The Determinants of Commercial Bank Interest Margin and Profitability: Evidence from Tunisia

Naceur, Sami Ben; Goaïed, Mohamed

doi:10.2139/ssrn.856365

Cited by 148 publications

(191 citation statements)

References 12 publications

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“…However, these studies have concluded that the linear model produces results that are as good as any other functional form (see Bourke (1989); Ben-naceur and Goaied (2008); Khrawish, Al-Abadi and Hejazi (2008) and Al Manaseer (2009)). This study uses pooled estimation models, in which the linear functional form is applied to examine the inter-relation between measures of bank profitability performance and the determining factors.…”

Section: Methodsmentioning

confidence: 99%

“…It shows the differences across banks in management policies and decisions relating to sources and uses of funds, capital, liquidity, and expenses. The internal determinants of bank' profitability that are most commonly cited in the literature include liquidity ratios, bank risk, capital ratios, operating costs, and bank size (see Bourke (1989); Demirguc-Kunt and Huizinga (1999); Ben-naceur and Goaied (2008); Khrawish, Al-Abadi and Hejazi (2008) and Al Manaseer (2009)). The crises-related determinant is concerned with the impact of the financial crises on Islamic banking profitability.…”

Section: The Determinants Of Banks' Profitabilitymentioning

confidence: 99%

“…However, they are willing to hold risky assets where risky assets have present values in excess of those available from non-risky assets. Many empirical studies find that banks loans have positive impact on bank's profitability (see Demirguc-Kunt and Huizinga (1999); Ben-naceur and Goaied (2008)). Based on this the following hypothesis is proposed:…”

Section: Riskmentioning

confidence: 99%

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The Impact of the Financial Crisis on the Islamic Banks Profitability - Evidence from GCC

Almanaseer¹

2014

International Journal of Financial Research

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Using pooled data for 24 Islamic banks operating in Bahrain, Kuwait, Qatar, Saudi Arabia and UAE over the 2005-2012 period the current study examines empirically the impact of the global financial crisis on the Islamic banks' profitability.The study finds that the financial crisis does not have significant impact on Islamic banks profitability. Favorable macro-economic conditions, bank size and equity capital are important factors in increasing Islamic banks' profitability. Furthermore Increasing owners' equity decreased the impact of financial crisis on Islamic banks profitability. On the other hand, the impact of the financial crisis on Islamic banks' profitability increase with increasing banks total assets, liquidity and overhead expenses. The study recommends increasing both Islamic banks' size and equity capital in addition to reducing their overhead expenses and liquidity in order to increase their profitability and decrease the impact of financial crisis in their performances.

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Section: Methodsmentioning

confidence: 99%

Section: The Determinants Of Banks' Profitabilitymentioning

confidence: 99%

Section: Riskmentioning

confidence: 99%

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The Impact of the Financial Crisis on the Islamic Banks Profitability - Evidence from GCC

Almanaseer¹

2014

International Journal of Financial Research

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“…We took proxy to determine the size as natural logarithm of total assets (LNTA) similar to many studies in corporate finance like Zeitun (2012); Almazari (2014); Afzal and Mirza (2012); Naceur and Goaied (2005) etc.…”

Section: Bank Specific Variables Sizementioning

confidence: 99%

“…However, if inflation is not anticipated and banks are sluggish in adjusting their interest rates then there is a possibility that bank costs may increase faster than bank revenues and hence adversely affect bank profitability. The GDP per capita growth is expected to have a positive impact on banks' performance according to the well-documented literature on the association between economic growth and financial sector performance (Naceur and Goaied, 2005). The fantastic study by Feldstein and Stock (1994) has studied the possibility of using M2 to target the quarterly rate of growth of nominal GDP.…”

Section: Macro-economic Variablesmentioning

confidence: 99%

Performance and Profitability of Islamic Banks in Saudi Arabia: An Empirical Analysis

Javaid

Alalawi

2018

Asian Economic and Financial Review

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The effects of the internal control system on the risk, profitability, and compliance of the U.S. banking sector: A quantitative approach

Koutoupis

Malisiovas

2021

Int. J Fin Econ

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This is strong quantitative research investigating whether and how the components of the internal control system affect the credit risk, profitability, and compliance of the U.S. banking sector. Based on the COSO Framework, Basel Committee Frameworks, and the literature, the components of the internal controls are quantified. This quantitative nature distinguishes this study from others in this field since most of the studies up to now have investigated these topics by theoretical approaches. Eleven independent variables are analysed in three different regression models, with credit risk, profitability, and compliance being the dependent variables in each model. After cleaning the data from outliers, several tests are performed, while a panel set of data is used comprising the 210 biggest U.S. bank holding companies. Fixed-effects regression is applied in the three models, while the years under examination are the five fiscal years 2013-2017. Most of the data are taken from the proxy statements (DEF 14A) and the 10-K statements because of their qualitative nature.The key results indicate that Risk Assessment, Control Activities, and Information and Communication components strongly affect credit risk. The first (Control Environment) and last (Monitoring) components have a significant effect on credit risk, though only from the perspective of the board's number and the expertise of the audit committee, respectively. In the same line, internal controls significantly affect the profitability and compliance of U.S. banks, except for the Risk Assessment component in the first case and the Control Environment component in the second case, respectively. Control Activities component and the Information and Communication component have a significant and positive relationship with the banks' profitability, while these two components are significantly and negatively correlated with the banks' compliance.

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The Determinants of Commercial Bank Interest Margin and Profitability: Evidence from Tunisia

Cited by 148 publications

References 12 publications

The Impact of the Financial Crisis on the Islamic Banks Profitability - Evidence from GCC

The Impact of the Financial Crisis on the Islamic Banks Profitability - Evidence from GCC

Performance and Profitability of Islamic Banks in Saudi Arabia: An Empirical Analysis

The effects of the internal control system on the risk, profitability, and compliance of the U.S. banking sector: A quantitative approach

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