What Are the Drivers of Bank Profitability in the World? A Critical Review of the Empirical Literature with the Layout of a Blueprint Model

Bibliographic Data

ID21737477
AuthorsIndranarain Ramlall (0000-0003-4978-2050, University of Mauritius, corresponding author)
Year2025
Volume26
Issue2
Pages351-382
Publication date2025-04-03
Open AccessNo
TypeARTICLE
VenueJournal of African Business (JOURNAL)
Journal identifiersISSN: 1522-8916 • E-ISSN: 1522-9076
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/15228916.2024.2344135
OpenAlexW4395010449
LanguageEN
References cited88

Despite the existence of an extensive literature on determinants of bank profitability, there exists no paper which comprehensively weaves through this literature. We humbly undertake such a review by painstakingly discussing all the potential proxies to end up with a holistic model. We keep abreast of the evolving dynamics by proposing two new metrics, namely aging population and digitization to cope with the detrimental sequels of COVID-19. Our full-fledged model consists of bank-specific, macroeconomic-specific, crisis dummies and interacting variables. Operational risk is found to be an area that will need to be further developed in the literature. Our proposed model can be applied to a specific country or a group of countries with researchers being able to flexibly tweak our blueprint model to suit their own specific applications

Blueprint · Business · Economics · Empirical research · Industrial organization · Profitability index · Banking stability, regulation, efficiency · Engineering · Global Financial Crisis and Policies · Islamic Finance and Banking Studies · Finance

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