ABSTRACT
This study uses a new dataset to extend analysis of the change in profitability for banks following the 2007-2009 financial crisis. The new dataset provides a longer post-crisis view of profitability which allows segmentation of post-event performance. This study also modifies earlier analyses to include data from recessionary periods. The results show that the profitability of the smallest banks is significantly lower than that of the largest banks in both the pre- and post-crisis periods. However, any relative post-crisis deterioration in profitability for small banks appears to be concentrated in the early post-crisis period.
Keywords
bank profitability, financial crisis, bank size