Bank Risks, and Bank Stability: The Moderating Role of State Ownership in the MENA Region

Ahmed Rashed, Ahmed Rashed, Dexiang Wu

2025

Abstract

This paper empirically examines the impact of state ownership on the relationship between bank risks and financial stability for a sample of 110 banks within the period 2007-2021 with 1650 bank observations listed in the Middle East and North Africa regions. The findings show that there is no simultaneous link between credit risk and liquidity risk. Liquidity and credit risks can be managed jointly to affect banking stability. State banks are more stable, less likely to engage in risky behavior, and more concerned with social welfare. State banks eliminate the impact of banks' risks on banking stability. Results enhance good governance, economic development, and employment opportunities, maintain financial safety, and ultimately enhance growth. Our results are consistent with the present regulatory framework, particularly Basel III, which confirms the importance of joint management of liquidity and credit risk.

Paper Citation

in Harvard Style

Rashed A. and Wu D. (2025). Bank Risks, and Bank Stability: The Moderating Role of State Ownership in the MENA Region. In Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-748-1, SciTePress, pages 279-286. DOI: 10.5220/0013479300003956

in Bibtex Style

@conference{femib25,
author={Ahmed Rashed and Dexiang Wu},
title={Bank Risks, and Bank Stability: The Moderating Role of State Ownership in the MENA Region},
booktitle={Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2025},
pages={279-286},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013479300003956},
isbn={978-989-758-748-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - Bank Risks, and Bank Stability: The Moderating Role of State Ownership in the MENA Region
SN - 978-989-758-748-1
AU - Rashed A.
AU - Wu D.
PY - 2025
SP - 279
EP - 286
DO - 10.5220/0013479300003956
PB - SciTePress