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Universal Banking and Credit Risk: Evidence from Tunisia

Author

Listed:
  • HAKIMI Abdelaziz

    (Faculty of Law, Economics and Management of Jendouba, University of Jendouba)

  • Ahmet DKHILI Hichem

    (Faculty of Law, Economics and Management of Jendouba, University of Jendouba)

  • KHLAIFIA Wafa

    (Faculty of Law, Economics and Management of Jendouba, University of Jendouba)

Abstract

The aim of this paper is to study the effect of universal banking on the Tunisian banking credit risk. By using a sample of Tunisian banks over the period 1980-2010 and based on the panel data analysis method, results show that the universal banking increases significantly the credit risk. However, the level of competition is positively correlated but not significantly with the dependant variable. For the macro variables, we find that only the GDP exerts a positive and significant effect on the credit risk, but the effect of the inflation variable is not significant.

Suggested Citation

  • HAKIMI Abdelaziz & Ahmet DKHILI Hichem & KHLAIFIA Wafa, 2012. "Universal Banking and Credit Risk: Evidence from Tunisia," International Journal of Economics and Financial Issues, Econjournals, vol. 2(4), pages 496-504.
    • Handle: RePEc:eco:journ1:2012-04-12
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    References listed on IDEAS

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    2. Fan Yang & Tajul Ariffin Masron, 2024. "The effect of digital transformation on the cost of China commercial banks," SN Business & Economics, Springer, vol. 4(5), pages 1-21, May.

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    More about this item

    Keywords

    Universal banks; Credit risk; Liquidity; Competition; Panel data; Tunisia;
    All these keywords.

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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