Determinants of Bank Performance in a Developing Country: Evidence from Morocco
Determinants of Bank Performance in a Developing Country: Evidence from Morocco
Author(s): El Mehdi FerrouhiSubject(s): National Economy, Business Economy / Management, Financial Markets
Published by: Vilniaus Universiteto Leidykla
Keywords: bank performance; bank-specific variables; macroeconomic variables; Johansen cointegration test; Morocco;
Summary/Abstract: This paper aims to define long-term determinants of Moroccan commercial banks performance, for the period 2005-2015, using the Johansen cointegration test. For this purpose, we use bank performance ratios (ROA, ROE and NIM) as dependent variables, and deposits, liquidity ratios, bank-specific and macroeconomic variables as explicative variables. Results obtained show that long-term performance of Moroccan commercial banks depends on deposits, short-term, long-term and funding liquidity, the size of the bank and its square, internal and external funding, deposits interest rates and foreign direct investments. These results show the significance of bank-specific variables as long-term determinants of the performance of Moroccan commercial banks.
Journal: Organizations and Markets in Emerging Economies
- Issue Year: 8/2017
- Issue No: 15
- Page Range: 118-129
- Page Count: 12
- Language: English