Asset Structure of Commercial Banks and Its Impact on Profit Levels

  • Mário Papík
  • Lenka Chorvatovičová
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)


After the Great recession of years 2008 and 2009 the sector of commercial banks started its transformation. It had to adapt to new macroeconomic conditions such as low interest rates or higher level of regulation. Profits of these institutions being influenced by these conditions, the situation led to re-evaluation of accumulated financial assets allocation owned by these institutions during period. The aim of this article is to monitor financial assets owned by commercial banks and to identify the most important portfolio components which have impact on their profit. Linear regression models with mixed effects were created for this analysis. Data from financial statements were collected for period from year 2009 to 2014 for 19 commercial and saving banks for the purpose of this research. Results will contribute to better understanding of asset structure of commercial bank sector after the financial crisis. It will also identify and stress the importance of certain portfolio components. Therefore this paper will contribute to the improvement of legislative governance of financial institutions and avoidance of another financial crisis outbreak in this sector.


Asset structure Commercial banks Profit 


  1. Amir, E., & Benatzi, S. (1998). The expected rate of return on pension funds and asset allocation as predictors of portfolio performance. The Accounting Review, 73(3), 335–352.Google Scholar
  2. Brau, J., Dahl, D., Zhang, H., & Zhou, M. (2014). Regulatory reforms and convergence of the banking sector: Evidence from China. Managerial Finance, 40(10), 956–968.CrossRefGoogle Scholar
  3. Field, A., Miles, J., & Field, Z. (2012). Discovering Statistics Using R. London: SAGE Publications Ltd.Google Scholar
  4. Henebry, K. L., & Diamond, J. M. (1998). Life insurance company investment portfolio composition and investment regulation. Journal of Insurance Issues, 21(2), 183–203.Google Scholar
  5. Li, Y., & Klumpes, P. J. (2013). Determinants of expected rate of return on pension assets: Evidence from the UK. Accounting and Business Research, 43(1), 3–30. Scholar
  6. Louton, D., McCarthy, J., Rush, S., Saraouglu, H., & Sosa, O. (2015). Tactical asset allocation for US pension investors: How tactical should the plan be? Journal of Asset Management, 16(7), 427–436.CrossRefGoogle Scholar
  7. Naczyk, M., & Domonkos, S. (2016). The financial crisis and varieties of pension privatization reversals in eastern Europe. Governance, 29(2), 167–184. Scholar
  8. National Bank of Slovakia. (2010). Analýza slovenského finančného sektora za rok 2009. Bratislava: Národná banka Slovenska.Google Scholar
  9. National Bank of Slovakia. (2011). Analýza slovenského finančného sektora za rok 2010. Bratislava: Národná banka Slovenska.Google Scholar
  10. National Bank of Slovakia. (2013). Analýza slovenského finančného sektora za rok 2012. Bratislava: Národná banka Slovenska.Google Scholar
  11. National Bank of Slovakia. (2014). Analýza slovenského finančného sektora za rok 2013. Bratislava: Národná banka Slovenska.Google Scholar
  12. Papík, M. (2016a). Composition of pension funds’ investment portfolio and its impact on profit. In European Financial System. Proceedings of the 13th International Scientific Conference. Brno, Czech Republic: Masarykova univerzita.Google Scholar
  13. Papík, M. (2016b). The impact of investment portfolio of insurance companies on their profit. In Management in theory and practice. Prague, Czech Republic: Comenius University.Google Scholar
  14. Papík, M. (2017) Composition of equity and mixed pension funds in Slovakia. In Oeconomia Copernicana. Faculty of Economic Sciences and Management. Toruń, Poland: University in Toruń.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Mário Papík
    • 1
  • Lenka Chorvatovičová
    • 1
  1. 1.BratislavaSlovakia

Personalised recommendations