There is no “one-size-fits-all” strategy to achieve viable profitability, but all banks need good strategic steering and risk management capabilities to adjust their business mix to changes in the operating environment. Banks have already taken actions to enhance profitability and the room of manoeuvre for the future is not that ample. Policy makers can take further initiatives to fix structural inefficiencies and provide better conditions for banks to enhance profitability. These concerted actions would help reduce the gap between banks’ return on equity and cost-of-equity.

Main factors for the subdued profitability of significant banks in the Banking Union

Brunella Bruno;Elena Carletti
2019

Abstract

There is no “one-size-fits-all” strategy to achieve viable profitability, but all banks need good strategic steering and risk management capabilities to adjust their business mix to changes in the operating environment. Banks have already taken actions to enhance profitability and the room of manoeuvre for the future is not that ample. Policy makers can take further initiatives to fix structural inefficiencies and provide better conditions for banks to enhance profitability. These concerted actions would help reduce the gap between banks’ return on equity and cost-of-equity.
File in questo prodotto:
File Dimensione Formato  
IPOL_IDA(2019)634364_EN.pdf

accesso aperto

Descrizione: Articolo principale
Tipologia: Pdf editoriale (Publisher's layout)
Licenza: PUBBLICO DOMINIO
Dimensione 458.48 kB
Formato Adobe PDF
458.48 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/4023008
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact