Determinants of Financial Performance of Commercial Banks - An econometric study of the Algerian commercial banks (2009-2016) -

Abstract

This study aims to identify the factors affecting the financial performance of a sample of commercial banks operating in Algeria (BNA, BEA, AGB and Society General Algeria), during 2009-2016.Through building a model to measure the relationship between the independent variables (capital adequacy, liquidity and exchange rate) and the dependent variable return on equity using Panel models, in order to determine the nature and strength of the relationships, as well as showing the most explanatory factors of financial performance. The results of the study showed that the most important factors affecting the financial performance of the commercial banks operating in Algeria are exchange rate, and that the liquid Capital adequacy and does not affect the financial performance of the study sample.