Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Financial crises. --- Bank loans. --- Bank profits. --- Bank earnings --- Profit --- Bank credit --- Loans --- Crashes, Financial --- Crises, Financial --- Financial crashes --- Financial panics --- Panics (Finance) --- Stock exchange crashes --- Stock market panics --- Crises

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

"This publication provides information on financial statements and balance sheets of banks in all OECD member countries."

Bank profits --- Banks and banking --- Bank profits. --- Banks and banking. --- OECD countries. --- Bank earnings --- Agricultural banks --- Banking --- Banking industry --- Commercial banks --- Depository institutions --- OECD member countries --- Organisation for Economic Co-operation and Development countries --- Profit --- Finance --- Financial institutions --- Money --- Business, Economy and Management

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper explores the determinants of profitability across large euro area banks using a novel approach based on conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a large swath of banks would most likely continue to struggle even amid a strong economic recovery. Therefore, for some banks, a determined reduction in NPLs combined with cost efficiency improvements and customized changes to their business models appears to be the most promising strategy for durably raising profitability.

Eurozone. --- Bank profits. --- Europe. --- Gay culture Europe --- Europe --- Bank earnings --- Profit --- Euro area --- Euro zone --- Monetary unions --- Banks and Banking --- Finance: General --- Macroeconomics --- Industries: Financial Services --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- General Financial Markets: Government Policy and Regulation --- Personal Income, Wealth, and Their Distributions --- Interest Rates: Determination, Term Structure, and Effects --- Financial Institutions and Services: Government Policy and Regulation --- Finance --- Banking --- Financial services law & regulation --- Bank soundness --- Nonperforming loans --- Personal income --- Yield curve --- Financial sector policy and analysis --- Financial institutions --- National accounts --- Financial services --- Loan loss provisions --- Financial regulation and supervision --- Banks and banking --- Loans --- Income --- Interest rates --- State supervision --- France

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many profitable banks choose to invest in untested financial instruments before the crisis, realizing significant losses? We attempt to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering up to engage in risky ‘side activities’(such as market-based investments) alongside the core business. A more profitable core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk of given size. Consequently, more profitable banks may have higher risk-taking incentives. The framework is consistent with cross-sectional patterns of bank risk-taking in the run up to the recent financial crisis.

Banks and banking --- Bank profits --- Financial risk --- Business risk (Finance) --- Money risk (Finance) --- Risk --- Bank earnings --- Profit --- Agricultural banks --- Banking --- Banking industry --- Commercial banks --- Depository institutions --- Finance --- Financial institutions --- Money --- Econometric models. --- Banks and Banking --- Finance: General --- Financial Risk Management --- Money and Monetary Policy --- Taxation --- Investments: Stocks --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Investment Banking --- Venture Capital --- Brokerage --- Ratings and Ratings Agencies --- Financial Institutions and Services: Government Policy and Regulation --- General Financial Markets: Government Policy and Regulation --- Taxation, Subsidies, and Revenue: General --- Financial Crises --- Monetary Policy --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Public finance & taxation --- Economic & financial crises & disasters --- Monetary economics --- Investment & securities --- Bank soundness --- Tax incentives --- Financial crises --- Accommodative monetary policy --- Financial sector policy and analysis --- Monetary policy --- Investment banking --- Financial services --- Stocks --- United States