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E-book
Author Almarzoqi, Raja, author.

Title How does bank competition affect solvency, liquidity and credit risk? : evidence from the MENA countries / prepared by Raja Almarzoqi, Sami Ben Naceur, and Alessandro D. Scopelliti
Published [Washington, D.C.] : International Monetary Fund, ©2015

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Description 1 online resource (43 pages) : color illustrations
Series IMF working paper ; WP/15/210
IMF working paper ; WP/15/210.
Summary The paper analyzes the relationship between bank competition and stability, with a specific focus on the Middle East and North Africa. Price competition has a positive effect on bank liquidity, as it induces self-discipline incentives on banks for the choice of bank funding sources and for the holding of liquid assets. On the other hand, price competition may have a potentially negative impact on bank solvency and on the credit quality of the loan portfolio. More competitive banks may be less solvent if the potential increase in the equity base---due to capital adjustments---is not large enough to compensate for the reduction in bank profitability. Also, banks subject to stronger competitive pressures may have a higher rate of nonperforming loans, if the increase in the risk-taking incentives from the lender's side overcomes the decrease in the credit risk from the borrower's side. In both cases, country-specific policies for market entry conditions---and for bank regulation and supervision---may significantly affect the sign and the size of the relationship. The paper suggests policy reforms designed to improve market contestability and to increase the quality and independence of prudential supervision. --Abstract
Notes "September 2015."
"Middle East and Central Asia."
Bibliography Includes bibliographical references (pages 30-31)
Notes Online resource; title from pdf title page (IMF.org Web site, viewed October 8, 2015)
Subject Banks and banking -- Middle East
Bank liquidity -- Middle East
Bank failures -- Middle East
Banks and banking -- State supervision -- Middle East
Financial risk management -- Middle East
Banks and banking -- Africa, North
Bank liquidity -- Africa, North
Bank failures -- Africa, North
Banks and banking -- State supervision -- Africa, North
Financial risk management -- Africa, North
Bank failures
Bank liquidity
Banks and banking
Banks and banking -- State supervision
Financial risk management
North Africa
Middle East
Form Electronic book
Author Ben Naceur, Samy, author.
Scopelliti, Alessandro Diego, author.
International Monetary Fund. Middle East and Central Asia Department.
ISBN 1513581910
9781513581910
ISSN 1018-5941