IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Have Foreign Banks Contributed to the Spread of the Global Financial Crisis to Saudi Arabia?

  • Mahmoud Haddad


    (University of Tennessee-Martin, College of Business And Public Affairs)

  • Sam Hakim
Registered author(s):

    We analyze the role of domestic and foreign banks in Saudi Arabia during the latest financial crisis that has ravaged the world since 2007. The study is based on the growth rate in market share of the credit extended by each bank and investors’ perception about the risk exposure of this financial institution. We distinguish between purely domestic banks and institutions with joint ownership (local and foreign shareholders). While there is a suspicion that partly owned foreign banks are more risk exposed than their purely domestic counterparts, our findings suggest otherwise. Specifically we do not find evidence that foreign shareholders of Saudi banks, who suffered losses and liquidity problems in their home countries, cut credit in Saudi Arabia nor acted in a manner inconsistent with their domestic counterparts. As such, recommendations for a double standard in banking regulation are not supported by the evidence.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Paper provided by Economic Research Forum in its series Working Papers with number 537.

    in new window

    Length: 15 pages
    Date of creation: Aug 2010
    Date of revision: Aug 2010
    Publication status: Published by The Economic Research Forum (ERF)
    Handle: RePEc:erg:wpaper:537
    Contact details of provider: Postal:
    21 Al-Sad Al Aaly St. Dokki, Giza

    Phone: 202-3370810
    Fax: 202-3616042
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:537. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.