The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region
<p dir="ltr">This study examines the effects of non-interest income on bank performance in the Middle East and North Africa (MENA) region, addressing existing research gaps and conflicting results. The analysis is based on data from 40 banks (5 banks from each country) operating in B...
محفوظ في:
| المؤلف الرئيسي: | |
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| مؤلفون آخرون: | , |
| منشور في: |
2024
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| _version_ | 1864513545466544128 |
|---|---|
| author | Bashar Abukhalaf (21488780) |
| author2 | Antoine B. Awad (21591401) Scott Ellis (547553) |
| author2_role | author author |
| author_facet | Bashar Abukhalaf (21488780) Antoine B. Awad (21591401) Scott Ellis (547553) |
| author_role | author |
| dc.creator.none.fl_str_mv | Bashar Abukhalaf (21488780) Antoine B. Awad (21591401) Scott Ellis (547553) |
| dc.date.none.fl_str_mv | 2024-03-01T00:00:00Z |
| dc.identifier.none.fl_str_mv | 10.3390/jrfm17030103 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/The_Impact_of_Non-Interest_Income_on_Commercial_Bank_Profitability_in_the_Middle_East_and_North_Africa_MENA_Region/29117129 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Commerce, management, tourism and services Accounting, auditing and accountability Banking, finance and investment Economics Applied economics Non-interest income Return on assets Capital adequacy Credit risk Size Panel regression MENA JEL Classification: G20; G29; G39 |
| dc.title.none.fl_str_mv | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p dir="ltr">This study examines the effects of non-interest income on bank performance in the Middle East and North Africa (MENA) region, addressing existing research gaps and conflicting results. The analysis is based on data from 40 banks (5 banks from each country) operating in Bahrain, Egypt, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates between 2010 and 2022. Using correlation analysis and three regression models (OLS, FE, and RE), this study explores the relationship between non-interest income, overheads, capital adequacy, loan loss provision, bank size, and return on assets. The findings reveal positive associations among banks’ overhead, size, capital adequacy, and loan loss provision. Additionally, a favorable correlation is observed between non-interest income and bank performance. Non-interest income significantly influences the profitability of MENA region banks across all three models, supporting the main hypothesis. While the study’s limitations include sample size and geographic focus, the findings of this study provide valuable insights for policymakers, allowing them to recognize the positive impact of increasing non-interest income on commercial bank profitability in the MENA region and consider implementing policies that encourage and support banks in diversifying their income sources.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of Risk and Financial Management<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/jrfm17030103" target="_blank">https://dx.doi.org/10.3390/jrfm17030103</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_9310d3dce6b0afe584460a35eaf8040d |
| identifier_str_mv | 10.3390/jrfm17030103 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/29117129 |
| publishDate | 2024 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) RegionBashar Abukhalaf (21488780)Antoine B. Awad (21591401)Scott Ellis (547553)Commerce, management, tourism and servicesAccounting, auditing and accountabilityBanking, finance and investmentEconomicsApplied economicsNon-interest incomeReturn on assetsCapital adequacyCredit riskSizePanel regressionMENAJEL Classification: G20; G29; G39<p dir="ltr">This study examines the effects of non-interest income on bank performance in the Middle East and North Africa (MENA) region, addressing existing research gaps and conflicting results. The analysis is based on data from 40 banks (5 banks from each country) operating in Bahrain, Egypt, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates between 2010 and 2022. Using correlation analysis and three regression models (OLS, FE, and RE), this study explores the relationship between non-interest income, overheads, capital adequacy, loan loss provision, bank size, and return on assets. The findings reveal positive associations among banks’ overhead, size, capital adequacy, and loan loss provision. Additionally, a favorable correlation is observed between non-interest income and bank performance. Non-interest income significantly influences the profitability of MENA region banks across all three models, supporting the main hypothesis. While the study’s limitations include sample size and geographic focus, the findings of this study provide valuable insights for policymakers, allowing them to recognize the positive impact of increasing non-interest income on commercial bank profitability in the MENA region and consider implementing policies that encourage and support banks in diversifying their income sources.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of Risk and Financial Management<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/jrfm17030103" target="_blank">https://dx.doi.org/10.3390/jrfm17030103</a></p>2024-03-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.3390/jrfm17030103https://figshare.com/articles/journal_contribution/The_Impact_of_Non-Interest_Income_on_Commercial_Bank_Profitability_in_the_Middle_East_and_North_Africa_MENA_Region/29117129CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/291171292024-03-01T00:00:00Z |
| spellingShingle | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region Bashar Abukhalaf (21488780) Commerce, management, tourism and services Accounting, auditing and accountability Banking, finance and investment Economics Applied economics Non-interest income Return on assets Capital adequacy Credit risk Size Panel regression MENA JEL Classification: G20; G29; G39 |
| status_str | publishedVersion |
| title | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region |
| title_full | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region |
| title_fullStr | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region |
| title_full_unstemmed | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region |
| title_short | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region |
| title_sort | The Impact of Non-Interest Income on Commercial Bank Profitability in the Middle East and North Africa (MENA) Region |
| topic | Commerce, management, tourism and services Accounting, auditing and accountability Banking, finance and investment Economics Applied economics Non-interest income Return on assets Capital adequacy Credit risk Size Panel regression MENA JEL Classification: G20; G29; G39 |