IDEAS home Printed from https://ideas.repec.org/a/prf/journl/v10y2016i2p142-158.html
   My bibliography  Save this article

Determinants of the Profitability in the Czech Banking Industry

Author

Listed:
  • Iveta Paleckova

    (Silesian University in Opava)

Abstract

The aim of this paper is to estimate the banking profitability determinants of the Czech commercial banks during the period 2004-2014. For estimation of banking profitability we used three common measures, namely the Return on Assets, Return on Equity and Net Interest Margin. We estimated twelve determinants of banking performance. The effect of the determinants of banking profitability is estimated using panel data analysis. The data set is consists of seventeen commercial banks in the Czech Republic. The results show that the profitability was positively influenced by the bank’s size, capitalization, credit risk, level of concentration, ownership structure and bank’s market share. Number of branches of the bank had the negative impact on ROA and ROE. on the other hand, the variables Gross Domestic Product, interest rate, liquidity risk, riskiness of bank’s portfolio and affiliation with financial conglomerate have not got the significant influence on profitability of the Czech commercial banks.

Suggested Citation

  • Iveta Paleckova, 2016. "Determinants of the Profitability in the Czech Banking Industry," ACTA VSFS, University of Finance and Administration, vol. 10(2), pages 142-158.
    • Handle: RePEc:prf:journl:v:10:y:2016:i:2:p:142-158
    as

    Download full text from publisher

    File URL: https://www.vsfs.cz/periodika/acta-2016-2-04.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    performance; return on assets; return on equity; panel data analysis; bank-specific factors; market-specific factors; banking sector; Czech Republic;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prf:journl:v:10:y:2016:i:2:p:142-158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Magdalena Šebková (email available below). General contact details of provider: https://edirc.repec.org/data/vsfspcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.