BBS 2020 02 Jadah
BBS 2020 02 Jadah
BBS 2020 02 Jadah
Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi, Noor Sabah Hameed Al-
Dahaan and Noor Hashim Mohammed Al-Husainy (2020). Internal and external
ARTICLE INFO
determinants of Iraqi bank profitability. Banks and Bank Systems, 15(2), 79-93.
doi:10.21511/bbs.15(2).2020.08
DOI http://dx.doi.org/10.21511/bbs.15(2).2020.08
LICENSE This work is licensed under a Creative Commons Attribution 4.0 International
License
54 0 4
businessperspectives.org
Banks and Bank Systems, Volume 15, Issue 2, 2020
http://dx.doi.org/10.21511/bbs.15(2).2020.08 79
Banks and Bank Systems, Volume 15, Issue 2, 2020
its goals achieved, since banks can be used to regulate the money supply in performing their primary
function of mobilizing financial resources in the economy.
Banks are key players in providing funds to fiscal deficit institutions in the economy. Companies can
provide funds from elementary stock offerings and long-run and short-run debt securities issuances.
Despite this, in developing countries, such as Iraq, the critical role of banks is to allocate financial re-
sources. Thus, the banking system must be fully operational, and the banks must function correctly.
The Iraqi banking sector was chosen for several reasons. Firstly, little discussions and insights take place
in the Iraqi banking sector. Secondly, Iraq has undergone significant financial reforms and deregulation
over previous years. Thirdly, the private sector deemed vulnerable because of several reasons that cause
bank credit restrictions with the later-effect of financial fluctuations in the region (Pontines, 2008).
Henceforth, the analysis of bank performance determinants can serve as guidance for policymakers
and regulators so that measures can be taken to stabilize the financial situation.
80 http://dx.doi.org/10.21511/bbs.15(2).2020.08
Banks and Bank Systems, Volume 15, Issue 2, 2020
The influence of credit risk on bank perfor- H5: The total loans to total assets ratio is signif-
mance appears to be adverse in past studies icantly and positively associated with bank
(Noman, Chowdhury, Chowdhury, Kabir, & profitability.
Pervin, 2015; Petria, Capraru, & Ihnatov, 2015;
Jara-Bertin, Arias Moya, & Perales, 2014). Miller 1.2. Economic factors
and Noulas (1997) pointed to an inverse associa-
tion between credit risk and bank performance, External factors are economic indicators that
that is, a higher proportion of loans to total assets are beyond the authority of a bank and affect
tends to make a bank more susceptible to doubt- the profitability of banks. Bank performance
ful debts, and this brings down the profit mar- may be affected by one of the leading macroe-
gins. Nevertheless, Valverde and Fernandez (2007) conomic indicators, which is economic growth
prove that credit risk has a significant positive in- or GDP growth. Petria et al. (2015) realize that
fluence on bank profitability. Bukhari and Qudous there is a positive association between GDP
(2012) explore a significant association between growth and bank profitability. Jara-Bertin et
credit risk and the Pakistani banks’ profitability. al. (2014) found a similar link between GDP
The theory proposes that usually a high percentage growth and Latin America banks’ performance.
of credit risk is associated with lower bank perfor- From the findings on 14 Islamic banks in eight
mance and, therefore, the authors suggest that: countries, Bashir (2003) found a significant pos-
itive relationship as well. Nevertheless, Noman
H3: Credit risk negatively impacts bank et al. (2015) are among the scholars who find
performance. a significant negative association between GDP
growth and firm profitability. In theory, GDP
Low liquidity can encourage banks to borrow at growth during times of low risk of default on
penal rates, and at that point their reputation is bank loans makes people more demanding of
critical. The findings of previous studies are also banking services. Therefore, this improves bank
recognized as inconsistent. While some research- profitability. Therefore, another hypothesis is as
ers pointed to a significant adverse association follows:
between the liquidity ratio and bank profitability,
several scholars explored a definite link between H6: GDP growth is positively and significantly re-
liquidity and bank performance. Meanwhile, lated to Iraqi banks’ profitability.
