Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region

Abstract : We investigate the impact of global and local crises on bank stability and examine the effect of owning bank subsidiaries in other countries. We consider banks from MENA countries which experienced both types of crises during our sample period. Our findings highlight a negative impact of the global financial crisis of 2007-2008 on bank stability but, on the whole, no negative impact of the 'Arab Spring'. A deeper investigation shows that owning subsidiaries outside the home country is a source of increased fragility during normal times, yet a source of higher stability during the 'Arab Spring' but not during the global financial crisis. Moreover, owning foreign subsidiaries in one or two world regions is insufficient to neutralize the 'Arab Spring' crisis, while being present in three or more regions is more stabilizing during the 'Arab Spring' but also more destabilizing during the global financial crisis. Our findings contribute to the literature examining bank stability and have several policy implications. (T. Al Raheb). c Email: amine.tarazi@unilim.fr (A. Tarazi) 2 Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region. Abstract We investigate the impact of global and local crises on bank stability and examine the effect of owning bank subsidiaries in other countries. We consider banks from MENA countries which experienced both types of crises during our sample period. Our findings highlight a negative impact of the global financial crisis of 2007-2008 on bank stability but, on the whole, no negative impact of the 'Arab Spring'. A deeper investigation shows that owning subsidiaries outside the home country is a source of increased fragility during normal times, yet a source of higher stability during the 'Arab Spring' but not during the global financial crisis. Moreover, owning foreign subsidiaries in one or two world regions is insufficient to neutralize the 'Arab Spring' crisis, while being present in three or more regions is more stabilizing during the 'Arab Spring' but also more destabilizing during the global financial crisis. Our findings contribute to the literature examining bank stability and have several policy implications.
Type de document :
Pré-publication, Document de travail
2016
Liste complète des métadonnées

Littérature citée [101 références]  Voir  Masquer  Télécharger

https://hal-unilim.archives-ouvertes.fr/hal-01270806
Contributeur : Thierno Barry <>
Soumis le : mercredi 24 février 2016 - 12:19:10
Dernière modification le : mercredi 28 février 2018 - 17:06:02
Document(s) archivé(s) le : mercredi 25 mai 2016 - 10:41:01

Fichier

Local Versus International Cri...
Fichiers produits par l'(les) auteur(s)

Identifiants

  • HAL Id : hal-01270806, version 1

Collections

Citation

Tammuz Alraheb, Amine Tarazi. Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region. 2016. 〈hal-01270806〉

Partager

Métriques

Consultations de la notice

166

Téléchargements de fichiers

432