The impact of Banking risks on the profitability of commercial banks – a standard study of a sample of private banks operating in Algeria during the period (2010-2018)

Abstract

     This study aims to measure the impact of banking risks on the profitability of commercial banks During the period (2010-2018) using the static Panel models, the study included a sample of 6 private banks operating in Algeria. After estimating the basic models of Panel data and comparing them, it was confirmed that there are random individual differences between the sample items. The study concluded that as the value of banking risk increases by one unit, the rate of return on assets decreases by 0.02%, meaning that the profitability in commercial banks Inflexible to the size of risk in the banks under study; The study of random individual effects among the sample items showed that there is a negative individual effect in the Bank of France-Algeria, the Bank of Paribas and the Bank of Al Salem Algeria On the other hand, there is a positive individual random effect in the rest of the banks.