Digitization, Ageing Population and Bank Profitability: Evidence in Light of Two Global Crises

IF 1.3 Q3 ECONOMICS
Indranarain Ramlall
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引用次数: 0

Abstract

Despite the prevalence of a rich literature on bank profitability, yet, none of it analyzes the simultaneous effects of GFC and COVID-19 on bank profitability. We attempt to fulfil this gap by using a model which factors in digitization, ageing population, endogenous and predetermined variables, let alone control for G-SIBs. Findings show that the impacts of COVID-19 were twice as much deleterious as those hailing from the GFC in the case of NIM and four times as harmful in the case of ROE, with ageing population exerting bearish forces on bank profitability. Mobile usage interacted with COVID-19 crisis dummy and is found to leverage on ROE, underscoring the significance of technology-driven sources of activities during the pandemic. Overall, our paper justifies the significantly larger bailout package launched by the authorities during the pandemic compared to that triggered during the GFC with the critical role of technology being underscored in securing banks’ profits during the pandemic.
数字化、人口老龄化与银行盈利能力:基于两次全球危机的证据
尽管有大量关于银行盈利能力的文献,但没有一篇分析全球金融危机和COVID-19对银行盈利能力的同时影响。我们试图通过使用一个模型来弥补这一差距,该模型考虑了数字化、人口老龄化、内生变量和预定变量,更不用说控制g - sib了。调查结果显示,在NIM方面,COVID-19的影响是全球金融危机的两倍,在ROE方面是四倍,人口老龄化对银行盈利能力产生了不利影响。移动使用与COVID-19危机虚拟机相互作用,并被发现利用净资产收益率,强调了大流行期间技术驱动的活动来源的重要性。总体而言,我们的论文证明,与全球金融危机期间相比,当局在大流行期间推出了规模大得多的救助计划,并强调了技术在大流行期间确保银行利润方面的关键作用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
1.50
自引率
0.00%
发文量
18
期刊介绍: Journal of International Commerce, Economics and Policy (JICEP) is a peer-reviewed journal that seeks to publish high-quality research papers that explore important dimensions of the global economic system (including trade, finance, investment and labor flows). JICEP is particularly interested in potentially influential research that is analytical or empirical but with heavy emphasis on international dimensions of economics, business and related public policy. Papers must aim to be thought-provoking and combine rigor with readability so as to be of interest to both researchers as well as policymakers. JICEP is not region-specific and especially welcomes research exploring the growing economic interdependence between countries and regions.
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