BANK-SPECIFIC, INDUSTRY-SPECIFIC AND MACROECONOMIC DETERMINANTS OF BANK PROFITABILITY pptx

... 31 BANK- SPECIFIC, INDUSTRY-SPECIFIC AND MACROECONOMIC DETERMINANTS OF BANK PROFITABILITY Panayiotis P. Athanasoglou Bank of Greece Sophocles N. Brissimis Bank of Greece and University ... macroeconomic determinants on the profitability of Greek banks. Novel features of our study are the analysis of the effect of the business cycle on bank profitability and the use of an appropriate ... the explanation given in Section 3. Working Paper BANK OF GREECE BANK- SPECIFIC, INDUSTRY-SPECIFIC AND MACROECONOMIC DETERMINANTS OF BANK PROFITABILITY Panayiotis P. AthanasoglouSophocles...

... 30% of Belgian banks recorded a profitability figure of less than 4%, whereas 13% of banks achieved a return on equity of more than 20%.BIS Papers No 1129Figure 4Indicators of bank profitability (average ... supervision of banks and investment undertakings, the Banking and Finance Commission (BFC). It is thus laid down that a member of the NBB is an ex officio member of the BFC’s decision-making body. The Bank ... debts Profitability of equity capital (left-hand scale)Percentage of enterprises showing a profit (right-hand scale)Loanscontracted as percentage of total creditsValue added as percentage of...

... inventories and poor short-term prospects. A thirdconclusion is that the determinants of the ex post distribution of credit by banks are veryclose to the determinants of the ex ante demand for ... sample.14 These phenomena are generated in a model of soft budget constraint in Berglof and Roland (1994).Enterprise Adjustment and the Role of Bank Credit in Russia:Evidence from a 420 Firm's ... levels of activity, low capacity utilization, and so on. Consequently,only 28% and 18% of enterprises respectively declare positive profits. Group 4 facescomparatively higher levels of demand-constraint...

... assets of firms are typically three times as volatile as the assets of banks (12% versus 3.6%). The median profitability of banks is 5.1% of assets, which is a little less than a half of firms’ profitability ... Our sample consists of 2,415 bank- year observations.6 Table I shows the number of unique banks and bank- years across countries in our sample. Table I (Unique banks and bank- years across countries) ... confounding effects of i) banks anticipating the implementation of the Basle II regulatory framework and ii) banks extensive use of off-balance sheet activities in the run-up of the subprime bubble...

... risk, and off-balance sheet banking”, Journal of Banking and Finance, 21, 1, pp. 55–87. [2] Awdeh, A and Hamadi, H., 2011, “How do banks set their capital”, Journal of Money, Investment and Banking, ... Journal of Money, Investment and Banking ISSN 1450-288X Issue 23 (2012) © EuroJournals Publishing, Inc. 2012 http://www.journalofmoneyinvestmentandbanking.com The Determinants of Bank Net ... in bank LBP and foreign currency deposit and lending rates. Consequently, the central bank and the ministry of finance started to offer lower returns on treasury bills and certificates of deposit...

... health of financial institutions and the functioning of financial markets, threaten the “independence” of central banks, and can encourage imprudent behavior on the part of governments. None of ... remainvacantaftertheirpurchase.65OnreturningfromavisittotheUSinthelate1920’s,Hayekforetoldadeepslump.Onbeingtoldthiswasimpossible,becauseUSpriceswereessentialstable,Hayekapparentlyrespondedthatthiswaspreciselytheevidence of anunderlyingproblem.Increasesinproductivityshouldhavebeenpushingpricesdown,butcreditexpansionwasholdingthembackup.66Ineffect,savingswouldproveinadequatetopurchaseall of thegoods and servicesprovidedbytheincreasedinvestmentgeneratedartificiallybycreditreceivedfromthebankingsystem.67AmongtheAME’s,onlyGermany,Switzerland and Japanfailedtoreflectthesedevelopments.Inpart,thiswasbecauseallthreecountrieswerestillrecoveringfromtheirown,earlier,housepricebubbles.68SuchconcernshavebeenexpressedinthevariouscountryreviewsorganizedbytheEconomic and DevelopmentReviewCommittee of theOECD.Australia,NewZealand,Canada,theScandinaviancountries and anumber of othersallseemtobeexposedinthisregard.Federal Reserve Bank ... mostcharacterizedbythiskind of bank behavior.Moreover,theperceivedneedtosupporttheweakcouldalsoleadtohigherinterestchargesforthosestrongenoughtoaffordit.Finally,itmightalsoimplytightercreditconditionsforpotentialnewclientswithnewideasastohowtoadaptdomesticsupplytochangingpatterns of demand and foreigncompetition82.Sinceinnovationisnowseenasaprimarydriver of productivitygrowth (and thuspotential)83,financialconstraints of thissortwouldbeparticularlyworrisome. And thiswouldbeevenmorethecaseincountries(InEurope and Japan)wherebanksremainthedominantsource of finance.The Governor of the Bank of Japan has repeatedly...

... McSHANE, R. W., and I. G. SHARPE (1985): “A time series/cross section analysis of the determinants of Australian trading bank loan/deposit interest margins: 1962-1981”, Journal of Banking and Finance, ... coefficients of variation for the loan, deposit and spread rates both over time and across banks for all the banks in the country.9 Table 3: Coefficients of Variation for the Loan, Deposit and Spread ... variation of the interest spreads observed in Brazil, the still high levels of such rates, the dispersion of rates charged across banks, and the persistence of such dispersion justify our use of panel...

... between 1988 and 2000, savings banks almost doubled the market share (in terms of number of loans to corporations) at the expense of that of commercial banks. The lack of knowledge of the business ... Choice, and the Decline of Banking, The Journal of Finance, Vol. L, n.º 5, December. HESTER, D. D. (1979). Customer Relationships and Terms of Loans, Journal of Money, Credit, and Banking, ... analysis of the role of collateral In this subsection the model is estimated allowing for differences in the effects of type of lender and number of banks relationships in the probability of default...

... the FSA, Bank of England and the Treasury. . This case raises questions regarding the impact of internet banking on the way banks and banking 3 There is a co-insurance percentage of 10% for ... concept of electronic bank run and this represents an opportunity to understand the issues at stake in terms of liquidity management and of behavior of the central bank as a lender of last resort. ... conditions and since the Bank of England was not ready to extend its loans, its assets were left unfunded. The banking authorities2 were aware of the fragile position of the bank and acknowledged...

... privatecommercial banks, state-owned banks and banks of the cooperative sector. The majority of thesebanks belong to the last two pillars. However, state-owned savings and cooperative banks operatein ... magnitude of interest risk premia in bank margins, weutilize a comprehensive dataset of the complete German universal banking sector between 2000 and 2009. Both the period of observation and the banking ... priori. Macroeconomic variables: Two macroeconomic variables are included: the annual realGDP growth rate controls for demand (for loans) and supply (of deposits) effects in bank prof-itability, and...