Banking in Europe (eBook)

The Quest for Profitability after the Great Financial Crisis

Mariarosa Borroni, Simone Rossi (Autoren)

eBook Download: PDF

2019 | 1st ed. 2019
XV, 118 Seiten
Springer International Publishing (Verlag)
978-3-030-15013-6 (ISBN)

Infos

This Palgrave Pivot provides a comprehensive overview of the dynamics that are affecting the profitability of European banks since the recent crisis period. More specifically, it sheds light on the most crucial changes in profit generation and on the consequential changes in banking strategies due to fiercer competition, reduced margin and changing regulation. The work is divided in four main parts. The first section introduces the changes in bank management policies, considering the periods before and since the crisis. In the second section, the authors review the literature on bank profitability and outline the main determinants of profit generation, and in the third section they provide a cross-country analysis of profitability for a wide sample of European banks during the great financial crisis. In the last section, the authors discuss the results of the quantitative analysis under the new regulatory and competitive framework that is progressively affecting the banking sector (fintech, Basel regulations, etc.). This book will be of interest to academics, researchers and students of European banking.

Mariarosa Borroni is an Associate Professor at the Catholic University, Italy, where she serves as a professor of Banking and Financial Intermediaries. Her research interests are in the areas of banking management and banking regulation.

Simone Rossi is an Assistant Professor at the Catholic University of Piacenza, Italy, where he serves as a professor of Banking and Financial Markets Economics and Asset Management. His research interests are in the areas of banking management, banking regulation and financial instruments.

Inhalt

Acknowledgements 6
Introduction 7
Contents 10
List of Figures 11
List of Tables 13
Chapter 1: Bank Management After the Great Crisis 14
1.1 Introduction 14
1.2 Bank Business Model: What Has Been Changing in the Fintech Era 15
1.3 Regulatory Framework: Opportunities and Threats for the Banking System 19
1.4 Financial and Economic Environment: Surviving Squeezed Margins 25
1.5 Cost Efficiency and Credit Quality: Merging Soft and Hard Information 28
1.6 Conclusions 32
References 33
Chapter 2: Bank Profitability: Measures and Determinants 36
2.1 Introduction 36
2.2 Profitability Measures: ROE, ROA and NIM 41
2.2.1 ROE 41
2.2.2 ROA 45
2.2.3 NIM 47
2.3 Risk-Return Measures 49
2.4 Determinants of Bank Profitability: A Literature Review 55
2.4.1 Internal Determinants of Profitability 55
2.4.2 External Determinants of Profitability 60
2.5 Conclusions 62
References 63
Chapter 3: Profitability of European Banks: A Quantitative Analysis 67
3.1 Introduction 67
3.2 The Macroeconomic and Competitive Context of Reference 68
3.3 Some Aggregated Data on the Subject of Bank Financials 76
3.4 European Banks During the Crisis: Cluster and Panel Analyses 81
3.4.1 Cluster Analysis 82
3.4.2 Panel Analysis 87
3.5 Conclusions 93
References 94
Chapter 4: Making Profits in the New Competitive and Regulatory Framework 95
4.1 Introduction 95
4.2 The Quest for Profitability After the Great Crisis: A Proactive Approach 96
4.3 Reshaping the Business Model 100
4.4 The Quest for Equilibrium Between Profitability and Compliance to the Regulation 106
4.5 Dealing with Old and New Competitors: From the Brick-and-Mortar Branch to Fintech 109
4.6 Conclusions 112
References 113
Final Remarks 118
Index 121

Produkt-Details

• Erscheint lt. Verlag: 9.4.2019
• Reihe/Serie: Palgrave Macmillan Studies in Banking and Financial Institutions
• Reihe/Serie: Palgrave Macmillan Studies in Banking and Financial Institutions
• Zusatzinfo: XV, 118 p. 16 illus.
• Sprache: englisch
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• Schlagworte: Bank Business Models • Banking • Bank Management • Bank regulation • Bank risk • Basel • European banking • Financial Crisis • Financial innovation • FinTech • Income diversification • Profitability • Profit Generation
• ISBN-10: 3-030-15013-5 / 3030150135
• ISBN-13: 978-3-030-15013-6 / 9783030150136