Impact of Corruption on Banking Sector Stability: Evidence from Middle East and North African Countries
Impact of Corruption on Banking Sector Stability: Evidence from Middle East and North African Countries
Author(s): Ahmed Rufai Mohammad, Mohamad Helmi Bin Hidthiir, Alias Bin Mat NorSubject(s): Business Economy / Management, Socio-Economic Research
Published by: Editura Universitară & ADI Publication
Keywords: Banking stability; MENA; corruption; Islamic bank; conventional banks
Summary/Abstract: This paper focuses on the effect of corruption on the stability of conventional interest and Islamic free interest banks in MENA states using post crisis age.(2008-2016). Adopting system Generalized Method of Moments (GMM) condition to estimate the model. The analysis reveals that a higher control of corruption has a positive impact on the stability of the Islamic banking sector and is related to less bank credit loss. It further highlights that conventional banks benefited from corruption practices to attain their level of stability.
Journal: Academic Journal of Economic Studies
- Issue Year: 5/2019
- Issue No: 2
- Page Range: 125-132
- Page Count: 8
- Language: English