Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa

Peterson Ozili

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the determinants of African bank profitability while controlling for bank capital regulation. Using static and dynamic panel estimation techniques, the findings indicate that bank size, total regulatory capital, and loan loss provisions are significant determinants of the return on assets of listed banks compared to non-listed banks. Also, regulatory capital has a more significant (and positive) impact on the return on assets of listed banks than non-listed banks particularly when listed banks have sufficient regulatory capital ratio. We also find that higher regulatory thresholds have a negative impact on the return on asset of non-listed banks.

Keywords: Bank profitability; Africa; listed banks; panel regression; capital regulation; GMM dynamic panel (search for similar items in EconPapers)
JEL-codes: D2 D22 E3 E6 (search for similar items in EconPapers)
Date: 2016-12-21
New Economics Papers: this item is included in nep-ban and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Journal of African Business 18 (2016): pp. 1-26

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https://mpra.ub.uni-muenchen.de/75856/1/MPRA_paper_75856.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/77488/1/MPRA_paper_77488.pdf revised version (application/pdf)

Related works:
Journal Article: Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:75856

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