Determinants of Financial Moroccan Banks Performance: Approach by the Cointegration Method

Bayoud Sara, Sifouh Nabil and Chemlal Mohamed
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Bayoud Sara: PhD Student, FSJES Souissi, Mohammed V University Rabat, Maroc
Sifouh Nabil: PhD Student, FSJES Souissi, Mohammed V University Rabat, Maroc
Chemlal Mohamed: Research Professor, FSJES Souissi, Mohammed V University Rabat, Maroc

Mediterranean Journal of Social Sciences, 2018, vol. 9, issue 4, 141-148

Abstract: The purpose of this paper is to test the long-term relationship between banks financial performance and two groups of variables, internal variables specific to the bank, and exogenous macroeconomic variables. To appreciate this long-term relationship, we applied the Fully Modified Ordinary Least Squares FMOLS method as a technique for estimation cointegrated panel data. Over a period of 26 semesters (2004 to 2016), our results show that a set of internal variables explains the financial performance of banks. As for external factors, economic growth explains this performance, while inflation has no predictive power of performance at least for our sample of the main Moroccan listed banks.

Keywords: Banking performance; ROA; ROE; Cointegration; FMOLS (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:mjsosc:v:9:y:2018:i:4:p:141-148:n:14

DOI: 10.2478/mjss-2018-0123

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