Comparison of Bank Profitability: Evidence from Morocco and Tunisia
AUTHORS
Nizar Baklouti,Doctor in Finance and Accounting Methods, University of Sfax, Tunisia
Ayad Elbaz,LERSEM, ChouaibDoukkali University, El Jadida, Morocco
Abdelbari El Khamlichi,LERSEM, ChouaibDoukkali University, El Jadida, Morocco
ABSTRACT
The banking sector in African countries is attracting more interest among practitioners and researchers. In this paper, we compare the profitability of banks in Morocco and Tunisia, in which authorities are making great efforts to improve the financial sector using different tools. Our study is an attempt to compare the financial systems of both nations. Using panel data analysis, we have studied the banking profitability in both countries from 2009 to 2018. This paper presents a quantitative study using the Generalized Least Squares (GLS) regression method with the software "STATA". Two models with fixed and random effects were studied. A Hausman test was performed to account for potential endogeneity in the collected data. The obtained results show that Tunisian and Moroccan banks operate efficiently. Hence, the capital adequacy ratio is directly related to banking profitability for Tunisian and Moroccan banks. In terms of the ratio of net interest revenue to total assets, Tunisian banks have the best results.
KEYWORDS
Banks, Profitability, Panel, Tunisia, Morocco
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