The determinants of the financial performance of banks in Morocco: empirical analysis

Abstract

The banking sector plays a major role in the economy, through the allocation of savings to investment.  Today, this sector is facing real globalization challenges in a financial system that is constantly changing, hence the interest in the notion of performance and its determinants.  This article has a double objective: on the one hand, to identify the internal determinants that act on the banking and financial performance in the Moroccan context. The second objective is to measure the impact of these determinants on the financial performance of banks in Morocco in order to provide managers with the best levers for action and competitiveness. To do this we will conduct an analysis based on an econometric modeling of the Moroccan banking sector, over a period that extends from 2011 to 2021. We have chosen the hypothetical-deductive methodology which relies on the formulation of certain hypotheses which are then tested through a multiple regression analysis in order to affirm or deny them. The results will allow the establishment of a statement on the performance and financial resilience of the Moroccan banking sector.

Keywords: performance, banking sector, internal determinants, competitiveness, globalization.

Classification JEL: L1, L25, G21, F60

Paper type: Empirical research