Financial Liberalization and Banking Profitability: A Panel Data Analysis for Tunisian Banks
Abdelaziz Hakimi, Mouldi Djelassi, Helmi Hamdi
Abstract
Abdelaziz Hakimi, Mouldi Djelassi, Helmi Hamdi
Abstract
The financial liberalization policy was undertaken in several countries like in Tunisia in order to have modern and dynamic financial system. However, the consequences of this program are completely divergent from it’s waitings. In this paper, on the basis of data relating to 9 Tunisian banks over the period 1980-2009, and by adopting the panal data analysis, we will try to check the effect of financial liberalization on the Tunisian banking profitability. The results of our study show a negative and significative relation between financial liberalization and banking profitability. Keywords: Financial liberlization; Banking profitability; Empirical study; Panel data; Tunisia JEL Classifications: E44; G21; L51; N24
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The financial liberalization policy was undertaken in several countries like in Tunisia in order to have modern and dynamic financial system. However, the consequences of this program are completely divergent from it’s waitings. In this paper, on the basis of data relating to 9 Tunisian banks over the period 1980-2009, and by adopting the panal data analysis, we will try to check the effect of financial liberalization on the Tunisian banking profitability. The results of our study show a negative and significative relation between financial liberalization and banking profitability. Keywords: Financial liberlization; Banking profitability; Empirical study; Panel data; Tunisia JEL Classifications: E44; G21; L51; N24
Key concepts: Profitability index, Panel data, Liberalization, Financial system, Business, Order (exchange), Finance, Economics