The Determinants of Banking Stability: The Example of Tunisia

Abstract

This paper try to study the factors of the stability of Tunisian banks from a sample made up of 7 Tunisian banks listed during the period 2005-2014. The important determinants used to explain the stability of the banks are: the z-score and the capitalization ratio. The results revealed, firstly, that the profitability variables such as: return on assets (ROA) has a positive and significant impact on the stability of banks and return on equity (ROE) has a negative and significant effect. Besides, bank-specific variables such as: the net interest margin (NIM), the non-interest income (NII), the age and the size of the bank affect positively and not significantly the banking stability. But the debt ratio (END) has a negative and significant impact on banking stability. Finally, gross domestic product (GDP) affects positively and not significantly on banking stability. This paper investigates the connection between earnings management and corporate social.