Bank health in varying macroeconomic conditions : a panel study

Selim Akhter; Kevin Daly

doi:10.1016/j.irfa.2009.09.002

Bank health in varying macroeconomic conditions : a panel study

Selim Akhter
, Kevin Daly

School of Business

Research output: Contribution to journal › Article › peer-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 language	English
Pages (from-to)	285-293
Number of pages	9
Journal	International Review of Financial Analysis
Volume	18
Issue number	5
DOIs	https://doi.org/10.1016/j.irfa.2009.09.002
Publication status	Published - 2009

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

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10.1016/j.irfa.2009.09.002

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title = "Bank health in varying macroeconomic conditions : a panel study",

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.",

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year = "2009",

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AU - Daly, Kevin

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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

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DO - 10.1016/j.irfa.2009.09.002

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VL - 18

SP - 285

EP - 293

JO - International Review of Financial Analysis

JF - International Review of Financial Analysis

IS - 5

ER -

Bank health in varying macroeconomic conditions : a panel study

Abstract

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