IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2011-02-1.html
   My bibliography  Save this article

Financial Liberalization and Banking Profitability: A Panel Data Analysis for Tunisian Banks

Author

Listed:
  • Hakimi Abdelaziz

    (Higher institute of management of Sousse, Tunisia)

  • Djelassi Mouldi

    (LEO Universit d'Orl ans, & Higher School of Economics and Business of Tunis, Tunisia)

  • Hamdi Helmi

    (Central Bank of Bahrain, Bahrain)

Abstract

The financial liberalization policy was undertaken in several countries like in Tunisia in order to have modern and dynamic financial system. However, the consequences of this program are completely divergent from it's waitings. In this paper, on the basis of data relating to 9 Tunisian banks over the period 1980-2009, and by adopting the panal data analysis, we will try to check the effect of financial liberalization on the Tunisian banking profitability. The results of our study show a negative and significative relation between financial liberalization and banking profitability.

Suggested Citation

  • Hakimi Abdelaziz & Djelassi Mouldi & Hamdi Helmi, 2011. "Financial Liberalization and Banking Profitability: A Panel Data Analysis for Tunisian Banks," International Journal of Economics and Financial Issues, Econjournals, vol. 1(2), pages 19-32, June.
    • Handle: RePEc:eco:journ1:2011-02-1
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/view/6/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/6
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Demirguc, Asli & Huizinga, Harry, 1999. "Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence," The World Bank Economic Review, World Bank, vol. 13(2), pages 379-408, May.
    2. Oriana Bandiera & Gerard Caprio & Patrick Honohan & Fabio Schiantarelli, 2000. "Does Financial Reform Raise or Reduce Saving?," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 239-263, May.
    3. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    4. Kapur, Basant K, 1976. "Alternative Stabilization Policies for Less-developed Economies," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 777-795, August.
    5. Abiad, Abdul & Oomes, Nienke & Ueda, Kenichi, 2008. "The quality effect: Does financial liberalization improve the allocation of capital?," Journal of Development Economics, Elsevier, vol. 87(2), pages 270-282, October.
    6. Baptiste Venet, 1994. "Libéralisation financière et développement économique : Une revue critique de la littérature," Revue d'Économie Financière, Programme National Persée, vol. 29(2), pages 87-111.
    7. Adolfo Barajas & Roberto Steiner & Natalia Salazar, 1999. "Interest Spreads in Banking in Colombia, 1974-96," IMF Staff Papers, Palgrave Macmillan, vol. 46(2), pages 1-4.
    8. Samy Ben Naceur & Mohamed Goaied, 2001. "The determinants of the Tunisian deposit banks' performance," Applied Financial Economics, Taylor & Francis Journals, vol. 11(3), pages 317-319.
    9. Roubini, Nouriel & Sala-i-Martin, Xavier, 1992. "Financial repression and economic growth," Journal of Development Economics, Elsevier, vol. 39(1), pages 5-30, July.
    10. Apanard P. Angkinand & Wanvimol Sawangngoenyuang & Clas Wihlborg, 2010. "Financial Liberalization and Banking Crises: A Cross-Country Analysis-super-," International Review of Finance, International Review of Finance Ltd., vol. 10(Financial), pages 263-292.
    11. Klaus P. Fischer & Martin Chenard, 1997. "Financial Liberalization Causes Banking System Fragility," Finance 9706004, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rachdi, Houssem & Hakimi, Abdelaziz & Hamdi, Helmi, 2018. "Liberalization, crisis and growth in MENA region: Do institutions matter?," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 810-826.
    2. Hakimi Abdelaziz & Boussaada Rim & Hamdi Helmi, 2022. "The Interactional Relationships Between Credit Risk, Liquidity Risk and Bank Profitability in MENA Region," Global Business Review, International Management Institute, vol. 23(3), pages 561-583, June.
    3. Helmi Hamdi & Abdelaziz Hakimi & Mouldi Djelassi, 2013. "Did Financial Liberalization Lead to Bank Fragility? Evidence from Tunisia," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(5), pages 77-88.
    4. Omar Ghazy Aziz & Julie Knutsen, 2019. "The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(11), pages 96-110, January.
    5. Triki, Thouraya & Kouki, Imen & Dhaou, Mouna Ben & Calice, Pietro, 2017. "Bank regulation and efficiency: What works for Africa?," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 183-205.
    6. Hakimi, Abdelaziz & Hamdi, Helmi & Djlassi, Mouldi, 2013. "Testing the concentration-performance relationship in the Tunisian banking sector," MPRA Paper 55927, University Library of Munich, Germany, revised 2013.
    7. Alexandra Horobet & Magdalena Radulescu & Lucian Belascu & Sandra Maria Dita, 2021. "Determinants of Bank Profitability in CEE Countries: Evidence from GMM Panel Data Estimates," JRFM, MDPI, vol. 14(7), pages 1-23, July.
