Bank Profitability: Good for Growth?
The aim of this paper is to provide the first investigation of the impact of bank profitability on economic growth. While bank profitability can be pro-growth by fostering financial stability, it can also result from lower competition which reduce access to credit and diminish economic growth. We analyze the impact of bank profitability on economic growth using a sample of 133 countries for the period 1999-2013. Our findings support the view that bank profitability fosters economic growth. Additional tests confirm the robustness of this conclusion. Thus, measures that favor bank profitability are growth-enhancing.
|Date of creation:||2017|
|Contact details of provider:|| Postal: 61, Avenue de la Forêt Noire, F-67085 Strasbourg Cedex|
Phone: (33) 3 90 41 41 30
Fax: (33) 3 90 41 40 50
Web page: http://ifs.unistra.fr/large
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:lar:wpaper:2017-02. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christophe J. Godlewski)
If references are entirely missing, you can add them using this form.