Convergence of Banking Sector Regulations on International Norms in the Southern Mediterranean : Impact on Bank Performance and Growth

by Ayadi, Rym; Arbak, Emrah; Naceur, Sami Ben; Casu, Barbara; Boumghar, Mohammed Yazid (CON)

• ISBN13: 9789461380869
• ISBN10: 9461380860
• Format: Paperback
• Copyright: 2011-12-31
• Publisher: Brookings Inst Pr

Summary

A sound and well-enforced regulatory regime in the banking sector can help developing nations channel financial resources more efficiently into investments. It can also act as an important stabilizing factor in today's shaky market environment. This book examines the impact of banking sector regulations on bank efficiency and economic growth in Algeria, Egypt, Morocco, and Tunisia, while exploring the level of convergence of regulatory practices and efficiency to international standards. The authors look at the impact of theregulatory environment on the efficiency of banks, using established measures of regulatory and supervisory practices. In addition to the regulatory details, their performance analysis also considers the legal and institutional characteristics of the Southern Mediterranean countries. Finally, the book explores how compliance with these standards and norms may influence the growth potential of each country. Contributors include Mohammed Boumghar (Le Centre de Recherche en Economie Appliquée au Développement, Algeria), Jawad Kerdoudi (Moroccan Institute of International Relations), and Moez Labidi (University of Monastir, Tunisia).

Table of Contents

Introduction	p. 1
Overview of the National Banking Sectors in North Africa	p. 3
Introduction	p. 3
Algeria	p. 5
Egypt	p. 11
Morocco	p. 18
Tunisia	p. 26
Summary	p. 32
Convergence of Banking Sector Regulations	p. 35
Methodology	p. 35
Area I: Scope Restrictions	p. 39
Area II: Entry obstacles	p. 41
Area III: Capital requirement stringency	p. 46
Area IV: Supervisory authority	p. 50
Area V: Deposit insurance	p. 54
Area VI: Private monitoring	p. 59
Area VII: Credit information and laws	p. 62
Conclusions	p. 66
Analysis of Efficiency and Convergence	p. 71
Literature review	p. 72
Methodology	p. 75
Data Envelopment Analysis	p. 75
Meta-frontier analysis	p. 76
Modelling convergence	p. 77
Descriptive statistics	p. 78
Input and output variables	p. 80
Results	p. 83
Efficiency results	p. 83
Convergence results	p. 89
Conclusions	p. 91
Impact of Bank Regulations on Efficiency	p. 92
Literature review	p. 93
Methodology and data	p. 94
Bank-specific variables	p. 96
Country-specific variables	p. 97
Regulatory variables	p. 98
Data sources	p. 101
Empirical results	p. 104
Conclusions	p. HI
Impact of Bank Regulations on Growth	p. 112
Literature review	p. 113
Methodology and data	p. 116
Results	p. 126
Conclusions	p. 128
Conclusions	p. 130
References	p. 133
Annex 1. CEPS Survey on Banking Supervision for the Southern Mediterranean Countries	p. 148
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