In this paper we analyze the determinants of bank profitability and stability during the period of null or negative policy rates (2012 - 2022) for a large sample of banks established in Euro area countries. The results show that higher capitalization, credit quality and income diversification increase profitability and stability, while other covariates play a role mainly in influencing bank profits, but not bank resilience. Empirical outcomes suggest that the banks specialization has an impact on banks' financial results in periods of null or negative interest rates.
Rossi, S., Barbieri, L., Lippi, A., Determinants of the Profitability and Stability of Euro Area Banks During the Ice Age of Interest Rates, <<REVIEW OF EUROPEAN STUDIES>>, 2024; 16 (1): N/A-N/A. [doi:10.5539/res.v16n1p1] [https://hdl.handle.net/10807/265834]
Determinants of the Profitability and Stability of Euro Area Banks During the Ice Age of Interest Rates
Rossi, Simone
Primo
Membro del Collaboration Group
;Barbieri, LauraSecondo
Membro del Collaboration Group
;Lippi, AndreaUltimo
Membro del Collaboration Group
2024
Abstract
In this paper we analyze the determinants of bank profitability and stability during the period of null or negative policy rates (2012 - 2022) for a large sample of banks established in Euro area countries. The results show that higher capitalization, credit quality and income diversification increase profitability and stability, while other covariates play a role mainly in influencing bank profits, but not bank resilience. Empirical outcomes suggest that the banks specialization has an impact on banks' financial results in periods of null or negative interest rates.File | Dimensione | Formato | |
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