Comparative Perspective of Regional Level Bank Profitability
Submission Type
Event
Expected Graduation Date
2014
Location
Room E104, Center for Natural Sciences, Illinois Wesleyan University
Start Date
4-12-2014 11:00 AM
End Date
4-12-2014 12:00 PM
Disciplines
Economics
Abstract
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 Reserve Districts. Employing panel data estimation techniques, I examine the impact of different asset categories on various measures of bank profitability. The profitability factors 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 Reserve District.
Comparative Perspective of Regional Level Bank Profitability
Room E104, Center for Natural Sciences, Illinois Wesleyan University
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 Reserve Districts. Employing panel data estimation techniques, I examine the impact of different asset categories on various measures of bank profitability. The profitability factors 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 Reserve District.