- Washington, District of Columbia, United States
Sami Ben naceur
International Monetary Fund, CEF-ICD, Department Member
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ABSTRACT This study examines the technical efficiency of the Tunisian banking system in pre, during and post-financial liberalization, starting in the early of 1980s. As well we propose a benchmarking between Tunisian and OECD countries... more
ABSTRACT This study examines the technical efficiency of the Tunisian banking system in pre, during and post-financial liberalization, starting in the early of 1980s. As well we propose a benchmarking between Tunisian and OECD countries banking industry. A non-parametric method of Data Envelopment Analysis (DEA) has been used to arrive at the efficiency scores for a panel data sample covering 9 Tunisian commercial banks and the commercial banks of 10 OECD countries, over the period 1980 to 2001. The findings demonstrate that financial liberalization in Tunisia starts to give the expected effects, and suggest that a further restructuring and modernization in the market will eventually lead to more efficiency in the Tunisian banking sector. Another finding of the study shows that the efficiency level of these banks is comparable to the one of banks in Iceland, Mexico and Turkey after liberalization.
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Abstract Using a sample of publicly listed banks from 62 countries over the 1991-2017 period, we investigate the impact of capital on banks’ cost of equity. Consistent with the theoretical prediction that more equity in the capital mix... more
Abstract Using a sample of publicly listed banks from 62 countries over the 1991-2017 period, we investigate the impact of capital on banks’ cost of equity. Consistent with the theoretical prediction that more equity in the capital mix leads to a fall in firms’ costs of equity, we find that better capitalized banks enjoy lower equity costs. Our baseline estimations indicate that a 1 percentage point increase in a bank’s equity-to-assets ratio lowers its cost of equity by about 18 basis points. Our results also suggest that the form of capital that investors value the most is sheer equity capital; other forms of capital, such as Tier 2 regulatory capital, are less (or not at all) valued by investors. Additionally, our main finding that capital has a negative effect on banks’ cost of equity holds in both developed and developing countries. The results of this paper provide the missing evidence in the debate on the effects of higher capital requirements on banks’ funding costs.
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... Omran (2005) investigated the under pricing and long-run performance of 53 Egyptian SIPs and ... (2007) examined the financial and operating performance of 95 ... While Latin American countries started by privatizing firms in the... more
... Omran (2005) investigated the under pricing and long-run performance of 53 Egyptian SIPs and ... (2007) examined the financial and operating performance of 95 ... While Latin American countries started by privatizing firms in the financial and banking sector, countries in the Asian ...
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ABSTRACT This paper examines the impact of privatization on stock market size and liquidity in a multinational sample of 31 emerging markets. We find that the intensity of privatization and the use of privatization offerings (POs) on the... more
ABSTRACT This paper examines the impact of privatization on stock market size and liquidity in a multinational sample of 31 emerging markets. We find that the intensity of privatization and the use of privatization offerings (POs) on the stock market contribute to enhance stock market development, but the documented effects vary across geographical regions, owing to the specificities of the divestiture process. We use GMM procedure in order to estimate dynamic panel specifications and find that privatization appears to be the most beneficial in the Asian sub-sample where most favorable conditions were put in place before privatization actually started. In other regions, however, similar positive outcomes are yet to materialize. We derive several policy implications from our results.
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This paper investigates the value creation process in the Tunisia stock exchange using a sample including more than 90% of the listed companies. In order to ® nd out the determinants of the value creation of the selected companies, it... more
This paper investigates the value creation process in the Tunisia stock exchange using a sample including more than 90% of the listed companies. In order to ® nd out the determinants of the value creation of the selected companies, it uses the random probit model estimation procedure with unbalanced panel data. The results indicate that the probability of creating future values is positively and signi® cantly correlated with pro® tability factor. In addition, the results also suggest that the value creation is aA ected by industry patterns (listed banks are the more value creator in the Tunisia stock exchange), by size (the probability to create value is stronger in small ® rms than in big ones) and by nature of property (the probability to create value is stronger in private-owned ® rms than in public-owned ones). Last but not least, the time trend factor is positive and highly signi® cant. This ® nding suggests that the progressive reforms of the Tunisian stock exchange have attra...
