We identify the most significant factors that have influenced the profitability of European banking sector during the negative interest rate period (NIRP), with a particular focus on the bank size, loan portfolio quality, ownership structure, and location. Based on a panel dataset from 560 banks...

This study uses a sample of Western European banks to examine the development in bank asset liquidity during the era of low interest rates. The results suggest that asset liquidity has converged during this period; the least liquid banks have improved their liquidity whereas the most liquid banks...

Contrary to expectations, the continuous decline in money market interest rates between 2009 and 2014, and the following negative era for European interbank markets, has positively affected profitability of Finnish cooperative banks. We obtain these results that contrast sharply with previous...

We analyse the effects of sovereign risk premium on bank profitability amongst 154 Eurozone banks during the period 2005 – 2019. In contrast to some of the results in the previous literature, we find that the euro area banks have not suffered too much from the extremely low and negative...