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Impact of Corruption on Banking Sector Stability: Evidence from Middle East and North African Countries

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  • Ahmed Rufai Mohammad
  • Mohamad Helmi Bin Hidthiir
  • Alias Bin Mat Nor

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. Implementing rigorous.

Suggested Citation

  • Ahmed Rufai Mohammad & Mohamad Helmi Bin Hidthiir & Alias Bin Mat Nor, 2019. "Impact of Corruption on Banking Sector Stability: Evidence from Middle East and North African Countries," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(2), pages 125-132, June.
    • Handle: RePEc:khe:scajes:v:5:y:2019:i:2:p:125-132
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    Cited by:

    1. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2022. "The fight against corruption at global level. A metric approach," MPRA Paper 115837, University Library of Munich, Germany.

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    More about this item

    Keywords

    Banking stability; MENA; corruption; Islamic bank; conventional banks;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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