Article ID Journal Published Year Pages File Type
5097935 The Journal of Economic Asymmetries 2008 19 Pages PDF
Abstract
Tunisia is a developing country with embryonic bank regulations. Moving to a full-fledged inflation-control monetary policy requires market-determined interest rates and withdrawing the policy of implicit deposit insurance. This shift might destabilize economic activity. This need not be the case. Tunisia does not have institutions for appropriate banking regulations and transparent monetary policy, but it has some well-performing banks. Using panel data on Tunisian and Turkish banks, I show that banks with low profit rates have poorer management. Thus, the creation of appropriate institutions and laws would force delinquent banks to improve their governance.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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