| author_sort | Roberto Ercegovac |
| collection | DOAJ |
| description | The basic purpose of the paper is to research determinants on profitability indicators of the banks in the European Union. Analysed bank profitability indicators considered as a standard are: the return on total bank assets (ROA) and return on total bank equity (ROE). The research model of bank profitability determinants is developed by analysing the systemically important, quoted banks in the European Union, in the 2007–2019 period, by using an adequate panel data analysis technique. The empirical evidence is in line with the initial assumptions: the efficiency of the banking firm, measured by the cost to income ratio and the non-performing loans ratio, has a significant influence on bank profitability, both on ROA and ROE. In the post-crisis period, banking firms ask for efficient cost management in achieving performance objectives. Additional important empirical results of research are the absence of impact of assets size and regulatory capital ratio on profitability indicators. The most important contribution of the paper is related to the sample definition, variable selection and explanatory power of the presented model in explaining global banking tendencies. |
| first_indexed | 2024-04-24T09:19:45Z |
| format | Article |
| id | doaj.art-d6cfd0283ff744da8f2b84f4da9150c9 |
| institution | Directory Open Access Journal |
| issn | 1331-0194 1846-3363 |
| language | English |
| last_indexed | 2024-04-24T09:19:45Z |
| publishDate | 2020-01-01 |
| publisher | University of Split, Faculty of Economics |
| record_format | Article |
| series | Management : Journal of Contemporary Management Issues |
| spelling | doaj.art-d6cfd0283ff744da8f2b84f4da9150c92024-04-15T16:14:29ZengUniversity of Split, Faculty of EconomicsManagement : Journal of Contemporary Management Issues1331-01941846-33632020-01-012518910210.30924/mjcmi.25.1.5Bank specific determinants of EU banks profitability after 2007 financial crisisRoberto Ercegovac0Ivica Klinac1Ivica Zdrilić2OTP bank plc & University of Split - Faculty of Economics, Business & Tourism, Split, CroatiaUniversity of Zadar, Department of Economics, Zadar, CroatiaUniversity of Zadar, Department of Economics, Zadar, CroatiaThe basic purpose of the paper is to research determinants on profitability indicators of the banks in the European Union. Analysed bank profitability indicators considered as a standard are: the return on total bank assets (ROA) and return on total bank equity (ROE). The research model of bank profitability determinants is developed by analysing the systemically important, quoted banks in the European Union, in the 2007–2019 period, by using an adequate panel data analysis technique. The empirical evidence is in line with the initial assumptions: the efficiency of the banking firm, measured by the cost to income ratio and the non-performing loans ratio, has a significant influence on bank profitability, both on ROA and ROE. In the post-crisis period, banking firms ask for efficient cost management in achieving performance objectives. Additional important empirical results of research are the absence of impact of assets size and regulatory capital ratio on profitability indicators. The most important contribution of the paper is related to the sample definition, variable selection and explanatory power of the presented model in explaining global banking tendencies.https://hrcak.srce.hr/file/347106bank profitabilityregulatory requirementsdynamic panel modelssystemically important banksEuropean banking sector |
| spellingShingle | Roberto Ercegovac Ivica Klinac Ivica Zdrilić Bank specific determinants of EU banks profitability after 2007 financial crisis Management : Journal of Contemporary Management Issues bank profitability regulatory requirements dynamic panel models systemically important banks European banking sector |
| title | Bank specific determinants of EU banks profitability after 2007 financial crisis |
| title_full | Bank specific determinants of EU banks profitability after 2007 financial crisis |
| title_fullStr | Bank specific determinants of EU banks profitability after 2007 financial crisis |
| title_full_unstemmed | Bank specific determinants of EU banks profitability after 2007 financial crisis |
| title_short | Bank specific determinants of EU banks profitability after 2007 financial crisis |
| title_sort | bank specific determinants of eu banks profitability after 2007 financial crisis |
| topic | bank profitability regulatory requirements dynamic panel models systemically important banks European banking sector |
| url | https://hrcak.srce.hr/file/347106 |
| work_keys_str_mv | AT robertoercegovac bankspecificdeterminantsofeubanksprofitabilityafter2007financialcrisis AT ivicaklinac bankspecificdeterminantsofeubanksprofitabilityafter2007financialcrisis AT ivicazdrilic bankspecificdeterminantsofeubanksprofitabilityafter2007financialcrisis |