Abstract

This paper attempts to investigate the effect of applying banking regulations on banking performance. This has been conducted on 19 MENA region countries (Egypt, Sudan, Lebanon, Libya, Iraq, Tunisia, Algeria, Morocco, Qatar, United Arab Emirates, Saudi Arabia, Bahrain, Palestine, Oman, Djibouti, Turkey, Kuwait, Jordan, and Mauritania), on a yearly basis over the period from 2008 to 2018.
 Banking regulations have been measured by each of capital adequacy requirements (capital base to risk-weighted assets), liquidity requirements (liquid assets to total assets), legal reserve requirements (balances with CB to banks' deposit), leverage requirements (total equity to total assets) and provisions policy (total provisions to total capital), while Banking performance has been measured by each of banking efficiency using (data envelopment analysis "DEA" & operational efficiency ratio), banking stability (ABSI & Z-score indexes), credit risk ("non-performing loans" & "provisions for non-performing loans") and profitability (return on assets & return on equity).
 Results indicate that there is a significant effect of applying banking regulations on each of "banking efficiency", "banking stability", "credit risk" and "profitability". This has been conducted using panel data analysis according to static panel models (SPM) according to three models (pooled regression, fixed effects, and random effects).

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