THE IMPACT OF RISK MANAGEMENT ON FINANCIAL PERFORMANCE OF BANKS: CASE OF TUNISIA

Authors

  • Mohamed Aymen Ben Moussa Faculty of economic sciences and management of Tunis

DOI:

https://doi.org/10.36690/2674-5208-2022-4-33

Keywords:

risk management, bank, financial performance, Panel, ROA, ROE

Abstract

The risk management play a vital role in absorbing the losses and inefficiencies of bank activities. It is interesting the study his effect on financial performance of banks. The aim of this research is to study the impact of risk management in financial performance in sample of 11 banks over the period (2000…2018). By using a method of panel static, we found the positive impact of credit risk management in ROA and ROE; and the significant impact of liquidity risk management on ROA and ROE.

Downloads

Download data is not yet available.

Author Biography

Mohamed Aymen Ben Moussa, Faculty of economic sciences and management of Tunis

Dr., Professor, Faculty of economic sciences and management of Tunis, Tunis

References

Adeusi, S.O.; Akeke, N.I.; Adebisi, O.S.; Olunjoye, O. (2014). Risk management and financial performance of banks in Nigeria. European Journal of Business and Management; vol. 6; n°31; p. 336-342.

Ahmadyan, A. (2017). Measuring liquidity risk management and impact on bank performance in Iran. Journal of Money and Economy, vol. 12, n°3, p. 295-315.

Alim, W.; A, Ali; M.R. Metla (2021). The effect of liquidity risk management on financial performance of commercial banks in Pakistan. Journal of Applied Economics and Business; December ; vol 9, issue 4, p109-128.

Al Mamari, S.H.; A.S Al Ghassmi, E.R. Ahmed (2021). Risk management practices and financial performance: The case of Sultanate Oman. Research Article; January; vol 6, issue 1; p. 69-75.

Almansour, A.Y.; Alzoubi, H.M.; Almsou, B.Y.; Almasson, Y.M. (2021). The effect of inflation on performance: an empirical investigation on the banking sector on Jordan. Journal of Asian; Finance; Economics and Business; vol. 8, n.6, p.47-62.

Athansoglou, P.P.; Brissimis, S.N.; Delis, M.D. (2008). Bank specific industry specific and macroeconomic determinants of bank profitability. Journal of International Financial Market; institutions and Money; vol. 18; April; p. 121-136.

Bashir, A.M. (2003). Determinants of profitability in Islamic banks: some evidence form the middle East. Islamic Economic Studies; vol. 11; n. 1.

Chouikh, A.; Blagui, Y. (2017). The determinants of bank performance: The case of Tunisian listed banks. Journal of Finance and Accounting: vol. 5, n.°2, p.53-60.

Collaku, B.; Aliu, M. (2021). Impact of non-performing loans on bank’s profitability: Evidence from commercial banks in Kosovo. Journal of accounting, finance and auditing studies. DOI: 10.32602/jafas.2021.027.

Dietrich, A.; Wanzenried, G. (2011). Determinants of bank profitability before and during the crisis: Evidence from Switzerland. Journal of International Financial Market; instiututions and Money. Vol. 21, issue 3, p. 307-327.

Hacini, I.; Boulenfad, A.; Dahou, K. (2021). The impact of liquidity risk management on the financial performance of Saudi banks. Emerging Market journal; vol. 11, n. 1, p. 68-78.

Hadian, N.; Phety, D.T. (2021). The effect of non-performing loans and loans to deposit ratio on return on assets in the banking industry. Turkish Journal of Computer and Mathematic Education; vol. 12, n. 8, p. 791-798.

Hallunovi, A., & Berdo, M. (2018). The Relationship between Risk Management and Profitability of Commercial Banks in Albania. Asian Themes in Social Sciences Research, 1(2), 44–49. https://doi.org/10.33094/journal.139.2018.12.44.49.

Konde, Y.T.; Oktavianti, B.; Hijrah, L. (2018). The analysis of the effect of NPL on ROA in the banking companies listed on the Indonesia Stock exchange. Journal of Applied Philospohical Management and Innovation; vol. 1, n.°1.

Menicucci, E.; Poulucci, G. (2016). The determinants of bank profitability: empirical evidence form European banking sector. Journal of financial reporting and accounting, July; vol. 14, n.°1, p.86-125.

Nwude, E.C.; Okeke, C. (2018). Impact of credit risk management on the performance of selected Nigerian banks. International Journal of Economic and financial issues. Vol. 8, issue 2; p. 287-297.

Pasiouras, F. & Kosmidou K. (2007). Factors influencing the profitability of domestic and foreign commercial banks in the European Union. Research in International Business and Finance. vol 21 , n°2 , June ; p 222-237.

Saiful, S.; Ayu, D.P. (2019). Risk management and bank performance: The empirical evidence from Indonesian conventional and Islamic banks. International Journal of Economic and Finance issues. Vol. 9, issue 4, p. 90-94.

Serwadda, I. (2018). Determinants of commercial bank profitability: Evidence from Hungary. Acta Universitats. N.°5, p. 1325-1336.

Trujillon Ponce, A. (2012). What determines profitability of banks? Evidence from Spain. Accounting and Finance. DOI: https://doi.org/10.1111/j.1467-629X.2011.00466.x.

Yilmaz, A.A. (2013). Profitability of banking system: Evidence from Emerging market. WEI international Academic Conference Proceedings; January 14-16; Turkey.

Downloads

Published

2022-12-26

How to Cite

Ben Moussa, M. A. (2022). THE IMPACT OF RISK MANAGEMENT ON FINANCIAL PERFORMANCE OF BANKS: CASE OF TUNISIA. Economics, Finance and Management Review, (4), 33–42. https://doi.org/10.36690/2674-5208-2022-4-33

Issue

Section

Chapter 2. Development of Finance, Accounting and Auditing