The determinants of commercial banks' profitability in the South-Eastern Europe region: a system GMM approach
Guidi, Francesco ORCID: https://orcid.org/0000-0002-2682-189X (2022) The determinants of commercial banks' profitability in the South-Eastern Europe region: a system GMM approach. In: Nguyen, Duc, (ed.) Handbook of Banking and Finance in Emerging Markets. Economics 2022 . Edward Elgar Publishing, UK, pp. 200-217. ISBN 978-1800880900; 978-1800880894 (doi:10.4337/9781800880900.00018)
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Abstract
This study investigates the determinants of banks' profitability using a sample of 169 commercial banks located in seven countries in South-Eastern Europe (SEE). Specifically, this study employs dynamic panel data analysis based on the generalised method of moments (GMM) over a period spanning 2003-2012. By using alternative measures of profitability, such as Return on Assets (ROA) and Return on Equity (ROE), the empirical findings presented in this study suggest that total assets and loan loss provisions usually have more pronounced effects on SEE banks' profitability than other variables. Splitting the sample into small and large banks, this study finds that the determinants of profitability on small banks have a larger effect in comparison to large banks, irrespective of the profitability measures used in the analysis.
Item Type: | Book Section |
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Uncontrolled Keywords: | banking profitability; commercial banks; panel GMM; South-Eastern Europe |
Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions |
Faculty / School / Research Centre / Research Group: | Faculty of Business Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA) |
Related URLs: | |
Last Modified: | 02 Dec 2024 16:08 |
URI: | http://gala.gre.ac.uk/id/eprint/38086 |
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