Bank Ownership, Regulation and Efficiency: Perspectives from the Middle East and North Africa (MENA) Region

Haque, F. & Brown, K. (2017) Bank Ownership, Regulation and Efficiency: Perspectives from the Middle East and North Africa (MENA) Region. International Review of Economics and Finance, 47, pp. 273–293.

47 Pages Posted: 2 Sep 2014 Last revised: 17 Sep 2017

See all articles by Faizul Haque

Faizul Haque

University of Southampton; University of Southampton

Kym Brown

Monash Business School, Monash University; Financial Research Network (FIRN)

Date Written: 2017

Abstract

This paper examines the effects of bank regulation and ownership on the efficiency of banks in the emerging MENA region. The public and private view of bank regulation is tested along with the interaction of bank regulation and ownership. Results support the public view of bank regulation and suggest that both ownership concentration and supervisory power individually and interactively exert a positive influence on cost efficiency. Moreover, government ownership, capital stringency and market power have positive effects on cost efficiency, whereas activity restrictions and deposit insurance have opposite effects. Capital regulation and supervisory power improvements occurred since Basel II.

Keywords: Ownership; bank regulation; bank efficiency; MENA

JEL Classification: G21, G28, G32

Suggested Citation

Haque, Faizul and Brown, Kym, Bank Ownership, Regulation and Efficiency: Perspectives from the Middle East and North Africa (MENA) Region (2017). Haque, F. & Brown, K. (2017) Bank Ownership, Regulation and Efficiency: Perspectives from the Middle East and North Africa (MENA) Region. International Review of Economics and Finance, 47, pp. 273–293., Available at SSRN: https://ssrn.com/abstract=2490311 or http://dx.doi.org/10.2139/ssrn.2490311

Faizul Haque (Contact Author)

University of Southampton ( email )

Highfield
University Road
Southampton, SO17 1BJ
United Kingdom

HOME PAGE: http://https://www.southampton.ac.uk/business-school/about/staff/fh1r21.page

University of Southampton ( email )

Highfield
University Road
Southampton, SO17 1BJ
United Kingdom

HOME PAGE: http://https://www.southampton.ac.uk/business-school/about/staff/fh1r21.page

Kym Brown

Monash Business School, Monash University ( email )

P.O. Box 197
Caulfield East, Victoria 3800
Australia
61 3 9903 1053 (Phone)
61 3 9903 2422 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: www.firn.org.au

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