Disponible uniquement sur Etudier
  • Pages : 3 (537 mots )
  • Téléchargement(s) : 0
  • Publié le : 13 décembre 2010
Lire le document complet
Aperçu du document
Lierature Review
The topic chosen in the research paper is how Moroccan commercial banks’ performance affects the stock market’s MASI Index. Since it is a very specific subject, there are not a lotof studies done in this precise topic, but a lot of papers were written about assessing banks’ performance and about factors affecting the stock markets’ indexes. In this regard, we found severalmethodologies in different research papers that are as follow:
* Reports: One of the methodologies used to assess the performance of banks is by looking at their annual reports, and make an evaluationreport out of it.

* Sensitivity Analysis: is looking at how sensitive a bank is to changes in the inputs of banking system to rate the banks.

* PROMETHEE II: is an absolute and relativemulticriteria based evaluation, by putting alternatives and evaluations criteria and getting at the end global scores, partial scores and ratings.

* CAMELS Ratings: is also a multicriteria basedevaluation, but that already set to: Capital Assets, Management, Earnings, Liquidity and Sensitivity to market risk to rate the commercial banks.
On the other hand, we looked at the factors thataffect stock markets, and we find a lot of factors discussed, and they are going from terrorism and wars to more obvious ones like inflation and interest rates. There is also uncertainty as a major factoraffecting the stock market indexes. Thus, the banking system is sure to be affected by stock market, but we did not find a paper saying clerly the opposite, that is why we worked on finding arelationship between the ratings of the banks and the changes in the stock market index MASI.
In this paper, there is a complete regression analysis on how one affects the other. Even if we had somelimitations, such as adapting the Moroccan banking system ratios in order to assess it in the CAMELS rating way.


The method that we used to see how affected is the stock market index to...
tracking img