Bukhari and Qudous (2012) found that liquidity
does not affect performance. The inflation rate reflects the change in the
proportion of the price level over the last peri-
H4: The liquidity ratio is significantly related to od. Colander (2001) argued that the price level
bank performance. is an index of all prices in the economy, making
it a common tool as an inflation index. Besides,
As a proxy of bank assets quality, the proportion CPI measures fixed basket prices for consumer
of total loans to total assets (TL/TA) is considered. goods, weighted by the proportion of each com-
A higher ratio leads to deterioration in the quality ponent in average consumer spending. Thus,
of bank assets, as banks hold provisions because the influence of inflation on bank performance
they expect losses after defaults on the credit depends on whether the inflation rate is unan-
portfolio (Poghosyan & Cihak, 2009). Previous ticipated or expected (Perry, 1992). Firstly, in
empirical studies reveal a significant positive the case of expected inflation, banks can ad-
association between the total loans-to-total as- just interest rates on time, and, therefore, rev-
sets ratio and bank profitability (Sanlsoy, Aydn, enues can increase faster than costs, having a
& Yalçnkaya, 2017). However, the data obtained positive influence on profitability. Secondly, in
contradict the results of Vong and Chan (2009). the event of unanticipated inflation, banks may
Meanwhile, Liang, Xu, and Jiraporn (2013) found not quickly change interest rates. Thus, bank
an insignificant association between the ratio spending will grow steadily faster than bank re-
of total loans to total assets and profitability of turns. In effect, this will have an inverse impact
banks. Thus, the hypothesis is: on the profitability of a bank.
http://dx.doi.org/10.21511/bbs.15(2).2020.08 81
Banks and Bank Systems, Volume 15, Issue 2, 2020
82 http://dx.doi.org/10.21511/bbs.15(2).2020.08
Banks and Bank Systems, Volume 15, Issue 2, 2020
profitability of banks in Yemen, and found a positive considering the Iraqi economy and as recom-
association. Nevertheless, Şanlsoy et al. (2017) ana- mended by the literature. The data for the study
lyzed the influence of political instability in Turkey, were collected from annual reports, World
and found a significant negative relationship. Based Development Indicators (WDI), and Worldwide
on banks from MENA countries, Ghosh (2016) stud- Governance Indicators (WGI). Bank-specific
ied the association between political instability and variables are bank size, the ratio of equity to to-
the performance of a bank and found an inverse as- tal assets, liquid ratio, credit risk, and the to-
sociation. Likewise, Jebnoun (2015) explored the im- tal loans to total assets ratio. The data on these
pact of political instability in Tunisia and confirmed variables were obtained from the annual re-
a significant negative relationship. Hence, the next ports published on the ISX and on banks’ web-
hypothesis is as follows: sites. The data on economic indicators include
GDP growth, inflation rate, interest rate, and
H11: Political instability negatively and signifi- unemployment; all the data on these indica-
cantly influences bank performance. tors were obtained from the WDI. In addition,
governance data were obtained from the WGI.
Regarding legal implementation and regulato- Banks with data for less than ten years were re-
ry power, Levine, Loayza, and Beck (2000) in their moved from the study sample. The study sam-
cross-checking the South East Asian banks, indicated ple included Iraqi listed commercial banks with
that government restraints allowed banks to increase data available for the study period. 18 commer-
their credit facilities and retain large market shares, cial banks were involved, but there was an un-
and that brought higher returns. La Porta, Lopez-de- balanced panel for the data of some banks not
Silanes, Shleifer, and Vishney (1998) studied the per- available for the period.
