What is it about?
The purpose of this study is to measure the efficiency of the banking industry in the Middle East and North Africa (MENA) region and to investigate its effect on capitalisation and risk during the period: 2003–2012. The study, based on banks’ financial data, attempts to present new evidence on the relationship between efficiency, capital and risk of MENA region’s banking industry, using external and internal to the firm factors and panel data econometric modelling.
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Why is it important?
This study investigates the relationships between efficiency, capital and risk in the banking industry of the MENA region. The results indicate that bank capitalisation is positively related to efficiency and profitability and negatively to size, amount and quality of loans and risk measured with Altman’s Z-score. Efficiency and risk are also negatively related.
Perspectives
The findings can lead to policy implications for banks’ managers in order to facilitate the development of institutions in this region.
Associate Professor Christos Lemonakis (CPA, CMA, CRMO)
Hellenic Mediterranean University
Read the Original
This page is a summary of: Efficiency, capital and risk in banking industry: the case of Middle East and North Africa (MENA) countries, International Journal of Financial Engineering and Risk Management, January 2015, Inderscience Publishers,
DOI: 10.1504/ijferm.2015.074042.
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