Title: The impact of liquidity on bank profitability: Case of Tunisia
Abstract:Liquidity and profitability are two important variables in the banking industry.In this article, we studied.The impact of liquidity on bank profitability in the Tunisian context.We used a sample of 18...Liquidity and profitability are two important variables in the banking industry.In this article, we studied.The impact of liquidity on bank profitability in the Tunisian context.We used a sample of 18 banks over the period (2000…2017).We employ 2 models of panel static in the empirical research.We found that (liquid assets / total assets) and (total credits / total deposits) have a positive and significant impact on return on assets (ROA) whereas (current assets / current liabilities) have not significant impact on ROA.Also, we found that (liquid assets / total assets), and (total credits / total deposits) have a negative and significant impact on ROE (return on equity).Whereas (current assets / current liabilities) have not significant impact on ROE.Read More