The Impact of Political Risk on Banks’ Profitability: Evidence From FCC
(Pages 1385-1392)Salem Mohammad Abdelaziz Salem*
Faculty of Business & Economics, Palestine Technical University Kadoorie, Palestine.
DOI: https://doi.org/10.55365/1923.x2022.20.151
Abstract:
Purpose: This study is using panel data to examine the impact of the political risk on the profitability of
banks in the FCC region during the period 1996-2018.
Design/methodology: This study employs the two-step system GMM technique to empirically find out if the political risk has a vital role in promoting the profitability of banks in FCC.
Findings: The empirical results of this study and after controlling for different bank-specific and macroeconomic
variables show that the political risk has a negative and significant relationship with the profitability of FCC banks.
The negative relationship between the political risk and the banks' profitability is due to the unstable circumstances
in FCC as well as the turmoil situation in the whole MENA region.
Originality: Particular emphasis will be placed on the investigation into the impact of the political risk on banks’
profitability of the FCC while controlling for the most comprehensive banking factors, which have not been studied
on FCC banks yet.
Keywords:
Keywords: Political risk, unstable area, banks’ profitability, FCC.
How to Cite:
Salem Mohammad Abdelaziz Salem. The Impact of Political Risk on Banks’ Profitability: Evidence From FCC. [ref]: vol.20.2022. available at: https://refpress.org/ref-vol20-a151/
Licensee REF Press This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.