Financial Liberalization and Banking Profitability: The Case of Tunisian Banks

Abstract:     
The financial liberalization policy was undertaken in several countries like in Tunisia in order to have modern and dynamic financial system. However, the consequences of such a program are completely divergent from it’s waitings.

In this paper, and on the basis of data relating to 9 Tunisian banks during the period 1980-2006, we will try to check the effect of financial liberalization on the banking profitability.

The results of our estimate show a negative relation between financial liberalizatio and the profitability of the banks.

Note: Downloadable document is in French.

Keywords: Financial liberlization, banking performance, empirical study, Tunisia

JEL Classification: E44, G21, L51, N24

working papers series