Cross-Country ROE in Banks and Its Decomposition

• Autorzy: L'ubomíra Gertler
• Języki publikacji: EN

Abstrakty

EN

Given large differences in return on equity in the banking sector of individual euro area countries, we look under the surface of this measure and decompose it to its contributing factors: i) profits, ii) total assets and iii) leverage. We find that i) dramatic declines in ROE in stressed countries were driven mostly by losses on the asset side and that ii) CEE countries deleveraging contribution to ROE has helped to maintain a good balance and prepared solid grounds for future sustainable development. (original abstract)

Słowa kluczowe

EN

Return on equity (ROE); Competitive advantage; Banks; Financial crisis

PL

Rentowność kapitału własnego; Przewaga konkurencyjna; Banki; Kryzys finansowy

• Czasopismo: Journal of Economics & Management / University of Economics in Katowice
• Rocznik: 2014
• Numer: nr 18
• Strony: 133--143

Twórcy

autor

L'ubomíra Gertler

• University of Economics in Bratislava, Slovakia

Bibliografia

• European Central Bank (2010): Beyond ROE - How to measure bank performance. Appendix to the report on EU banking structures. September 2010, Frankfurt am Main.