Profitability of Commercial Banks Revisited: New Evidence from Oil and Non-Oil Exporting Countries in the MENA Region

Investment Management and Financial Innovations, Vol. 14, No. 3, pp. 62-73, 2017

32 Pages Posted: 15 May 2017 Last revised: 22 Oct 2017

See all articles by Nermeen Abdullah

Nermeen Abdullah

University of Huddersfield, Business School, Students

Yong Tan

University of Huddersfield - Business School

Date Written: May 13, 2017

Abstract

This paper investigates whether the determinants of commercial bank profitability differ in oil and non-oil countries of the Middle East and North Africa (MENA) region through which a comparative analysis between total banks' sample and regular reporting banks' sample is provided using data from 11 countries over the period 2004–2014. The results indicate that adding irregular reporting banks to the total sample creates bias in some estimated coefficients such as credit risk, particularly in non-oil countries. No enough evidence to support the impact of financial inclusion and financial openness on profitability. In addition, the global financial crisis has significantly affected profitability in oil countries. Several policy implications are provided to the bank management to follow based on each country group.

Keywords: Bank Profitability, Irregular-Reporting Banks, MENA Region

JEL Classification: G21, C23

Suggested Citation

Abdullah, Nermeen and Tan, Yong, Profitability of Commercial Banks Revisited: New Evidence from Oil and Non-Oil Exporting Countries in the MENA Region (May 13, 2017). Investment Management and Financial Innovations, Vol. 14, No. 3, pp. 62-73, 2017, Available at SSRN: https://ssrn.com/abstract=2967847 or http://dx.doi.org/10.2139/ssrn.2967847

Nermeen Abdullah

University of Huddersfield, Business School, Students ( email )

Queensgate
Huddersfield, HD1 3DH
United Kingdom

Yong Tan (Contact Author)

University of Huddersfield - Business School ( email )

Queensgate
Huddersfield, HD1 3DH
United Kingdom
+44(0)148447 3578 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
202
Abstract Views
893
Rank
272,294
PlumX Metrics