Testing the concentration-performance relationship in the Tunisian banking sector
This aim of this paper is to investigate whether concentration affects profitability of the Tunisian banking sector for the period 1980-2009. Our sample is made up of 9 banks and our empirical analysis is based panel data analysis. In this paper, profitability is measured by the conventional return on equities (ROE) and return on assets (ROA). In the robustness checks we add a third indicator of profitability which is net interest margin (NIM). The main results of the paper reveal that concentration had positive impacts on Tunisian banking profitability. Moreover, the paper demonstrates that the adoption of industrial strategies by Tunisian banks were advantageous for the banking sector and for the economy as a whole.
|Date of creation:||2013|
|Date of revision:||2013|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Keeley, Michael C, 1990. "Deposit Insurance, Risk, and Market Power in Banking," American Economic Review, American Economic Association, vol. 80(5), pages 1183-1200, December.
- Frederic S. Mishkin, 1999.
"International Experiences with Different Monetary Policy Regimes,"
NBER Working Papers
6965, National Bureau of Economic Research, Inc.
- Mishkin, F.S., 1998. "International Experiences with Different Monetary Policy Regimes," Papers 648, Stockholm - International Economic Studies.
- Frederic S. Mishkin, 2000. "International Experiences with Different Monetary Policy Regimes," NBER Working Papers 7044, National Bureau of Economic Research, Inc.
- Mishkin, Frederic S., 1998. "International Experiences With Different Monetary Policy Regimes," Seminar Papers 648, Stockholm University, Institute for International Economic Studies.
- Peltzman, Sam, 1977.
"The Gains and Losses from Industrial Concentration,"
Journal of Law and Economics,
University of Chicago Press, vol. 20(2), pages 229-63, October.
- Sam Peltzman, 1977. "The Gains and Losses From Industrial Concentration," NBER Working Papers 0163, National Bureau of Economic Research, Inc.
- Yong Tan & Christos Floros, 2012. "Bank profitability and GDP growth in China: a note," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(3), pages 267-273, January.
- Allen N. Berger & David B. Humphrey, 1997.
"Efficiency of financial institutions: international survey and directions for future research,"
Finance and Economics Discussion Series
1997-11, Board of Governors of the Federal Reserve System (U.S.).
- Berger, Allen N. & Humphrey, David B., 1997. "Efficiency of financial institutions: International survey and directions for future research," European Journal of Operational Research, Elsevier, vol. 98(2), pages 175-212, April.
- Allen N. Berger & David B. Humphrey, 1997. "Efficiency of Financial Institutions: International Survey and Directions for Future Research," Center for Financial Institutions Working Papers 97-05, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Joaquín Maudos Villarroya, 1996.
"Market structure and performance in Spanish banking using a direct measure of efficiency,"
Working Papers. Serie EC
1996-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Joaquin Maudos, 1998. "Market structure and performance in Spanish banking using a direct measure of efficiency," Applied Financial Economics, Taylor & Francis Journals, vol. 8(2), pages 191-200.
- Franklin Allen & Douglas Gale, 2004.
"Competition and financial stability,"
Federal Reserve Bank of Cleveland, pages 453-486.
- Stephen A. Rhoades, 2000. "Bank mergers and banking structure in the United States, 1980-98," Staff Studies 174, Board of Governors of the Federal Reserve System (U.S.).
- Adolfo Barajas & Roberto Steiner & Natalia Salazar, 1999. "Interest Spreads in Banking in Colombia, 1974-96," IMF Staff Papers, Palgrave Macmillan, vol. 46(2), pages 4.
- Rajan, Raghuram G, 1994. "Why Bank Credit Policies Fluctuate: A Theory and Some Evidence," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 399-441, May.
- Hoggarth, Glenn & Reis, Ricardo & Saporta, Victoria, 2002.
"Costs of banking system instability: Some empirical evidence,"
Journal of Banking & Finance,
Elsevier, vol. 26(5), pages 825-855, May.
