Countries which initiate economic development, use in the most cases, the mechanisms and tools of the financial sphere to maximize the chances of success of their financial development process. However, some financial, economic and institutional conditions are compulsory for the success of the whole process. In this context, our empirical analysis using panel data is applied on two samples divided among 15 developed and 23 developing countries over a period from 1997 to 2013.The result obtained show that financial development determinants are mainly related to banking and financial sector and the level of economic and human development for both samples. Whereas, the determinants related to economic stability and the legal and institutional framework have a significant impact on financial development only in the developed countries.

No abstract

This paper aims to identify the determinants of performance of the Tunisian banking sector. The results found, following an empirical study using panel data of Tunisian banks listed on the stock market over the period 2000-2013, show that credit risk, liquidity, total assets and disclosure of information relating to credit are the main determinants of banking performance

No abstract

BACKGROUND: The question of the accumulation of the quality of human capital and its relationship with growth is very rarely addressed by the literature. OBJECTIVE: This article aims to investigate the impact of quality of human capital accumulation on economic growth for BRICS, Southeast Asian and MENA countries. METHODS: Thus, we utilize endogenous growth model of Lucas [5] that is the most appropriate for the human capital-growth question. We use yearly data for each group employed in this paper during the period of study from 1990 to 2015. RESULTS: The empirical results show that for BRICS and South East Asia countries, the nexus between quality of human capital and economic growth is positive, while for MENA countries the relationship has not been identified. Also, we show that positive link between quality of human capital and economic growth depends on the level of accumulation and effectiveness of higher education graduates and their employment rate in high value-added sectors. CONCLUSION: The relationship among human capital and economic growth does not only depend on the employment rate of university graduates and labor market matching mechanisms, but it also depends on the nature of the job and the efficiency and productivity of human capital.

PurposeThis paper aims to investigate the relationship between money creation process and banking performance for Tunisian listed banks, particularly in the context of increased economic policy uncertainty.Design/methodology/approachIn the relevant literature, there are two theories of money creation. The theory of money creation out of nothing, by using the central bank for refinancing and the theory of financial intermediation, from which money creation is made from preexisting savings. In this paper, the authors utilize a panel data for a sample composed of 11 Tunisian banks during the period of study from 1999 to 2019.FindingsThe study’s empirical analysis show that both forms of money creation have a positive impact on bank profitability as measured by the return on assets (ROA) and return on equity (ROE) ratios. However, the same analysis shows that the channel of money creation out of nothing is the most profitable for banks. Also, the authors show that economic policy uncertainty negatively influences the relationship between money creation and banking profitability only when credit creation is derived from savings.Originality/valueThis paper contributes to the literature by explaining the nexus between money creation and Tunisian banking performance which depends on the implementation of stable and conducive economic and political environment. Also, this link requires the implementation of monetary measures to encourage savings and develop an efficient capital market and judicious monetary policy enabling the central bank to inject more liquidity into the economy.

No abstract

PurposeThis paper examines the effect of economic policy uncertainty (EPU) on credit risk, lending decisions and banking performance of Tunisian listed banks over the period 1999–2019.Design/methodology/approachTo identify the relationship between EPU, credit risk, lending decisions and banking performance, we have proceeded with a fixed effects panel regression model over the period 1999–2019.FindingsOur empirical analysis showed a significant positive effect of EPU on credit risk and a significant negative effect on loan size and performance. We have also found that state-owned banks were the most affected by increasing EPU. Their credit risk has increased and their returns have decreased. While highly leveraged private banks have recorded a sharp decline in their results.Research limitations/implicationsFacing increasing credit risks, generated by EPU, Tunisian banks are allowed to revise their lending decisions to ensure consequently their sustainability and performance.Practical implicationsTunisian resident banks should set up a monitoring system and an early-warning system of credit risk in order to guarantee both, their performance and the sustainability of the economy's financing.Social implicationsA good banking governance and a stable economic and political environment are the key factors that improve the allocation of credit, credit risk diversification and the creation of added value for the different activity sectors.Originality/valueOn the theoretical as well as on the empirical level, the analysis of the Tunisia EPU on credit risk, bank lending strategy and banking performance was not handled previously in the literature. It was noted that state banks are more influenced by the increase of EPU. Their credit risk has increased and their returns have declined. However, private banks with a high leverage effect have recorded a net decrease in their results. Since the 2011 revolution, invisibility and EPU have largely influenced the bank lending decisions and subsequently banking performance.