This paper analyzes the main characteristics of MENA financial system, with a focus on banking system, and on the solvency of MENA Islamic banks. The results point out that the MENA’s banking system is dynamic, although the gap with the banking system of the advanced economies is still very relevant. Moreover, the MENA banking system is less competitive and composed of medium-large banks, but with high levels of efficiency, performance and solvency. The issue of solvency, in particular, has been detailed with reference to Islamic banks by using a Panel data fixed effects model. Evidence suggests that Islamic banks in these countries have a higher level of solvency. Moreover, the findings identify in the size, the weight of banking book and the level of diversification of income sources the main determinants of banks’ probability of default.

The Banking System of MENA Countries: An Empirical Analysis of Islamic Banks

STARITA, Maria Grazia
2013

Abstract

This paper analyzes the main characteristics of MENA financial system, with a focus on banking system, and on the solvency of MENA Islamic banks. The results point out that the MENA’s banking system is dynamic, although the gap with the banking system of the advanced economies is still very relevant. Moreover, the MENA banking system is less competitive and composed of medium-large banks, but with high levels of efficiency, performance and solvency. The issue of solvency, in particular, has been detailed with reference to Islamic banks by using a Panel data fixed effects model. Evidence suggests that Islamic banks in these countries have a higher level of solvency. Moreover, the findings identify in the size, the weight of banking book and the level of diversification of income sources the main determinants of banks’ probability of default.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11367/22709
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