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Research Interests: Business, Monetary Economics, Applied Economics, Financial System, Social Science Research Network, and 14 moreProfitability, Cost of Capital, Working Papers, Banking Industry, Banking Sector, Capital Adequacy Ratio, Basel III, Central Bank, Capital Adequacy, Intermediation, Economics Business, Output Growth, Profitability Index, and Market Liquidity
ABSTRACT The 1988 Basel I Accord set the common requirements of bank capital to promote the soundness and stability of the international banking system. The agreement required banks to hold capital in proportion to their perceived credit... more
ABSTRACT The 1988 Basel I Accord set the common requirements of bank capital to promote the soundness and stability of the international banking system. The agreement required banks to hold capital in proportion to their perceived credit risks, and this requirement may have caused a “credit crunch,” a significant reduction in the supply of credit. We investigate the direct link between the implementation of the Basel I Accord and lending activities, using a data set spanning annual observations covering 1989–2004 for banks in Egypt, Jordan, Lebanon, Morocco, and Tunisia. The results provide clear support for a significant increase in credit growth following the implementation of capital regulations, in general. Despite higher capital adequacy ratios, banks expanded credit and asset growth. Credit gTowth appears to be driven by demand fluctuations attributed to real growth, cost of borrowing, and exchange rate risk. Overall, the effects of macroeconomic variables, in contrast to capital adequacy, appear to be more dominant in determining credit growth, regardless of the capital adequacy ratio, and regardless of variation across banks by nationality, ownership, and listing.
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The past two decades have seen a rapid increase in interest in financial inclusion, both from policymakers and researchers. This paper surveys the main findings from the literature, documenting the trends over time and gaps that have... more
The past two decades have seen a rapid increase in interest in financial inclusion, both from policymakers and researchers. This paper surveys the main findings from the literature, documenting the trends over time and gaps that have arisen across regions, income levels, and gender, among others. It points out that structural, as well as policy-related, factors, such as encouraging banking competition or channeling government payments through bank accounts, play an important role, and describes the potential macro and microeconomic benefits that can be derived from greater financial inclusion. It argues that policy should aim to identify and reduce frictions holding back financial inclusion, rather than targeting specific levels of inclusion. Finally, it suggests areas for future research.
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The past two decades have seen a rapid increase in interest in financial inclusion, both from policymakers and researchers. This paper surveys the main findings from the literature, documenting the trends over time and gaps that have... more
The past two decades have seen a rapid increase in interest in financial inclusion, both from policymakers and researchers. This paper surveys the main findings from the literature, documenting the trends over time and gaps that have arisen across regions, income levels, and gender, among others. It points out that structural, as well as policy-related, factors, such as encouraging banking competition or channeling government payments through bank accounts, play an important role, and describes the potential macro and microeconomic benefits that can be derived from greater financial inclusion. It argues that policy should aim to identify and reduce frictions holding back financial inclusion, rather than targeting specific levels of inclusion. Finally, it suggests areas for future research.
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... growth. Specifically, the financial sector is further developed during periods of economic expansion; implying financing needs force more development in response to real activity (Gurley and Shaw, 1967; Goldsmith, 1969). That ...
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<p>The past two decades have seen a rapid increase in interest in financial inclusion, both from policymakers and researchers. This chapter surveys the main findings from the literature, documenting the trends over time and gaps... more
<p>The past two decades have seen a rapid increase in interest in financial inclusion, both from policymakers and researchers. This chapter surveys the main findings from the literature, documenting the trends over time and gaps that have arisen across regions, income levels, and gender, among others. It points out that structural, as well as policy-related, factors, such as encouraging banking competition or channelling government payments through bank accounts, play an important role, and describes the potential macro and microeconomic benefits that can be derived from greater financial inclusion. It argues that policy should aim to identify and reduce frictions holding back financial inclusion, rather than targeting specific levels of inclusion. Finally, it suggests areas for future research.</p>
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Unless otherwise indicated, the views expressed are attributable only to the authors in a personal capacity and not to any institution with which they are associated. Abstract Casual observation shows that that the financial systems in... more
Unless otherwise indicated, the views expressed are attributable only to the authors in a personal capacity and not to any institution with which they are associated. Abstract Casual observation shows that that the financial systems in the southern and eastern Mediterranean are unable (or unwilling) to divert the financial resources that are available to them as funding opportunities to private enterprises. Using a sample of both northern and southern Mediterranean countries for the years 1985 to 2009, this study empirically assesses the reasons underlying such conditions. The results show that strong legal institutions, good democratic governance and adequate implementation of financial reforms can have a substantial positive impact on financial development only when they are present collectively. Moreover, inflation appears to undermine banking development, but less so when the capital account is open. Government debt growth appears to weaken credit growth, which confirms that pub...
