The paper attempted to investigate the effectiveness and the efficiency of the Swiss banking sector, through the elaboration of solid econometric approaches focusing on solid scientific methodologies: effectiveness and efficiency. The two concepts make up a widespread in econometric literature, primarily to account for the performance determinants and optimal operating.
In the empirical investigation, we used data covering many financial and macroeconomic data about the Swiss banks sector in overall, focused on the period 1988 to 2011. We proceeded to build a reliable econometric model, according with the bulk of papers interested in the issue of the determinants of profitability of banks. The empirical investigation described the acting of these financial institutions by adopting rigorous econometric methodology.
Thus, the paper shed the light on the determinants of the profitability of Swiss banks, provides obvious explanation and bear out several conclusions in favour of the Swiss banks. In fact, the present paper underlines that banks in Switzerland are acting with efficiency and thus, it consolidates the reputation of the Swiss banking sector in the world.
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