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Financial Performance of Commercial Banks in Afghanistan

Author

Listed:
  • Qais Haidary

    (Member, Association of Chartered Certified Accountants UK, Kabul, Afghanistan,)

  • Boris Abbey

    (American University of Afghanistan, California, USA)

Abstract

Banks play a vital role in a country's economic system but they are only able to operate on a going concern basis if they are managed effectively and efficiently. In this vital study, authors have used descriptive statistics and multivariate regression model to determine the parameters. The findings show that the banks' internal factors have significant impact over its profitability with the exception of the liquidity variable and that external economic factors were insignificant at 5% confidence level. Hence, profitability in Afghan banks is determined by the efficiency of their management rather than macroeconomic factor of GDP.

Suggested Citation

  • Qais Haidary & Boris Abbey, 2018. "Financial Performance of Commercial Banks in Afghanistan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 242-249.
    • Handle: RePEc:eco:journ1:2018-01-30
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    References listed on IDEAS

    as
    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    2. Molyneux, Philip & Thornton, John, 1992. "Determinants of European bank profitability: A note," Journal of Banking & Finance, Elsevier, vol. 16(6), pages 1173-1178, December.
    3. Alper, Deger & Anbar, Adem, 2011. "Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 2(2), pages 139-139, April.
    4. Valentina Flamini & Miss Liliana B Schumacher & Mr. Calvin A McDonald, 2009. "The Determinants of Commercial Bank Profitability in Sub-Saharan Africa," IMF Working Papers 2009/015, International Monetary Fund.
    5. 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.
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    Cited by:

    1. Manuel Fernandez & Luluwa Juma & Hanan Alkharoossi & Robinson Joseph, 2021. "Performance Analysis of GCC Banks: A Survey," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 357-368, January.

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    More about this item

    Keywords

    Financial Performance; Commercial Banks; Afghanistan;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services

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