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The impact of financial technology on financial stability in the MENA zone

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  • Mohamed Kolli

    (Ph.D. in Finance, M'hamed Bougara University, Faculty of economics, Boumerdes, Algeria)

  • Khadidja Imene Amarouche

    (Ph.D. in Finance, M'hamed Bougara University, Faculty of economics, Boumerdes, Algeria)

Abstract

This article attempts to determine the influence of financial technology (Fintech) on the stability of financial systems in 19 countries of the Middle East and North Africa (MENA) zone; observed over a period of 17 years (2004- 2020). Therefore, our research is based on the panel vector auto regression models (Panel VAR) that are analyzed using the Eviews 12 statistical program. The results show that the fixed effects models are the most significant for estimating the relationship between the fluctuations of financial stability index (FS) and the changes of the explanatory variables selected in our empirical model. At the same time, these results indicate a significant positive relationship between the economic growth (GDPR), the level of financial concentration (BSC) and the volume of banking crises (CPS, LL) on the financial stability index. While, they also confirm the absence of a significant relationship between the dependent variable and financial technology indexes (MPBR, ATM, IU) and the levels of demographic growth (POPG). This may be explained by the fact that the financial systems of the sample countries are mainly traditional and can be attributed to the low level of financial culture of their societies.

Suggested Citation

  • Mohamed Kolli & Khadidja Imene Amarouche, "undated". "The impact of financial technology on financial stability in the MENA zone," Review of Socio - Economic Perspectives 202308, Reviewsep.
    • Handle: RePEc:aly:journl:202308
    DOI: https://doi.org/10.19275/RSEP151
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    References listed on IDEAS

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    1. Kai Carstensen & Oliver Hülsewig & Timo Wollmershäuser, 2009. "Monetary Policy Transmission and House Prices: European Cross-country Evidence," CESifo Working Paper Series 2750, CESifo.
    2. Banna, Hasanul & Kabir Hassan, M. & Rashid, Mamunur, 2021. "Fintech-based financial inclusion and bank risk-taking: Evidence from OIC countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
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    4. Sofia Anyfantaki, 2016. "The evolution of financial technology (FinTech)," Economic Bulletin, Bank of Greece, issue 44, pages 47-62, December.
    5. Roel Beetsma & Massimo Giuliodori, 2011. "The Effects of Government Purchases Shocks: Review and Estimates for the EU," Economic Journal, Royal Economic Society, vol. 121(550), pages 4-32, February.
    6. Ahamed, M. Mostak & Mallick, Sushanta K., 2019. "Is financial inclusion good for bank stability? International evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 403-427.
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    More about this item

    Keywords

    Fintech; financial stability; MENA zone; Panel VAR;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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