Banking Efficiency and Financial Stability: Which Causes Which? ― A Panel Analysis
Paper was presented in the International Conference on Applied Economics (ICOAE 2016), Nicosia, Cyprus, July 7- 9, 2016
10 Pages Posted: 3 Oct 2016
Date Written: October 2, 2016
This paper attempts to investigate the relationship between banking efficiency and financial stability using a sample of 15 MENA countries, over the period from the 2004 to 2013. Using panel analysis according to fixed effect model, results indicate that hypotheses regarding the significance of this effect could be accepted. Also, robustness checks, using dynamic effect model, assure the significance of these effects.
Keywords: Bank Efficiency, Data Envelopment Analysis (DEA), Financial Stability
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