Determinants of banks’ ability to overcome the recent financial crisis - Empirical evidence from US, UK and European banks

This paper employs a mixed research method which including quantitative research and qualitative research to measuring the determinants of banks’ abilities to overcome the recent financial crisis in a sample of 15 large universal bank holding companies over the period from 2005 to 2008 in the United Kingdom, the United States, and the Europe. The results from quantitative research indicated that three factors: leverage, cost efficiency management and tier 1 are quite significant determinants that affect banks’ performance during this financial crisis. Furthermore, studying four specific banks using case studies method identified three more important determinants of banks’ performance during this crisis. They are diversification focus, merger and acquisition involvement, and last but not least the risk management