Based on a sample of the largest European banks, this chapter aims to contribute to the current debate on the implications of the new structural liquidity ratio of Basel III, the Net Stable Funding Ratio (NSFR), on banks’ profitability. The results of the empirical analysis indicate that the NSFR is a significant determinant of banks’ performance and it is positively related to ROA and ROE. Hence, banks' compliance with the NSFR threshold does not appear to put banks’ profitability under pressure.

The impact of the new structural liquidity rules on the profitability of EU banks

Chiaramonte, Laura;Bottiglia, Roberto
2013

Abstract

Based on a sample of the largest European banks, this chapter aims to contribute to the current debate on the implications of the new structural liquidity ratio of Basel III, the Net Stable Funding Ratio (NSFR), on banks’ profitability. The results of the empirical analysis indicate that the NSFR is a significant determinant of banks’ performance and it is positively related to ROA and ROE. Hence, banks' compliance with the NSFR threshold does not appear to put banks’ profitability under pressure.
978-1-137-33208-0
Bank profitability
Structural liquidity rules
EU banks
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/1018204
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