Breaking the Bank? : A Probabilistic Assessment of Euro Area Bank Profitability /

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 distr...

Descrizione completa

Dettagli Bibliografici
Autore principale: Elekdag, Selim
Altri autori: Malik, Sheheryar, Mitra, Srobona
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2019.
Serie:IMF Working Papers; Working Paper ; No. 2019/254
Accesso online:Full text available on IMF
LEADER 01855cas a2200265 a 4500
001 AALejournalIMF015961
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781513516141 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Elekdag, Selim. 
245 1 0 |a Breaking the Bank? :   |b A Probabilistic Assessment of Euro Area Bank Profitability /  |c Selim Elekdag, Sheheryar Malik, Srobona Mitra. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2019. 
300 |a 1 online resource (38 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a 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. 
538 |a Mode of access: Internet 
700 1 |a Malik, Sheheryar. 
700 1 |a Mitra, Srobona. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2019/254 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2019/254/001.2019.issue-254-en.xml  |z IMF e-Library