Abstract

The banking industry in the area of Fertile Crescent Countries (FCC) was faced by instability in their political and economic conditions in the last decade, especially during the Arab spring revolutions.The current study investigates empirically the efficiency of banking sector in the troublous areas in developing countries such as FCC. The efficiency estimates of individual banks are evaluated by employing the multiple regression models.This paper examines the effect of a selected bank-specific factors, and unstable macroeconomic conditions on bank efficiency in a selected FCC banks for 10 - year's period 2005-2014. The unbalanced panel data used in this study is derived from Bank Scope data network. The empirical findings are almost consistent with the expected results.Bank deposits and bank size have influence on bank efficiency. Economic conditions found with no effect on efficiency. It was found that liquidity of a bank does not influence bank efficiency, but bank diversification is related with efficiency in FCC.

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