Quotation Gugler, Klaus, Peev, Evgeni. 2018. The Persistence of Profits in Banking: An International Comparison. Applied Economics. 50 (55), 5996-6009.


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Abstract

This article examines the dynamics of bank profitability in the USA, Germany, Great Britain, France, Italy and Switzerland over the period 1993–2014. We find long-run bank profit persistence in all six countries in the period before the financial crisis in 2008. Banks with large capital ratios are persistently more profitable, and there is little evidence of a link between bank size and the persistence of bank profits. Commercial (saving) banks are persistently more (less) profitable in four of the six countries. The effects of the financial crisis in 2008 differed dramatically across countries as well as across ownership types. While US banks experienced dramatic declines in the immediate aftermath of the crisis, they recovered much faster than their European counterparts and essentially retain their long run profit potential by the year 2014.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Applied Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-D
Language English
Title The Persistence of Profits in Banking: An International Comparison
Volume 50
Number 55
Year 2018
Page from 5996
Page to 6009
Reviewed? Y
URL https://doi.org/10.1080/00036846.2018.1489111
DOI https://doi.org/10.1080/00036846.2018.1489111
Open Access Y
Open Access Link https://www.tandfonline.com/doi/full/10.1080/00036846.2018.1489111

Associations

People
Gugler, Klaus (Details)
Peev, Evgeni (Details)
Organization
Institute for Quantitative Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5370 Industrial economics (Details)
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