IDEAS home Printed from https://ideas.repec.org/a/pal/jbkreg/v26y2025i3d10.1057_s41261-025-00270-5.html
   My bibliography  Save this article

Liquidity funding and lending in MENA

Author

Listed:
  • Marwan Alzoubi

    (Alzaytoonah University of Jordan)

Abstract

This study examines the impact of liquidity on bank lending by commercial banks in the MENA region following the 2008 financial crisis. The findings indicate that liquidity has a minimal effect on credit supply, likely due to low economic growth from 2009 to 2020. GDP growth acts as a mediating factor between liquidity and lending, as banks remained cautious during economic slowdowns, even with high liquidity and capital levels. While increased liquidity bolsters bank resilience, it may reduce profitability. Ensuring the safety and stability of the banking system should take precedence over cost and return concerns. For policy implications, it is clear that liquidity must be ensured at all times, and policymakers should consider monetary policy easing, given the demand-driven nature of lending.

Suggested Citation

  • Marwan Alzoubi, 2025. "Liquidity funding and lending in MENA," Journal of Banking Regulation, Palgrave Macmillan, vol. 26(3), pages 464-473, September.
    • Handle: RePEc:pal:jbkreg:v:26:y:2025:i:3:d:10.1057_s41261-025-00270-5
    DOI: 10.1057/s41261-025-00270-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41261-025-00270-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41261-025-00270-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jbkreg:v:26:y:2025:i:3:d:10.1057_s41261-025-00270-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.