Abstract:
Purpose - The banking sector in many MENA countries has recognized noticeable bank consolidation, which has dropped the number of banks and raised market concentration. This might raise questions about the impact of such increase in concentration on the soundness of the banking sector and consequently on the financial stability. Therefore, this study examines the impact of concentration on the financial stability of MENA banking sectors.
Design/Methodology/Approach – the study adopts the FM-OLS panel method on 15 MENA banking sectors covering the period 1996-2016.
Findings – The empirical results show a negative relationship between banks’ concentration and financial stability. Thus, banks’ consolidation is harmful for financial stability in the MENA region.
Originality/Value – Little studies on the impact of banks’ consolidation on financial stability in the MENA countries have been performed. Moreover, our findings suggest that banks’ consolidation weakens financial stability.
Description:
MSFRM -- Faculty of Business Administration and Economics, Notre Dame University, Louaize, 2021; "A thesis submitted in partial fulfillment of the requirements for the degree of the Master of Science in Financial Risk Management"; Includes bibliographical references (pages 58-64).
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