This study examines the impact of bank-specific, industry-specific, and macroeconomic factors on the profitability of Greek banks using an empirical framework based on the Structure-Conduct-Performance (SCP) hypothesis. A generalized method of moments (GMM) technique is applied to a panel of Greek banks from 1985 to 2001 to account for profit persistence. The results show that profitability persists to a moderate extent, indicating that market structures are not perfectly competitive. Bank-specific determinants, except for size, significantly affect profitability in the expected direction. However, there is no support for the SCP hypothesis. The business cycle has a positive, albeit asymmetric, effect on bank profitability, being significant only in the upper phase of the cycle. The study finds that credit risk negatively affects profitability, suggesting a risk-averse strategy by Greek bank managers. Productivity growth positively affects profitability, while operating expenses negatively impact it. Bank size does not significantly affect profitability, and ownership status is insignificant in explaining profitability. The SCP hypothesis is not supported, as the effect of industry concentration on profitability is found to be insignificant. Macroeconomic factors such as inflation and cyclical output significantly affect bank performance. The business cycle's effect on profitability is asymmetric, being positive only when output is above its trend. Overall, the study shows that Greek bank profitability is influenced by bank-specific factors and macroeconomic variables, but not significantly by industry structure. The findings suggest that bank management decisions and macroeconomic conditions are key factors in determining profitability.This study examines the impact of bank-specific, industry-specific, and macroeconomic factors on the profitability of Greek banks using an empirical framework based on the Structure-Conduct-Performance (SCP) hypothesis. A generalized method of moments (GMM) technique is applied to a panel of Greek banks from 1985 to 2001 to account for profit persistence. The results show that profitability persists to a moderate extent, indicating that market structures are not perfectly competitive. Bank-specific determinants, except for size, significantly affect profitability in the expected direction. However, there is no support for the SCP hypothesis. The business cycle has a positive, albeit asymmetric, effect on bank profitability, being significant only in the upper phase of the cycle. The study finds that credit risk negatively affects profitability, suggesting a risk-averse strategy by Greek bank managers. Productivity growth positively affects profitability, while operating expenses negatively impact it. Bank size does not significantly affect profitability, and ownership status is insignificant in explaining profitability. The SCP hypothesis is not supported, as the effect of industry concentration on profitability is found to be insignificant. Macroeconomic factors such as inflation and cyclical output significantly affect bank performance. The business cycle's effect on profitability is asymmetric, being positive only when output is above its trend. Overall, the study shows that Greek bank profitability is influenced by bank-specific factors and macroeconomic variables, but not significantly by industry structure. The findings suggest that bank management decisions and macroeconomic conditions are key factors in determining profitability.