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International Area Studies Review
[ Article ]
International Area Studies Review - Vol. 27, No. 2, pp.141-156
ISSN: 2233-8659 (Print)
Print publication date 01 Jun 2024
DOI: https://doi.org/10.69473/iasr.2024.27.2.141

Profitability Determinants and Performance Analysis of Latin American Banks: A Pre-COVID19 Period

Sang Soo Chae* ; Seong Hoon Lee
Institute of Economics and Statistics, Korea University, Republic of Korea
Institute of Economics and Statistics, Korea University, Republic of Korea

Correspondence to: *Email: leeseonghoon@korea.ac.kr

Abstract

This study has examined the profitability of banks in Latin America, focusing on various performance factors. Using data from 2015 to 2019 prior to COVID-19, the research analyzes key variables such as NIM, ROA, and their relevance variables with macroeconomic indicators. Findings suggest that while asset size positively affects profitability, management efficiency and soundness indicators play a crucial role. Therefore, it needs to examine the various factors that affect the profitability and can confirm the level of financial market expansion prior to COVID-19. Banks have been actual operated in various forms such as domestic, foreign, private, public and so on. Then it has been conducted it that sort each other category in Latin America region. Total banks on Latin America have positive effect in Total Assets in terms of bank’s size. But in considerable by each model which are NIM, ROA, it has a different feature in each other model. And it has also conducted by LRGL, NLTA which effect different effect kind of banks in Latin America. Therefore, Bank in Latin America region have less positive drive for expansion of finance market. It is also significant that basic asset’ management is necessary like deposit than expanding loans in foreign and public banks of Lain America specially.

Keywords:

Banks, Classification, Latin America, Profitability, NIM, ROA, Financial market expansion

AI Acknowledgment

Generative AI or AI-assisted technologies were not used in any way to prepare, write, or complete essential authoring tasks in this manuscript.

Conflict of Interests

The author(s) declare that there is no conflict of interest.

Funding

This article is financially supported by the 2024 College of Public Policy at Korea University.

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