formance bank determinants and found out that a
poor legal system can protect creditors, which leads 2.2. Variable measurement
to decrease in bank performance in the economy. In
the same vein, Demirguc-Kunt et al. (2004) found In the banking sector, since it consists of various
that a better legal system and effective regulatory sys- categories of banks, both external and internal fac-
tems are associated with less corruption, reducing the tors determine bank profitability. As mentioned
frictions or shortcomings that are common in the fi- early on the profitability of banks in the litera-
nancial system. As for Asian banks, anyone can as- ture, bank performance is usually tested by three
sume that fragile law enforcement and high corrup- measures, such as NIM, ROA, and ROE. However,
tion will be improved when effective regulatory and as shown in this paper, appropriate independent
legal systems appear, eventually and possibly assert- variables predictable to affect the performance of
ing a positive association with bank performances. banks have been nominated when it is referred to
Likewise, Chan and Abd Karim (2016) revealed that the current economic situation in Iraq and in ac-
government effectiveness and the efficiency of a bank cordance with previous literature. The value and
are positively associated. In the same vein, Lensink measurement of the study variables are shown in
and Meesters (2007) discovered that government ef- Table 1.
fectiveness reduces banks’ costs on dealing with bu-
reaucracy. Thus, it is hypothesized that: 2.3. Model specification
H12: Government effectiveness has a positive in- This paper explores the potential determinants
fluence on bank profitability. of performance for Iraqi banks using a panel da-
ta approach. The reason for using the panel data
approach is to shed light on the heterogeneity
2. RESEARCH METHODOLOGY of independent variables and to obtain more
precise findings by making more observations.
2.1. Data and sample Using the panel data approach to study the crit-
ical determinants of bank performance is what
Appropriate variables expected to affect the per- is newly introduced in this paper (Wooldridge,
formance of banks have been nominated after 1999; Baltagi, 1995).
http://dx.doi.org/10.21511/bbs.15(2).2020.08 83
Banks and Bank Systems, Volume 15, Issue 2, 2020
Note: * means the score of total indicators for countries ranged from about –2.5 to 2.5.
The panel data approach specification can be writ- Performance Model in ROA terms:
ten as follows:
β 0 + β1 BNKZ it + β 2 ETAit +
Yit = β 0 + β1 BNKZ it + β 2 ETAit +
ROAit = (2)
+ β3 LIQU it + β 4CRDRit + β5TL / TAit + + β3 LIQU it + β 4CRDRit + β5TL / TAit +
(1)
+ β 6GDPGt + β 7 INFLRt + β8 INTRt + + β 6GDPGt + β 7 INFLRt + β8 INTRt +
+ β9UNEMPt + β10 REQU t + + β9UNEMPt + β10 REQU t +
+ β11 POLINSt + β12GOVEFt + ε it , + β11 POLINSt + β12GOVEFt + ε it .
where Yit is bank profitability measured by NIM, Performance Model in ROE terms:
ROA, and ROE; β1 – β12 are coefficients of explan-
atory variables; BNKZ denotes bank size (total as-
sets natural log), ETA is the proportion of the eq- ROE =
it β 0 + β1 BNKZ it + β 2 ETAit +
uity to total assets ratio, LIQU is liquidity (refers to
the liquid assets to total assets ratio, CRDR is cred-
+ β3 LIQU it + β 4CRDRit + β5TL / TAit + (3)
it risk, TL/TA is the total loans to total assets ratio, + β 6GDPGt + β 7 INFLRt + β8 INTRt +
GDPG – GDP growth rate, INFLR – inflation rate, + β UNEMP + β REQU +
9 t 10 t
INTR – interest rate, UNEMP – unemployment,
REQU – regulatory quality, POLINS – political in- + β11 POLINSt + β12GOVEFt + ε it .
stability, GOVEF – government effectiveness, and
εit is an error term. Performance Model in NIM terms:
84 http://dx.doi.org/10.21511/bbs.15(2).2020.08
Banks and Bank Systems, Volume 15, Issue 2, 2020
β 0 + β1 BNKZ it + β 2 ETAit +
NIM it = ard deviation, and mean value are used as a de-
scriptive analysis to explain each variable. Table 2
+ β3 LIQU it + β 4CRDRit + β5TL / TAit +
(4) shows the descriptive statistics.
