Title: Determinants of the Profitability in the Czech Banking Industry
Abstract: The aim of this paper is to estimate the banking profitability
determinants of the Czech commercial banks during the period
2004-2014. For estimation of banking profitability we used
three common measures, namely the Return on Assets, Return on
Equity and Net Interest Margin. We estimated twelve
determinants of banking performance. The effect of the
determinants of banking profitability is estimated using panel
data analysis. The data set is consists of seventeen commercial
banks in the Czech Republic. The results show that the
profitability was positively influenced by the bank’s size,
capitalization, credit risk, level of concentration, ownership
structure and bank’s market share. Number of branches of the
bank had the negative impact on ROA and ROE. on the other hand,
the variables Gross Domestic Product, interest rate, liquidity
risk, riskiness of bank’s portfolio and affiliation with
financial conglomerate have not got the significant influence
on profitability of the Czech commercial banks.
Publication Year: 2016
Publication Date: 2016-12-01
Language: en
Type: article
Indexed In: ['doaj']
Access and Citation
Cited By Count: 3
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