Comparative Perspective of Regional Level Bank Profitability
Using state-level data spanning the period 1966- 2012, this study provides a comparative perspective on the underlying factors that affect bank profitability between the Atlanta, Chicago and San Francisco Federal R eserve Districts. Employing panel data estimation techniques, I examine the impact of different asset categories on various measures of bank profitability. Bank assets studied include real estate loans, loans to individuals, commercial and industry loans, and investment securities. Using a fixed effects model, I find that real estate loans during recessionary periods have a significantly negative impact on bank profitability in all three districts with the strongest impact in the San Francisco Federal R eserve District.
Bechtel, Alexandra, "Comparative Perspective of Regional Level Bank Profitability" (2014). Honors Projects. 129.