Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability

Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability
Author :
Publisher : International Monetary Fund
Total Pages : 38
Release :
ISBN-10 : 9781513522258
ISBN-13 : 1513522256
Rating : 4/5 (256 Downloads)

Book Synopsis Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability by : Selim Elekdag

Download or read book Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability written by Selim Elekdag and published by International Monetary Fund. This book was released on 2019-11-22 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the determinants of profitability across large euro area banks using a novel approach based on conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a large swath of banks would most likely continue to struggle even amid a strong economic recovery. Therefore, for some banks, a determined reduction in NPLs combined with cost efficiency improvements and customized changes to their business models appears to be the most promising strategy for durably raising profitability.


Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability Related Books

Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability
Language: en
Pages: 38
Authors: Selim Elekdag
Categories: Business & Economics
Type: BOOK - Published: 2019-11-22 - Publisher: International Monetary Fund

GET EBOOK

This paper explores the determinants of profitability across large euro area banks using a novel approach based on conditional profitability distributions. Real
Bank Profitability in Europe: Not Here to Stay
Language: en
Pages: 45
Authors: Ms. Ruo Chen
Categories:
Type: BOOK - Published: 2024-07-09 - Publisher: International Monetary Fund

GET EBOOK

Slower passthrough of policy interest rate hikes to deposit rates relative to their loan rates has led to sharply wider bank net interest margins. Combined with
Handbook of Banking and Finance in Emerging Markets
Language: en
Pages: 867
Authors: Nguyen, Duc K.
Categories: Business & Economics
Type: BOOK - Published: 2022-10-14 - Publisher: Edward Elgar Publishing

GET EBOOK

Emerging markets are increasingly facing significant challenges, from a slowdown in productivity, rising debt, and trade tensions to the adverse effects of prol
Germany
Language: en
Pages: 46
Authors: International Monetary Fund. Monetary and Capital Markets Department
Categories: Business & Economics
Type: BOOK - Published: 2022-08-16 - Publisher: International Monetary Fund

GET EBOOK

German bank profitability is low by international standards. Although German banks rank more favorably in risk-adjusted terms, as low profitability is partially
COVID-19: How Will European Banks Fare?
Language: en
Pages: 114
Authors: Mr.Shekhar Aiyar
Categories: Business & Economics
Type: BOOK - Published: 2021-03-26 - Publisher: International Monetary Fund

GET EBOOK

This paper evaluates the impact of the crisis on European banks’ capital under a range of macroeconomic scenarios, using granular data on the size and riskine