Liquidity and Profitability Analysis in the Palestinian Banking Sector

Abstract

This study aims to examine the relation between liquidity and profitability in the Palestinian banking sector to contribute to the development of the financial sector. The relation between liquidity and profitability between the years 2010-2016 was examined by using normal distribution test, ANOVA, T test and F test. Regression was performed with SPSS 24.0 program. As a result, there is the existence of a positive and meaningful relation between return on assets (ROA) and return on equity (ROE) and monetary liquidity ratio, there is a negative and significant relation between return on assets (ROA) and return on equity (ROE) and loan to deposit ratio (LTD).