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

Journal of Management and Business Administration. Central Europe. Vol. 24, No. 1/2016

18 Pages Posted: 2 May 2016

See all articles by Malgorzata Iwanicz-Drozdowska

Malgorzata Iwanicz-Drozdowska

Warsaw School of Economics, Institute of Finance

Bartosz Witkowski

Warsaw School of Economics (SGH)

Date Written: February 1, 2016

Abstract

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.

Keywords: performance, ROE, parent companies, subsidiaries

JEL Classification: G21, G32

Suggested Citation

Iwanicz-Drozdowska, Malgorzata and Witkowski, Bartosz, Determinants of Banks’ Performance: The Case of ROE of G-SIBs in Central, Eastern and South-Eastern Europe (February 1, 2016). Journal of Management and Business Administration. Central Europe. Vol. 24, No. 1/2016, Available at SSRN: https://ssrn.com/abstract=2773752

Malgorzata Iwanicz-Drozdowska (Contact Author)

Warsaw School of Economics, Institute of Finance ( email )

Warsaw
Poland

Bartosz Witkowski

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

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