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Determinants of bank profitability before and during the crisis: Evidence from Switzerland

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  • Dietrich, Andreas
  • Wanzenried, Gabrielle

Abstract

Using the GMM estimator technique described by Arellano and Bover (1995), this paper analyzes the profitability of 372 commercial banks in Switzerland over the period from 1999 to 2009. To evaluate the impact of the recent financial crisis, we separately consider the pre-crisis period, 1999-2006, and the crisis years of 2007-2009. Our profitability determinants include bank-specific characteristics as well as industry-specific and macroeconomic factors, some of which have not been considered in previous studies. The inclusion of these additional factors as well as the separate consideration of the crisis years allow us to gain new insights into what determines the profitability of commercial banks.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Financial Markets, Institutions and Money.

Volume (Year): 21 (2011)
Issue (Month): 3 (July)
Pages: 307-327

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Handle: RePEc:eee:intfin:v:21:y:2011:i:3:p:307-327

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Web page: http://www.elsevier.com/locate/intfin

Related research

Keywords: Banking profitability Macroeconomic impact on banking profitability Financial crisis Market structure Ownership;

References

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