FINANCIAL STRUCTURE AND SYSTEMIC RISK: EVIDENCE FROM SELECTED MENA REGION COUNTRIES

Against the context of consecutive world financial crisis, this paper aims to evaluates merits market-based against bank-based financing by analyzing correlation between structure and systemic risk eleven countries within MENA region. Within study three hypotheses are tested; first, if significantly related, second, relation is non-linear relationship third one bank doesn’t contribute above threshold value. To our knowledge no has addressed issue in selected countries. This uses a balanced panel 253 observations for period 1995 2018 perform empirical analysis. Our results from fixed effect regression, confirm that significant risk, supports an inflection point as proved cubic model regression. In light these results, stock-markets more resilient non-interest income activities offered banks considered be source risk.