+ β 6GDPGt + β 7 INFLRt + β8 INTRt +
+ β9UNEMPt + β10 REQU t + 3.2. Correlation analysis
+ β11 POLINSt + β12GOVEFt + ε it . The interrelationship between variables was ex-
amined using the Pearson correlation. Correlation
3. FINDINGS analysis is carried out to detect any autocorrela-
tion among the study variables (see Table 3).
3.1. Descriptive statistics
3.3. Multiple regression analysis
A descriptive study is a measurement of central
dispersion and tendencies. It is often useful to de- Before the regression development, some tests re-
fine a chain of data set parsimoniously in a nat- lated to the quality of the adjustment would be im-
ural order, which would allow an individual to portant. Key tests were conducted by Newey (1985):
get an idea of the elementary features of the data. normality test, multicollinearity test, serial corre-
Dispersion measurements are the variance, range, lation test, and heteroscedasticity test for all three
and standard deviation. This study includes stand- models (ROA, ROE, and NIM). The results of the
ard deviation as a measure of dispersion and a diagnostic test show no data issues. In adddition,
mean as a measure of central tendency. The mean Hausman specification test was used to select a suit-
refers to the measurement of central tendency and able method (fixed or random effects approach) for
gives a general idea of unnecessary data in adopt- both models, ROA and ROE. The null hypothesis
ing one with each of the data observations. In this of the Hausman specification test means that the
study, maximum value, minimum value, stand- Random Effects approach is more appropriate to use.
Table 2. Descriptive statistics
Z Macroeconomic indicators
GDP growth Ratio 6.136 3.850 0.7 13.93
Inflation Ratio 10.903 18.139 –10.067 53.23
Government variables
Regulatory quality Percentile rank –1.227 0.143 –1.507 –1.006
http://dx.doi.org/10.21511/bbs.15(2).2020.08 85
Table 3. Correlation matrices of variables
86
1 ROA 1
2 ROE 0.56** 1
**
3 NIM 0.59 0.86*** 1
4 BNS 0.23** 0.18*** 0.19*** 1
*
5 EQ/TA –0.12 –0.01 –0.07 –0.38*** 1
6 LIQUI –0.08 0.11 0.11 –0.04 0.04 1
7 CRED RISK –0.05 0.01 0.07 0.02 –0.01 0.02 1
**
8 TL/TA –0.14 –0.15** –0.17** –0.46** 0.01 –0.08 –0.03 1
9 GDPG 0.01 0.01 0.02 0.06 –0.05 0.10 –0.09 –0.05 1
10 INFL –0.06 –0.02 –0.03 –0.01 0.09 0.03 –0.08 –0.15 0.35 1
11 INTRA –0.05 –0.10 –0.09 –0.02 –0.05 0.04 –0.02 0.13*** –0.25*** –0.37*** 1
12 UNEMP –0.02 0.06 0.03 –0.02 0.13* 0.15 0.07 –0.21*** –0.05 0.68*** –0.40*** 1
13 REGQU 0.04 –0.04 –0.09 0.07 –0.13* –0.04 –0.04 –0.05 –0.04 –0.55*** 0.33*** –0.82**** 1
14 POLINS –0.02 –0.04 –0.02 0.03 –0.08 –0.10 –0.09 0.16*** 0.36*** –0.47*** 0.26*** –0.77*** 0.644**** 1
15 GOVEF –0.04 –0.05 –0.02 0.00 –0.09 –0.16 –0.08 0.24*** 0.07 –0.67*** 0.35*** –0.96*** 0.732*** 0.853*** 1
Note: ***, **, and * mean that correlation is significant at 1%, 5%, and 10%, respectively. See Table 1 for definition and measurement of variables.
http://dx.doi.org/10.21511/bbs.15(2).2020.08
Banks and Bank Systems, Volume 15, Issue 2, 2020
Note: ***, **, and * mean significance at 1%, 5%, and 10%, respectively. P-value (in parentheses) and the variable definitions
are explained in Table 1.
