TY - JOUR
T1 - Bank health in varying macroeconomic conditions : a panel study
AU - Akhter, Selim
AU - Daly, Kevin
PY - 2009
Y1 - 2009
N2 - 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.
AB - 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.
UR - http://handle.uws.edu.au:8081/1959.7/539687
U2 - 10.1016/j.irfa.2009.09.002
DO - 10.1016/j.irfa.2009.09.002
M3 - Article
SN - 1057-5219
VL - 18
SP - 285
EP - 293
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
IS - 5
ER -
