EU Bank Profitability Boosted by Equity and GDP, Hurt by Loans.
The article explores what factors affect how profitable banks are in Eurozone countries. They looked at both external factors like the economy and internal factors within each bank. By studying data from 2012 to 2019, they found that things like how much money banks have compared to their assets, the gap ratio, and the country's GDP can make banks more profitable. On the other hand, having a lot of loans compared to assets and setting aside money for potential loan losses can hurt a bank's profits. This study shows that different factors can impact how well banks in the Eurozone do financially.