The total model significance was tested using the tables are not exhibited as they are too space-con-
Fisher test. The values of 2.9, 1.8, and 2.1 for mod- suming. Firstly, it is checked if the link between
el 1, model 2, and model 3, respectively, indicate bank-specific characteristics (bank size, equity to
that the ratio of variance in the dependent varia- total assets, liquidity, credit risk, and total loans
bles explained in models is less than 0.05. Also, the to total assets), economic variables (inflation, GDP
R2 value for three models, which approximates 1, growth, interest rate, and unemployment) and gov-
indicates that these models are well adjusted. Thus, ernment variables (regulatory quality, political in-
the estimated results are shown in Table 4.- stability, and government effectiveness) and perfor-
mance is non-linear. Here, quadratic terms of all
After the diagnostic tests, this study estimates the variables are entered into Equation (1), Equation
panel data approach for ROA, ROE, and NIM. The (2) and Equation (3). In the non-tabulated results,
results are shown in Table 4. The explanatory var- the fixed effects estimates of modified Equation (1),
iables are unchanged for all models. To compare Equation (2) and Equation (3) with the quadratic
the results of fixed effect and random effect ap- terms, find no significant coefficients on any of the
proaches, the Hausman specification test is used quadratic bank-specific, economic factors, and gov-
to select the suitable model. The Hausman test in ernment variables. This finding suggests that the
the case of ROA, ROE, and NIM models is read influence of bank-specific characteristics, econom-
as 52.48, 20.62, and 24.20, respectively, with p-val- ic factors and government factors on bank perfor-
ue less than 0.05; this suggests that the fixed-effect mance is linear. Secondly, alternative measures are
approach is suitable. Thus, the fixed-effect ap- used for bank size. Thus, bank size is dichotomized
proach is more suitable for all three models, and, at the median of total assets. Banks can be classified
therefore, a fixed effect approach for all the study as small when the total assets are below the median,
models (NIM, ROA, and ROE) is used. whereas banks can be considered substantial when
their total assets exceed the median. Finally, the re-
3.4. Robustness checks gressions of the primary model are re-tested using
the alternative bank size measurement, which is a
To enhance the strength of the study results, the dummy variable, not a log of total assets, hypothe-
association between bank-specific, macroeconom- sizing if total assets exceed the median, and 0 other-
ic and government determinants and bank perfor- wise. In all these cases, the main findings remained
mance were explored. It should be stated that the similar to those shown in Table 4.
http://dx.doi.org/10.21511/bbs.15(2).2020.08 87
Banks and Bank Systems, Volume 15, Issue 2, 2020
88 http://dx.doi.org/10.21511/bbs.15(2).2020.08
Banks and Bank Systems, Volume 15, Issue 2, 2020
CONCLUSION
The research subject defines the purpose of this study, and, in this range, the determinants of bank per-
formance were analyzed using a data approach and a panel of eighteen Iraqi banks for 13 years (from
2005 to 2017). An unbalanced panel of 220 observations was used for econometric analysis. The results
show that most bank-specific characteristics, economic factors, and government variables have a statis-
tically significant impact on the performance of Iraqi commercial banks. The regression results of this
study show that the size of Iraqi banks and the total equity to total assets ratio are among key deter-
minants of Iraqi bank’s profitability. There is support for the that that large banks have exploited the
economies of scale and that well-capitalized banks faced low costs of obtaining external finance, and
such a feature can lead to increased performance. However, the total loans to total assets ratio (TL/TA)
is significantly related to bank performance in terms of NIM only. Otherwise, it will not be significant.
