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Tunisian banking loans strategy

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  • Hamdi Khalfaoui

Abstract

This paper aims to investigate the Tunisian banking loans strategy compared to sectoral credit risk and added-value. Thus, to explore this relationship we have proceeded with two models: a global model that covers the overall economy and specific models for each activity sector. The results of empirical analysis, applied on Tunisian-resident banks over the period 2000-2016, shows that for the overall economy, credit risk, added-value, credit information index and strength legal guarantees index are the main determinants of the banking loans strategy. However, the impact of credit risk is all the more important on banking loans strategy as the economy added-value is low. While, for activity sectors, banking loans strategy favours sectors with high added-value, but not necessarily the least risky one.

Suggested Citation

  • Hamdi Khalfaoui, 2021. "Tunisian banking loans strategy," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 8(2), pages 151-166.
  • Handle: RePEc:ids:ajesde:v:8:y:2021:i:2:p:151-166
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