BANK BUSINESS MODELS AND PERFORMANCE DURING CRISIS IN CENTRAL AND EASTERN EUROPE

Alin Marius Andries () and Simona Mutu ()
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Alin Marius Andries: Faculty of Economics and Business Administration, Alexandru Ioan-Cuza University of Iasi/Romania
Simona Mutu: Faculty of Economics and Business Administration, Babes-Bolyai University of Cluj-Napoca/Romania
Authors registered in the RePEc Author Service: Simona Nistor () and Alin Marius Andrieș

Review of Economic and Business Studies, 2017, issue 20, 79-113

Abstract: This paper investigates the impact of business models on bank performance during the period 2007-2008 among 156 banks from Central and Eastern European countries. The findings show that banks with higher capitalization perform better and present a lower probability of default. The orientation towards the traditional lending activities as well as a higher degree of income diversification boosts performance. Using a Difference-in-Difference framework we also highlight the importance of bank business strategies for bank performance across different bank characteristics (ownership, size) and macroeconomic conditions (financial crisis, EU membership status, regulatory framework.

Keywords: Euro Area; macroeconomic stabilization; fiscal burden; FDI inflows; Pooled Mean Group (search for similar items in EconPapers)
JEL-codes: G01 G21 G28 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2017:j:20:andriesa

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