Size and profitability in co-operative banking: a picture from inside a Portuguese institution
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/10628 |
Resumo: | The European co-operative banks play an important role in promoting savings and in financing small and medium enterprises. Their distinctive characteristics have allowed them to get through the Subprime crisis with remarkable resilience. Nevertheless, co-operative banks operate in a very competitive market, where they are constantly under pressure to improve their position. Increasing the size of local co-operative banks is often the strategy used to deal with this pressure. Based on data from a Portuguese co-operative banking group for 2009-11, we assess the impact of size on assets profitability, and conduct a disaggregated analysis of the ratios affecting it. Results indicate that size has an insignificant effect on profitability after controlling for the time-invariant characteristics of each local bank (i.e. caixa). This suggests that the initial higher profitability identified in small and larger caixas vis-à-vis that of medium-size caixas was explained by their specific time-invariant features. However our evidence suggests that size has an indirect effect on return through credit risk: larger caixas have better credit risk management. |
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Size and profitability in co-operative banking: a picture from inside a Portuguese institutionBanksCo-operativesProfitabilityCrédito AgrícolaMergersThe European co-operative banks play an important role in promoting savings and in financing small and medium enterprises. Their distinctive characteristics have allowed them to get through the Subprime crisis with remarkable resilience. Nevertheless, co-operative banks operate in a very competitive market, where they are constantly under pressure to improve their position. Increasing the size of local co-operative banks is often the strategy used to deal with this pressure. Based on data from a Portuguese co-operative banking group for 2009-11, we assess the impact of size on assets profitability, and conduct a disaggregated analysis of the ratios affecting it. Results indicate that size has an insignificant effect on profitability after controlling for the time-invariant characteristics of each local bank (i.e. caixa). This suggests that the initial higher profitability identified in small and larger caixas vis-à-vis that of medium-size caixas was explained by their specific time-invariant features. However our evidence suggests that size has an indirect effect on return through credit risk: larger caixas have better credit risk management.CIRIEC-España2016-01-13T16:30:53Z2015-01-01T00:00:00Z20152019-05-14T16:49:08Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/10628eng978-84-941260-8-60213-809310.7203/CIRIEC-E.83.13424Lagoa, S.Pina, L. P.info: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:RCAAP2023-11-09T17:35:13Zoai:repositorio.iscte-iul.pt:10071/10628Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:15:55.990607Repositório 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 |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution |
title |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution |
spellingShingle |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution Lagoa, S. Banks Co-operatives Profitability Crédito Agrícola Mergers |
title_short |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution |
title_full |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution |
title_fullStr |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution |
title_full_unstemmed |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution |
title_sort |
Size and profitability in co-operative banking: a picture from inside a Portuguese institution |
author |
Lagoa, S. |
author_facet |
Lagoa, S. Pina, L. P. |
author_role |
author |
author2 |
Pina, L. P. |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Lagoa, S. Pina, L. P. |
dc.subject.por.fl_str_mv |
Banks Co-operatives Profitability Crédito Agrícola Mergers |
topic |
Banks Co-operatives Profitability Crédito Agrícola Mergers |
description |
The European co-operative banks play an important role in promoting savings and in financing small and medium enterprises. Their distinctive characteristics have allowed them to get through the Subprime crisis with remarkable resilience. Nevertheless, co-operative banks operate in a very competitive market, where they are constantly under pressure to improve their position. Increasing the size of local co-operative banks is often the strategy used to deal with this pressure. Based on data from a Portuguese co-operative banking group for 2009-11, we assess the impact of size on assets profitability, and conduct a disaggregated analysis of the ratios affecting it. Results indicate that size has an insignificant effect on profitability after controlling for the time-invariant characteristics of each local bank (i.e. caixa). This suggests that the initial higher profitability identified in small and larger caixas vis-à-vis that of medium-size caixas was explained by their specific time-invariant features. However our evidence suggests that size has an indirect effect on return through credit risk: larger caixas have better credit risk management. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-01-01T00:00:00Z 2015 2016-01-13T16:30:53Z 2019-05-14T16:49:08Z |
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://hdl.handle.net/10071/10628 |
url |
http://hdl.handle.net/10071/10628 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
978-84-941260-8-6 0213-8093 10.7203/CIRIEC-E.83.13424 |
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.publisher.none.fl_str_mv |
CIRIEC-España |
publisher.none.fl_str_mv |
CIRIEC-España |
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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1799134717134503936 |