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cet article, nous cherchons a estimer le degre de sous-evaluation des titres introduits sur le Nouveau Marche de la Bourse de Paris a partir d'une frontiere stochastique. La mesure du degre de sous-evaluation des titres introduits... more
cet article, nous cherchons a estimer le degre de sous-evaluation des titres introduits sur le Nouveau Marche de la Bourse de Paris a partir d'une frontiere stochastique. La mesure du degre de sous-evaluation des titres introduits repose sur l'estimation d'une frontiere de prix stochastique qui suppose une erreur asymetrique distribuee, respectivement, selon la loi normale tronquee et la loi exponentielle. Dans L'echantillon de l'etude porte sur 135 entreprises introduites sur le Nouveau Marche de 1996 a 2000, soit 86% de l'ensemble des introductions realisees sur la periode. Les entreprises volontairement exclues de notre echantillon comprennent les entreprises du secteur financier et les transferts d'un autre marche. Les resultats d'estimation de la frontiere stochastique par la methode du maximum de vraisemblance soulignent la presence significative d?une sous-evaluation deliberee des titres introduits sur le Nouveau Marche. En outre, la valeur des...
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ABSTRACT This book contains a unique collection of studies on key economic and social policy challenges faced by countries of the Southern and Eastern Mediterranean region in a short- and long-term perspective. Prepared within the EU... more
ABSTRACT This book contains a unique collection of studies on key economic and social policy challenges faced by countries of the Southern and Eastern Mediterranean region in a short- and long-term perspective. Prepared within the EU funded FP7 project on „Prospective Analysis for the Mediterranean Region (MEDPRO)” conducted in 2010-2013 it takes account on recent political developments in the region (Arab Spring) and their potential consequences. It covers a broad spectrum of topics such as factors of economic growth, macroeconomic and fiscal stability, trade and investment, Euro-Mediterranean and intra-regional economic integration, private sector development and privatizations, infrastructure, tourism, agriculture, financial sector development, poverty and inequality, education, labor market and gender issues.
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In this paper, we examine the influence of bank regulations, concentration, financial and institutional development on commercial bank margin and profitability across a broad menu of Middle East and North Africa (MENA) countries. We cover... more
In this paper, we examine the influence of bank regulations, concentration, financial and institutional development on commercial bank margin and profitability across a broad menu of Middle East and North Africa (MENA) countries. We cover the 1989-2005 period and control for a wide array of macroeconomic,, financial and bank characteristics. The empirical results find that bank specific characteristics, in particular bank capitalization and credit risk, have positive and significant impact on banks’ net interest margin, cost efficiency and profitability. As for the impact of macroeconomic and financial development indicators on bank performance, we conclude that these variables have no significant impact on net interest margin, except for inflation. However, inflation shocks seem to be passed mainly through the deposit rates — which means that banks bear the entire negative cost of inflation. Also, the results suggest that banks lower their operating costs in a well-developed bankin...
Research Interests: Business, Financial development, Stock Market, Institutional Development, Credit Risk, and 14 moreBank Capital, Profitability, Working Papers, Middle East and North Africa, Stock market development, Cost Efficiency, Banking Sector, Regression Model, Private Sector, Bank Regulation, Commercial Banks, Capital Market, Financial Reform, and Foreign Banks
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In the past two decades, both developed and developing countries have deregulated their banking and financial systems with the aim of improving the efficiency, productivity and profitability of the sectors and increasing international... more
In the past two decades, both developed and developing countries have deregulated their banking and financial systems with the aim of improving the efficiency, productivity and profitability of the sectors and increasing international competitiveness. This study attempts to examine the effect of institutional and financial variables on the banking industry performance of selected Middle Eastern and North African (MENA) countries. Evaluating bank efficiency in a non-parametric setting (Data Envelopment Analysis, DEA), we then employ a second-stage Tobit regression to investigate the impact of regulatory variables on banks’ efficiency. The first stage indicates that Morocco and Tunisia have more efficient banking systems compared to the other selected MENA countries, although banks in Jordan seem to catch up with best practice from 2003 onwards. The Tobit regressions show a robust association of some environmental measures with cost efficiency. In this context, our results reveal that...
Research Interests: Business, Financial System, Developing Country, Best practice, Profitability, and 15 moreWorking Papers, Bank Efficiency, Stock market development, Efficiency, Banking system, Deregulation, Legal system, Banking Industry, Cost Efficiency, Banking Sector, International Competitiveness, Private Sector, Capital Market, Financial Reform, and Catching up
This paper examines the impact of privatization on stock market size and liquidity in a multinational sample of 31 emerging markets. We find that the intensity of privatization and the use of privatization offerings on the stock market... more
This paper examines the impact of privatization on stock market size and liquidity in a multinational sample of 31 emerging markets. We find that the intensity of privatization and the use of privatization offerings on the stock market contribute to enhance stock market development. To enable result comparisons across geographical regions, we re-run our GMM on our dynamic panel and find that results vary across-regions. Privatization was the most beneficial in the Asian sub sample where most favorable conditions were put in place before privatization actually started. In the MENA region however, similar positive outcomes are yet to materialize. We derive several policy implications from our results.
