What Are the Drivers of Bank Profitability in the World? A Critical Review of the Empirical Literature with the Layout of a Blueprint Model

Indranarain Ramlall

Journal of African Business, 2025, vol. 26, issue 2, 351-382

Abstract: Despite the existence of an extensive literature on determinants of bank profitability, there exists no paper which comprehensively weaves through this literature. We humbly undertake such a review by painstakingly discussing all the potential proxies to end up with a holistic model. We keep abreast of the evolving dynamics by proposing two new metrics, namely aging population and digitization to cope with the detrimental sequels of COVID-19. Our full-fledged model consists of bank-specific, macroeconomic-specific, crisis dummies and interacting variables. Operational risk is found to be an area that will need to be further developed in the literature. Our proposed model can be applied to a specific country or a group of countries with researchers being able to flexibly tweak our blueprint model to suit their own specific applications.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/15228916.2024.2344135 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:wjabxx:v:26:y:2025:i:2:p:351-382

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/wjab20

DOI: 10.1080/15228916.2024.2344135

Access Statistics for this article

Journal of African Business is currently edited by Samuel Bonsu

More articles in Journal of African Business from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().