Determinants of bank profitability: evidence from the UK
This paper examines bank-specific and macroeconomic factors that affect bank profitability. Using an unbalanced panel dataset of 59 UK banks over the period 2011-2018, the paper applies fixed effects (FE) models and the system generalized method of moments (GMM) estimator. Empirical results exhibit...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2019
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| Online Access: | https://eprints.nottingham.ac.uk/57877/ |
| _version_ | 1848799508014563328 |
|---|---|
| author | Xia, Yujing |
| author_facet | Xia, Yujing |
| author_sort | Xia, Yujing |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper examines bank-specific and macroeconomic factors that affect bank profitability. Using an unbalanced panel dataset of 59 UK banks over the period 2011-2018, the paper applies fixed effects (FE) models and the system generalized method of moments (GMM) estimator. Empirical results exhibit that bank profitability is positively determined by cost management efficiency and capital strength. However, banks with more liquidity, higher levels of credit risk and a larger size tend to be less profitable. With regards to macroeconomic determinants, economic growth has no significant impact on bank profits, while inflation and unemployment are negatively related to bank profitability. |
| first_indexed | 2025-11-14T20:36:46Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-57877 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:36:46Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-578772022-12-02T10:44:06Z https://eprints.nottingham.ac.uk/57877/ Determinants of bank profitability: evidence from the UK Xia, Yujing This paper examines bank-specific and macroeconomic factors that affect bank profitability. Using an unbalanced panel dataset of 59 UK banks over the period 2011-2018, the paper applies fixed effects (FE) models and the system generalized method of moments (GMM) estimator. Empirical results exhibit that bank profitability is positively determined by cost management efficiency and capital strength. However, banks with more liquidity, higher levels of credit risk and a larger size tend to be less profitable. With regards to macroeconomic determinants, economic growth has no significant impact on bank profits, while inflation and unemployment are negatively related to bank profitability. 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/57877/1/14318916%20N14157%20Determinants%20of%20Bank%20Profitability%20Evidence%20from%20the%20UK.pdf Xia, Yujing (2019) Determinants of bank profitability: evidence from the UK. [Dissertation (University of Nottingham only)] |
| spellingShingle | Xia, Yujing Determinants of bank profitability: evidence from the UK |
| title | Determinants of bank profitability: evidence from the UK |
| title_full | Determinants of bank profitability: evidence from the UK |
| title_fullStr | Determinants of bank profitability: evidence from the UK |
| title_full_unstemmed | Determinants of bank profitability: evidence from the UK |
| title_short | Determinants of bank profitability: evidence from the UK |
| title_sort | determinants of bank profitability: evidence from the uk |
| url | https://eprints.nottingham.ac.uk/57877/ |