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The global financial crisis underscored the importance of regulation and supervision to a wellfunctioning banking system that efficiently channels financial resources into investment. In this paper, we contribute to the ongoing policy... more
The global financial crisis underscored the importance of regulation and supervision to a wellfunctioning banking system that efficiently channels financial resources into investment. In this paper, we contribute to the ongoing policy debate by assessing whether compliance with international regulatory standards and protocols enchances bank operating efficiency. We focus specifically on the adoption of international capital standards and the Basel Core Principles for Effective Bank Supervision (BCP). The relationship between bank efficiency and regulatory compliance is investigated using the (Simar and Wilson 2007) double bootstrapping approach on an international sample of publicly listed banks. Our results indicate that overall BCP compliance, or indeed compliance with any of its individual chapters, has no association with bank efficiency. JEL Classification Numbers: G21, G18, C24
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In order to investigate the impact of financial market liberalization on economic growth in the MENA region, we need to replace our contribution in the economic growth literature. Our study is related to the literature on policy impacting... more
In order to investigate the impact of financial market liberalization on economic growth in the MENA region, we need to replace our contribution in the economic growth literature. Our study is related to the literature on policy impacting growth rather than the debate on "convergence" between low-income and high-income countries which dominates the current research on economic growth. Our study is one of the few studies that focus on MENA countries. Several issues are addressed about the impact of stock market liberalization on economic growth. Using annually data from 11 MENA countries over the 1979-2005 period, the empirical results indicate that stock market liberalization has no effect on economic and investment growth whereas the impact on stock market development is negative in the short-run but turns positive in the long-run. However, when we include certain pre-conditions for liberalizing the stock market, we find that a more developed stock market prior to liberal...
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Using a sample that covers more than 100 countries over the 2000-2017 period, we assess the impact of macroprudential policies on financial stability. In particular, we examine whether the activation of macroprudential policies is... more
Using a sample that covers more than 100 countries over the 2000-2017 period, we assess the impact of macroprudential policies on financial stability. In particular, we examine whether the activation of macroprudential policies is conducive to a lower incidence of systemic banking crises. Our empirical setup is designed to account for the potential direct and indirect effects that macroprudential policies can have on banking crises. We find that while macro-prudential policies exert a direct stabilizing effect, they also have an indirect destabilizing effect, which works through the depressing of economic growth. A Generalized Impulse Response Function analysis of a dynamic system composed of the probability of a banking crisis and economic growth reveals, however, that macroprudential policies have a positive net effect on financial stability (lower likelihood of systemic banking crises).
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The link between Financial Development, inequality and poverty is likely to be complex and multi-dimensional. It is generally argued in the literature that financial development, at least up to a certain level, is likely to enhance growth... more
The link between Financial Development, inequality and poverty is likely to be complex and multi-dimensional. It is generally argued in the literature that financial development, at least up to a certain level, is likely to enhance growth potentials and development of an economy. There is also an increasing literature showing the positive link between economic development and reduction in poverty. By deduction therefore one could conclude that financial development, by enhancing growth potentials of an economy leads to poverty reduction, if nothing else through the "trickle-down" mechanism. If one believes the Kuzents' inverted "U" hypothesis however, as economies grow starting from a low development basis, inequality is likely to increase with development in the short-run and decrease in longer-run. Although not necessarily the only factor behind inverted "U" curve, utilising panel data which includes a number of developing and developed countries,...
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This paper aims at devising scenarios for the development of the financial system in the southern and eastern Mediterranean countries (SEMCs), for the 2030 horizon. The results of the simulations indicate that bank credit to the private... more
This paper aims at devising scenarios for the development of the financial system in the southern and eastern Mediterranean countries (SEMCs), for the 2030 horizon. The results of the simulations indicate that bank credit to the private sector, meta-efficiency and stock market turnover could reach at best 108%, 78% and 121%, respectively, if the SEMCs adopt the best practices in Europe. These scenarios are much higher than those of the present levels in the region but still lower than the best performers in Europe. More specifically, we find that improving the quality of institutions, increasing per capita GDP, opening further capital account and lowering inflation are needed to enable the financial system in the region to converge with those of Europe.