Possible Determinants of Bank Profitability in the United Kingdom
Autor: | Saeed, Muhammad Sajid |
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EAN: | 9783659285226 |
Sachgruppe: | Ratgeber/Recht, Beruf, Finanzen Wirtschaft |
Sprache: | Englisch |
Seitenzahl: | 60 |
Produktart: | Kartoniert / Broschiert |
Veröffentlichungsdatum: | 14.03.2014 |
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This paper investigates the impact of bank-specific, industry-specific, and macroeconomic variables on bank profitability before, during, and after the financial crisis of 2008. For this purpose, 73 UK commercial banks are selected on the basis of availability of required information. The empirical data for these banks are collected for the period from 2006 to 2012 from Bankscope and Data-stream databases. The regression and correlation analyses are performed on the data and concluded that bank size, capital ratio, loan, deposits, liquidity, and interest rate have positive impact on ROA and ROE while GDP and inflation rate have negative impact. The findings of this study can help UK banks, government, investors, policymakers, and shareholders for decision making and improving the performance of financial institutions in the future.