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Competition in MENA countries banking markets

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  • Bana Abuzayed
  • Nedal Al-Fayoumi
  • Hisham Gharaibeh

Abstract

This study examines the banking power in a number of highly concentrated banking industries. In particular, this paper tests the competitive conditions in the banking industries of six Middle Eastern and North African (MENA) countries for the period from 1998 to 2007. Using the new industrial organisation literature methodology, our results reveal that the banking market structure can be characterised as monopolistic competition. The result of this study is necessary for policy makers in MENA region. For them this is a signal to review their policy of interference and involvement in changes in the market structure of the banking markets and to be cautious of the process of consolidation and increasing concentration. Our results are rigorous under a variety of specification controlling for bank size, risk and a number of estimation techniques including static and dynamic data analysis (Fixed or Random effects and the Generalised Methods of Moment).

Suggested Citation

  • Bana Abuzayed & Nedal Al-Fayoumi & Hisham Gharaibeh, 2012. "Competition in MENA countries banking markets," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 5(3), pages 272-301.
    • Handle: RePEc:ids:ijfsmg:v:5:y:2012:i:3:p:272-301
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    3. Sajad Ebrahimi & Ali Ebrahimnejad & Mahdi Rastad, 2019. "The Real Effects of Credit Supply Disruptions: The Case of 2011 Embezzlement Scandal in Iran," Working Papers 1316, Economic Research Forum, revised 21 Aug 2019.

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