“When in Rome, do as Romans”. Similarities of banks performance drivers in CESEE

Małgorzata Iwanicz-Drozdowska, Bartosz Witkowski and Santiago Carbo Valverde

Bank i Kredyt, 2020, vol. 51, issue 5, 467-504

Abstract: The goal of this paper is to analyse whether the determinants of the profitability and business orientation of foreign-owned banks operating in Central, Eastern and South-Eastern Europe (CESEE) are similar to domestic-owned banks in that region and foreign parent companies. To this aim we also check if profitability of the parents predicts the profitability of their subsidiaries. We use annual bankand country-level data from the 1995–2014 period applying feasible GLS. The empirical results suggest that statistically significant differences exist between foreign-owned banks and domestic-owned banks. Although the subsidiaries are similar to their parent banks regarding some aspects of the credit policy, the overall drivers of profitability and business orientations vary.

Keywords: performance; profitability; business orientation; subsidiaries (search for similar items in EconPapers)
JEL-codes: F36 G21 G32 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpbik:v:51:y:2020:i:5:p:467-504

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