TAILIEUCHUNG - Determinants of bank profitability: Evidence from Syria

This study investigates the determinants of bank profitability in the Syrian banking sector. It seeks to identify significant bank-specific, industry-specific, and macroeconomic determinants of bank profitability in Syria. We utilize the Generalized Method of Moments (GMM) technique on unbalanced panel data set the covers the period from 2004 until 2011. The empirical results reveal that profitability persists to a moderate extent. | Journal of Applied Finance Banking vol. 4 no. 1 2014 17-45 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2014 Determinants of Bank Profitability Evidence from Syria Mohamed Khaled Al-Jafari1 and Mohammad Alchami2 Abstract This study investigates the determinants of bank profitability in the Syrian banking sector. It seeks to identify significant bank-specific industry-specific and macroeconomic determinants of bank profitability in Syria. We utilize the Generalized Method of Moments GMM technique on unbalanced panel data set the covers the period from 2004 until 2011. The empirical results reveal that profitability persists to a moderate extent. All bank-specific determinants liquidity risk credit risk bank size and management efficiency with the exception of bank capital affect bank profitability significantly. However no evidence was found in support of the Structure Conduct Performance SCP hypothesis since the concentration ratio found to have no impact on bank profitability. Finally the study shows that macroeconomic variables inflation rate and real gross domestic product growth rate affect bank profitability significantly. JEL classification numbers C33 E44 G21 Keywords Bank Profitability Return on Average Assets Return on Average Equity Panel Data GMM Technique Structure Conduct Performance Hypothesis Syria. 1 Introduction The importance of bank profitability can be appraised at the micro and the macro levels of the economy. At the micro level profit is the essential perquisite of a competitive banking institution and the cheapest source of funds. It is not merely a result but also a necessity for successful banking in a period of growing competition on financial markets. Hence the basic aim of a bank management is achieving a profit as the essential requirement for conducting any business Bobakova 2003 . In addition at the macro level a sound and profitable banking sector is better to withstand negative shocks and contribute to the 1The Arab

• Ngân hàng - Tín dụng
• Bank profitability
• Evidence from Syria
• Determinants of bank profitability
• Bank profitability in Syria
• Identify significant bank specific
• Bank trading
• Findings provide empirical support
• Undermine bank profitability
• Reduces profitability for banks
• Bank profitability depends
• Term structure of interest rate
• Dynamic panel
• Dynamic panel evidence
• South ASIAN countries
• Banking system
• Asset profitability
• Equity profitability
• Multilinear regression
• Commercial banks
• Equity backing
• Panel data
• Panel data from Bangladesh
• Depends on bank size
• Non performing loan
• Lending behavior
• GMM estimation
• Vietnamese banks
• Financial crisis
• Commercial bank
• Bank performance
• Financial crisis affected the profitability
• Banks in croatia
• Profitability bank
• Return on asset
• Return on equity
• Net interest margin
• Capital adequacy ratio
• Loan to deposit ratio
• Bank capital affects profitability
• Two step GMM
• Return on assets
• Return on equities
• Credit affect the profitability of state owned banks listed
• The indonesia stock exchange
• State owned banks
• Significant impact on bank profitability
• Market structure
• Structure conduct performance hypothesis
• Efficient structure hypothesis
• Bank risk
• Generalized method of moments
• period leading
• Resistance and Targeting
• Progesterone Receptors
• Therapeutic Approach
• Approach to Endometriosis
• Endometriosis
• Bank capital
• Credit risk
• Vietnam’s commercial banks
• Generalized method of moment
• Liquidity risk
• Total assets
• Bank size
• Saudi arabia and Jordan
• Punjab National Bank
• Implementation period of Basel II
• Dividend Payout Ratio
• Dividend per Share
• Determinants of capital structure
• Selected private Bank
• Leverage and Profitability
• Appropriate capital structure
• Intimate Relationship
• Stomatal Responses
• Stress and Air Humidity
• Genetics and Adaptation
• Plant Genes
• Abiotic Stress
• Income diversification
• Joint stock commercial bank
• Bank returns
• Risk adjusted
• Stock market operations
• Bioinformatic Analysis
• Prediction
• Experimental Detection
• Functional Motifs
• Intrinsically Unfolded Proteins
• Relaxed Linear
• design features
• especially relative
• People and Politicians
• Spain – History
• Development
• Reality and Future
• Panel threshold model
• Interest spread
• Are bigger banks
• Profitable than smaller banks
• Loan deposit interest spread
• Impact of the external
• Internal factors of bank performance
• Indian commercial banks
• Fund management companies
• Firm profitability
• Determinants of firm performance
• Non bank financing
• Internal control system
• Bank efficiency
• Brazilian banking system
• Assessment using Dea
• Three approaches
• Highlighting the profitability