Determinants of Banks’ Performance: The Case of ROE of G-SIBs in Central, Eastern and South-Eastern Europe
Journal of Management and Business Administration. Central Europe. Vol. 24, No. 1/2016
18 Pages Posted: 2 May 2016
Date Written: February 1, 2016
Purpose: The goal of the paper is to analyse the determinants of the level of ROE (return on equity) for two groups of banks, interrelated by capital links, and their banking sectors.
Methodology: For the case study, we chose companies that, in 2011–2013, were designated by the Financial Stability Board as global systemically important banks (G-SIBs) and their subsidiaries operating in Central, Eastern and Southeastern Europe (CESEE) as well as their banking sectors. We sought to identify differences in the performance drivers, taking into account bank-specific and country- (or sector-) specific factors.
Findings: We found no significant differences in the level of ROE among the analysed groups; however, we identified a different set of determinants and their impact on ROE.
Keywords: performance, ROE, parent companies, subsidiaries
JEL Classification: G21, G32
Suggested Citation: Suggested Citation