The Relationship Between Capital Regulation, Risk and the Performance of Banks Operating in the MENA Region

The Relationship Between Capital Regulation, Risk and the Performance of Banks Operating in the MENA Region

(Pages 950-960)

Racha Mohamad Arab Ghayad^1,*, Mohamad Ali Hamdan² and Maryam Choumar³
¹Associate Professor, Head of Finance Department, Faculty of Economic Sciences and Business Administration, Lebanese University, Lebanon.
²Associate Professor, Head of Marketing Department, Faculty of Economic Sciences and Business Administration, Lebanese University, Hadath, Lebanon.
³Faculty of Economic Sciences and Business Administration, Lebanese University, Lebanon.
DOI: https://doi.org/10.55365/1923.x2022.20.107

Abstract:

This study is made up of 222 operating banks from MENA countries. We estimate a dynamic model in panel data. The Purpose of this study is to measure the efficiency of the banking industry in the Middle East and North Africa (MENA) region, to see the performance of its banks, and to investigate its effect on capitalization and risk. Moreover, to present new data on the MENA regions relationship between capital, risk and efficiency. In this study the enforcement of capital specification makes an improvement in the capital of banks, but this observational study as theoretical work, leads to conflicting results about the effect of these requirements on risk- taking. Also investigate that the risk-taking behavior of banks did indeed depend on the level of capital initially held.

Keywords:

Bank regulation, Capital, Risk, Efficiency, Performance of banks.

How to Cite:

Racha Mohamad Arab Ghayad, Mohamad Ali Hamdan and Maryam Choumar. The Relationship Between Capital Regulation, Risk and the Performance of Banks Operating in the MENA Region. [ref]: vol.20.2022. available at: https://refpress.org/ref-vol20-a107/

Licensee REF Press
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