Analysis of Income and Profitability Indicators in Banking Sectors During the Period 1995 – 2009: Post-communist vs. OECD Countries

Aleš Rod and Jonáš Rais

Littera Scripta, 2017, vol. 10, issue 1

Abstract: This article presents an analysis of income and profitability indicators for the banking sectors of six post-communist countries and compares them with a group of eighteen OECD countries without a “communist†past. The analysis focuses on five relative indicators (interest income/fees and commissions income; fees and commissions/bank assets; interest income/bank assets; profit/assets; fees and commissions/non-interest income), which are subsequently controlled with macroeconomic indicators (GDP, interest rate and inflation) for the period 1995 – 2009. The results of the econometric model corresponded with three out of the five assumptions made about the effects of post-communism. However, only the hypothesis that post-communist countries used their assets for higher net income from fees and commissions is significantly verified. Discrepancies were explained by x-inefficiencies on the cost side and a constant pressure on revenue stream diversification, which is in accordance with scholarly literature.

Keywords: Bank; post-communist economy; profitability; interest income; noninterest income; fees and commissions (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://littera-scripta.com/articles/analysis-of-i ... ring-the-pe-07898233 (text/html)

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:rsg:littra:2017-008

Access Statistics for this article

More articles in Littera Scripta from VSTE
Bibliographic data for series maintained by Robin Kunju Mol Raj ().