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

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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 2024Nov.25];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

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