The dynamics of US bank profitability
Year: 2013
Type: article
Abstract: We examine the determinants of profitability for a large sample of US banks over the period 1984-2010. Specifically, we assess the extent to which short-run profits persist, and whether such persistence is affected by changes in regulation and the recent financial crisis. Our findings suggest that the competitive process reduces positions of abnormal profitability, albeit this is not immediate. There is also evidence that changes in regulation enacted during the 1990s affected both the level and persistence of bank profitability. The financial crisis of 2007-2010 appears to have resulted in an increase in the persistence of bank profitability.
Source: European Journal of Finance
Authors: Dimitris K. Chronopoulos, Hong Liu, Fiona J. McMillan, John O.S. Wilson
Institutions: University of St Andrews, University of Glasgow
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2016684800