Determinants of bank profitability in Thailand by Generalized method of moments estimation

Abstract

This research aimed to estimate the determinants of bank profitability of banks registered in Thailand by using the System GMM Estimator method. Bank level data from 2010-2020. Profitability is measured by three ratios: Return on Assets. Return on Equity and Net Interest Income Margin The determinants of a bank's profitability are bank-specific. Banking Industry Specific Factors and Economic Factors. The results showed increasing asset size results in lower profitability for banks, asset quality and operating costs negatively affect profitability. On the other hand, capital adequacy, inflation, and gross domestic product help boost profits for banks.