The impact of banking competition on the financial stability of the banking system in the Arab countries for the period 2000-2020

Abstract

 The study aims to verify the impact of banking competition on the financial stability of the banking system in the Arab countries. The period of study is 2000-2020 and included eleven Arab countries, and for the purpose of achieving the objectives of the study, the panel data method was relied on to measure the impact of banking competition on financial stabi[1]lity.  Bank stability was expressed through two indicators: (Z-score) once and the indicator of the percentage of non-performing loans out of total loans again.  While the independent variables were represented by the (Boon) index to express banking competition, and the (lerner) index to express the market power of the bank, banking productivity, as well as the organizational capital ratio to express the administrative restrictions of the banking units. The Fixed Effect Model has been stabilized in measuring the effect. The study reached several results, the most important of which is that banking competition enhances financial stability in Arab countries.