Navigating crisis: marketing dynamics and resilience in the MENA’s dual-banking system amidst the SAR-COV-2 pandemic
| dc.contributor.author | Mateev, Miroslav | |
| dc.contributor.author | Nair, Kiran | |
| dc.contributor.author | Nasr, Tarek | |
| dc.date.accessioned | 2025-09-08T09:24:40Z | |
| dc.date.available | 2025-09-08T09:24:40Z | |
| dc.date.issued | 2024 | |
| dc.description | This paper aims to augment the current body of literature on the financial performance and stability of banking systems in times of crisis. Our primary focus is on Islamic and conventional banking systems co-existing in the Middle Eastern and North African (MENA) region. Prior research (Xie et al. 2021; Miklaszewska et al. 2021; Rizwan et al. 2022) states that the current global (SAR-COV-2) crisis has had a direct impact on the real economy and led to several vulnerabilities and increased systemic risk in the banking sector, including the loss of credit due to non-performing loans, which posed a threat to banks’ corporate loan portfolios. Additionally, the pandemic negatively affected “institutions and individuals who may have a hard time liquidating their assets, these assets include limited access to credit” (Deloitte Insights, 2020, p. 2). As a result, the likelihood of default for financial institutions, including banks worldwide, has greatly increased. Therefore, studying the stability of the banking sector in the context of the current global (SAR-COV-2) crisis is of great importance to both scholars and policymakers. | |
| dc.description.abstract | In this paper, we investigate how market concentration and efficiency impact banks’ performance and stability during the SAR-COV-2 pandemic. There is a research gap in the empirical literature in understanding the specific impact of market concentration and efficiency on the profitability and risk-taking behavior of banks, particularly in the developing context of the Middle East and North Africa (MENA) region. To address this gap, we examine the relationship between market concentration, efficiency, and bank performance using a comprehensive dataset encompassing 575 banks across 20 MENA countries from 2006 to 2021. Specifically, we examine the market dynamics and performance of different banking systems co-existing in the MENA region. Our findings indicate that prior to the pandemic, both conventional and Islamic banks benefited from enhanced financial stability as a result of the increased market concentration and efficiency. However, during the pandemic, the positive effects of efficiency and concentration were primarily observed within the group of Islamic banks. Furthermore, we provide new evidence for the moderating effect of market concentration, with a significant negative impact suggesting that increased market competition reinforces the efficiency effect during the pandemic. Our findings are important for policymakers and regulatory authorities in the MENA region as they indicate the need for new policies that assign a more significant role to Islamic banking in the post-SAR-COV-2 recovery. Keywords: market concentration, efficiency impact banks’ performance, SAR-COV-2 pandemic, market concentration, efficiency, bank performance | |
| dc.identifier.citation | Mateev, M., Nasr, T., & Nair, K. (2024). Navigating crisis: marketing dynamics and resilience in the MENA’s dual-banking system amidst the SAR-COV-2 pandemic. Humanities and Social Sciences Communications, 11(1), 1-21. | |
| dc.identifier.doi | https://doi.org/10.1057/s41599-024-03675-1 | |
| dc.identifier.uri | https://repository.adu.ac.ae/handle/1/7390 | |
| dc.language.iso | en | |
| dc.publisher | Nature Research | |
| dc.title | Navigating crisis: marketing dynamics and resilience in the MENA’s dual-banking system amidst the SAR-COV-2 pandemic | |
| dc.type | Article |