مجلة دراسات في الاقتصاد وإدارة الأعمال
Volume 8, Numéro 2, Pages 863-882
2025-12-15

Empirical Analysis Of The Determinants Of Banking Profitability: Application To A Panel Of Algerian Banks

Authors : Mennaa Youghourthene . Bergas Chahinaz .

Abstract

This study examines the determinants of profitability for Algerian commercial banks over the period 2014-2022 using panel data analysis. Results show that ownership structure strongly influences profitability, with private banks outperforming public ones. Economic growth and inflation also have positive effects, while internal factors like liquidity and capitalization are not significant. These findings highlight the dominant role of institutional and macroeconomic factors over internal bank characteristics. The study suggests that improving governance and aligning banking strategies with economic conditions are essential for enhancing bank performance in Algeria.

Keywords

Banking performance ; Banking profitability ; Algerian banking sector ; Panel data analysis