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The Determinants of Banks’ Financial Performance: Evidence from Algeria

المصدر: مجلة أبعاد اقتصادية
الناشر: جامعة أمحمد بوقرة بومرداس - كلية العلوم الاقتصادية والتجارية وعلوم التسيير
المؤلف الرئيسي: Slimani, Samiha Dhiab (Author)
مؤلفين آخرين: Tahkout, Sarah (Co-Author)
المجلد/العدد: مج14, ع1
محكمة: نعم
الدولة: الجزائر
التاريخ الميلادي: 2024
الشهر: جوان
الصفحات: 608 - 624
DOI: 10.36539/1427-014-001-030
ISSN: 1112-8062
رقم MD: 1480432
نوع المحتوى: بحوث ومقالات
اللغة: الإنجليزية
قواعد المعلومات: EcoLink
مواضيع:
كلمات المؤلف المفتاحية:
Algerian Banks | Financial Performance | Determinants
رابط المحتوى:
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المستخلص: The current study aims to investigate the determinants of banks’ financial performance using a sample of twelve Algerian commercial banks during the period: 2010-2015. Using pooled regression analysis, results reveal that the bank’s size has a strong positive effect on its performance, measured by net income. Results show also that both the bank’s specialization and size have negative impact on its performance, measured by net interest margin (NIM), which means that small banks in Algeria are more able to generate interest margin. Findings show also that capital ratio has a positive effect on both return on assets (ROA) and net income (NI) which means that large banks in Algeria generate more profit. Results show no significant effect of some specific variables (credit risk, liquidity risk, and administrative efficiency) and no significant effect of macro-economic variables (inflation and gross domestic products). Banks are recommended to expand into new markets and offer new products so as to get larger and capitalize on size advantage. Moreover, they should maintain a strong capital ratio to support their operations and absorb potential losses.

ISSN: 1112-8062