The Impact of Loan Losses Provisions on Profitability in Conventional Private Commercial Banks listed on the Damascus Securities Exchange

Authors

  • Hanan Daher Tishreen University

Abstract

This research aimed to examine the impact of loan loss provisions on the profitability of traditional private commercial banks operating in Syria. Based on annual Panel data for /11/ banks during the period 2010-2018, we study and analyze the study variables. The dependent variable which expresses the profitability of the studied banks was measured by the return on equity (ROE), Whereas, the independent variable which expresses loan losses provisions (LLP) was measured by the " ratio of loan losses provisions to total direct credit facilities". Preliminary tests are applied to test for the Stationarity of the selected variables, then we compare panel models using a number of tests, such as F test Hausman  test and the Lagrange multiplier (LM) test. A Generalized Least Squares is fitted to assess the potential effects of the loan loss provisions in  the profitability of the considered banks. The results showed that the provisions for loan losses had a negative impact on the profitability of the studied banks.

Author Biography

Hanan Daher , Tishreen University

Associate Professor

Downloads

Published

2021-07-05

How to Cite

1.
ضاهر ح. The Impact of Loan Losses Provisions on Profitability in Conventional Private Commercial Banks listed on the Damascus Securities Exchange. Tuj-econ [Internet]. 2021Jul.5 [cited 2025Mar.7];43(3). Available from: https://journal.tishreen.edu.sy/index.php/econlaw/article/view/10701

Issue

Vol. 43 No. 3 (2021): Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences Series

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

  • The authors retain the copyright and grant the right to publish in the magazine for the first time with the transfer of the commercial right to Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences

     Under a CC BY- NC-SA 04 license that allows others to share the work with of the work's authorship and initial publication in this journal. Authors can use a copy of their articles in their scientific activity, and on their scientific websites, provided that the place of publication is indicted in  Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences   .  The Readers have the right to send, print and subscribe to the initial version of the article, and the title of Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences Publisher

  • journal uses a CC BY-NC-SA license which mean

    You are free to:

    • Adapt — remix, transform, and build upon the material
    •  
    • The licensor cannot revoke these freedoms as long as you follow the license terms.

  • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.

  • NonCommercial — You may not use the material for commercial purposes.

  • ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.

  • No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.