The Impact of Inflation on Bank Financial Performance: Case of Tunisia

Abstract

Inflation is when the price of the most goods and services continue rising upward. This situation may cause the standard of living cost falls because, we have to spend a lot of money to get the same amount of goods and services that we bought previous time. On the other hand bank financial performance is important and is measured by several indictors . In this study we use a methodology of panel data in the sample of 11 banks in Tunisia over the period of ( 2000—2018). We found that inflation has positive impact on ROA  ( return on assets) and negative impact on ROE ( return on equity ) .

Keywords: Inflation, bank financial performance, panel data, ROA, ROE

DOI: 10.7176/EJBM/13-18-11

Publication date:September 30^th 2021