International Banking and Bank Performance: The Case of Poland

Abstract

The aim of this study is to examine differences in the determinants of profitability between domestic and foreign banks in Poland during the global financial crisis and the eurozone debt crisis. Empirical results based on panel data sets containing both micro-level and macro-level data provided the evi- dence of differences in the determinants of performance between domestic and foreign banks, and also between foreign subsidiaries and foreign institutions’ branches. Furthermore, this paper found a positive correlation between the context of parent banks and the profitability of their affiliates mainly during the global financial crisis. JEL: F36, G2, G21, G34, L1 null This paper presents the personal opinions of the author and does not necessarily reflect the official position of the National Bank of Poland. null The creation of the English-language version of these publications is fi nanced in the framework of contract No. 607/P-DUN/2018 by the Ministry of Science and Higher Education committed to activities aimed at the promotion of education.

Keywords

• bank profitability
• Polish banks
• foreign banks
• foreign institutions’ branches
• domestic banks
• financial crises