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Political transition and bank performance: How important was the Arab Spring?

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  • Ghosh, Saibal

Abstract

Using data for 2000–2012, the article utilizes the natural experiment of the Arab Spring to examine its impact on the risk and returns of MENA banks. The analysis indicates that the Arab Spring lowered bank profitability by roughly 0.2% and raised bank risk by 0.4% points. As well, the evidence appears to suggest that there were no differential effect of the political conflict on the performance and stability of Islamic banks.

Suggested Citation

  • Ghosh, Saibal, 2016. "Political transition and bank performance: How important was the Arab Spring?," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 372-382.
    • Handle: RePEc:eee:jcecon:v:44:y:2016:i:2:p:372-382
    DOI: 10.1016/j.jce.2015.02.001
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    More about this item

    Keywords

    Arab Spring; MENA; Banking; RoA; Z-score;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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