PL EN


2018 | 2/2018 (74) | 74-95
Article title

International Banking and Bank Performance: The Case of Poland

Content
Title variants
PL
Banki międzynarodowe a rentowność banków: na przykładzie polskiego sektora bankowego
Languages of publication
EN PL
Abstracts
EN
The aim of this study is to examine differences in the determinants of profitability between domestic and foreign banks in Poland during the global financial crisis and the eurozone debt crisis. Empirical results based on panel data sets containing both micro-level and macro-level data provided the evidence of differences in the determinants of performance between domestic and foreign banks, and also between foreign subsidiaries and foreign institutions’ branches, i.e. foreign currency loans were profitable mainly for foreign banks’ subsidiaries. Furthermore, this paper found a positive correlation between the context of parent banks and the profitability of their affiliates mainly during the global financial crisis.
PL
Celem opracowania jest zbadanie różnic w determinantach rentowności banków krajowych i zagranicznych w Polsce w czasie globalnego kryzysu finansowego z 2008 r. i kryzysu zadłużeniowego państw strefy euro. Wyniki empiryczne oparte na analizie danych panelowych zawierających dane na poziomie zarówno mikro, jak i makro wskazały na różnice w determinantach wyników między bankami krajowymi i zagranicznymi, a także między oddziałami zagranicznymi i oddziałami instytucji zagranicznych. Ponadto, w niniejszym dokumencie stwierdzono dodatnią korelację między rentownością banków-matek a rentownością ich spółek zależnych, głównie w czasie globalnego kryzysu finansowego.
Year
Issue
Pages
74-95
Physical description
Dates
published
2018-05-08
Contributors
References
  • 1. Allen, F., Jackowicz, K., Kowalewski, O., & Kozłowski, Ł. (2017). Bank lending, crises, and changing ownership structure in Central and Eastern European countries. Journal of Corporate Finance, 42, 494–515.
  • 2. Adler, G. & Cerutti, E. (2015). Are foreign banks a ‘safe haven’? Evidence from past banking crises (IMF Working Paper WP/15/43).
  • 3. Anginer, D., Cerutti, E., & Soledad Martinez Peria, M. (2016). Foreign bank subsidiaries’ default risk during the global crisis: What factors help insulate affiliates from their parents? (IMF Working WP/16/109).
  • 4. Albertazzi, U. & Gambacorta, L. (2009). Bank profitability and the business cycle. Journal of Financial Stability, 5(4), 393–409.
  • 5. Arellano, M. & Bond, S.R. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58, 277–297.
  • 6. Athanasoglou, P., Brissimis, S.N., & Delis M.D. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of International Financial Markets, Institutions & Money, 18, 121–136.
  • 7. Bikker, J.A. & Hu, H. (2002). Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements. BNL Quarterly Review, 221, 143–175.
  • 8. Bikker, J.A. & Leuvensteijn, M. (2014). A New measure of competition in the financial industry. London: Routledge.
  • 9. Bonin, J. & Wachtel, P. (1999). Toward market-oriented banking in the economies in transition. In: M. Blejer and M. Skreb (eds.), Financial sector transformation: Lessons for the economies in transition. Cambridge University Press.
  • 10. Bonin, J.P., Hasan, I., & Wachtel, P. (2005). Privatization matters: Bank efficiency in transition countries. Journal of Banking and Finance, 29(8–9), 2155–2178.
  • 11. Blundell, R. & Bond, S. (1998). Initial conditions and moment conditions in dynamic panel data models. Journal of Econometrics, 87, 115–143.
  • 12. Bond, S. (2002). Dynamic panel data models: A guide to micro data methods and practice. Portuguese Economic Review, 1, 141–162.
  • 13. Borio, C., Gambacorta, L., & Hofmann, B. (2015). The influence of monetary policy on bank profitability (BIS Working Paper No. 514).
  • 14. Claessens, S. & Van Horen, N. (2013). Impact of foreign banks. The Journal of Financial Perspectives, 1(1).
