BANK PROFITABILITY AND ECONOMIC GROWTH: EVIDENCE FROM TUNISIA
DOI:
https://doi.org/10.46827/ejefr.v0i0.601Trefwoorden:
bank profitability, economic growth, return on assets, return on equity, panelSamenvatting
Bank profitability and economic growth are important for financial development of each country. It is interesting to understand the characteristics of these two variables and the relationship between them. In this article, we investigate the effect of economic growth on bank profitability using a sample of 18 banks in Tunisia over the period (2000 - 2017). We employ ROA (return on assets), ROE (return on equity) as indicators of bank profitability like dependent variable, the other bank specific variation, economic growth as independent variable. We use panel method for regression of 2moels. We found that economic growth has a positive and significant effect on bank profitability.
JEL: C33, G20, G21, E32
Article visualizations:
Referenties
Abobaker M. J. (2018). Bank specific, industry concentration and macroeconomic determinants of Egyptian bank profitability, International Journal of Accounting and Financial Studies, vol 8, issue 1, p380-397.
Achraf M. Z., Haider M. B. (2017). Bank specific and macroeconomic determinants impact on bank profitability Evidence from Asian Countries January, International Journal of Sciences Basic and Applied Research, p187-199.
Adekola O. A. (2016). The effect on bank profitability on economic growth in Nigeria, Journal of Business and Management, vol 18, issue 3, p1-9.
Alberatazzi U., Gambacorta L. (2009). Bank profitability and the business cycle, Journal of Financial Stability, vol 5, issue 4, p393-409.
Alghazeleh A. M. (2017). Does banking sector performance promote economic growth? Case study of Jordanian commercial banks, Problems and Perspectives in Management, 15, 2, p55-64.
Alharbi (2019). The determinants of conventional banks profitability in developing and underdeveloped OIC countries, Journal of Economics, Finance and Administrative Sciences, p3-28.
Alshatti A. S. (2016). Determinants of bank profitability – the case of Jordan, Investment Management and Financial Innovation, 13, 1, p84-91.
Alper D., A. Anbar (2011). Bank specific and macroeconomic determinants of commercial bank profitability. Empirical evidence from Turkey. Business and Economic Research journal, vol 2, 2, p139-152.
Anarfi D., E. J. A. Abakah, E. Boateng (2016). Determinants of bank profitability in Ghana: New evidence. Asian Journal of Finance and Accounting, vol 8, 2, p194-204.
Asarkaya Y., Ozcan S. (2007). Determinants of capital structure in financial institutions: The case of Turkey financial analysis. Journal of BRSA banking and financial markets, vol 1, issue 1, p91-109
Ayadi N. Boujelbene Y. (2012). The determinants of profitability of the Tunisian deposit banks, IBIMA Business Review, p2-21.
Athanasoglou P. P., S. N. Brissimis, Delis M. D. (2008). Bank specific, industry specific and macroeconomic determinants of bank profitability, Journal of International Financial Markets, Institutions and Money, vol 18, 2, p121-136.
Berger A. (1995). The profit – structure relationship in banking tests of market power and efficient structure hypotheses. Journal of Money, Credit and Banking, vol 27, issue 2, p404-431.
Ben Khediri K., M. Ben Ali, H. Ben Khedhiri (2010). Bank specific, industry specific and macroeconomic determinants of African Islamic bank’s profitability. International Journal of Business and Management Sciences, vol 3,1,p39-56
Boitan. I. A. (2015). Determinants of sustainable bank’s profitability : Evidence from EU countries. Financial studies, 19, p21-39
Boyd J. H., Runkhle D. E. (1993). Size and performance of banking firms testing the prediction of theory, Journal of Monetary Economics, February, vol 31, 1, p47-67.
Bourke P. (1989). Concentration and other determinants of bank profitability in Europe, North America and Australia, Journal of Banking and Finance, vol 13, issue 1, p65-79
Boyd J., Champ. B. (2003). Inflation and financial market performance what have learned in the last ten years. Working paper Federal Reserves Bank of Cleveland
Ben Moussa M. A. (2018). Determinants of bank capital: case of Tunisia, Journal of Applied Finance and Theory, vol 8, 2, p 1-15.
Bogale Y. W. (2019). Factors affecting profitability of banks: Empirical evidence form Ethiopian Commercial banks, Journal of Investment and Management, vol 8, 1, p8-15
Bourbonnais (2009) ‘’Econometrie’’ manuel et exercices corriges
Chagwiza (2014). Zimbabwean commercial bank liquidity and its determinants, International Journal of Empirical Research, vol 2, 2, p52-46.
Demirguc Kunt A., Huizinga H. (1999). Determinants of commercial bank interest margin and profitability: Some international evidence, World Bank Economic Review, vol 13, issue 2, p379-408.
Dewett K. K. (2005). Modern Economic Theory, New Delhi, India.
