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Determinants Of Bank Profitability: Evidence From The Greek Banking Sector

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  • Constantinos Alexiou
  • Voyazas Sofoklis

Abstract

This paper investigates the effects of bank-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-ConductPerformance (SCP) hypothesis. A panel data approach has been adopted and effectively applied to six Greek banks. The evidence generated suggests that for any consistent or systematic size the profitability relationship is relatively weak. Most of the bank-specific determinants were found to significantly affect bank profitability. A more ambiguous picture emerged when the macroeconomic factors were considered.

Suggested Citation

  • Constantinos Alexiou & Voyazas Sofoklis, 2009. "Determinants Of Bank Profitability: Evidence From The Greek Banking Sector," Economic Annals, Faculty of Economics, University of Belgrade, vol. 54(182), pages 93-118, July – Se.
  • Handle: RePEc:beo:journl:v:54:y:2009:i:182:p:93-118
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    References listed on IDEAS

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    More about this item

    Keywords

    bank profitability; Greek banking sector; panel data;
    All these keywords.

    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
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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