Do institutional and political factors matter for the efficiency of banking sectors?

Małgorzata Olszak and Patrycja Chodnicka ()
Additional contact information
Patrycja Chodnicka: University of Warsaw,

Journal of Banking and Financial Economics, 2014, vol. 1, issue 1, 40-58

Abstract: This paper investigates the relevance of banking- sector- specific and macroeconomic determinants of profitability of 21 banking sectors over the years 1995-2009. In the analysis we apply the Arellano and Bond GMM-estimator to aggregated data collected in a harmonized way by the OECD, to find out whether banking-sector-specific and macroeconomic determinants which significantly affect the efficiency of individual banks, are also of great importance to the profitability (proxied by ROA and ROE ratios) of banking sectors. Our results suggest that banking-sector-specific determinants affect the efficiency of banks in the anticipated way. Macroeconomic variables have a statistically-significant impact on both ROA and ROE. The sensitivity of efficiency to both groups of determinants depends on institutional and political criteria.

Keywords: banking sector; efficiency; business cycle; risk (search for similar items in EconPapers)
JEL-codes: G21 G23 G34 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.wz.uw.edu.pl/portaleFiles/3842-journal- ... 4OlszakChodnicka.pdf (application/pdf)
http://www.wz.uw.edu.pl/portale/journal-of-banking-and-financial-economics (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:sgm:jbfeuw:v:1:y:2014:i:1:p:40-58

Access Statistics for this article

More articles in Journal of Banking and Financial Economics from University of Warsaw, Faculty of Management Contact information at EDIRC.
Bibliographic data for series maintained by ().