Determinants of Banks’ Performance: the Case of ROE Of G-SIBs in Central, Eastern and South-Eastern Europe

• Main Authors: Małgorzata Iwanicz-Drozdowska, Bartosz Witkowski
• Format: Article
• Language: English
• Published: Kozminski University 2016-03-01
• Series: Journal of Management and Business Administration, Central Europe
• Subjects: performance; ROE; parent companies
• Online Access: http://mbace.eu/resources/html/article/details?id=130074

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.