Dietrich A., Wanzenried G. (2011). Determinants of bank profitability before and during the crisis - Evidence from Switzerland, Journal of International Financial Market, Institutions and Money, vol 21, issue 3, p307-327.
Ebenezer O. O., W. A. W. Bin Omar (2017). Bank specific and macroeconomic determinants of commercial bank profitability Empirical Evidence from Nigeria Journal of Finance and Banking Studies, vol 6, 1, p25-38.
El Kassem R. C. (2017). Determinants of bank profitability: Panel data from Qatar, Open Journal of Accounting, vol 6, p 103-111.
Evans O., Kiganda E. (2014). Effect of macroeconomic factors on commercial bank profitability in Kenya - Case of Equity bank limited. Journal of Economics and Sustainable development , vol 5 , 2 ,
Flamini V., C. Mc Donald, Z. Schumacher (2009). The determinants of commercial bank profitability in Sub Sahara, African International Monetary Fund, www.imf.org
Ghurstskaia. K. (2018). Macroeconomic determinants of bank profitability: Evidence from Georgia. Ecoforum, vol 7, 3.
Gul S., F. Irshad, K. Zaman (2011). Factors affecting bank profitability in Pakistan, The Romanian Economic Journal, 39, March, p61-87.
Goddard. J, P. Molyneux, J. O. S. Wilson (2004). The profitability of European banks - A cross-sectional and dynamic panel analysis. The Manchester School, vol 72, 3, June, p 363-381.
Hamza S. M., Khan E. A. (2014). Effect of banking sector performance in Economic growth Case study of Pakistan. Journal of Applied Environmental and Biological Sciences, p444-449.
Hasanov F. J., N. Bayramli, N. Al Musehel (2018). Bank specific and macroeconomic determinants of bank profitability: Evidence form an oil development, International Journal of Financial Studies, vol 6, 3, Sept, p 1-21.
Jamel L., Mansour S. (2018). Determinants of Tunisian bank profitability, International Journal of Business and Risk management, vol 1, 1, p 17-27.
Jhingan M. L. (2006). Economic development. Vrianda Publication Ltd , New Delhi
Jumono S., Sygianto, C.M. Fath Mala (2011). Determinants of profitability in banking industry: A case study of Indonesia. Asian Economic and Financial Review , vol 9, p91-108 , January
Kassem N. M., A. Sakr (2018). The impact of bank specific characteristics on the profitability of commercial banks in Egypt Journal of Finance and Bank management, December, vol6, 2, p76-90.
Klein P. O., Weill L. (2018). Bank profitability and Economic growth. BOFIT Discussion paper, SSRN, p2-43
Kosmidou K., Tamna S., F. Pasiouras (2008). Determinants of profitability of domestic UK commercial banks Panel evidence from the period 1995…2002
Martinho R., J. Oliveria, V. Oliveria (2017). Bank profitability and macroeconomic factors. https://www.bportugal.pt/sites/default/files/anexos/papers/paper_5_en.pdf
Masood O., Ashraf M. (2012). Bank specific and macroeconomic profitability determinants of Islamic banks the case of different countries. https://www.emerald.com/insight/content/doi/10.1108/17554171211252565/full/html
Molyneux P., Thornton J. (1992). Determinants of European bank profitability Anote. Journal of Banking and Finance, vol 16, issue 6, p 1173-1178.
Maqbool Q., R. Kauser, U. Abbas (2015). Impact of bank specific and macroeconomic factors on bank profitability a study on banking sector of Pakistan, Journal of Accounting and Finance in Emerging Economies, vol 1, 2, December, p99-110.
Rani D. M. S., Zergaw L. N. (2017). Bank specific, industry specific and macroreconomic determinants of bank profitability in Ethiopia. International Journal of Advanced Research in Management and Social Sciences, 6, 3, p74-96
Sevestre P. (2002). Econometrie de données de panel. Dunos, Paris
Staikouras C., Wood G. (2003). The determinants of bank profitability in Europe. International Journal of Economic and Business Research, 3, 6, p 57-68
Sufian S, M. S. Habibullah (2009). Bank specific and macroeconomic determinants of bank profitability: Empirical evidence from the china banking industry. Volume 4, issue 2, p274-291
Topak M. S., N. H. Talu (2017). Bank specific and macroeconomic determinants of bank profitability: Evidence from Turkey. International Journal of Economics and Financial Issues, 7, 2, p 574-584
Vodova P. K. (2016). Bank liquidity and profitability in the polish banking industry, Scientific Journal WSIF n1, p19-83.
Yilmaz (2013). Profitability of banking system Evidence from Emerging markets, WEI International Academic conference, January 14-16, Antalya, Turkey, p105-111
Zampara K., Giampoulous M., O. N. Koufopoulos (2017). Macroeconomic and industry specific determinants of Greek bank profitability. International Journal of Business and Economic Sciences of Applied Research, vol 10, 1, p13-22.
