Determinants of the Profitability and Stability of Euro Area Banks During the Ice Age of Interest Rates
Simone Rossi et al.
What the paper says
In this paper we analyze the determinants of bank profitability and stability during the period of null or negative policy rates (2012 - 2022) for a large sample of banks established in Euro area countries. The results show that higher capitalization, credit quality and income diversification increase profitability and stability, while other covariates play a role mainly in influencing bank profits, but not bank resilience. Empirical outcomes suggest that the banks specialization has an impact on banks' financial results in periods of null or negative interest rates.
2 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.30 × 0.4 = 0.12 |
| M · momentum | 0.55 × 0.15 = 0.08 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.