Bank Profitability Over Different Business Cycles Regimes: Evidence from Panel Threshold Models

20 Pages Posted: 11 Jun 2007

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Date Written: June 2007

Abstract

The goal of this study is to identify whether bank profitability, defined as interest, non-interest, and profits before taxes, in the Greek banking system is affected by business cycle conditions through the methodology of panel multiple threshold models. After defining business regimes for the Greek economy over the period 1990-2006, the empirical findings display that there exists a positive relationship between bank profitability and the business cycle and this positive cyclicality remains robust in either phase of the business cycle (except in the case for non-interest income).

Keywords: profitability, business cycles, Greek banks, panel threshold models

JEL Classification: C23, E32, G21

Suggested Citation

Apergis, Nicholas, Bank Profitability Over Different Business Cycles Regimes: Evidence from Panel Threshold Models (June 2007). Available at SSRN: https://ssrn.com/abstract=992654 or http://dx.doi.org/10.2139/ssrn.992654

Nicholas Apergis (Contact Author)

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

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