The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC

The banking industry in the area of Fertile Crescent Countries (FCC) was faced by instability in their political and economic conditions in the last decade, especially during the Arab spring revolutions.The current study investigates empirically the efficiency of banking sector in the troublous area...

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Main Authors: Salem, Salem Mohammad Abdelaziz, Abdul Rahman, Nora Azureen
Format: Article
Language:English
Published: IASE 2016
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/25292/1/IJAAS%203%209%202016%2097%20102.pdf
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author Salem, Salem Mohammad Abdelaziz
Abdul Rahman, Nora Azureen
author_facet Salem, Salem Mohammad Abdelaziz
Abdul Rahman, Nora Azureen
author_sort Salem, Salem Mohammad Abdelaziz
collection UUM
description The banking industry in the area of Fertile Crescent Countries (FCC) was faced by instability in their political and economic conditions in the last decade, especially during the Arab spring revolutions.The current study investigates empirically the efficiency of banking sector in the troublous areas in developing countries such as FCC. The efficiency estimates of individual banks are evaluated by employing the multiple regression models.This paper examines the effect of a selected bank-specific factors, and unstable macroeconomic conditions on bank efficiency in a selected FCC banks for 10 - year's period 2005-2014. The unbalanced panel data used in this study is derived from Bank Scope data network. The empirical findings are almost consistent with the expected results.Bank deposits and bank size have influence on bank efficiency. Economic conditions found with no effect on efficiency. It was found that liquidity of a bank does not influence bank efficiency, but bank diversification is related with efficiency in FCC.
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spelling uum-252922018-12-12T06:15:21Z https://repo.uum.edu.my/id/eprint/25292/ The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC Salem, Salem Mohammad Abdelaziz Abdul Rahman, Nora Azureen HG Finance The banking industry in the area of Fertile Crescent Countries (FCC) was faced by instability in their political and economic conditions in the last decade, especially during the Arab spring revolutions.The current study investigates empirically the efficiency of banking sector in the troublous areas in developing countries such as FCC. The efficiency estimates of individual banks are evaluated by employing the multiple regression models.This paper examines the effect of a selected bank-specific factors, and unstable macroeconomic conditions on bank efficiency in a selected FCC banks for 10 - year's period 2005-2014. The unbalanced panel data used in this study is derived from Bank Scope data network. The empirical findings are almost consistent with the expected results.Bank deposits and bank size have influence on bank efficiency. Economic conditions found with no effect on efficiency. It was found that liquidity of a bank does not influence bank efficiency, but bank diversification is related with efficiency in FCC. IASE 2016 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/25292/1/IJAAS%203%209%202016%2097%20102.pdf Salem, Salem Mohammad Abdelaziz and Abdul Rahman, Nora Azureen (2016) The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC. International Journal of Advanced and Applied Sciences, 3 (9). pp. 97-102. ISSN 2313626X http://doi.org/10.21833/ijaas.2016.09.014 doi:10.21833/ijaas.2016.09.014 doi:10.21833/ijaas.2016.09.014
spellingShingle HG Finance
Salem, Salem Mohammad Abdelaziz
Abdul Rahman, Nora Azureen
The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC
title The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC
title_full The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC
title_fullStr The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC
title_full_unstemmed The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC
title_short The effect of bank-specific factors and unstable macroeconomic environment on bank efficiency: evidence from FCC
title_sort effect of bank specific factors and unstable macroeconomic environment on bank efficiency evidence from fcc
topic HG Finance
url https://repo.uum.edu.my/id/eprint/25292/1/IJAAS%203%209%202016%2097%20102.pdf
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