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An Empirical Analysis Of The Determinants Of Bank Profitability In Romania

Author

Listed:
  • Angela Roman

    (Alexandru Ioan Cuza University of Iasi)

  • Adina Elena Danuletiu

    (1 Decembrie 1918 University of Alba Iulia Romania)

Abstract

Our paper aims to investigate the factors that have an influence upon the profitabilityof Romanian commercial banks, between 2003 and 2011. The results of our study show thatRomanian banks‘ profitability is influenced by both bank-specific factors and changes in theexternal environment. In the case of bank-specific factors, the results of our study reflect that bankprofitability is significantly influenced by asset quality, management quality and banking liquidity.Among external factors, it turns out that banking concentration and economic growth rate have animportant impact on bank profitability.

Suggested Citation

  • Angela Roman & Adina Elena Danuletiu, 2013. "An Empirical Analysis Of The Determinants Of Bank Profitability In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-23.
  • Handle: RePEc:alu:journl:v:2:y:2013:i:15:p:23
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    File URL: http://oeconomica.uab.ro/upload/lucrari/1520132/23.pdf
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    References listed on IDEAS

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    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    2. Antonio Trujillo-Ponce, 2013. "What determines the profitability of banks? Evidence from Spain," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(2), pages 561-586, June.
    3. MENDES Victor & ABREU Margarida, "undated". "Do Macro-Financial Variables Matter for European Bank Interest Margins and Profitability?," EcoMod2003 330700101, EcoMod.
    4. Panayiotis P. Athanasoglou & Matthaios D. Delis & Christos K. Staikouras, 2006. "Determinants of Bank Profitability in the South Eastern European Region," Working Papers 47, Bank of Greece.
    5. Dietrich, Andreas & Wanzenried, Gabrielle, 2011. "Determinants of bank profitability before and during the crisis: Evidence from Switzerland," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 21(3), pages 307-327, July.
    6. Fadzlan Sufian, 2010. "Financial depression and the profitability of the banking sector of the Republic of Korea: panel evidence on bank-specific and macroeconomic determinants," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 17(2), pages 65-92, December.
    7. Fadzlan Sufian & Mohamad Akbar Noor Mohamad Noor, 2012. "Determinants of Bank Performance in a Developing Economy," Global Business Review, International Management Institute, vol. 13(1), pages 1-23, February.
    8. Christos Staikouras & Emmanuel Mamatzakis & Anastasia Koutsomanoli-Filippaki, 2007. "Operating Performance of the Banking Industry: An Empirical Investigation of the South Eastern European Region," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 5(2), pages 245-266.
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    Citations

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    Cited by:

    1. Leonora Haliti Rudhani & Skender Ahmeti & Taulant Rudhani, 2016. "The Impact of Internal Factors on Bank Profitability in Kosovo," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(1), pages 95-107, February.
    2. repec:fau:fauart:v:67:y:2017:i:4:p:318-341 is not listed on IDEAS
    3. repec:mbr:jmonec:v:10:y:2015:i:2:p:91-111 is not listed on IDEAS

    More about this item

    Keywords

    commercial banks; profitability; bank specific factors; industry-specific variables; macroeconomic variables;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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