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Abstract:
This study investigated the determinants of commercial bank's profitability in CEMAC countries during the period 2005-2014. As sample data, we selected 33 commercial banks of the six countries of Central African Monetary and Economic Community (CEMAC). ROA is considered as a measure of bank profitability, the internal factors (size, capital adequacy ratio, deposit growth, indirect costs, and credit risk) and external factors or macroeconomic factors (GDP and inflation) are used as explanatory variables. The regression analysis was performed using Panel Least Square (PLS) method in Eviews 7.2 package. The results show that credit risk and overheads are the main determinants of commercial bank's profitability of the CEMAC countries. At the same time, we also found that macroeconomic factors such as GDP influence negatively bank's profitability. In addition, CEMAC's countries banking profitability is not affected by the fluctuations in inflation.
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