Financial Liberalization and Banking Profitability: A Panel Data Analysis for Tunisian Banks

Hakimi, Abdelazizi and Hamdi, Helmi and Djelassi, Mouldi (2010): Financial Liberalization and Banking Profitability: A Panel Data Analysis for Tunisian Banks. Published in: International Journal of Economics and Financial Issues , Vol. vol. 1, No. June (2011): pp. 19-32.

Abstract

The financial liberalization policy was implemented in several countries in order to have a modern and a dynamic financial sector and to boost economic growth. However, the consequences of this program diverge from one country to another one. In this paper, we focus our attention to the Tunisian case study. To this end, we collected data from 9 banks over the period 1980-2006, and we employed the panel data analysis. The results of our study show a negative and significant relationship between financial liberalization and banking profitability. This shows that liberalization has harmed the domestic banking system.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial liberlization, banking profitability,empirical study, panel data, Tunisia
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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