Profitability of Foreign Owned Banks in Central and Eastern European Countries
Ziskovost zahraničně vlastněných bank v zemích střední a východní Evropy
bachelor thesis (DEFENDED)
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http://hdl.handle.net/20.500.11956/56498Identifiers
Study Information System: 123654
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- Kvalifikační práce [17632]
Author
Advisor
Referee
Lypko, Vyacheslav
Faculty / Institute
Faculty of Social Sciences
Discipline
Economics
Department
Institute of Economic Studies
Date of defense
9. 9. 2013
Publisher
Univerzita Karlova, Fakulta sociálních vědLanguage
English
Grade
Excellent
Keywords (Czech)
zahraničné banky, materské banky, ziskovosť, vlastnícke štruktúryKeywords (English)
Foreign banks, Parent banks, Profitability, Crisis, Ownership structureSince foreign owned banks create important market shares in the banking sectors in the Central and Eastern European (CEE) countries, the aim of this study is to detect the determinants of the profitability of foreign banks operating in this region. In our study, we focus on the sample of foreign owned banks in 10 CEE countries during the period 2003-2011. We investigate, using the econometric analysis, the impact of bank-specific, macroeconomic and market structure characteristics as well as the euro area development on the profitability of foreign owned banks. We also examine whether the impact of these determinants differs in the period before the global financial crisis and during the crisis. Our results suggest significant influence of the bank-specific factors on the profitability of foreign owned banks and that the sensitivity of profitability to bank-specific characteristics has even risen during the crisis period. Surprisingly, we do not find the relation between the market structure in the host country, where the banks operate, and the profitability similarly to the participation of the host country in the European Union and the euro area. However, some of the macroeconomic variables capturing both the host country and the euro area developments affect bank profitability but in some cases...