IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v18y2011i13p1267-1271.html
   My bibliography  Save this article

Determinants of bank net interest margin in Tunisia: a panel data model

Author

Listed:
  • K. Ben Khediri
  • H. Ben-Khedhiri

Abstract

This article examines the determinants of Net Interest Margins (NIM) in Tunisia and tests some of the bank's characteristics that are derived mainly from the dealership model (Ho and Saunders, 1981). The research considers the heterogeneity of individual banks through the use of random-effect as well as fixed-effect models. It tests the robustness of the results by running the Wooldridge test for autocorrelation in panel data and robust cluster estimation. Operating Costs (OC) and Bank Capital (BC) are found to be consistent to the theoretical model implying positive association to NIM. In addition, NIM is positively related to Opportunity Costs of Bank Reserves (OCBR), Implicit Interest Payments (IIP) and negatively related to Quality of Management (QM).

Suggested Citation

  • K. Ben Khediri & H. Ben-Khedhiri, 2011. "Determinants of bank net interest margin in Tunisia: a panel data model," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1267-1271.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:13:p:1267-1271
    DOI: 10.1080/13504851.2010.534052
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504851.2010.534052&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2010.534052?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Özcan IŞIK & Murat BELKE, 2017. "An Empirical Analysis of the Determinants of Net Interest Margins of Turkish Listed Banks: Panel Data Evidence from Post-Crisis Era," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(34).
    2. Mudeer A. Khattak & Buerhan Saiti & Shabeer Khan, 2023. "Does market power explain margins in dual banking? Evidence from panel quantile regression," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1826-1844, April.
    3. Muhammad Haris & Yong Tan & Ali Malik & Qurat Ul Ain, 2020. "A Study on the Impact of Capitalization on the Profitability of Banks in Emerging Markets: A Case of Pakistan," JRFM, MDPI, vol. 13(9), pages 1-21, September.
    4. Ijaz Hussain, 2014. "Banking industry concentration and net interest margins (NIMs) in Pakistan," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(2), pages 384-402, April.
    5. Parmendra Sharma & Neelesh Gounder, 2011. "Determinants of bank net interest margins in a Small Island Developing Economy: Panel Evidence from Fiji," Discussion Papers in Finance finance:201112, Griffith University, Department of Accounting, Finance and Economics.
    6. Emna Trabelsi & Malek Ben Mansour, 2024. "Credit risk and Tunisian bank stability in the Covid-19 wave," Journal of Economic Analysis, Anser Press, vol. 3(2), pages 1-22, June.
    7. Salleh, Maisyarah & Possumah, Bayu Taufiq & Ahmat, Nizam, 2018. "Net Profit Margin Determinants of Islamic Subsidiaries of Conventional Banks in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 163-173.
    8. Zied Saadaoui, 2018. "Dealing with High Bank Interest Margins in Tunisia: A Dynamic Panel Investigation," African Development Review, African Development Bank, vol. 30(4), pages 434-448, December.
    9. Mudeer Ahmed Khattak & Buerhan Saiti, 2021. "Banks' environmental policy and business outcomes: The role of competition," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 302-317, January.

    More about this item

    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:taf:apeclt:v:18:y:2011:i:13:p:1267-1271. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.