Bank Profitability and Financial Stability

Download Bank Profitability and Financial Stability PDF Online Free

Author :
Release : 2019-01-11
Genre : Business & Economics
Kind :
Book Rating : 805/5 ( reviews)

Bank Profitability and Financial Stability - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Bank Profitability and Financial Stability write by Ms.TengTeng Xu. This book was released on 2019-01-11. Bank Profitability and Financial Stability available in PDF, EPUB and Kindle. We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the role of non-interest income and retail-oriented business models. We then conduct panel regression analysis to examine the empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for 431 publicly traded banks (U.S., advanced Europe, and GSIBs) from 2004 to 2017. Results reveal that profitability is negatively associated with both a bank’s contribution to systemic risk and its idiosyncratic risk, and an over-reliance on non-interest income, wholesale funding and leverage is associated with higher risks. Low competition is associated with low idiosyncratic risk but a high contribution to systemic risk. Lastly, the problem loans ratio and the cost-to-income ratio are found to be key factors that influence bank profitability. The paper’s findings suggest that policy makers should strive to better understand the source of bank profitability, especially where there is an over-reliance on market-based non-interest income, leverage, and wholesale funding.

Bank Profitability and Financial Stability

Download Bank Profitability and Financial Stability PDF Online Free

Author :
Release : 2019-01-11
Genre : Business & Economics
Kind :
Book Rating : 075/5 ( reviews)

Bank Profitability and Financial Stability - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Bank Profitability and Financial Stability write by Ms.TengTeng Xu. This book was released on 2019-01-11. Bank Profitability and Financial Stability available in PDF, EPUB and Kindle. We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the role of non-interest income and retail-oriented business models. We then conduct panel regression analysis to examine the empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for 431 publicly traded banks (U.S., advanced Europe, and GSIBs) from 2004 to 2017. Results reveal that profitability is negatively associated with both a bank’s contribution to systemic risk and its idiosyncratic risk, and an over-reliance on non-interest income, wholesale funding and leverage is associated with higher risks. Low competition is associated with low idiosyncratic risk but a high contribution to systemic risk. Lastly, the problem loans ratio and the cost-to-income ratio are found to be key factors that influence bank profitability. The paper’s findings suggest that policy makers should strive to better understand the source of bank profitability, especially where there is an over-reliance on market-based non-interest income, leverage, and wholesale funding.

Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability

Download Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability PDF Online Free

Author :
Release : 2019-11-22
Genre : Business & Economics
Kind :
Book Rating : 256/5 ( reviews)

Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability write by Selim Elekdag. This book was released on 2019-11-22. Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability available in PDF, EPUB and Kindle. This paper explores the determinants of profitability across large euro area banks using a novel approach based on conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a large swath of banks would most likely continue to struggle even amid a strong economic recovery. Therefore, for some banks, a determined reduction in NPLs combined with cost efficiency improvements and customized changes to their business models appears to be the most promising strategy for durably raising profitability.

Banking in Europe

Download Banking in Europe PDF Online Free

Author :
Release : 2019-04-09
Genre : Business & Economics
Kind :
Book Rating : 135/5 ( reviews)

Banking in Europe - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Banking in Europe write by Mariarosa Borroni. This book was released on 2019-04-09. Banking in Europe available in PDF, EPUB and Kindle. This Palgrave Pivot provides a comprehensive overview of the dynamics that are affecting the profitability of European banks since the recent crisis period. More specifically, it sheds light on the most crucial changes in profit generation and on the consequential changes in banking strategies due to fiercer competition, reduced margin and changing regulation. The work is divided in four main parts. The first section introduces the changes in bank management policies, considering the periods before and since the crisis. In the second section, the authors review the literature on bank profitability and outline the main determinants of profit generation, and in the third section they provide a cross-country analysis of profitability for a wide sample of European banks during the great financial crisis. In the last section, the authors discuss the results of the quantitative analysis under the new regulatory and competitive framework that is progressively affecting the banking sector (fintech, Basel regulations, etc.). This book will be of interest to academics, researchers and students of European banking.

New Challenges in Banking and Finance

Download New Challenges in Banking and Finance PDF Online Free

Author :
Release : 2017-11-03
Genre : Business & Economics
Kind :
Book Rating : 722/5 ( reviews)

New Challenges in Banking and Finance - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook New Challenges in Banking and Finance write by NESRIN ÖZATAÇ. This book was released on 2017-11-03. New Challenges in Banking and Finance available in PDF, EPUB and Kindle. This volume presents current developments in the fields of banking and finance from an international perspective. Featuring contributions from the 2nd International Conference on Banking and Finance Perspectives (ICBFP), this volume serves as a valuable forum for discussing current issues and trends in the banking and financial sectors, especially in light of the global economic challenges triggered by financial institutions. Using the latest theoretical models, new perspectives are brought to topics such as e-finance and e-banking, Islamic banking, international cross-border regulatory cooperation, bank fraud, the global financial crisis, microfinance, and corporate control transactions. Offering an opportunity to explore the challenges of a rapidly changing industry, this volume will be of interest to academics, policy makers, and scholars in the fields of banking, insurance, and finance.