Borroni / Rossi Banking in Europe

The Quest for Profitability after the Great Financial Crisis
1. Auflage 2019
ISBN: 978-3-030-15013-6
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 128 Seiten

Reihe: Palgrave Macmillan Studies in Banking and Financial Institutions

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.

Autoren/Hrsg.

Borroni, Mariarosa

Rossi, Simone

Inhaltsverzeichnis

1;Acknowledgements;6
2;Introduction;7
3;Contents;10
4;List of Figures;11
5;List of Tables;13
6;Chapter 1: Bank Management After the Great Crisis;14
6.1;1.1 Introduction;14
6.2;1.2 Bank Business Model: What Has Been Changing in the Fintech Era;15
6.3;1.3 Regulatory Framework: Opportunities and Threats for the Banking System;19
6.4;1.4 Financial and Economic Environment: Surviving Squeezed Margins;25
6.5;1.5 Cost Efficiency and Credit Quality: Merging Soft and Hard Information;28
6.6;1.6 Conclusions;32
6.7;References;33
7;Chapter 2: Bank Profitability: Measures and Determinants;36
7.1;2.1 Introduction;36
7.2;2.2 Profitability Measures: ROE, ROA and NIM;41
7.2.1;2.2.1 ROE;41
7.2.2;2.2.2 ROA;45
7.2.3;2.2.3 NIM;47
7.3;2.3 Risk-Return Measures;49
7.4;2.4 Determinants of Bank Profitability: A Literature Review;55
7.4.1;2.4.1 Internal Determinants of Profitability;55
7.4.2;2.4.2 External Determinants of Profitability;60
7.5;2.5 Conclusions;62
7.6;References;63
8;Chapter 3: Profitability of European Banks: A Quantitative Analysis;67
8.1;3.1 Introduction;67
8.2;3.2 The Macroeconomic and Competitive Context of Reference;68
8.3;3.3 Some Aggregated Data on the Subject of Bank Financials;76
8.4;3.4 European Banks During the Crisis: Cluster and Panel Analyses;81
8.4.1;3.4.1 Cluster Analysis;82
8.4.2;3.4.2 Panel Analysis;87
8.5;3.5 Conclusions;93
8.6;References;94
9;Chapter 4: Making Profits in the New Competitive and Regulatory Framework;95
9.1;4.1 Introduction;95
9.2;4.2 The Quest for Profitability After the Great Crisis: A Proactive Approach;96
9.3;4.3 Reshaping the Business Model;100
9.4;4.4 The Quest for Equilibrium Between Profitability and Compliance to the Regulation;106
9.5;4.5 Dealing with Old and New Competitors: From the Brick-and-Mortar Branch to Fintech;109
9.6;4.6 Conclusions;112
9.7;References;113
10;Final Remarks;118
11;Index;121