DETERMINANTS OF COMMERCIAL BANKS PROFITABILITY: EVIDENCE FROM GERMANY

  • Szilard Farkasdi IDC Financial Insight
  • Budi Septiawan Universitas Pasundan
  • Erik Syawal Alghifari Universitas Pasundan

Abstract

This study aims to determine the determinants of profitability in commercial banks in Germany. The population is 7 banking sector companies listed in the DAX (Deutscher Aktienindex) Bank during the 2017-2020 period, with a sample of 5 banks and producing 20 observational data. The method used is descriptive and verification with multiple regression analysis. The results show that asset size, capital adequacy, deposits and non-interest income have a significant positive effect on profitability. Partially, asset size, capital adequacy and non-interest income have a significant positive effect, while the deposit has a significant negative effect on profitability. The most dominant factor affecting profitability is non-interest income.

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Published
Oct 18, 2021
How to Cite
FARKASDI, Szilard; SEPTIAWAN, Budi; ALGHIFARI, Erik Syawal. DETERMINANTS OF COMMERCIAL BANKS PROFITABILITY: EVIDENCE FROM GERMANY. Jurnal Riset Akuntansi Kontemporer, [S.l.], v. 13, n. 2, p. 82-88, oct. 2021. ISSN 2597-6826. Available at: <https://journal.unpas.ac.id/index.php/jrak/article/view/4500>. Date accessed: 24 jan. 2022. doi: http://dx.doi.org/10.23969/jrak.v13i2.4500.