Consequently, the loan ratio cannot justify the variability of Iraqi banks’ performance. Moreover, re-
garding the influence of external factors on bank profitability, the findings indicate that the influence
http://dx.doi.org/10.21511/bbs.15(2).2020.08 89
Banks and Bank Systems, Volume 15, Issue 2, 2020
of GDP growth and government effectiveness has a positive association with the performance of Iraqi
banks. Nonetheless, inflation, interest rates, unemployment, and political instability have a negative
impact on the performance of Iraqi banks.
In order for Iraqi banks to achieve their goals, it is useful to be able to recognize factors that determine the
performance of successful banks in developing policies to strengthen and maintain the stability and strength
of the banking sector in Iraq. While all this shows a close relationship between the welfare of the banking
sector and economic growth, factors affecting the profitability of the financial sector, both for administrators
and stakeholders in banks, cannot be excluded. Raising awareness of these factors is key to helping regulators
and bank administrators develop good future strategies to make Iraq’s banking sector more profitable.
ACKNOWLEDGMENTS
The authors acknowledge the support from Ministry of Higher Education in Iraq, University of Kerbala,
AL-Furat AL-Awsat Technical University, and Imam AL-Kadhum College for Islamic Studies. Furthermore,
we appreciate the support by Prof. Dr. Sivarajasingham Selliah, Assistant Prof. Dr. Muhammad Abrar Ul
Haq, and Dr. Mohammed Hasan.
AUTHOR CONTRIBUTIONS
Conceptualization: Hamid Mohsin Jadah, Noor Hashim Mohammed Al-Husainy.
Data curation: Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi, Noor Sabah Hameed Al-Dahaan.
Formal analysis: Hamid Mohsin Jadah.
Funding acquisition: Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi, Noor Sabah Hameed Al-
Dahaan, Noor Hashim Mohammed Al-Husainy.
Investigation: Hamid Mohsin Jadah.
Methodology: Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi, Noor Sabah Hameed Al-Dahaan,
Noor Hashim Mohammed Al-Husainy.
Project administration: Hamid Mohsin Jadah.
Resources: Hamid Mohsin Jadah, Noor Sabah Hameed Al-Dahaan, Noor Hashim Mohammed
Al-Husainy.
Software: Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi.
Supervision: Hamid Mohsin Jadah.
Validation: Hamid Mohsin Jadah.
Visualization: Hamid Mohsin Jadah.
Writing – original draft: Hamid Mohsin Jadah.
Writing – reviewing & editing: Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi, Noor Sabah
Hameed Al-Dahaan, Noor Hashim Mohammed Al-Husainy.
REFERENCES
1. Arun, T., & Turner, J. (2002). International Financial Markets, and ownership affect performance
Financial sector reforms in Institutions and Money, 18(2), and stability? In Prudential
developing countries: the Indian 121-136. https://doi.org/10.1016/j. supervision: What works and what
experience. World Economy, intfin.2006.07.001 doesn’t (pp. 31-96). University of
25(3), 429-445. https://doi. Chicago Press.
3. Baltagi, B. H. (1995). Econometric
org/10.1111/1467-9701.00440 analysis of panel data. New York: 5. Bashir, A.-H. M. (2003).
2. Athanasoglou, P., Brissimis, S. N., John Wiley and Sons. Determinants of Profitability in
& Delis, M. D. (2008). Bank- Islamic Banks: Some Evidence
4. Barth, J., Caprio Jr, G., & Levine,
specific, Industry-Specific and from the Middle East. Islamic
R. (2001). Banking systems
Macroeconomic Determinants Economic Studies, 11(1), 31-57.
around the globe: do regulation
of Bank Profitability. Journal of Retrieved from http://iesjournal.
90 http://dx.doi.org/10.21511/bbs.15(2).2020.08
Banks and Bank Systems, Volume 15, Issue 2, 2020
http://dx.doi.org/10.21511/bbs.15(2).2020.08 91
Banks and Bank Systems, Volume 15, Issue 2, 2020
The_Effect_of_Board_Character- 35. Menicucci, E., & Paolucci, G. Economics and Finance, 20, 518-
istics.pdf (2016). The determinants of bank 524. https://doi.org/10.1016/
profitability: empirical evidence S2212-5671(15)00104-5
28. Jappelli, T., &Pagano, M. (2002).
from European banking sector.
