Does low banking profitability contribute to financial instability in the Euro Zone?
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/27435 |
Resumo: | The present research explores the hypothesis that lower levels of banking profitability constitutes a risk factor for financial stability by adopting a model which intends to find the main banking profitability determinants over 4 bank profitability quartiles of a sample of 735 banks. The sampled banks have total assets over $1 Billion and are located in 12 Euro Area countries. The adopted time window ranges from 2006 to 2015. This panel data model’s purpose is to find the relevance of the ‘GDP growth’ variable on explaining profitability of the lower profitable banks in the in-crisis period and compare this variable’s significance with the case of the higher profitable banks by looking for differences, mainly, whether it is a more relevant factor for lower profit banks than higher ones. The findings suggest that there is no relationship between lower profitability levels and higher impacts of GDP growth on banks profitability during the crisis. The baseline results are subject to robustness checks and are globally stable. Our analysis suggests that other risk factors on banks’ management should be adequately addressed by policymakers. |
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Does low banking profitability contribute to financial instability in the Euro Zone?Financial stabilityBanking supervisionBanking profitability determinantsCrise financeira -- Financial crisisCrise económica -- Economic crisisEstabilidade financeiraSupervisão bancáriaDeterminantes da rendibilidade bancáriaThe present research explores the hypothesis that lower levels of banking profitability constitutes a risk factor for financial stability by adopting a model which intends to find the main banking profitability determinants over 4 bank profitability quartiles of a sample of 735 banks. The sampled banks have total assets over $1 Billion and are located in 12 Euro Area countries. The adopted time window ranges from 2006 to 2015. This panel data model’s purpose is to find the relevance of the ‘GDP growth’ variable on explaining profitability of the lower profitable banks in the in-crisis period and compare this variable’s significance with the case of the higher profitable banks by looking for differences, mainly, whether it is a more relevant factor for lower profit banks than higher ones. The findings suggest that there is no relationship between lower profitability levels and higher impacts of GDP growth on banks profitability during the crisis. The baseline results are subject to robustness checks and are globally stable. Our analysis suggests that other risk factors on banks’ management should be adequately addressed by policymakers.Este estudo explora a hipótese de que baixos níveis de rendibilidade bancária constituem um fator de risco para a estabilidade financeira. Adotando um modelo que pretende detetar os principais determinantes da rendibilidade dos bancos sobre 4 quartis de rendibilidade bancária, pertencentes a uma amostra que agrega informação sobre 735 bancos. Os bancos da amostra detêm ativos totais superiores a 1.000$ milhões e estão localizados em 12 países da área euro. A janela temporal de estudo vai desde 2006 até 2015. O propósito deste modelo de dados em painel é tentar entender a relevância da variável “crescimento do PIB” para explicar a rendibilidade dos bancos menos rentáveis durante o período de crise e comparar a significância desta variável com o caso dos bancos mais rentáveis, tentando encontrar diferenças, nomeadamente, se o impacto da variação do PIB na rendibilidade dos bancos é mais sentido nos bancos menos rentáveis do que nos mais rentáveis. Os resultados sugerem que não há relação entre menores níveis de rendibilidade e efeitos superiores da variação do PIB sobre a rendibilidade dos bancos durante a crise. Os resultados base estão sujeitos a verificações de robustez, sendo estes globalmente estáveis. A nossa análise sugere que outros fatores de risco da gestão bancária deverão ser abordados adequadamente pelos decisores políticos.2023-01-25T09:57:36Z2023-01-05T00:00:00Z2023-01-052022-11info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10071/27435TID:203173589engRodrigues, Paulo Miguel Bernardinoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:44:16Zoai:repositorio.iscte-iul.pt:10071/27435Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:21:00.031582Repositório 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 |
Does low banking profitability contribute to financial instability in the Euro Zone? |
title |
Does low banking profitability contribute to financial instability in the Euro Zone? |
spellingShingle |
Does low banking profitability contribute to financial instability in the Euro Zone? Rodrigues, Paulo Miguel Bernardino Financial stability Banking supervision Banking profitability determinants Crise financeira -- Financial crisis Crise económica -- Economic crisis Estabilidade financeira Supervisão bancária Determinantes da rendibilidade bancária |
title_short |
Does low banking profitability contribute to financial instability in the Euro Zone? |
title_full |
Does low banking profitability contribute to financial instability in the Euro Zone? |
title_fullStr |
Does low banking profitability contribute to financial instability in the Euro Zone? |
title_full_unstemmed |
Does low banking profitability contribute to financial instability in the Euro Zone? |
title_sort |
Does low banking profitability contribute to financial instability in the Euro Zone? |
author |
Rodrigues, Paulo Miguel Bernardino |
author_facet |
Rodrigues, Paulo Miguel Bernardino |
author_role |
author |
dc.contributor.author.fl_str_mv |
Rodrigues, Paulo Miguel Bernardino |
dc.subject.por.fl_str_mv |
Financial stability Banking supervision Banking profitability determinants Crise financeira -- Financial crisis Crise económica -- Economic crisis Estabilidade financeira Supervisão bancária Determinantes da rendibilidade bancária |
topic |
Financial stability Banking supervision Banking profitability determinants Crise financeira -- Financial crisis Crise económica -- Economic crisis Estabilidade financeira Supervisão bancária Determinantes da rendibilidade bancária |
description |
The present research explores the hypothesis that lower levels of banking profitability constitutes a risk factor for financial stability by adopting a model which intends to find the main banking profitability determinants over 4 bank profitability quartiles of a sample of 735 banks. The sampled banks have total assets over $1 Billion and are located in 12 Euro Area countries. The adopted time window ranges from 2006 to 2015. This panel data model’s purpose is to find the relevance of the ‘GDP growth’ variable on explaining profitability of the lower profitable banks in the in-crisis period and compare this variable’s significance with the case of the higher profitable banks by looking for differences, mainly, whether it is a more relevant factor for lower profit banks than higher ones. The findings suggest that there is no relationship between lower profitability levels and higher impacts of GDP growth on banks profitability during the crisis. The baseline results are subject to robustness checks and are globally stable. Our analysis suggests that other risk factors on banks’ management should be adequately addressed by policymakers. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-11 2023-01-25T09:57:36Z 2023-01-05T00:00:00Z 2023-01-05 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/27435 TID:203173589 |
url |
http://hdl.handle.net/10071/27435 |
identifier_str_mv |
TID:203173589 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
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 |
repository.mail.fl_str_mv |
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1799134770807963648 |