The Impact of Bank's Asset and Liability Structure on their Profitability Regardless of Monetary Policy and Size: A Panel Analysis

Asian Journal of Finance & Accounting 11 (2) (2019)

21 Pages Posted: 15 Jan 2020

See all articles by Osama Wagdi

Osama Wagdi

Egyptian Chinese University (ECU)

Amira Hasaneen

affiliation not provided to SSRN

Walid Abouzeid

International Academy for Engineering and Media Sciences (IAEMS)

Date Written: December 13, 2019

Abstract

The study examines the impact of bank's asset and liability structure on their profitability without monetary policy and size; the study utilizes panel data with cross section analysis on data of 10 unit banks according to the annual balance sheet & performance. The populations of the study are bank units listed on Egyptian Exchange (EGX), the study’s data collection covered the duration from 2008 till 2016. Eventually, the study ascertained that there is an impact of the bank's asset and liability structure on their profitability according to "Return on Asset" and "Return on Equity"; however, the interprets of bank's asset and liability structure for "Return on Equity" more that to "Return on Asset". Therefore, the banking units should work to maintain the optimal rate of the structure of the bank's assets and liabilities; this may be a potential research scope in banks.

Keywords: Banking structure, Banking profitability, Egypt, Panel analysis

JEL Classification: G2; M2; M4

Suggested Citation

Wagdi, Osama and Hasaneen, Amira and Abouzeid, Walid, The Impact of Bank's Asset and Liability Structure on their Profitability Regardless of Monetary Policy and Size: A Panel Analysis (December 13, 2019). Asian Journal of Finance & Accounting 11 (2) (2019), Available at SSRN: https://ssrn.com/abstract=3503371

Osama Wagdi (Contact Author)

Egyptian Chinese University (ECU) ( email )

Gesr El-Suez st. behind Tagneed Bridge
Cairo
Egypt

Amira Hasaneen

affiliation not provided to SSRN

Walid Abouzeid

International Academy for Engineering and Media Sciences (IAEMS)

Giza
Egypt

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
18
Abstract Views
169
PlumX Metrics