Determinants of Bank Profitability in Thailand by Generalized Method of Moments Estimation
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Abstract
This research aimed to estimate the determinants of bank profitability of banks registered in Thailand using the System GMM Estimator method. Bank-level data from 2010-2020. Profitability is measured by three ratios: Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). The determinants of a bank’s profitability are bank-specific. Banking Industry Specific Factors and Economic Factors. The results showed that increasing asset size results in lower profitability for banks, asset quality, and operating costs negatively affect profitability. On the other hand, capital adequacy, inflation, and gross domestic product helped boost profits for banks.
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