How Do Bank Features and Global Crises Affect Scale Economies? Evidence from the Banking Sectors of Oil-Rich GCC Emerging Markets

Al-Jarrah, Idries Mohammad Wanas; Al-Abdulqader, Khalid; Hammoudeh, Shawkat

doi:10.1080/1540496x.2019.1602765

Cited by 5 publications

(1 citation statement)

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“…Notably, these countries attempt to coordinate their policies to achieve their common goal of realizing full economic integration through the Gulf Cooperation Council (GCC), an international organization that embraces all GCC countries. Furthermore, the financial institutions in those countries are highly connected and characterized by economies of scale (Al-Jarrah et al, 2019). Addi-tionally, they carry the systemic risks usually associated with large financial firms (Al-Jarrah et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Systemic Risk for Financial Institutions in the Major Petroleum-based Economies: The Role of Oil

Khalifa¹,

Caporin²,

Costola³

et al. 2021

The Energy Journal

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We examine the relationship between oil returns and systemic risk of financial institutions in major petroleum-based economies. By estimating ACoVaR, we observe the presence of remarkable increases in risk levels during the financial crises and achieve a better risk measurement when oil returns are included in the risk functions. Moreover, the estimated spread between the CoVaR without and with oil returns is absorbed in a time range that is longer than the duration of the oil shocks. This indicates that drops in oil prices which have a longer effect on risk and financial institutions require more time to account for their impact. Policy implications are also provided.

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Section: Introductionmentioning

confidence: 99%

Systemic Risk for Financial Institutions in the Major Petroleum-based Economies: The Role of Oil

Khalifa¹,

Caporin²,

Costola³

et al. 2021

The Energy Journal

Self Cite

View full text Add to dashboard Cite

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Market power, optimal scale and competition promotion in banking: Analysis in the GCC region

Alfaihani,

Badunenko,

Jaffry

2024

Int. J Fin Econ

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We propose an approach to identify optimally scaled banks and analyse the competition levels among banks in different stages of production in six countries of the Gulf region. The empirical results show that the global financial crisis curbed the rise in the market power of banks, but the market power continued to increase straight after 2009. Also, we show that the existing methods fail to identify that a significant proportion of banks across different countries, up to 90%, are operating at an optimal scale. Finally, we discuss the misclassification of banks by the traditional approach to scale analysis and its implications for decision‐making by competition authorities and central banks that assess and promote competition in banking. We advocate a more nuanced approach to competition policy that recognizes the potential impact of various phases of banks' production process on the competition.

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The systemic risk of US oil and natural gas companies

2023

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How Do Bank Features and Global Crises Affect Scale Economies? Evidence from the Banking Sectors of Oil-Rich GCC Emerging Markets

Cited by 5 publications

References 43 publications

Systemic Risk for Financial Institutions in the Major Petroleum-based Economies: The Role of Oil

Systemic Risk for Financial Institutions in the Major Petroleum-based Economies: The Role of Oil

Market power, optimal scale and competition promotion in banking: Analysis in the GCC region

The systemic risk of US oil and natural gas companies

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