This research was written as a part of the MSc in Banking and Finance at the International Hellenic University. The aim of this dissertation is to analyze the determinants of profitability in European countries after the financial crisis 2008 and to measure their impact. Moreover, we wanted to examine if these determinants affect equally different countries. Therefore 2 groups of countries were formed, one with more sound and healthy financial environment and another more unstable and quite problematic. The first group included banks from Greece, Italy and Spain and the second from Germany and France. Data from 28 banks were obtained for the period 2011 to 2016 creating 2 separately data panel which consists from 90 variables and 78 variables respectively. We tried to analyze the profitability of the banks’ mainly with liquidity ratios which delivered from both sides of the balance sheet. Although there are some previous researches which tried to investigate the same issue, the conclusions are ambiguous and therefore we should except any result. Concluding to our research, we can say that despite the reaction of some determinants in the same way in both groups referring to the very same profitability ratio, there is not evidence of any variable that affect more a specific group of countries. A contact point can be consider the net loans to total asset ratio which delivers the liquidity of a bank because it affect positive all the banks’ profitability.
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