Revue des sciences commerciales et de gestion
Volume 19, Numéro 1, Pages 11-32
2024-01-31

The Impact Of Liquidity Risk On The Performance Of Algerian Banks

Authors : Slimane Imene . Benilles Billel .

Abstract

This research aims to examine the impact of liquidity risk on the performance of Algerian banks. The study utilizes a sample of all functioning banks in Algeria, comprising twenty (20) banks, over a period of ten (10) years from 2010 to 2019. To achieve this objective, the panel data regression method is employed. We investigated the influence of several variables on the performance of banks, measured by the return on assets (ROA) ratio. The result of the multivariate analysis revealed that liquidity risk has a significant and positive impact on the performance of Algerian banks. As for the other determinants, the findings showed a significant positive relationship between ownership structure, diversification, gross domestic product growth, and the performance of Algerian banks, along with a significant negative relationship between the variable operational expenses and Algerian banks’ performance. Key words : Liquidity risk; Banking performance; Panel data; Algerian banks.

Keywords

Liquidity Risk ; Banking performance ; Panel data ; Algerian banks