Internal determinants of profitability in public Algerian banks

Abstract

This research attempts to identify the internal factors that determine public banks’ profitability in Algeria, by investigating the effect of each one of them on profitability over the period 2011 – 2019, using the system-generalized method of moments. The findings indicate that the bank-specific determinants, with the exception of capitalization and leverage, are positively related to bank performance. These results have important implications for banks’ survival and growth. It is expected that this study will guide the policy makers and bank management in the formulation and implementation of better policies and strategies which may lead to better performance of banks in Algeria.