  • 15. Carbó Valverde, S. & Rodríguez, F. (2007). The determinants of bank margins in European banking. Journal of Banking and Finance, 31, 2043–2063.
  • 16. Cull R., Martinez Pería, M.S., & Verrier, J. (2017). Bank ownership: Trends and implications (IMF Working Paper No. 17/60).
  • 17. De Haas, R. & Van Horen, N. (2012). International shock transmission after the Lehman Brothers collapse: Evidence from syndicated lending. American Economic Review: Papers & Proceedings, 102(3), 231–237.
  • 18. Demetriades, P.O. & Hussein, K.A. (1996). Does financial development cause economic growth. Time-series evidence from 16 countries. Journal of Development Economics, 51(2), 387–411.
  • 19. Demirgüç-Kunt, A. & Huizinga, H. (2000). Financial structure and bank profitability (World Bank Policy Research Working Paper 2430).
  • 20. Goddard, J., Molyneux, P., & Wilson, J.O.S. (2004). The profitability of European banks. A cross-sectional and dynamic panel analysis. The Manchester School, 72(3), 363–381.
  • 21. Guo, K. & Stepanyan, V. (2011). Determinants of bank credit in emerging market economies (IMF Working Paper No. WP/11/51, European Department).
  • 22. Degryse, H., Kim, M. & Ongena, S. (2009). Microeconometrics of banking: Methods, applications and results. Oxford University Press.
  • 23. Degryse, H. & Ongena, S. (2008). Competition and regulation in the banking sector: A review of the empirical evidence on the sources of bank rents. In: A.V. Thakor & A. Boot (Eds.), Handbook of financial intermediation and banking (pp. 483–554). Elsevier Science.
  • 24. DeYoung, R. & Nolle, D.E (1996). Foreign-owned banks in the United States: Earning market share or buying it?. Journal of Money, Credit and Banking, 28(4), 622–36.
  • 25. Demirgüç-Kunt, A. & Huizinga, H. (2000). Financial structure and bank profitability (World Bank Policy Research Working Paper 2430).
  • 26. Havrylchyk, O. & Jurzyk, E. (2011). Profitability of foreign banks in Central and Eastern Europe: Does the entry mode matter?. Economics of Transition, 19(3), 443–472.
  • 27. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). Government ownership of banks. Journal of Finance, 57(1), 265–301.
  • 28. Mirzaei, A., Moore, T., & Liu, G. (2013). Does market structure matter on banks’ profitability and stability? Emerging versus advanced economies. Journal of Banking and Finance, 37, 2920–2937.
  • 29. Nikiel, E.M. & Opiela, T.P. (2002). Customer type and bank efficiency in Poland: Implications for emerging banking market. Contemporary Economic Policy, 20(3), 255–271.
  • 30. Polish Financial Supervision Authority. (2014). Report on the condition of Polish banks in 2013. Warsaw: Polish Financial Supervision Authority.
  • 31. Polish Financial Supervision Authority. (2016). Report on the condition of Polish banks in 2015. Warsaw: Polish Financial Supervision Authority.
  • 32. Pawłowska, M., Serwa, D., & Zajączkowski, S. (2015). International banking and liquidity risk transmission: Evidence from Poland. IMF Economic Review, 6(3), 585–605. Basingstoke: Palgrave Macmillan.
  • 33. Pawłowska, M. (2016). Determinants of profitability of Polish banks: The role of foreign banks. Econometric Research in Finance, 1(1), 23–46.
  • 34. Rossi, S.P., Schwaiger, M.S., & Winkler, G. (2009). How loan portfolio diversification affects risk, efficiency and capitalization: A managerial behavior model for Austrian banks. Journal of Banking & Finance, 33(12), 2218–2226.
  • 35. Rumler, F. & Waschiczek, W. (2010). The impact of economic factors on bank profits. Monetary policy and the economy, (Q4/10). Österreichische Nationalbank (OeNB).
  • 36. Smirlock, M. (1985). Relationship between concentration and profitability in banking. Journal of Money, Credit and Banking, 17(1), 69–83.
  • 37. Windmeijer, F. (2005). A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics, 126, 25–51.
Document Type
Publication order reference
Identifiers
ISSN
1644-9584
YADDA identifier
bwmeta1.element.desklight-5c26eab1-9528-4800-9e06-4c6d93ab203b
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.