مجلة الدراسات المالية والمحاسبية والإدارية
Volume 9, Numéro 2, Pages 24-56
2022-12-31

The Impact Of Financial Risks On Commercial Banks’ Financial Stability: Empirical Evidence From Mena Countries.

Authors : Alfadli Abduallah . Sahraoui Djalila .

Abstract

This paper examines the impact of financial risks on commercial Banks’ financial stability, using a sample of 140 commercial banks listed in the stock markets operating in the MENA countries, and balanced annual data extending from 2011 to 2020. We applied a panel-corrected standard error (PCSE) estimator. The results show that there is a significant negative impact of the operational risk, liquidity risk, and credit risk on commercial banks’ financial stability, while the interest rate risk has a significant positive impact on commercial banks’ financial stability.

Keywords

Financial risks ; Banking stability ; Commercial banks ; MENA countries, ; PCSE Estimator