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Profitability determinants in the Tunisian Banks
... The study reached that there is a lot of Jordanian banks are more able to take advantage of investment opportunities, and reducing the costs of bank, with regard to the size of the market concentration and the risk of bank credit have had a negative impact on the Jordanian banking sector. Moreover, Troudi and Liouane (2013) studied the factors that affect the profitability of banks in Tunisia during the period 1999-2012 using dynamic panel were the results indicate that capital market and bank size affect positively bank's profitability, while credit risk and concentration on banking sector affect negatively on bank's profitability and for dummy variables, they have a positive relationship with the profitability of private banks. Ferrouhi (2014) tried to evaluate the Moroccan financial institutions through the application of the CAMEL model during the period 2001-2011 and the study concluded that the presence of a high proportion of Moroccan banks have bad quality of assets while the management quality and profits have a positive impact on Moroccan banks profitability. ...
... There are many literature studies in the banking to use the panel data econometrics (Ramlall, 2009;Ramadan et al., 2011;Athanasoglou et al., 2005;Anbar and Alper, 2011;Kolapo et al., 2012;Makram et al., 2015;Akinkunmi, 2017;Hasanov et al., 2018;Islam and Rana, 2018). The dynamic panel approach has using from many literatures to study banking performance (Goddard et al., 2004;Troudi and Liouane, 2013;Naruševičius, 2013;Tunay et al., 2017). This analysis is characterised by importance because the multi-dimensional analysis of the economic and financial phenomena. ...
Abstract: In the East and North Africa region, nearly 70% of adults
(168 million) do not report any ownership of the account in the Arab world,
which is lagging behind other regions. The importance of financial inclusion
lies in its impact on the economy of countries, economic growth, financial
sector development, and improving financial sector stability. This study aims to
diagnose the relationship between financial inclusion and performance of banks
in Algeria and Tunisia during 2004–2012 by using the panel data and the GMM
method. Our results under static or dynamic panel data analysis show the
negative impact of financial inclusion on profitability indicators (ROA, ROE
and NIM). We conclude that financial inclusion decreases the profitability of
banks. This result reinforces the role of lack of financial inclusion or financial
exclusion in the non-development of the banking sector and the non-promotion
of economic growth in Algeria and Tunisia.
Keywords: financial inclusion; financial exclusion; performance of banks;
CAMEL; Algeria; Tunisia; GMM; financial sector; panel data; regression
analysis.
... The study reached that there is a lot of Jordanian banks are more able to take advantage of investment opportunities, and reducing the costs of bank, with regard to the size of the market concentration and the risk of bank credit have had a negative impact on the Jordanian banking sector. Moreover, Troudi and Liouane (2013) studied the factors that affect the profitability of banks in Tunisia during the period 1999-2012 using dynamic panel were the results indicate that capital market and bank size affect positively bank's profitability, while credit risk and concentration on banking sector affect negatively on bank's profitability and for dummy variables, they have a positive relationship with the profitability of private banks. Ferrouhi (2014) tried to evaluate the Moroccan financial institutions through the application of the CAMEL model during the period 2001-2011 and the study concluded that the presence of a high proportion of Moroccan banks have bad quality of assets while the management quality and profits have a positive impact on Moroccan banks profitability. ...
... There are many literature studies in the banking to use the panel data econometrics (Ramlall, 2009;Ramadan et al., 2011;Athanasoglou et al., 2005;Anbar and Alper, 2011;Kolapo et al., 2012;Makram et al., 2015;Akinkunmi, 2017;Hasanov et al., 2018;Islam and Rana, 2018). The dynamic panel approach has using from many literatures to study banking performance (Goddard et al., 2004;Troudi and Liouane, 2013;Naruševičius, 2013;Tunay et al., 2017). This analysis is characterised by importance because the multi-dimensional analysis of the economic and financial phenomena. ...
Abstract: In the East and North Africa region, nearly 70% of adults
(168 million) do not report any ownership of the account in the Arab world,
which is lagging behind other regions. The importance of financial inclusion
lies in its impact on the economy of countries, economic growth, financial
sector development, and improving financial sector stability. This study aims to
diagnose the relationship between financial inclusion and performance of banks
in Algeria and Tunisia during 2004–2012 by using the panel data and the GMM
method. Our results under static or dynamic panel data analysis show the
negative impact of financial inclusion on profitability indicators (ROA, ROE
and NIM). We conclude that financial inclusion decreases the profitability of
banks. This result reinforces the role of lack of financial inclusion or financial
exclusion in the non-development of the banking sector and the non-promotion
of economic growth in Algeria and Tunisia.
Keywords: financial inclusion; financial exclusion; performance of banks;
CAMEL; Algeria; Tunisia; GMM; financial sector; panel data; regression
analysis.
... The banking industry's changes reflect its significance and farreaching importance. Tunisia is growing and maturing to keep up with global market demands (Troudi & Liouane, 2015). ...
The Master's thesis presents a study on several risks that affect the profitability of banks in several Arab countries. GMM was used as a method to analyze the data. As for the results, some of them were within our expectations, and some surprised us. We hope that this thesis will support banking decisions in the face of systemic and unsystematic risks.
... Without the use of standard techniques, the author applied CAMEL approach only. Sarra and Naoufel (2014) analyzes the determinants of profitability if sample of 10 Tunisian banks' over the period 1999-2010, and use the generalized method of moments (GMM) was used to generate the results of the econometric estimation of the dynamic panel. ...
In the theoretical background the profitability and performance of banking sector will decrease in oil exporter countries; if crude prices fall; because these countries will suffer from falling revenues, unemployment rates rise and economic growth slows.This paper examines the relationship between oil prices and the performance of banks. Using the regression model with unbalanced panel data analysis at the level of four Arab Maghreb countries (Algeria-Libya-Tunisia-Morocco) over the period 1997-2013. Our results indicate that there is a negative relationship significant between oil prices and profitability (NIM, ROAA); and a significant negative relationship between inflation and profitability (NIM, ROAA)of banking sectors in the Arab Maghreb countries in the study.The relationship between oil prices and loans is a positive and not significant.There is a relationship between GDP and profitability (NIM, ROAA) of banking sectors in the Arab Maghreb countries is positive and no significant. This results not change under the three methods POLS, fixed effects and random effects. The acceptance of random effects model shows that the relationship varies from one country to another, due to the different characteristics of each economy and varied under time.
In East and North Africa region nearly 70 percent of adults (168 million) do not report any ownership of the account in the Arab world, which is lagging behind other regions. The importance of financial inclusion lies in its impact on the economy of countries, economic growth, financial sector development, improving financial sector stability. This study aims to diagnosing the relationship between financial inclusion and performance of banks in Algeria and Tunisia during 2004-2012 by using the panel data and the GMM method. Our results under static or dynamic panel data analysis show the negative impact of financial inclusion on profitability indicators (ROA, ROE and NIM). We conclude that financial inclusion decreases the profitability of banks. This result reinforces the role of lack of financial inclusion or financial exclusion in the non-development of the banking sector and the non-promotion of economic growth in Algeria and Tunisia during the study period.
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