This bachelor thesis aims to find a significant positive connection between the profitability of the banking sector in the Czech Republic and real GDP growth using the methodology of the article Dietrich, A., & Wanzenried, G. (2014). In order to preserve the authenticity of the methodology, additional explanatory variables are used in both external (macroeconomic variables) and internal (bank-specific) variables. Working with these variables compiles two models, the first model is a time series,... show full abstractThis bachelor thesis aims to find a significant positive connection between the profitability of the banking sector in the Czech Republic and real GDP growth using the methodology of the article Dietrich, A., & Wanzenried, G. (2014). In order to preserve the authenticity of the methodology, additional explanatory variables are used in both external (macroeconomic variables) and internal (bank-specific) variables. Working with these variables compiles two models, the first model is a time series, which is then supplemented by a panel data model with a large number of internal variables. The investigated time interval is the period 1993-2021 for the time series model and 2008-2021 for the panel data model. As part of my empirical work, I primarily focus on the robustness and quality of the informative value of individual models with the help of a number of statistical tests. The significance of the main observed explanatory variable, ie real GDP growth, is confirmed in the individual models, but not its positive effect. |