Determinants of Portuguese banks' profitability: an update
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://scielo.pt/scielo.php?script=sci_arttext&pid=S2182-84582021000300063 |
Resumo: | Abstract In this study, we assess the main determinants of banks' profitability in Portugal over the period 2015-2018. We divide the factors that can influence bank profitability into several groups: management quality, credit quality, capital adequacy, liquidity (internal bank factors), and GDP growth (an external factor). The panel dataset is composed of annual report data for the 18 major banks operating in Portugal, representing about 98% of the Portuguese banking product. Profitability has been a persistent challenge for banks since the global financial crisis. Moreover, the Portuguese banking system had been facing several structural problems, which makes this topic particularly relevant. The profitability proxy used is the return on equity (ROE). The empirical strategy followed was pooled OLS. Variables relevant for explaining Portuguese banks' profitability are capital adequacy, liquidity and credit risk. As expected, the results show that capital adequacy (TIER 1) and credit quality (CVCT) have a negative and significant impact on banks' profitability, whereas liquidity (RAL) has a positive impact. |
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Determinants of Portuguese banks' profitability: an updateBanksprofitabilitypooled OLSAbstract In this study, we assess the main determinants of banks' profitability in Portugal over the period 2015-2018. We divide the factors that can influence bank profitability into several groups: management quality, credit quality, capital adequacy, liquidity (internal bank factors), and GDP growth (an external factor). The panel dataset is composed of annual report data for the 18 major banks operating in Portugal, representing about 98% of the Portuguese banking product. Profitability has been a persistent challenge for banks since the global financial crisis. Moreover, the Portuguese banking system had been facing several structural problems, which makes this topic particularly relevant. The profitability proxy used is the return on equity (ROE). The empirical strategy followed was pooled OLS. Variables relevant for explaining Portuguese banks' profitability are capital adequacy, liquidity and credit risk. As expected, the results show that capital adequacy (TIER 1) and credit quality (CVCT) have a negative and significant impact on banks' profitability, whereas liquidity (RAL) has a positive impact.Escola Superior de Gestão, Hotelaria e Turismo da Universidade do Algarve2021-09-01info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articletext/htmlhttp://scielo.pt/scielo.php?script=sci_arttext&pid=S2182-84582021000300063Tourism & Management Studies v.17 n.3 2021reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAPenghttp://scielo.pt/scielo.php?script=sci_arttext&pid=S2182-84582021000300063Pires,ClaraBasílio,MariaBorralho,Carlosinfo:eu-repo/semantics/openAccess2024-02-06T17:29:17Zoai:scielo:S2182-84582021000300063Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T02:33:17.573557Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Determinants of Portuguese banks' profitability: an update |
title |
Determinants of Portuguese banks' profitability: an update |
spellingShingle |
Determinants of Portuguese banks' profitability: an update Pires,Clara Banks profitability pooled OLS |
title_short |
Determinants of Portuguese banks' profitability: an update |
title_full |
Determinants of Portuguese banks' profitability: an update |
title_fullStr |
Determinants of Portuguese banks' profitability: an update |
title_full_unstemmed |
Determinants of Portuguese banks' profitability: an update |
title_sort |
Determinants of Portuguese banks' profitability: an update |
author |
Pires,Clara |
author_facet |
Pires,Clara Basílio,Maria Borralho,Carlos |
author_role |
author |
author2 |
Basílio,Maria Borralho,Carlos |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Pires,Clara Basílio,Maria Borralho,Carlos |
dc.subject.por.fl_str_mv |
Banks profitability pooled OLS |
topic |
Banks profitability pooled OLS |
description |
Abstract In this study, we assess the main determinants of banks' profitability in Portugal over the period 2015-2018. We divide the factors that can influence bank profitability into several groups: management quality, credit quality, capital adequacy, liquidity (internal bank factors), and GDP growth (an external factor). The panel dataset is composed of annual report data for the 18 major banks operating in Portugal, representing about 98% of the Portuguese banking product. Profitability has been a persistent challenge for banks since the global financial crisis. Moreover, the Portuguese banking system had been facing several structural problems, which makes this topic particularly relevant. The profitability proxy used is the return on equity (ROE). The empirical strategy followed was pooled OLS. Variables relevant for explaining Portuguese banks' profitability are capital adequacy, liquidity and credit risk. As expected, the results show that capital adequacy (TIER 1) and credit quality (CVCT) have a negative and significant impact on banks' profitability, whereas liquidity (RAL) has a positive impact. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-09-01 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://scielo.pt/scielo.php?script=sci_arttext&pid=S2182-84582021000300063 |
url |
http://scielo.pt/scielo.php?script=sci_arttext&pid=S2182-84582021000300063 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
http://scielo.pt/scielo.php?script=sci_arttext&pid=S2182-84582021000300063 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
text/html |
dc.publisher.none.fl_str_mv |
Escola Superior de Gestão, Hotelaria e Turismo da Universidade do Algarve |
publisher.none.fl_str_mv |
Escola Superior de Gestão, Hotelaria e Turismo da Universidade do Algarve |
dc.source.none.fl_str_mv |
Tourism & Management Studies v.17 n.3 2021 reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799137392318218240 |