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Determinants of Bank Profitability: Evidence from the US, 2010-2016

Date created
2018-12
Authors/Contributors
Author: Tan, Yan
Author: Li, Donglu
Abstract
This paper examines how bank-specific variables and macroeconomic variablesaffect the profitability of US commercial banks over the period 2010-2016.Taking return on assets (ROA) and return on equity (ROE) as measures ofprofitability, we estimate regressions using Ordinary Least Squares (OLS). Wefind that capital ratio, loans, deposits, noninterest income, and unemploymentrate affect bank profitability. When we divide banks into several size groups,we find that size affects the profitability of small banks.
Document
Description
MSc in Finance Project-Simon Fraser University
Copyright statement
Copyright is held by the author(s).
Scholarly level
Peer reviewed?
No
Language
English

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