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Cited by 73Banking stability, regulation, efficiencyBanking Sector Performance and ManagementIslamic Finance and Banking Studies

Assessing the determinants of non-performing loans under financial crisis and health crisis: evidence from the MENA banks

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Alnabulsi, Khalil, Kozarević, Emira, Hakimi, Abdelaziz·2022·Cogent Economics & Finance
DOI 10.1080/23322039.2022.2124665
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Abstract

The main objective of this paper is to investigate determinants of non-performing loans in the Middle East and North Africa region by exploring the role of bank-specific and macroeconomic factors, particularly in the period of the global financial crisis, as well as the COVID-19 pandemic, as a health crisis that translates to an economic crisis. This study includes 74 banks belonging to 11 MENA countries over the period 2005–2020 and uses the two-stage system generalized method of moment estimator. To conduct a comparative analysis, the whole sample is divided into two sub-samples. The first one is related to the Middle East countries and the second one covers North African countries. The empirical findings indicate that the level of non-performing loans is more sensitive to bank specifics than macroeconomic factors. When it comes to macroeconomic factors, macroeconomic environment and institutional quality significantly affect the level of NPLs. However, no significant effect has been detected regarding the impact of the COVID-19 pandemic.

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  • Financial liberalisation policies adopted in developed economies contributed to high exposure to cross-border contagion.

    “The empirical evidence shows that the financial liberalisation policies adopted in the developed economies contributed to a high degree of exposure of the economies to cross-border impacts of contagion (Alnabulsi et al., 2022).”

    From The Interactions Between Political Economy and Global Financial Crises: A Case Study of the 2008 Global Recession (2026) · cites this paper as Alnabulsi et al., 2022

    The empirical results for the whole sample (Section 4.1; page unavailable) discuss the global financial crisis and non-performing loans in MENA banks, not cross-border contagion. Searches for financial liberalisation in developed economies and for cross-border contagion or spillovers found no passage establishing the claimed link. (LLM, conf=0.72)

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Cited by

Sorted by citations

Authors
Alnabulsi, K., Kozarević, E., & Hakimi, A.
Affiliations
  • Széchenyi István University (HU)
  • University of Tuzla (BA)
  • University of Jendouba (TN)
Corresponding author
Alnabulsi, Khalil
ORCID
Venue
Cogent Economics & Finance
Publisher
Informa UK Limited
Published
2022-09-21
Volume
10
Issue
1
ISSN
2332-2039 (ISSN-L)
DOI
10.1080/23322039.2022.2124665
OpenAlex
W4296538762
Cited by
73
References
0
Citations by year
2026: 23 · 2025: 24 · 2024: 15 · 2023: 10 · 2022: 1
FWCI
8.68
Type
journal article
Language
en
Open access
Licence
Locations
  • Cogent Economics & Finance (publishedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
  • Econstor (Econstor) (submittedVersion, cc-by)
Funders
The authors received no direct funding for this research
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
  • Social Sciences › Business, Management and Accounting › Accounting › Banking Sector Performance and Management
  • Social Sciences › Business, Management and Accounting › Accounting › Islamic Finance and Banking Studies
Keywords
non-performing loans, bank credit risk, determinants of NPL, 2008 financial crisis, COVID-19 pandemic, macroeconomic factors, institutional quality, bank-specific factors, MENA banks

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