Determinants of the performance of Moroccan banks
Purpose – The economic and financial literature dealing with the subject of bank profitability has often been based in the measurement of banking results on three main indicators: ROA, ROE and MIN. This article aims to determine and analyze the different determinants that influence bank profitabilit...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2021-06-01
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| Series: | Journal of Business and Socio-Economic Development |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JBSED-01-2021-0003/full/pdf |
| _version_ | 1797786188871892992 |
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| author | Abdelkader Derbali |
| author_facet | Abdelkader Derbali |
| author_sort | Abdelkader Derbali |
| collection | DOAJ |
| description | Purpose – The economic and financial literature dealing with the subject of bank profitability has often been based in the measurement of banking results on three main indicators: ROA, ROE and MIN. This article aims to determine and analyze the different determinants that influence bank profitability and to identify the impact of these determinants on the profitability of Moroccan banks. Design/methodology/approach – For this purpose, a fixed individual effect model was adopted for the case of six Moroccan banks during the period of study from 1997 to 2018. The authors carried out their estimates at three levels according to three categories of profitability factors: bank factors, factors of the banking system and macroeconomic factors. Findings – The empirical findings show that Moroccan banks react on their size to boost their performance, which further explains the continued expansion of Moroccan banking networks. The authors confirm that Moroccan banks have not yet reached a level of size that will be detrimental to their performance. Therefore, the authors can conclude that the big Moroccan banks do not follow the concept of economy of scale. The effects of the variation in the level of economic growth as well as the evolution of the level of inflation on the performance of Moroccan banks are not significant. Originality/value – The authors’ findings and results have some important originality and value. Primarily, these results would consist of better helping the State, bankers, and bank managers to better understand the various determinants of bank profitability. The results may also help to better examine the effect of each factor, whether internal or external, on banks' bottom line. |
| first_indexed | 2024-03-13T01:05:21Z |
| format | Article |
| id | doaj.art-e288f64f3c2e43d4af77c0ccb899a9b4 |
| institution | Directory Open Access Journal |
| issn | 2635-1374 2635-1692 |
| language | English |
| last_indexed | 2024-03-13T01:05:21Z |
| publishDate | 2021-06-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Business and Socio-Economic Development |
| spelling | doaj.art-e288f64f3c2e43d4af77c0ccb899a9b42023-07-06T07:41:48ZengEmerald PublishingJournal of Business and Socio-Economic Development2635-13742635-16922021-06-011110211710.1108/JBSED-01-2021-0003Determinants of the performance of Moroccan banksAbdelkader Derbali0Department of Finance and Accounting, Universite de Kairouan Institut Superieur d'Informatique et de Gestion de Kairouan, Kairouan, TunisiaPurpose – The economic and financial literature dealing with the subject of bank profitability has often been based in the measurement of banking results on three main indicators: ROA, ROE and MIN. This article aims to determine and analyze the different determinants that influence bank profitability and to identify the impact of these determinants on the profitability of Moroccan banks. Design/methodology/approach – For this purpose, a fixed individual effect model was adopted for the case of six Moroccan banks during the period of study from 1997 to 2018. The authors carried out their estimates at three levels according to three categories of profitability factors: bank factors, factors of the banking system and macroeconomic factors. Findings – The empirical findings show that Moroccan banks react on their size to boost their performance, which further explains the continued expansion of Moroccan banking networks. The authors confirm that Moroccan banks have not yet reached a level of size that will be detrimental to their performance. Therefore, the authors can conclude that the big Moroccan banks do not follow the concept of economy of scale. The effects of the variation in the level of economic growth as well as the evolution of the level of inflation on the performance of Moroccan banks are not significant. Originality/value – The authors’ findings and results have some important originality and value. Primarily, these results would consist of better helping the State, bankers, and bank managers to better understand the various determinants of bank profitability. The results may also help to better examine the effect of each factor, whether internal or external, on banks' bottom line.https://www.emerald.com/insight/content/doi/10.1108/JBSED-01-2021-0003/full/pdfBanking performanceROAROEMINFixed effects model |
| spellingShingle | Abdelkader Derbali Determinants of the performance of Moroccan banks Journal of Business and Socio-Economic Development Banking performance ROA ROE MIN Fixed effects model |
| title | Determinants of the performance of Moroccan banks |
| title_full | Determinants of the performance of Moroccan banks |
| title_fullStr | Determinants of the performance of Moroccan banks |
| title_full_unstemmed | Determinants of the performance of Moroccan banks |
| title_short | Determinants of the performance of Moroccan banks |
| title_sort | determinants of the performance of moroccan banks |
| topic | Banking performance ROA ROE MIN Fixed effects model |
| url | https://www.emerald.com/insight/content/doi/10.1108/JBSED-01-2021-0003/full/pdf |
| work_keys_str_mv | AT abdelkaderderbali determinantsoftheperformanceofmoroccanbanks |