Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region

Tammuz Alraheb (tammuz.al-raheb@etu.unilim.fr) and Amine Tarazi
Additional contact information
Tammuz Alraheb: University of Limoges

No 1045, Working Papers from Economic Research Forum

Abstract: We investigate the impact of global and local crises on bank stability and examine the effect of owning bank subsidiaries in other countries. We consider banks from MENA countries which experienced both types of crises during our sample period. Our findings highlight a negative impact of the global financial crisis of 2007-2008 on bank stability but, on the whole, no negative impact of the 'Arab Spring'. A deeper investigation shows that owning subsidiaries outside the home country is a source of increased fragility during normal times, yet a source of higher stability during the 'Arab Spring' but not during the global financial crisis. Moreover, owning foreign subsidiaries in one or two world regions is insufficient to neutralize the ‘Arab Spring’ crisis, while being present in three or more regions is more stabilizing during the 'Arab Spring' but also more destabilizing during the global financial crisis. Our findings contribute to the literature examining bank stability and have several policy implications.

Pages: 33
Date: 2016-01-09, Revised 2016-01-09
New Economics Papers: this item is included in nep-ara and nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2016/09/1045.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2016/09/1045.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2016/09/1045.pdf)
http://bit.ly/2cfjePM

Related works:
Working Paper: Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region (2018)
Working Paper: Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:1045

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel (nnabil@erf.org.eg).