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

Ozili, Peterson (2016) 'Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa.' Journal of African Business, 18. ISSN 1522-8916

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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.

Item Type: Article
Uncontrolled Keywords: Bank profitability; Africa; listed banks; panel regression; capital regulation; GMM dynamic panel; Sub-saharan Africa, MENA banks
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Kitakogelu Ozili
Date Deposited: 05 Jan 2017 13:37
Last Modified: 22 Jun 2018 01:00
URI: http://repository.essex.ac.uk/id/eprint/18676

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