Linking profits to Greek bank production management

This paper applies the statistical cost accounting (SCA) methodology to investigate profitability differences between high-profit and low-profit Greek banks. The SCA approach hypothesizes that a bank's net income can be expressed as the weighted sum of its various assets and liabilities, the weights being the net revenue or costs attributable to each item. The study uses a sample of pooled time series and cross-section data over the period 1977-1986. The empirical evidence suggests that asset and - to a lesser extent - liability management play a role in explaining interbank differences in profitability in Greece during the period examined.