Participation in the Tontine: Profiles and Determinants, Microeconometric Analysis Applied to Moroccan Data
Journal Title: International Journal of Empirical Finance - Year 2015, Vol 4, Issue 4
Abstract
In Morocco, the banking rates remain generally at unsatisfactory levels, with the exclusion of a large part of population from the formal financial systems due to purely religious reasons as well as its complexity and costs. This exclusion practiced by the modern financial systems leads people to opt for other alternatives, such as tontines, that go along with their religious beliefs and financial needs. The current article aims to analyze the determinants of participation in tontine through mobilizing data from a survey conducted on a sample of 453 teachers of middle school (lower secondary level) in Marrakech. Our analysis highlights three major variables that were rather anticipated (sex, marital status and age) as well as another variable that depends on the teaching subject or specialty of the teachers. This analysis allows, amongst others, to shed light on the substantial costs to the Moroccan economy because of the absence of the Islamic financial institutions and micro-finance, which can deliver socially accountable products to compete the practices of tontine in the informal sector. All that we can say so far in terms of the competition between the two financial systems, informal and formal, is that the first system is the one that expands fundamentally in the Moroccan case.
Authors and Affiliations
Aomar Ibourk
Keywords
Related Articles
- EP ID EP27197
- DOI -
- Views 357
- Downloads 11
Interest Rates and Deposit Money Banks’ Profitability: Evidence from Nigeria (1980-2014)
This study examined interest rates and the profitability of commercial banks in Nigeria from 1980 – 2014. The objective was to investigate the extent to which various interest rate measures affect profitability perform...
Corporate Governance and Effective Bank Performance in Nigeria
Between 2000 and 2009, the Nigerian banking industry experienced significance restructuring and intervention by the monetary authority among which is the introduction of corporate governance. This paper attempts to inv...
Impact of Corporate Governance Mechanisms and Banks Performance: Ghana’s Position
Corporate governance has become a global issue and continuously gain urgent attention due to corporate scandals and failure in contemporary times. This study examines the impact of corporate governance mechanisms on fi...
Impact of Micro Credit on the Performance of Women Entrepreneurs in Delta State
This study attempts to examine the impact of micro credit on the performance of women owned micro enterprises in Delta State. Data were sought through structured questionnaires and analysis using tables, frequencies, p...
The Benefit of International Equity Diversification: The ‘1/N’ Diversification Rule
This paper studies the international portfolio diversification benefits across time in equity investing using the „1/N‟ diversification rule. Equity returns from 70 countries are used, including developed, emerging and...