Information Sharing, Lending 44. Poghosyan, T., & Cihak, M.
Journal of Financial Reporting and
and Defaults: Cross Countries (2009). Distress in European
Accounting, 14(1), 86-115. https://
Evidence. Journal of Banking Banks: An Analysis Based on a
doi.org/10.1108/JFRA-05-2015-
and Finance, 26(10), 2017-2045. New Dataset (IMF Working Paper
0060 No. 09/9). Retrieved from https://
Retrieved from https://pdfs.
semanticscholar.org/5427/28e78 36. Miller, S. M., & Noulas, A. (1997). www.imf.org/en/Publications/
07bb9d6c5430ac0463eaddee92f6 Portfolio Mix and Large-bank WP/Issues/2016/12/31/Distress-
1c0.pdf Profitability in the USA. Applied in-European-Banks-An-Analysis-
Economics, 29(4), 505-512. https:// Basedon-a-New-Dataset-22547
29. Jara-Bertin, M., Arias Moya, doi.org/10.1080/000368497326994 45. Pontines, V. (2008). Economic
J., & Perales, A. R. (2014).
37. Naceur, S. B., & Omran, M. (2011). Liberalization and Integration in
Determinants of Bank
The Effects of Bank Regulations, East Asia: a post-crisis paradigm-
performance: evidence for
Competition and Financial by Yung Chul Park. Asian-Pacific
Latin America. Academia
Reforms on Banks’ Performance. Economic Literature, 22(1), 79-80.
Revista Latinoamericana de https://doi.org/10.1111/j.1467-
Administración, 27(2), 164-182. Emerging Markets Review, 12(1),
1-20. https://doi.org/10.1016/j. 8411.2008.00213_9.x
https://doi.org/10.1108/ARLA-04-
2013-0030 ememar.2010.08.002 46. Rajan, R. G., & Zingales, L. (1995).
38. Nassar, K. B., Martinez, E., & What Do We Know about Capital
30. Jebnoun, S. A. (2015). Tunisian Structure? Some Evidence from
Banking System Vulnerabilities Pineda, A. (2017). Determinants
of Banks’ Net Interest Margins in International Data. The Journal of
Beyond the Global Financial Finance, 50(5), 1421-1460. https://
Honduras. Journal of Banking and
Crisis and Recent Political doi.org/10.1111/j.1540-6261.1995.
Financial Economics, 1(7), 5-27.
Instability. Case Studies Journal, tb05184.x
https://doi.org/10.7172/2353-6845.
4(5), 112-117. Retrieved
jbfe.2017.1.1 47. Rashid, A., & Jabeen, S. (2016).
from https://www.academia.
Analyzing performance
edu/29637139/Tunisian_Banking_ 39. Newey, W. K. (1985). Generalized
determinants: Conventional
System_Vulnerabilities_beyond_ Method of Moments
versus Islamic banks in Pakistan.
the_Global_Financial_Crisis_and_ Specification Testing. Journal
Borsa Istanbul Review, 16(2),
Recent_Political_Instability Econometrics, 29(3), 229-256.
92-107. https://doi.org/10.1016/j.
https://doi.org/10.1016/0304- bir.2016.03.002
31. La Porta, R., Lopez-de-Silanes, 4076(85)90154-X
F., Shleifer, A., & Vishney, R. W. 48. Sanlsoy, S., Aydn, Ü., & Yalçnkaya,
(1998). Law and finance. Journal 40. Noman, A. H. M., Chowdhury, A. (2017). Effect of Political
of Political Economy, 106(6), 1113- M. M., Chowdhury, N. J., Kabir, Risk on Bank Profitability.
