The Nexus of Banks’ Competition, Ownership Structure, and Economic Growth on Credit Risk and Financial Stability

The main object of this research is to find out the nexus banks’ competition, ownership structure, and economic growth on credit risk financial stability. In addition, it examines level stability, growth, structure in Middle East North African (MENA) economies. generalized method moments (GMM) was used examine study. study an unbalanced panel dataset from 2011 2021 MENA countries. This demonstrates a negative relationship between risk, stability economies; nevertheless, proves insignificant effect among them. It also shows that lower bank taking, better further found market competition had homogenous when looking at impact structure. long-term sense, square term highly favorable with models ((Lerner × Islamic banks), (Lerner commercial specialized government institutions)). However, improves time, as seen by (a measure competition) Lerner index (LI) Herfindahl–Hirschman total assets (HHIA). finding supported theory. proved banks are less vulnerable than institutions (SGI). scrutinized how economies can remain stable through banking competition. builds new brand literature review. As result, gives policymakers ideas for making policies help environment.