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Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition

The present study was aimed at investigating the influence of risk-taking behavior on profitability for IBs in MENA region for a span of time covering 2005-19. The profitability of IBs were measured by ROA, ROE and NIM while the risk-taking behavior was identified with insolvency risk, capital risk,...

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Main Authors: Kamarudin, Fakarudin, Ali, Azlan, Haider, Jahanzaib, Qayyum, Abdul, Hussain, Hafezali Iqbal
Format: Article
Language:English
Published: Fundacion Aigle 2020
Online Access:http://psasir.upm.edu.my/id/eprint/88006/1/ABSTRACT.pdf
http://psasir.upm.edu.my/id/eprint/88006/
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3707707
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spelling my.upm.eprints.880062022-05-24T08:12:08Z http://psasir.upm.edu.my/id/eprint/88006/ Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition Kamarudin, Fakarudin Ali, Azlan Haider, Jahanzaib Qayyum, Abdul Hussain, Hafezali Iqbal The present study was aimed at investigating the influence of risk-taking behavior on profitability for IBs in MENA region for a span of time covering 2005-19. The profitability of IBs were measured by ROA, ROE and NIM while the risk-taking behavior was identified with insolvency risk, capital risk, liquidity risk and credit risk. In addition, some controlling factors like efficiency; revenue, profit and cost efficiency and development indictors; stock market development, banking sector development and banking competition along-with macro indicators like inflation rate and GDP growth rate were used. The annual stream of data was formed in panel order by accessing the same from WDI and bank scope databases. The study uses panel data estimation like fixed, random and OLS as well as the dynamic panel estimations like GMM. The Hausman specification test and LM test were not significant which validate the use of OLS for panel estimation while Arellano-Bond, Sargan and Hansen test are not significant too which validates the GMM estimates for dynamic panel. The policy makers in IBs of MENA regions are recommended to consider ROA for measuring the profitability with greater R-square value by considering risk-taking behavior indicators like capital risk, liquidity risk and credit risk. These risk factors are taking positive capacity to strongly enhance the ROA for IBs in MENA region. The future researches may consider the comparative studies based on the variable setting of the present studies with fresh evidences. The estimated results of this study are generalizable to banking sectors only. Fundacion Aigle 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/88006/1/ABSTRACT.pdf Kamarudin, Fakarudin and Ali, Azlan and Haider, Jahanzaib and Qayyum, Abdul and Hussain, Hafezali Iqbal (2020) Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition. Revista Argentina de Clinica Psicologica, 29 (3). 682 - 697. ISSN 0327-6716; ESSN: 1851-7951 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3707707 10.24205/03276716.2020.771
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The present study was aimed at investigating the influence of risk-taking behavior on profitability for IBs in MENA region for a span of time covering 2005-19. The profitability of IBs were measured by ROA, ROE and NIM while the risk-taking behavior was identified with insolvency risk, capital risk, liquidity risk and credit risk. In addition, some controlling factors like efficiency; revenue, profit and cost efficiency and development indictors; stock market development, banking sector development and banking competition along-with macro indicators like inflation rate and GDP growth rate were used. The annual stream of data was formed in panel order by accessing the same from WDI and bank scope databases. The study uses panel data estimation like fixed, random and OLS as well as the dynamic panel estimations like GMM. The Hausman specification test and LM test were not significant which validate the use of OLS for panel estimation while Arellano-Bond, Sargan and Hansen test are not significant too which validates the GMM estimates for dynamic panel. The policy makers in IBs of MENA regions are recommended to consider ROA for measuring the profitability with greater R-square value by considering risk-taking behavior indicators like capital risk, liquidity risk and credit risk. These risk factors are taking positive capacity to strongly enhance the ROA for IBs in MENA region. The future researches may consider the comparative studies based on the variable setting of the present studies with fresh evidences. The estimated results of this study are generalizable to banking sectors only.
format Article
author Kamarudin, Fakarudin
Ali, Azlan
Haider, Jahanzaib
Qayyum, Abdul
Hussain, Hafezali Iqbal
spellingShingle Kamarudin, Fakarudin
Ali, Azlan
Haider, Jahanzaib
Qayyum, Abdul
Hussain, Hafezali Iqbal
Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition
author_facet Kamarudin, Fakarudin
Ali, Azlan
Haider, Jahanzaib
Qayyum, Abdul
Hussain, Hafezali Iqbal
author_sort Kamarudin, Fakarudin
title Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition
title_short Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition
title_full Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition
title_fullStr Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition
title_full_unstemmed Bank performance in MENA region: a perspective from bank efficiency, risk-taking behaviour and market competition
title_sort bank performance in mena region: a perspective from bank efficiency, risk-taking behaviour and market competition
publisher Fundacion Aigle
publishDate 2020
url http://psasir.upm.edu.my/id/eprint/88006/1/ABSTRACT.pdf
http://psasir.upm.edu.my/id/eprint/88006/
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3707707
_version_ 1734301606151716864
score 13.211869

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