conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank …This paper explores the determinants of profitability across large euro area banks using a novel approach based on … profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a …

We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We … first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the … empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for …

The profitability of Italian banks depends, among other factors, on the strength of the ongoing economic recovery, the … resolving nonperforming loans (NPLs) and to foster banking sector consolidation. Improved profitability would enable banks to … smaller banks face profitability pressures, even under favorable assumptions. There is thus a need to push ahead decisively on …

In this paper, we use a bank-level panel dataset to investigate the determinants of bank interest margins in the … extensions to assess the extent to which high spreads of banks in the CCA can be related to bank-specific variables, to … risk, bank size, bank diversification, banking sector competition, and macroeconomic policies; but the impact depends on …

effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible …. A bottom-up analysis of 386 Italian banks suggests that while profitability is expected to improve as the economy … profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely …

core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk … with cross-sectional patterns of bank risk-taking in the run up to the recent financial crisis …

The paper investigates EU banks' profitability through the recent financial cycle using banklevelbalance sheet and … stable over the financial cycle, including post-crisis, and there isno clear evidence that aspects of bank business model …, such as higher reliance on fees andcommission income, were associated with better profitability post-crisis …

Using a sample of over 700 banks in Latin America, we show that international financial liberalization lowers bank …. We also find evidence that riskier bank funding in the aftermath of financial liberalizations is exacerbated by …

power, high reserve requirements, high central bank discount rate and high inflation … system in Malawi. The financial reform program commenced in 1989 when both the Reserve Bank Act and the Banking Act were …