{"title":"ANALYZING THE PROFITABILITY OF TOP-RATED BANKS IN THE WORLD IN LIGHT OF COVID-19","authors":"Indranarain Ramlall","doi":"10.1142/s2194565923500033","DOIUrl":null,"url":null,"abstract":"We analyze the impact of COVID-19 on the profitability of top-rated banks in the world using a comprehensive list of bank-specific ratios under post-lasso regressions based on GLS, FGLS and WLS techniques. While size and loans do not materially impound on profitability, a squeeze in the positive impact of asset utilization for all profitability metrics is conspicuously noted. COVID-19 induced declines in the negative impact of total impairment charges and provisions are noted for ROA and NIM while COVID-19-induced hike in the cost-to-income ratio is found for ROE. Findings also demonstrate that policy responses initiated during the crisis did not boost the profits of banks. From a policy perspective, sharing economy could manifest as a contemplated business model for banks, should the world relapse into another form of pandemic-related crisis.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"1 1","pages":""},"PeriodicalIF":1.0000,"publicationDate":"2023-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Global Economy Journal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1142/s2194565923500033","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
We analyze the impact of COVID-19 on the profitability of top-rated banks in the world using a comprehensive list of bank-specific ratios under post-lasso regressions based on GLS, FGLS and WLS techniques. While size and loans do not materially impound on profitability, a squeeze in the positive impact of asset utilization for all profitability metrics is conspicuously noted. COVID-19 induced declines in the negative impact of total impairment charges and provisions are noted for ROA and NIM while COVID-19-induced hike in the cost-to-income ratio is found for ROE. Findings also demonstrate that policy responses initiated during the crisis did not boost the profits of banks. From a policy perspective, sharing economy could manifest as a contemplated business model for banks, should the world relapse into another form of pandemic-related crisis.
期刊介绍：
The GEJ seeks to publish original and innovative research, as well as novel analysis, relating to the global economy. While its main emphasis is economic, the GEJ is a multi-disciplinary journal. The GEJ''s contents mirror the diverse interests and approaches of scholars involved with the international dimensions of business, economics, finance, history, law, marketing, management, political science, and related areas. The GEJ also welcomes scholarly contributions from officials with government agencies, international agencies, and non-governmental organizations. One over-arching theme that unites IT&FA members and gives focus to this journal is the complex globalization process, involving flows of goods and services, money, people, and information.
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