Nexus between digital banking and EU bank profitability: Empirical evidence from EU 27 countries

TitleNexus between digital banking and EU bank profitability: Empirical evidence from EU 27 countries
Publication TypeBook Chapter
Year of Publication2024
Date Publishedforthcoming
Book Title(ed.) Encyclopedia of Monetary Policy, Financial Markets and Banking (Elsevier Reference Collection in Social Sciences)
Volume1
AuthorsGanić, M
PublisherElsevier
ISBN NumberISBN 10: 0-443-13776-5.
Keywordsbank profitability, digital banking, EU
Abstract

The study employs panel data set of EU 27 countries between 2011 and 2021, to investigate how the digital banking factors
and bank-specific variables affect the banking sector’s profitability. This study concludes that digitization does not necessarily
have a positive relationship with profitability, especially in the NMS. Profitability in old EU countries is mainly influenced by
the e-money payments and internet based transactions. Also, the estimated results suggest that old EU countries are closer to
cashless society than NMS countries because of payment preferences still vary wildly between two regions.
DOI10.1016/B978-0-44-313776-1.00173-2
Refereed DesignationRefereed