Determinants of Banks’ Performance: the Case of ROE Of G-SIBs in Central, Eastern and South-Eastern Europe Cover Image

Determinants of Banks’ Performance: the Case of ROE Of G-SIBs in Central, Eastern and South-Eastern Europe
Determinants of Banks’ Performance: the Case of ROE Of G-SIBs in Central, Eastern and South-Eastern Europe

Author(s): Małgorzata Iwanicz-Drozdowska, Bartosz Witkowski
Subject(s): Economy, National Economy, Business Economy / Management
Published by: Akademia Leona Koźmińskiego
Keywords: performance; parent companies; subsidiaries; ROE

Summary/Abstract: Purpose: The goal of the paper is to analyse the determinants of the level of ROE (return on equity) for two groups of banks, interrelated by capital links, and their banking sectors. Methodology: For the case study, we chose companies that, in 2011–2013, were designated by the Financial Stability Board as global systemically important banks (G-SIBs) and their subsidiaries operating in Central, Eastern and Southeastern Europe (CESEE) as well as their banking sectors. We sought to identify differences in the performance drivers, taking into account bank-specific and country- (or sector-) specific factors. Findings: We found no significant differences in the level of ROE among the analysed groups; however, we identified a different set of determinants and their impact on ROE.

  • Issue Year: 24/2016
  • Issue No: 1
  • Page Range: 46-63
  • Page Count: 18
  • Language: English