Capital Creation Factors in Selected Banking Sectors of Europe
Capital Creation Factors in Selected Banking Sectors of Europe

Author(s): Ján Horvát
Subject(s): Business Economy / Management, Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: financial crisis; bank capital;
Summary/Abstract: This article has the objective to examine the impact of the financial crisis on the banking sector, especially in terms of whether the change in approach to the regulation of banks contributed to the reduction of cyclical developments of the European banking sector. We analyzed the banking sectors of Germany, France and the Central and Eastern European banks for the period 2000-2013 (72 banks from Germany and France and 39 banks of Central and Eastern European countries). We have examined capital formation and pretax profit as a prerequisite for capital formation through panel regression. We used data from BankScope. We have come to the conclusion that there were different trends in capital formation in the countries of Western Europe on the one hand and in CEE countries on the other hand during the financial crisis.

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