أثر التركز البنكي على الاستقرار المالي: دراسة تطبيقية على البنوك السعودية

Abstract EN

The study aimed to identify the effects of bank concentration on financial stability, an applied study on Saudi banks.

the study used a bank concentration as independent variable, measured by two indicators, the concertation of the biggest three banks, and Lerner index.

the study dependent variable financial stability measured by credit risks (non performing loan ratio) and (provision decline value ratio) of traditional bank activities and modern activities.

the sample of the study are commercial banks of eight banks, for the period of (2013-2020).

to test the main hypotheses of there are statistically significant between bank concentration and financial stability, the study applied descriptive statistics, Hausman test, and multiple linear regression to test the hypotheses.

the study ‘s results, a significant impact of bank concentration on bank ‘s traditional activities credit risks (provision decline value ratio) as positive significant impact, and negative significant impact on (non-performing loans ratio).

moreover, bank‘s modern activities as off balance sheet activity credit risk the study found a negative significant at low level.

the study recommends banks needs to develop their activities to reduce bank concentration in the bank industry.

avoid increases of credit risks as shows impact on financial stability in the bank industry.