This article examines the dynamics of bank profitability in the USA, Germany, Great Britain,
France, Italy and Switzerland over the period 1993-2014. We find long-run bank profit persistence
in all six countries in the period before the financial crisis in 2008. Banks with large capital
ratios are persistently more profitable, and there is little evidence of a link between bank size and
the persistence of bank profits. Commercial (saving) banks are persistently more (less) profitable
in four of the six countries. The effects of the financial crisis in 2008 differed dramatically across
countries as well as across ownership types. While US banks experienced dramatic declines in the
immediate aftermath of the crisis, they recovered much faster than their European counterparts
and essentially retain their long run profit potential by the year 2014.
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:6415 |
| Date | January 2018 |
| Creators | Gugler, Klaus, Peev, Evgeni |
| Publisher | Taylor&Francis Group |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Article, PeerReviewed |
| Format | application/pdf |
| Rights | Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) |
| Relation | http://dx.doi.org/10.1080/00036846.2018.1489111, https://www.tandfonline.com/, http://epub.wu.ac.at/6415/ |
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