Determinants of European Bank Profitability in 2012-2019

نویسندگان

چکیده

This paper aims to find the microeconomic and macroeconomic determinants of European bank profitability from 2012 2019 using regression model with multicollinearity condition as a matrix parameter, below defined value, ensuring reliability. The sector is measured by return average equity, assets net interest margin dependent variables. research creates set independent variables based on literature review. built sample 3,257 commercial banks for all EU countries excluding Romania due missing data, input data were obtained Orbis Focus Bank World Database. results revealed that cost income ratio loan loss reserves gross loans are most important assets. also show GDP growth rate, inflation consumer prices indicator. We recommend optimize structure, create sufficient reserves, monitor process digital transformation credit risk indicators.

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ژورنال

عنوان ژورنال: Politicka Ekonomie

سال: 2022

ISSN: ['2336-8225', '0032-3233']

DOI: https://doi.org/10.18267/j.polek.1366