Bank performance analysis in Europe: Evidence from the Russia-Ukraine war = Banki teljesítményelemzés Európában: Az orosz-ukrán háború bizonyítékai

Absztrakt (kivonat)

This study investigates impacts of the Russia-Ukraine war on European commercial banks’ performance and stability analysing annual data of 67 exchange listed entities from 2016 to 2022, thus, also observing effects of the Covid19 pandemic. It finds that the conflict deteriorated institutions’ performance in the continent but did not significantly worsen their stability on its own. In addition, it states that subsidiary exposures to the war parties (to Russia and/or Ukraine) had detrimental effects on market-based performance but were not influential on accounting-based metrics (neither performance nor stability). Moreover, the research finds that although those operating in countries neighbour to Ukraine did not suffer further reductions in performance, their stability became significantly more weakened than that of others in the region. Finally, it concludes that commercial banks in Central and Eastern Europe ceteris paribus has been more vulnerable to shock of the war compared to any other region of the continent, just like in case of Covid19.