The Determinants of Lending Relationships in the Tunisian Context

Abstract

The quantity and quality of information generated through the development of lending relationships influences the bank's decision concerning granting of credit. Indeed, the need for a strong guarantee and the setting up of an adequate interest rate are not the only means that allow creditors to overcome the problem of inadequate information about the client. To establish the main determinants of the customer's relationship in Tunisia, our study is based on a sample of 76 companies dealing with a Tunisian bank over a period from 1998 to 2000. We found that the interest rate charged by the bank, the guarantees required and the risk level of the firms are the main determinants of the customer's relationship, and the only three control variables that are significant.

The Impact of Working Capital Management on Profitability: The Case of Small and Medium-Sized Export Companies in Tunisia

“…It gives an idea about the leverage of the company and its potential risks. A high level of debt ratio indicates low financial health of the company and its inability to rely on its internal funds (Bellouma and al., 2005). Therefore, companies with an important debt ratio are expected to have a low level of profitability (Raheman and Nasr, 2007).…”

Banking consolidation, credit crisis and asset quality in a fragile banking system

“…Here, NPL is defined as loans that are overdue in the account, and the due interests are not recovered regularly (Viverita, 2008; Mendoza and Terrones, 2008; Bernstein, 1996). Collaborating the positions of theoretical stances and previous empirical studies (such as those of Masood and Stewart, 2009; Mendoza and Terrones, 2008; Omri et al , 2005; Hasan and Wall, 2003; Hubbard et al , 2002; Berger and DeYoung, 1997; Jensen and Meckling, 1976, among others), we identify key factors that are likely to influence the level of individual bank's asset quality. Among such factors are: operating efficiency (measured as the ratio of interest expenses to interest income); profitability of bank (measured as the proportion of profit before tax to total assets); level of bank asset liquidity (measured as the ratio of liquid assets to total assets); the ratio of total loans to total deposits; predictability of depositors' behaviour (measured as the proportion of fixed deposit to total deposits); size of bank capital (measured as the ratio of share capital to total assets of a bank); as well as board skill (proxied as the proportion of board members with doctorate and relevant professional qualifications to total board membership).…”

Preparation and Characterization of Alkali Activated Carbon Based Theobroma Cocoa Pods: Application for Electrochemical Determination of Xanthine in Fresh Fish Sample

“…This means an increasing regularity of the crystal structure, which will result in a better alignment of the layers. [39] The diffractogram of ACCP show a diffraction peak at 2θ = 7.5°attributed to the highly organized stratified structure of graphite with an interlayer distance of 0.340 nm. [4,40] The absence of certain peaks on the diffractogram of ACCP reveal its amorphous property.…”

“…[4,40] The absence of certain peaks on the diffractogram of ACCP reveal its amorphous property. [39] The disappearance of the sharp peak is mainly due to the elimination of lignin and the breaking of ester bonds between lignin and the other components during the KOH pretreatment and the carbonization of the RCP biomass.…”