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Determinants of banks’ profitability and performance: an overview

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  • FERROUHI, El Mehdi

Abstract

The present paper aims to provide an overview of the theoretical and empirical studies and research on banks profitability and performance. Thus, we present the principles of evaluation and modeling of banking performance, we review theories and models related to banking profitability and performance and we present empirical studies of banks profitability.

Suggested Citation

  • FERROUHI, El Mehdi, 2018. "Determinants of banks’ profitability and performance: an overview," MPRA Paper 89470, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89470
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    File URL: https://mpra.ub.uni-muenchen.de/89470/1/MPRA_paper_89470.pdf
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    References listed on IDEAS

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    2. Ben Naceur, Samy & Kandil, Magda, 2009. "The impact of capital requirements on banks' cost of intermediation and performance: The case of Egypt," Journal of Economics and Business, Elsevier, vol. 61(1), pages 70-89.
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    6. Pasiouras, Fotios & Kosmidou, Kyriaki, 2007. "Factors influencing the profitability of domestic and foreign commercial banks in the European Union," Research in International Business and Finance, Elsevier, vol. 21(2), pages 222-237, June.
    7. Jose A. Lopez, 1999. "Using CAMELS ratings to monitor bank conditions," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jun.
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    9. D. Maheshwara Reddy & K. V. N. Prasad, 2011. "Evaluating Performance of Regional Rural Banks: An Application of Camel Model," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 2(6), pages 124-128, September.
    10. Yi-Kai Chen & Chung-Hua Shen & Lanfeng Kao & Chuan-Yi Yeh, 2018. "Bank Liquidity Risk and Performance," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-40, March.
    11. El Mehdi Ferrouhi, 2014. "Moroccan Banks Analysis Using CAMEL Model," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 622-627.
    12. Sailesh Tanna & Kyriaki Kosmidou & Fotios Pasiouras, 2005. "Determinants of profitability of domestic UK commercial banks: panel evidence from the period 1995-2002," Money Macro and Finance (MMF) Research Group Conference 2005 45, Money Macro and Finance Research Group.
    13. Vincent Okoth Ongore & Gemechu Berhanu Kusa, 2013. "Determinants of Financial Performance of Commercial Banks in Kenya," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 237-252.
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    17. Richard S. Barr & Kory A. Killgo & Thomas F. Siems & Sheri Zimmel, 1999. "Evaluating the productive efficiency and performance of U.S. commercial banks," Financial Industry Studies Working Paper 99-3, Federal Reserve Bank of Dallas.
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    Cited by:

    1. Okotori, Tonprebofa & Ayunku, Peter, 2020. "Banking Reforms and Deposit Money Banks Profitability in Nigeria," MPRA Paper 102389, University Library of Munich, Germany.
    2. Amon Aniké DEH & Kéba Aly GOUDIABY & Mamadou Nouhou DIALLO, 2021. "Quelles sont les variables managériales et économiques qui influencent la performance opérationnelle des banques de l’UEMOA ?," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 12(2), pages 19-34, December.

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    More about this item

    Keywords

    Profitability; performance; camels; banks;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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