TY  - THES
U1  - Bachelor Thesis
A1  - Mössler, Simon
T1  - An Analysis of Bank Profitability in the Western European Banking Sector under the Aspect of Risk Management and Regulation
N2  - This thesis examines bank-internal, industry-specific and macroeconomic determinants of bank profitability in the Western European banking sector with specific focus on determinants related to risk management and regulation. A linear panel analysis and a dynamic panel data analysis are conducted based on a sample of 53 Western European banks over the post-crisis time period from 2011 until 2019. This time period lies in-between the end of the financial crisis and the beginning of the COVID-19 pandemic. The results of the panel analysis show a stronger relationship between bank profitability and bank-internal determinants than bank-external determinants. Credit risk and operational efficiency are found to be the most significant determinants of profitability. This implies that especially factors in control of the bank management are central to safeguard and advance profitability but regulation is needed to prevent procyclical decision-making by managers.
KW  - Bank profitability
KW  - Dynamic panel data
KW  - Credit risk
KW  - Risk management
KW  - Bank regulation
Y2  - 2021
SP  - 66
S1  - 66
ER  -