    8. Ameni Ghenimi & Hasna Chaibi & Azhaar Lajmi, 2020. "The liquidity risk-credit risk-profitability trilogy: A comparative study between Islamic and conventional banks," Economics Bulletin, AccessEcon, vol. 40(3), pages 1900-1913.
    9. RACHDI, Houssem & Hakimi, Abdelaziz & Hamdi, Helmi, 2015. "Financial Liberalization, Banking Crisis and Economic Growth in MENA Region: Do Institutions Matter?," MPRA Paper 64562, University Library of Munich, Germany.
    10. Amina Zgarni & Hassouna Fedhila, 2018. "Regulation and Banking Performance in Liberalization Context," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 137-147.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rachdi, Houssem & Hakimi, Abdelaziz & Hamdi, Helmi, 2018. "Liberalization, crisis and growth in MENA region: Do institutions matter?," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 810-826.
    2. Amina Zgarni & Hassouna Fedhila, 2018. "Regulation and Banking Performance in Liberalization Context," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 137-147.
    3. Mr. Etibar Jafarov & Mr. Rodolfo Maino & Mr. Marco Pani, 2019. "Financial Repression is Knocking at the Door, Again," IMF Working Papers 2019/211, International Monetary Fund.
    4. Mpabe Bodjongo, Mathieu Juliot, 2012. "Infrastructures institutionnelles et développement financier en zone CEMAC [Institutional infrastructures and financial development in zone CEMAC]," MPRA Paper 37824, University Library of Munich, Germany.
    5. Paul NINGAYE & Virginia Takoutio FEUDJIO, 2014. "Bankruptcy, financial liberalization, and efficiency of commercial banks in Cameroon," EuroEconomica, Danubius University of Galati, issue 2(33), pages 119-134, November.
    6. Pankaj Sinha & Sakshi Sharma, 2016. "Determinants of bank profits and its persistence in Indian Banks: a study in a dynamic panel data framework," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 7(1), pages 35-46, March.
    7. Abdelkader Derbali & Lamia Jamel, 2018. "Determinants of performance of Tunisia insurance companies: case of life insurance," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 24(4), pages 531-542.
    8. Demirguc-Kent, Asli & Detragiache, Enrica, 1998. "Financial liberalization and financial fragility," Policy Research Working Paper Series 1917, The World Bank.
    9. Konstantinos Loizos, 2018. "The Financial Repression†Liberalization Debate: Taking Stock, Looking For A Synthesis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 440-468, April.
    10. Rahman, Abdul & Khan, Muhammad Arshad & Charfeddine, Lanouar, 2021. "Regime-specific impact of financial reforms on economic growth in Pakistan," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 161-182.
    11. Isah Serwadda, 2018. "Determinants of Commercial Banks' Profitability. Evidence from Hungary," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(5), pages 1325-1335.
    12. Richard E. Itaman, 2022. "The finance‐growth nexus enigma: Bringing in institutional context and the productiveness debate," Journal of Economic Surveys, Wiley Blackwell, vol. 36(2), pages 504-527, April.
    13. RACHDI, Houssem & Hakimi, Abdelaziz & Hamdi, Helmi, 2015. "Financial Liberalization, Banking Crisis and Economic Growth in MENA Region: Do Institutions Matter?," MPRA Paper 64562, University Library of Munich, Germany.
    14. Bangake, Chrysost & Eggoh, Jude C., 2011. "Further evidence on finance-growth causality: A panel data analysis," Economic Systems, Elsevier, vol. 35(2), pages 176-188, June.
    15. Saumitra Bhaduri & Aditi Bhattacharya, 2018. "Financial Liberalization and Allocation of Capital: Dark Side of the Moon," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 163-185, December.
    16. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    17. Yuan, Shenguo & Wu, Zhouheng & Liu, Lanfeng, 2022. "The effects of financial openness and financial efficiency on Chinese macroeconomic volatilities," The North American Journal of Economics and Finance, Elsevier, vol. 63(C).
    18. Koffie Ben Nassar & Edder Martinez & Anabel Pineda, 2014. "Determinants of Banks' Net Interest Margins in Honduras," IMF Working Papers 2014/163, International Monetary Fund.
    19. Bouzid AMAIRA, 2016. "Financial liberalization and economic growth: Evidence from Tunisia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(609), W), pages 243-262, Winter.
    20. Catalán-Herrera, Juan & Arriaza, Juan Carlos & Alvarado, Ricardo, 2019. "Is the financial accelerator story, empirically relevant for the determinants of the interest rate spread?," The Quarterly Review of Economics and Finance, Elsevier, vol. 71(C), pages 37-47.

    More about this item

    Keywords

    Financial Liberlization; Banking Profitability; Empirical Study; Panel Data; Tunisia.;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2011-02-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.