The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012
An unbalanced panel data set from Britain banks was applied to investigate the internal and external factors affecting profit in the banking industry over the period from 2003 to 2012 . This study is aimed to investigate the potential determinants of profit in the banking industry in the UK, and tr...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2013
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| Online Access: | https://eprints.nottingham.ac.uk/26586/ |
| _version_ | 1848793203262619648 |
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| author | Pan, Zijun |
| author_facet | Pan, Zijun |
| author_sort | Pan, Zijun |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | An unbalanced panel data set from Britain banks was applied to investigate the internal and external factors affecting profit in the banking industry over the period from 2003 to 2012 . This study is aimed to investigate the potential determinants of profit in the banking industry in the UK, and try to find out the relationship between bank profitability and its significant determinants. Also, this paper will combine the potential important and significant determinants with risk management framework, in order to find out the way which can improve the competition capacity in such a large competition banking market. It is found that liquidity and credit is the most important and significant factors in internal determinants for banking profitability (ROAA, ROAE and NIM). However, external determinants, including inflation rate, real interest rate and GDP, were found to be not very important to the profit in banks, except for GDP. A further discussion based on a lesson from the 2008 financial crisis will focus on the importance of managing and controlling the risks faced by banks, particularly in liquidity risk and credit risk. |
| first_indexed | 2025-11-14T18:56:34Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-26586 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:56:34Z |
| publishDate | 2013 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-265862017-10-19T13:32:27Z https://eprints.nottingham.ac.uk/26586/ The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012 Pan, Zijun An unbalanced panel data set from Britain banks was applied to investigate the internal and external factors affecting profit in the banking industry over the period from 2003 to 2012 . This study is aimed to investigate the potential determinants of profit in the banking industry in the UK, and try to find out the relationship between bank profitability and its significant determinants. Also, this paper will combine the potential important and significant determinants with risk management framework, in order to find out the way which can improve the competition capacity in such a large competition banking market. It is found that liquidity and credit is the most important and significant factors in internal determinants for banking profitability (ROAA, ROAE and NIM). However, external determinants, including inflation rate, real interest rate and GDP, were found to be not very important to the profit in banks, except for GDP. A further discussion based on a lesson from the 2008 financial crisis will focus on the importance of managing and controlling the risks faced by banks, particularly in liquidity risk and credit risk. 2013-09 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26586/1/Dissertation_ZIJUN_PAN.pdf Pan, Zijun (2013) The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Pan, Zijun The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012 |
| title | The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012 |
| title_full | The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012 |
| title_fullStr | The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012 |
| title_full_unstemmed | The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012 |
| title_short | The Determinants of Profitability in Banking and Its Implication for Risk Management: Evidence from UK Bank over 2003-2012 |
| title_sort | determinants of profitability in banking and its implication for risk management: evidence from uk bank over 2003-2012 |
| url | https://eprints.nottingham.ac.uk/26586/ |