The impact of financial liberalization on the performance of Algerian public banks

Abstract EN

This study aims to investigate the impact of financial liberalization on the performance of Algerian public banks.

In order to achieve this goal, a quantitative analysis has been conducted for a panel data sample covering five public banks over the period (1997-2012).

The model of this study includes the determinants of performance.

This latter is estimated by using return on assets (ROA), return on equity (ROE), and net interest margin (NIM).

Besides, the financial liberalization measures used are: the size of intermediation which is measured by both the ratio of M2 to GDP and CP to GDP, Real interest rate, and bank concentration.

The study shows evidence that the size of intermediation impacts positively on the performance of Algerian public banks.

It shows equally that bank concentration impacts positively on the banks’ performance.

In contrast, it shows that real interest rates do not impact on the performance of Algerian public banks