Band 21, Heft 1

This study aims to detect the impact of the corporate governance structures on MENA banks’ stability and risk-taking. In particular, it aims at considering if bank type (conventional or Islamic) is a major determinant of the relationship between corporate governance, bank stability and risk-taking. The research adopts panel data econometrics on a sample containing the largest 100 MENA banks operating between 2011 and 2021. The empirical estimations examine the impact of board size, board independence, board gender diversity, role duality, the existence of risk, governance and nomination and remuneration committees as well as ownership blockholdings, on bank Z-scores and NPL ratios. The empirical results show that the exploited variables impact conventional and Islamic banks stability and risk differently. For instance, a larger board size has a positive effect on conventional bank stability, while it is irrelevant for Islamic banks. For role duality, the opposite findings have been observed. The risk committee plays an important role in Islamic banks risk mitigation, unlike the case of conventional banks. Finally, the existence of blockholdings poses considerable risk for conventional banks only.

Evidence confirms that financial inclusion is a key enabler for economic growth and social development by deepening the financial system and reducing poverty and income inequality. However, its association with the financial performance of banks remains inconclusive. Hence, this study is sought to examine the relationships between financial inclusion and the stability of the Ethiopian Banking Sector using a sample of 16 commercial banks. The study analyzed data spanning a period of 10 years, from 2013 to 2022, collected manually from the National Bank of Ethiopia and each commercial bank’s annual reports. Using the fixed effect method of panel data analysis, the results of this study showed that greater financial inclusion activities have a positive significant influence on banks’ Z-Score and a negative significant effect on the non-performing loan ratio of commercial banks in Ethiopia at 1 and 10 percent levels of significance. Concerning the effect of bank-specific control variables, the cost-efficiency ratio, return on assets, age, and size of banks significantly influenced the stability of banks with different signs. Banks in Ethiopia should increase their accessibility and level of penetration. By expanding their branch networks, ATMs as well as providing innovative financial products to customers given the positive contribution of enhanced financial inclusion in fostering bank stability.

Using the recently developed Global Economic Conditions Index, a time-varying Granger causality approach, as well as relying on the monthly dataset from January 2002 to June 2021, we investigate both symmetric and asymmetric causality between the Global Economic Condition Index and remittances in Lebanon, a small open economy significantly reliant on remittances. Rather than being asymmetric, we find a statistically significant, symmetric, time-varying causality between the Global Economic Conditions Index and remittances. Several robustness tests validate our findings. Given this finding, we propose relevant policy recommendations.

The Israel-Hamas war, initiated on 7 October 2023, has marked one of the most devastating conflicts in recent history, with a catastrophic toll of over 29,000 lives lost, including civilians, journalists, and UNRWA aid workers. The unprecedented attack launched by Hamas from the Gaza Strip and the subsequent extensive military engagements have not only resulted in significant human suffering but have also underscored the vulnerability of regional energy infrastructures amid warfare. This paper explores the conflict’s implications on regional stability and the urgent need for a transition to clean energy solutions. By analyzing the war’s impact on energy resources and infrastructure, it argues that the transition to renewable energy sources is not only a strategic imperative for enhancing energy security but also a necessary step toward mitigating the environmental degradation exacerbated by military conflicts. The analysis highlights how renewable energy can offer resilient and sustainable alternatives to fossil fuel dependency, which is often exploited in geopolitical conflicts. The paper calls for international cooperation to accelerate the energy transition in conflict-prone regions, emphasizing the role of clean energy in fostering long-term peace, sustainability, and economic development.

This study evaluates the economic impact of the 2017 Qatar blockade using synthetic control methods. The analysis shows that Qatar’s GDP in 2022 was approximately 24 % lower than without the blockade, equating to a loss of 82 billion international dollars in 2017 constant prices. Despite Qatar’s proactive strategies, including trade diversification and infrastructure investment, the economic cost remains substantial. Short-term financial commitments and resource reallocation to mitigate the blockade’s effects likely strained public finances and slowed growth. The study underscores the economic toll of the blockade and suggests further research into the long-term effects of Qatar’s policy responses.