Financial Liberalization and Banking Profitability : The Case of Tunisian Banks

The financial liberalization policy was undertaken in several countries like in Tunisia in order to have modern and dynamic financial system. However, the consequences of such a program are completely divergent from it's waitings. In this paper, and on the basis of data relating to 9 Tunisian banks during the period 1980-2006, we will try to check the effect of financial liberalization on the banking profitability. The results of our estimate show a negative relation between financial liberalizatio and the profitability of the banks