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Financial Performance of the Lebanese Bank

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Listed:
  • Hiyam Sujud
  • Joyce Tannous

Abstract

Lebanese Banks financial performance is an important topic especially that the performance of banks has a significant influence on the economy. A study on the Lebanese Banks’ financial performance determinants is essential in order to provide banks with indicators that can help them to enhance and improve their performance. The purpose of this study is to determine and analyze the determinants or the factors affecting the profitability of the Lebanese Banking Sector. The sample studied consists of the Lebanese Banking Sector including all banks, but limited to a period of 19 years being from 1999 till 2017. Results of the study were analyzed using the statistical program “SPSS”. Findings revealed the significance relation each of Capital adequacy, efficiency, and growth in loans toward banks profitability as well as the significance relation between Inflation GDP deflator rate, Real Interest Rate and profitability. At the same time, no significant relation was obtained between liquidity, GDP growth and profitability. The study recommends banks to enhance their internal factors being the most important determinants of banks profitability, especially their capital adequacy and loan growth.

Suggested Citation

  • Hiyam Sujud & Joyce Tannous, 2020. "Financial Performance of the Lebanese Bank," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(11), pages 1-66, November.
    • Handle: RePEc:ibn:ijefaa:v:12:y:2020:i:11:p:66
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    References listed on IDEAS

    as
    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    2. Alper, Deger & Anbar, Adem, 2011. "Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 2(2), pages 139-139, April.
    3. Sunil Kumar, 2009. "Measuring efficiency, effectiveness and performance of Indian public sector banks," International Journal of Productivity and Performance Management, Emerald Group Publishing, vol. 59(1), pages 51-74, December.
    4. Ho, Thomas S. Y. & Saunders, Anthony, 1981. "The Determinants of Bank Interest Margins: Theory and Empirical Evidence," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 16(4), pages 581-600, November.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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