Bank health in varying macroeconomic conditions : a panel study

Selim Akhter, Kevin Daly

    Research output: Contribution to journalArticlepeer-review

    8 Citations (Scopus)

    Abstract

    Using panel data on selected Financial Soundness Indicators (FSIs) this paper investigates the potential strengths and vulnerabilities of financial intermediaries across more than 50 countries. Our econometric analysis reveals strong influence of business cycle, inflation, and real effective exchange rates, and size of the industry on capital adequacy —a core indicator of banks' financial soundness. Furthermore, our analyses provide evidence that banks' profitability is determined by a combination of macroeconomic, bank specific and industry characteristics such as business cycle, inflation, credit risk, capital adequacy, and the level of competition.
    Original languageEnglish
    Pages (from-to)285-293
    Number of pages9
    JournalInternational Review of Financial Analysis
    Volume18
    Issue number5
    DOIs
    Publication statusPublished - 2009

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