1155. Retrieved from https://www. M. J., & Pervin, S. (2015). The International Journal of Business
jstor.org/stable/10.1086/250042 Effect of Bank Specific and Management and Economic
Macroeconomic Determinants of Research, 8(5), 998-1007.
32. Lensink, R., & Meesters, A. Banking Profitability: A Study on Retrieved from http://www.ijbmer.
(2007). Institutions and Bank Bangladesh. International Journal com/docs/volumes/vol8issue5/
performance: A stochastic of Business and Management, ijbmer2017080501.pdf
frontier analysis. Oxford Bulletin 10(6), 287-297. https://doi.
of Economics & Statistics, 76(1). org/10.5539/ijbm.v10n6p287 49. Sayilgan, G., & Yildirim,
Retrieved from https://papers.ssrn. O. (2009). Determinants of
com/sol3/papers.cfm?abstract_ 41. Owusu-Antwi, G., Mensah, Profitability in Turkish Banking
id=965825 L., Crabbe, M., & Antwi, J. Sector: 2002–2007, International
(2014). Determinants of Bank Research Journal of Finance and
33. Levine, R., Loayza, N., & Performance in Ghana, the Economics, 28, 207-214. Retrieved
Beck, T. (2000). Financial Economic Value Added (EVA) from https://www.researchgate.
intermediation and growth: Approach. International Journal net/publication/289005488_De-
Causality and causes. Journal of of Economics and Finance, 7(1), terminants_of_profitabil-
Monetary Economics, 46(1), 31-77. 203-215. https://doi.org/10.5539/ ity_in_turkish_banking_sec-
https://doi.org/10.1016/S0304- ijef.v7n1p203 tor_2002-2007
3932(00)00017-9
42. Perry, P. (1992). Do Banks Gain 50. Seenaiah, K., Rath, B. N., &
34. Liang, Q., Xu, P., & Jiraporn, P. or Lose from Inflation? Journal of Samantaraya, A. (2015).
(2013). Board Characteristics Retail Banking, 14(2), 25-31. Determinants of Bank
and Chinese Bank Performance. Profitability in the Post-
43. Petria, N., Capraru, B., & Ihnatov, reform Period: Evidence
Journal of Banking and Finance,
L. (2015). Determinants of Banks’ from India. Global Business
37(8), 2953-2968. https://
Profitability: Evidence from EU Review, 16(5), 82-92. https://doi.
doi.org/10.1016/j.jbank-
27 Banking Systems. Procedia org/10.1177/0972150915601241
fin.2013.04.018
92 http://dx.doi.org/10.21511/bbs.15(2).2020.08
Banks and Bank Systems, Volume 15, Issue 2, 2020
51. Sharma, S., Chami, R., & fin.2006.06.017 Macroeconomic and Bank-
Khan, M. S. (2003). Emerging specific Factors on the
Issues in Banking Regulation 53. Vong, A. P. I., & Chan, H. S.
Profitability of Islamic Banks:
(IMF Working Paper No. (2009). Determinants of Bank
Profitability in Macao. Macau An Empirical Evidence.
WP/03/101). International
Monetary Research Bulletin, 12(6), Investment Management and
Monetary Fund. http://dx.doi.
org/10.5089/9781451852530.00 93-113. Retrieved from https:// Financial Innovations, 14(4), 30-
www.researchgate.net/publica- 39. http://dx.doi.org/10.21511/
52. Valverde, S., & Fernández, F. tion/252081427_Determinants_ imfi.14(4).2017.04
(2007). The Determinants of
of_Bank_Profitability_in_Macao
Bank Margins in European
Banking. Journal of Banking 54. Yahya, A. T., Akhtar, A., &
& Finance, 31(7), 2043-2063. Tabash, M. I. (2017). The
https://doi.org/10.1016/j.jbank- Impact of Political Instability,
http://dx.doi.org/10.21511/bbs.15(2).2020.08 93