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An Empirical Analysis Of The Determinants Of Bank Profitability In Romania

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  • Angela Roman
  • Adina Elena DănuleÅ£iu

Abstract

Our paper aims to investigate the factors that have an influence upon the profitability of Romanian commercial banks, between 2003 and 2011. The results of our study show that Romanian banks' profitability is influenced by both bank-specific factors and changes in the external environment. In the case of bank-specific factors, the results of our study reflect that bank profitability is significantly influenced by asset quality, management quality and banking liquidity. Among external factors, it turns out that banking concentration and economic growth rate have an important impact on bank profitability.

Suggested Citation

  • Angela Roman & Adina Elena DănuleÅ£iu, 2013. "An Empirical Analysis Of The Determinants Of Bank Profitability In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-23.
    • Handle: RePEc:alu:journl:v:2:y:2013:i:15:p:23
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    References listed on IDEAS

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    Cited by:

    1. Matej Tomec & Timotej Jagric, 2017. "Does the Amount and Time of Recapitalization Affect the Profitability of Commercial Banks?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 67(4), pages 318-341, August.
    2. Leonora Haliti Rudhani & Skender Ahmeti & Taulant Rudhani, 2016. "The Impact of Internal Factors on Bank Profitability in Kosovo," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(1), pages 95-107, February.
    3. Gangopadhyay, Partha & Jain, Siddharth & Bakry, Walid, 2022. "In search of a rational foundation for the massive IT boom in the Australian banking industry: Can the IT boom really drive relationship banking?," International Review of Financial Analysis, Elsevier, vol. 82(C).
    4. Shafiqul Islam & Md. Shohel Rana, 2019. "Determinants of Bank Profitability: Evidence from Commercial Banks of Bangladesh," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 9(2), pages 174-183, December.
    5. Sanni Mubaraq & Salami Abdulai Agbaje & Uthman Ahmad Bukola, 2020. "Determinants of Bank Performance in Nigeria: Do they Behave Differently with Risk-Adjusted Returns?," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(3), pages 1-34, September.
    6. Hashed Mabkhot & Hamid Abdulkhaleq Hasan Al-Wesabi, 2022. "Banks’ Financial Stability and Macroeconomic Key Factors in GCC Countries," Sustainability, MDPI, vol. 14(23), pages 1-21, November.
    7. Valipour Pasha , Mohammad & Arshadi , Ali, 2015. "Degree of Leverage Ratio Analysis in the Iranian Banking Network," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 10(2), pages 91-111, January.

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    More about this item

    Keywords

    commercial banks; profitability; bank specific factors; industry-specific variables; macroeconomic variables;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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