Determinants of Bank Performance in a Developing Country: Evidence From Morocco
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 ma...
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| Format: | Article |
| Language: | English |
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Vilnius University Press
2017-05-01
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| Series: | Organizations and Markets in Emerging Economies |
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| Online Access: | https://www.journals.vu.lt/omee/article/view/14201 |
| Summary: | 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.
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| ISSN: | 2029-4581 2345-0037 |