Bank profitability, financial stability, and economic growth: Evidence from North Africa

نوع المستند : المقالة الأصلية

المؤلفون

1 accounting, october university for modern sciences and arts, Giza

2 economics, faculty of management sciences, October university for modern sciences and arts

المستخلص

This study aims at investigating the relationship between bank profitability, financial stability, and economic growth in North Africa. This region has a lot of investments and a continuous increase in economic growth rates. This will be done by applying panel data to estimate the time series and cross-sectional data from 2007 till 2019 on a sample of four countries. The researcher chose Egypt, Algeria, Morocco, and Tunisia and exclude Libya because of a lack of data. This was investigated GMM test through depending on some variables such as the order of law, corruption index, and GDP per capita growth rate besides other financial indicators such as bank costs to total assets, and deposits to GDP. Therefore this paper resulted in the positive relationship between financial stability and economic growth. In other words, the increase in bank profitability resulted in more stability in banks and thus an increase in growth rates only in the short run not in long run.

الكلمات الرئيسية