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Determinants Of Sustainable Banks’ Profitability. Evidence From Eu Countries

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  • BOITAN, Iustina Alina

    (The Bucharest University of Economic Studies)

Abstract

The paper aims at assessing whether responsible banking behavior is a precursor and catalyst of banking profitability. Consequently, the paper will investigate the exogenous determinants of the EU sustainable banks’ profitability during the period 2006-2013. For the purpose of this study it has been considered the commercial banks resident in EU countries that voluntarily joined the United Nations Environment Program – Financial Initiative. The empirical study will be developed on several stages. First, explanatory variables comprising macroeconomic, institutional and public perception variables will be statistically processed. Secondly, it will be performed correlation analyses and Granger causality tests. Third, it will be employed a panel data regression with fixed effects, to account for those explanatory variables that boost or, on the contrary, compress sustainable banks’ profitability.

Suggested Citation

  • BOITAN, Iustina Alina, 2015. "Determinants Of Sustainable Banks’ Profitability. Evidence From Eu Countries," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 19(1), pages 21-39.
    • Handle: RePEc:vls:finstu:v:19:y:2015:i:1:p:21-39
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    References listed on IDEAS

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    Cited by:

    1. Adriana AnaMaria DAVIDESCU, 2015. "Active Ageing and Shadow Economy in Romania. An Empirical Causality Analysis," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 3(2), pages 237-256, June.
    2. repec:ers:journl:v:v:y:2017:i:4:p:78-95 is not listed on IDEAS
    3. Begoña Torre Olmo & María Cantero Saiz & Sergio Sanfilippo Azofra, 2021. "Sustainable Banking, Market Power, and Efficiency: Effects on Banks’ Profitability and Risk," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    4. K. Bojare & I. Romanova, 2017. "The Factors Affecting the Profitability of Banks: The Case of Latvia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 78-95.
    5. Kristina Bojare & Inna Romanova, 2017. "The Factors Affecting the Profitability of Banks: The Case of Latvia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 905-919.
    6. Serhat Yüksel & Shahriyar Mukhtarov & Elvin Mammadov & Mustafa Özsarı, 2018. "Determinants of Profitability in the Banking Sector: An Analysis of Post-Soviet Countries," Economies, MDPI, vol. 6(3), pages 1-15, July.

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    More about this item

    Keywords

    sustainable bank; profitability; macroeconomic fundamentals; sentiment indicator; panel data regression;
    All these keywords.

    JEL classification:

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

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