Arbeitspapier
Improving the forecasts of European regional banks' profitability with machine learning algorithms
Regional banks as savings and cooperative banks are widespread in continental Europe. In the aftermath of the financial crisis, however, they had problems keeping their profitability which is an important quantitative indicator for the health of a bank and the banking sector overall. We use a large data set of bank-level balance sheet items and regional economic variables to forecast protability for about 2,000 regional banks. Machine learning algorithms are able to beat traditional estimators as ordinary least squares as well as autoregressive models in forecasting performance.
- ISBN
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978-3-86788-819-6
- Language
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Englisch
- Bibliographic citation
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Series: Ruhr Economic Papers ; No. 705
- Classification
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Wirtschaft
Forecasting Models; Simulation Methods
Large Data Sets: Modeling and Analysis
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Subject
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profitability
regional banking
forecasting
machine learning
- Event
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Geistige Schöpfung
- (who)
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Haskamp, Ulrich
- Event
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Veröffentlichung
- (who)
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RWI - Leibniz-Institut für Wirtschaftsforschung
- (where)
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Essen
- (when)
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2017
- DOI
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doi:10.4419/86788819
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Haskamp, Ulrich
- RWI - Leibniz-Institut für Wirtschaftsforschung
Time of origin
- 2017
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