Determinants of financial performance of banks in Central and Eastern Europe

Antoun, Roger; Çoşkun, Ali; Georgievski, Bojan

doi:10.15208/beh.2018.37

Cited by 26 publications

(27 citation statements)

References 50 publications

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“…Banks managers anticipated the inflation rate and they adjust their interest rates properly in the sense that their profit will be higher than what they will lose from the increase in costs caused by the inflation. This result is in line with Hasanov et al, (2018) and Antoun et al, (2018).…”

Section: Resultssupporting

confidence: 88%

The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies

Aziz¹,

Knutsen²

2019

JBFE

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This study empirically examines the impact of economic freedom quality and global financial crisis on the banking sector profitability in the Arab region. The analysis is performed by employing system GMM estimation in panel data comprising of 14 Arab countries over the period 1985-2016. The study constructed an economic freedom index based on the economic freedom indicators. The findings indicate that greater economic freedom has positively influenced the profitability of the Arab banking sector. The results also suggest that the more profitable banks are those that have lower operating expenses against asset and income, better capitalized, more diversified and concentrated at economies having growth in the GDP. Furthermore, the global financial crisis in 2008 negatively impacted the profits of Arab banks.

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Section: Resultssupporting

confidence: 88%

The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies

Aziz¹,

Knutsen²

2019

JBFE

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“…Furthermore, there is a positive outcome of Capitalization and Leverage when estimated by ROE. In the same way, Antoun et al (2018) stated that liquidity and capital adequacy are negatively affected by size and positively affected by economic growth and bank concentration. The result analyzed that independent variables i.e.…”

Section: Relationship Of Capital Adequacy and Bank's Performancementioning

confidence: 94%

Factors influencing profitability of conventional banks as measured by Tobin’s q: evidence from banking sector of Pakistan

Rolle¹,

Herani²,

Javed³

2020

BMR

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Financial sector is the key player to enhance sustainable economic growth. Commercial banks play an important role to improve the performance of the financial sector of the economy and their profitability is intricately connected to the soundness of the entire economy. The purpose of this study is to determine the internal determinants (bank specific) and external determinants (macro-economic) of profitability. In this regard, the study adopted quantitative research design by using the panel data of 17 commercial banks of Pakistan over the period of 2014-2018. Internal factors analyzed in this study were Liquidity, Size and Capital Adequacy. While external factors were Gross Domestic Product (GDP) and Inflation. The data was analyzed by using simple OLS regression and Tobin's Q ratio. The analysis showed that GDP has significant impact on profitability. However, inflation has no impact on the profitability. Tobin's Q ratio of most of the banks are increasing which depicted their equilibrium position. Based on the findings, the study recommended some policies that will encourage banks to reduce credit risk and minimize their liquidity holdings. Moreover, Government should take the proper initiatives to enhance the confidence of investors towards stock market.

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“…Furthermore, Berger and Black (2011) evidence that large commercial banks are unwilling to transmit, process, and evaluate soft information through social connections, because they benefit from economies of scale in processing hard information and have a comparative advantage in quantifying and diversifying the risks associated with loans based on the evaluation of hard information. In addition, banks are reluctant to lend under discouraging macroeconomic conditions (Kumar & Rao, 2015), because bank performance is affected by macroeconomic factors (Antoun, Coskun, & Georgievski, 2018). Higher inflation rates are associated with relatively weakly developed financial systems (Beck, Demirgüç-Kunt, & Honohan, 2009).…”

Section: Country-specific Determinants Of Financial Constraints: Econmentioning

confidence: 99%

Investigating the Relationship Between Financial Constraint and Growth of SMEs in South Eastern Europe

Nizaeva

Çoşkun

2019

Sage Open

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This study investigates the determinants of financial constraint and its impact on the growth of small and medium-sized enterprises (SME) in South Eastern Europe (SEE). In this study, enterprise data from the fifth round of the Business Environment and Enterprise Survey (BEEPS V) undertaken in 2012-2016 were used, and an empirical analysis including ordered probit, probit, and feasible generalized least squares (FGLS) specifications was conducted. The findings evidence that financial constraint is significantly detrimental to SME growth in the region. Moreover, SMEs operating in trade sector perceive access to finance comparatively less, whereas mature enterprises perceive it as more constraining. Among country-specific factors, high banking sector concentration adversely affects access to finance, whereas more domestic credit provided to private sector mitigates the financial constraint perception of SMEs.

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Determinants of financial performance of banks in Central and Eastern Europe

Cited by 26 publications

References 50 publications

The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies

The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies

Factors influencing profitability of conventional banks as measured by Tobin’s q: evidence from banking sector of Pakistan

Investigating the Relationship Between Financial Constraint and Growth of SMEs in South Eastern Europe

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