Work detail

Development strategy of commercial banks

Author: Mgr. Yuye Zheng
Year: 2022 - winter
Leaders: prof. Ing. Karel Janda M.A., Dr., Ph.D.
Consultants:
Work type: Masters
MEF
Language: English
Pages: 72
Awards and prizes:
Link: https://dspace.cuni.cz/handle/20.500.11956/171376
Abstract: In this article, we analyze the key factors that determine the net interest
margin (NIM) of EU commercial banks in the current economic environment. We examine a large number of annual data samples of 252 commercial banks
in EU member states from 2015 to 2020. During this period, most countries
experienced extremely low or even negative interest rates. In this article we
test three hypotheses. First, commercial banks committed to providing
financial products and services show the highest net interest margin (NIM). Second, the net interest margin of small commercial banks has dropped
significantly under conditions of negative interest rate. Third, the net interest
margin of Western European countries has dropped significantly under
conditions of negative interest rate. Similar to other studies, we have obtained
the positive-concave relationship between interest rates and NIM, and the
regression coefficients of other bank-related variables and macroeconomic
variables have also achieved similar results. Compared with other studies, we
innovatively consider the impact of countries with different economic levels
on the net present value of commercial banks. Finally, we comprehensively
regress the results and conclude what development strategies commercial
banks should use in the current economic situation
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