Bank sales, spread and profitability: An empirical analysis, Applied Financial Economics Letters 1(5): 293-296 2005 (JEL Listed) (2005, in common with M. Georgiou)

Bank sales, spread and profitability: An empirical analysis, Applied Financial Economics Letters 1(5): 293-296 2005 (SCOPUS, EconLit Listed). In common with M. Georgiou (2005).

This study proves mathematically that in any bank if the growth rate of sales is higher than the absolute growth rate of bank's lending rate, then bank's profits will not decrease. This mathematical expression can be considered as the condition for keeping a bank profitable. An econometric analysis using panel data from the Western European banking sector supports our afore-mentioned mathematical theory.

JEL Classification: Contracting-Out; Joint-Ventures; Technology-Licensing (L240); Bank-; Banking-; Lending-; Banks-; Other-Depository-Institutions; Micro-Finance-Institutions; Mortgages (G210)