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Liberalization of Financial Services and Performance of Commercial Banks in Algeria: An Empirical Study (1998 2012)

Author

Listed:
  • Rachida Benahmed-Daho

    (Faculty of Economic Sciences, Management, and Commercial Sciences, University of Tlemcenm, Tlemcen 13000, Algeria)

  • Abdelnacer Bouteldja

    (Faculty of Economic Sciences, Management, and Commercial Sciences, University of Tlemcenm, Tlemcen 13000, Algeria)

  • Ali bendob

    (Department of Economic Science, Institute of Economic Sciences, Management, and Commercial Sciences, University of Ain Temouchent, BP 284, 46000, Algeria.)

Abstract

The banking system is facing deep and varied challenges due to financial openness and bank liberalization (LIB) which both call for the removal of all restrictions and barriers on banking activities, as well as for a competition between foreign and local banks, which has increased in recent years. The aim of this paper is to investigate the impact of financial LIB on banking efficiency in Algeria. Using three varieties of a panel data regression model on a sample of 10 Algerian commercial banks (public and private) for the period during 1998-2012. Our results show a negative and significant impact of financial LIB on Algerian banking performance during the period studied.

Suggested Citation

  • Rachida Benahmed-Daho & Abdelnacer Bouteldja & Ali bendob, 2015. "Liberalization of Financial Services and Performance of Commercial Banks in Algeria: An Empirical Study (1998 2012)," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 889-896.
    • Handle: RePEc:eco:journ1:2015-04-07
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    References listed on IDEAS

    as
    1. Philip Arestis & Panicos Demetriades, 1999. "Financial Liberalization: The Experience of Developing Countries," Eastern Economic Journal, Eastern Economic Association, vol. 25(4), pages 441-457, Fall.
    2. Bourke, Philip, 1989. "Concentration and other determinants of bank profitability in Europe, North America and Australia," Journal of Banking & Finance, Elsevier, vol. 13(1), pages 65-79, March.
    3. Abdul Abiad & Enrica Detragiache & Thierry Tressel, 2010. "A New Database of Financial Reforms," IMF Staff Papers, Palgrave Macmillan, vol. 57(2), pages 281-302, June.
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    Cited by:

    1. Ali BENDOB & Fatma BENNACEUR & Rachida BENAHMEDDAHO, 2017. "Does the Profit and Loss Sharing Financing increase the Performance of Islamic Banks?," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 54-67.

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    More about this item

    Keywords

    Financial Liberalization; Performance; Commercial Banks; Algerian; Panel Data;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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