- Glenn Hoggarth & Ricardo Reis & Victoria Saporta, 2001. "Costs of banking system instability: some empirical evidence," Bank of England working papers 144, Bank of England.
- Hakimi Abdelaziz & Djelassi Mouldi & Hamdi Helmi, 2011. "Financial Liberalization and Banking Profitability: A Panel Data Analysis for Tunisian Banks," International Journal of Economics and Financial Issues, Econjournals, vol. 1(2), pages 19-32, June.
- Matutes, Carmen & Vives, Xavier, 2000.
"Imperfect competition, risk taking, and regulation in banking,"
European Economic Review,
Elsevier, vol. 44(1), pages 1-34, January.
- Matutes, Carmen & Vives, Xavier, 1995. "Imperfect Competition, Risk Taking, and Regulation in Banking," CEPR Discussion Papers 1177, C.E.P.R. Discussion Papers.
- Cipollini, Andrea & Fiordelisi, Franco, 2012. "Economic value, competition and financial distress in the European banking system," Journal of Banking & Finance, Elsevier, vol. 36(11), pages 3101-3109.
- Dietsch, Michel & Lozano-Vivas, Ana, 2000. "How the environment determines banking efficiency: A comparison between French and Spanish industries," Journal of Banking & Finance, Elsevier, vol. 24(6), pages 985-1004, June.
- Harold Demsetz, 1968. "Do Competition and Monopolistic Competition Differ?," Journal of Political Economy, University of Chicago Press, vol. 76, pages 146.
- Allen Berger & Leora Klapper & Rima Turk-Ariss, 2009.
"Bank Competition and Financial Stability,"
Journal of Financial Services Research,
Springer, vol. 35(2), pages 99-118, April.
- Besanko, David & Thakor, Anjan V., 1992. "Banking deregulation: Allocational consequences of relaxing entry barriers," Journal of Banking & Finance, Elsevier, vol. 16(5), pages 909-932, September.
- Caminal, Ramon & Matutes, Carmen, 2002. "Market power and banking failures," International Journal of Industrial Organization, Elsevier, vol. 20(9), pages 1341-1361, November.
- Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
- Koskela, Erkki & Stenbacka, Rune, 2000. "Is there a tradeoff between bank competition and financial fragility?," Journal of Banking & Finance, Elsevier, vol. 24(12), pages 1853-1873, December.
- John Goddard & Phil Molyneux & John O. S. Wilson, 2004. "The profitability of european banks: a cross-sectional and dynamic panel analysis," Manchester School, University of Manchester, vol. 72(3), pages 363-381, 06.
- Mitchell A. Petersen & Raghuram G. Rajan, 1994.
"The Effect of Credit Market Competition on Lending Relationships,"
NBER Working Papers
4921, National Bureau of Economic Research, Inc.
- Petersen, Mitchell A & Rajan, Raghuram G, 1995. "The Effect of Credit Market Competition on Lending Relationships," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 407-43, May.
- Fiona, Tregenna, 2006. "An empirical investigation of the effects of concentration on profitability among US banks," MPRA Paper 13731, University Library of Munich, Germany, revised 2009.
- Boyd, John H. & Runkle, David E., 1993. "Size and performance of banking firms : Testing the predictions of theory," Journal of Monetary Economics, Elsevier, vol. 31(1), pages 47-67, February.
- Bourke, Philip, 1989. "Concentration and other determinants of bank profitability in Europe, North America and Australia," Journal of Banking & Finance, Elsevier, vol. 13(1), pages 65-79, March.
- Samy Ben Naceur & Mohamed Goaied, 2001. "The determinants of the Tunisian deposit banks' performance," Applied Financial Economics, Taylor & Francis Journals, vol. 11(3), pages 317-319.
- Stephen Miller & Athanasios Noulas, 1997. "Portfolio mix and large-bank profitability in the USA," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 505-512.
- Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2006. "Bank concentration, competition, and crises: First results," Journal of Banking & Finance, Elsevier, vol. 30(5), pages 1581-1603, May.
- repec:ner:tilbur:urn:nbn:nl:ui:12-3125498 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:55927. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.