scholarly journals Financial reforms in the MENA region, a comparative approach: The case of Tunisia, Algeria, morocco and Egypt

2008 ◽  
Vol 55 (3) ◽  
pp. 369-381 ◽  
Author(s):  
Ahmed Alouani
Keyword(s):  
Banking Sector ◽  
Financial Liberalization ◽  
Comparative Approach ◽  
Bank Performance ◽  
Significant Progress ◽  
Mena Region ◽  
Financial Reforms ◽  
Banking Service ◽  
The Impact ◽  
Made In

The financial reform is one of the most important reforms prescribed by the Washington Consensus. With its internal and external components, it occurs in the final stages of the process of economic liberalization. In this work, and after listing, briefly, the causes of financial liberalization, we are going to study in a second section financial development and bank performance in four countries of the MENA region: Tunisia, Algeria, Morocco and Egypt. In this context, we will explore some criteria for determining if the banking sector is performing as the level of intermediation margins, the state of the banking service, and so on. The third section will be subject to an assessment of financial liberalization since the start of reforms to the present day, while focusing on the impact of liberalization on the investment, savings, capital entry, and so on. Our conclusion will be in the form of recommendations aimed at showing that overall reforms, significant progress have been made in recent years but much remains to be done.

What Drives Banking Profitability During Financial Crisis and Political Turmoil? Evidence from the MENA Region

2021 ◽  
pp. 097491012110311
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Financial Crisis ◽  
Political Instability ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Net Income ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Conventional Banks ◽  
The Impact

The purpose of the study is to identify bank specific, macroeconomic, and stability determinants of both conventional and Islamic bank performance. We also try to identify evidence on the impact of financial crisis and political instability during the Arab Spring (AS) period. The study covers a sample of 123 banks (34 Islamic banks and 89 conventional banks from 13 Middle East and North Africa [MENA] countries) over the period 2000–2013. We use different proxies of performance as dependent variables: return on asset (ROA), return on equity (ROE), net income margin (NIM), and estimate several regressions using the dynamic generalized method of moments. Our results reveal that bank size, asset quality, specialization, and diversification are the major bank specific factors affecting performance of Islamic and conventional banks. Besides, macroeconomic indicators (GDP and inflation) and regulatory quality influence both types of banks differently. Finally, both the financial crisis and political instability negatively affect bank performance.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

The impact of globalization on the performance of Banks in South Africa

2016 ◽  
Vol 26 (4) ◽  
pp. 517-542 ◽  
Author(s):  
Fadzlan Sufian ◽  
Fakarudin Kamarudin
Keyword(s):  
South Africa ◽  
Host Country ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Bank Performance ◽  
Content Type ◽  
Multinational Banks ◽  
Dynamic Panel Regression ◽  
The Impact

Purpose This paper aims to provide empirical evidence for the impact globalization has had on the performance of the banking sector in South Africa. In addition, this study also investigates bank-specific characteristics and macroeconomic conditions that may influence the performance of the banking sector. Design/methodology/approach The authors use data collected for all commercial banks in South Africa between 1998 and 2012. The ratio of return on assets was used to measure bank performance. They then used the dynamic panel regression with the generalized method of moments as an estimation method to investigate the potential determinants and the impact of globalization on bank performance. Findings Positive impact of greater economic integration and trade movements of the host country, while greater social globalization in the host country tends to exert negative influence on bank profitability. The results show that banks originating from the relatively more economically globalized countries tend to perform better, while banks headquartered in countries with greater social and political globalizations tend to exhibit lower profitability levels. Originality/value An empirical model was developed that allows for the performance of multinational banks to depend on internal and external factors. Moreover, unlike the previous studies on bank performance, in this empirical analysis, we control for the different dimensions of globalizations while taking into account the origins of the multinational banks. The procedure allows us to test for the home field, the liability of foreignness and global advantage hypotheses to deduce further insights into the prospects of banking across borders.

Innovations in Digital Banking Service Brand Equity and Millennial Consumerism

2020 ◽  
pp. 62-79
Author(s):  
Subhankar Das
Keyword(s):  
Brand Equity ◽  
Structural Equation ◽  
Banking Sector ◽  
Marketing Mix ◽  
Equation Model ◽  
Brand Association ◽  
Banking Service ◽  
Service Brand ◽  
Marketing Variables ◽  
The Impact

In the goods industry, the product is considered the primary brand with various attributes. However, in the case of the services industry, the company itself is a primary brand. This chapter is based upon primary research of the services (banking) sector as a case of service branding with services extended marketing mix variables. A model has been developed to identify the impact of services extended marketing variables on customer-based brand equity. Two components of customer-based brand have been given consideration such as brand awareness and brand association. For this purpose, a structured questionnaire was prepared, and a survey was conducted on 400 respondents, and a structural equation model has been applied.

Economic Development and Its Impact on Turkish Banking Sector

2015 ◽  
pp. 246-259
Author(s):  
Hatice İpek ◽  
Özlem Olgu
Keyword(s):  
Economic Development ◽  
Financial Crises ◽  
Banking Sector ◽  
Financial Liberalization ◽  
Currency Crisis ◽  
Regulatory Changes ◽  
The Impact ◽  
The Imf

This chapter aims to understand the impact of major macroeconomic and regulatory changes on the Turkish banking sector. The authors specifically focus on the financial liberalization program of 1980s, inherent banking problems of 1990s, the 1994 currency crisis, the IMF stabilization program, the 2000-2001 financial crises, and the banking sector restructuring program of May 2001.

