The competitive nature of the Arab Middle Eastern (AME) banking markets during the 1990s is the focus subject of this study. Using banks data from nine AME countries, and utilizing the so-called Rosse-Panzar test to quantitatively appraise the dominant competitive conditions in these markets between 1993–97, this study concluded that banking markets have been operating in the region under conditions of monopolistic competition. An important finding revealed by this study is that in the AME region, where two distinct economic spectrums dominate the markets, banking sector in the oil-producing countries (Gulf States) appears to be less competitive than its counterpart in non-oil countries.
(Emerald, 2019-10-14) Ruza Paz-Curbera, Cristina; Cuesta González, Marta María de la; Paredes Gázquez, Juan Diego
The aim of this paper is to empirically appraise the health of banking systems by applying a new theoretical framework based on complex system theories. For doing so we propose a composite indicator for analysing the resilience and stability of banking systems for a group of advanced economies including the group of G7 countries, Spain and Portugal. The empirical results reveal quite different patterns in the aftermath of the financial crises. While some countries have improved its relative position within the ranking, we find others evolving just in the opposite direction. The main purpose of the indicator is not to make predictions of future banks’ behaviour, but rather to use it as an early warning system for policymakers and supervisors in identifying signs of weakness, as well as a useful tool to identify the best practices.