Exploring the effect of online banking on bank performance using data envelopment analysis

2019 ◽  
Vol 27 (1) ◽  
pp. 137-165 ◽  
Author(s):  
Kwame Owusu Kwateng ◽  
Edna Edwina Osei-Wusu ◽  
Kofi Amanor
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Principal Component ◽  
Internet Banking ◽  
Bank Performance ◽  
Data Envelopment ◽  
Content Type ◽  
Banking Service ◽  
Using Data ◽  
And Cluster Analysis

Purpose Increased competition in the banking sector coupled with long queues in the banking hall has necessitated the introduction of internet banking among banks in Ghana. As a result, internet banking has attracted a great deal of attention from both academicians and practitioners. The purpose of this paper is to examine the effect of internet banking on the performance of banking institutions in Ghana. Design/methodology/approach In total, 20 banks in Ghana were selected from the Bank of Ghana website for the study. The financial information about the banks’ operations was retrieved from the financial statements of the respective banks for the end of the year 2016. The data envelopment analysis-bootstrap approach with principal component analysis and cluster analysis was used to estimate 49 models. Findings The findings of the study indicated that the integration of internet banking into traditional banking methods has led to superior bank performance in Ghana. It was observed that while the independent application of internet banking as a strategy to raise performance was not yielding higher returns due to the low patronage of internet services among banking consumers, its integration with possible traditional methods is widely observed among the top performers in the banking industry. Practical implications Traditional banking methods, integrated banking service strategies and the internet banking service-oriented strategy emerged as the main banking strategies among the banks. Originality/value Extant literature is quite silent on the effect of internet banking on bank performance in Africa. However, this paper is among the first significant attempts to examine the effect of internet banking on bank performance.

scholarly journals Social Trust in the Middle East and North Africa: The Context-Dependent Impact of Citizens’ Socio-Economic and Religious Characteristics

2019 ◽  
Vol 35 (6) ◽  
pp. 894-911 ◽  
Author(s):  
Niels Spierings
Keyword(s):  
Middle East ◽  
North Africa ◽  
Social Trust ◽  
Context Dependency ◽  
Comparative Approach ◽  
Mena Region ◽  
Mena Countries ◽  
Systematic Assessment ◽  
Context Sensitive ◽  
The Impact

Abstract Our knowledge of social trust's drivers in the MENA region is limited and there are good reasons to expect that theories based on Western countries cannot be copied to the MENA one-to-one. Arguing for a broader and at the same time context-sensitive comparative approach, I translate the ‘societal winners’, social capital, and religious beliefs mechanisms explaining trust to the MENA context. Moreover, I acknowledge intraregional diversity and test how the impact of these factors also differs among MENA countries. Empirically, I synchronize 47 surveys from 15 MENA countries, which provides the broadest and most systematic assessment of trust in the MENA to date. The results show that the societal-winner mechanism does not hold: employed, higher education and wealthier citizens are not more trusting. However, higher-educated citizens distrust other citizens more, particularly in the strongest autocracies. Religiosity seems pivotal too. Among others, service-attending citizens are more trusting, mainly where regimes regulate religious affairs. Overall, this study provides insight into what shapes generalized social trust in the Middle East and North Africa and it underscores that at a comparative level we need to consider inter-regional and intra-regional forms of context-dependency were we to formulate a broadly applicable theoretical framework of trust's drivers.

Determinants of Bank Performance in a Developing Economy

2012 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Fadzlan Sufian ◽  
Mohamad Akbar Noor Mohamad Noor
Keyword(s):  
Banking Sector ◽  
External Factors ◽  
Foreign Banks ◽  
Bank Performance ◽  
Asian Countries ◽  
Network Embeddedness ◽  
Indian Banks ◽  
Internal And External Factors ◽  
The Impact ◽  
Global Advantage

The article seeks to examine the internal and external factors that influenced the performance of banks operating in the Indian banking sector during the period 2000–08. The empirical findings from this study suggest that credit risk, network embeddedness, operating expenses, liquidity and size have statistically significant impact on the profitability of Indian banks. However, the impact is not uniform across banks of different nations of origin. During the period under study, the empirical findings do not lend support for the ‘limited form’ of global advantage hypothesis. Likewise, the liability of unfamiliarness hypothesis is also rejected, since we do not find significant advantage accruing to foreign banks from other Asian countries.

Bank regulation and credit crunch: evidence from MENA region commercial banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chawki EL-Moussawi ◽  
Mohamad Kassem ◽  
Josse Roussel
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Explanatory Power ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Mena Region ◽  
Institutional Variables ◽  
Content Type ◽  
The Impact ◽  
The Relationship

PurposeThis paper focuses on the relationship between the regulatory capital requirements and the supply of credit for commercial banks that are operating in the MENA region from 1999 till 2017.Design/methodology/approachThe application of the Fixed Effects Model on a panel of commercial banks in the MENA region has shown a negative relationship between supply of credit and both the capital requirements and solvency ratios.FindingsThe results showed that the idiosyncratic, the macroeconomic and the institutional variables affect the supply of credit behavior of banks. The robustness tests using the Two-Stage Least Square method (2SLS) also led to a negative correlation between the growth of credit and capital requirements. Specific macroeconomic and institutional variables have revealed the expected sign and are significant regardless of the estimated specifications.Research limitations/implicationsThis work can be subjected to further future extensions. The explanatory power of our model can be improved by incorporating variables that reflect the corporate governance and structure of banking sector. Similarly, we can also include a variable that takes into account the increasing competition that could affect the stability of the banking sector and therefore the prudential banking regulation.Originality/valuePrevious studies that investigated only the relationship between capital level and risk-taking behavior of banks in the MENA region did not take into account neither the economic and institutional environment nor the impact of these regulations on credit (loans) supply.

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