EXAMINING CORRUPTION'S IMPACT ON BANKING SYSTEM STABILITY IN MENA

Abstract

Corruption in the banking sector is a major problem that can have negative consequences for the economy. This paper reviews the literature on the impact of corruption on the banking sector, with a focus on the following areas: (1) the lending decisions of banks, (2) the riskiness of banks' portfolios, (3) the stability of the banking system, and (4) economic growth. The paper concludes that corruption has a negative impact on all of these areas, and that it can lead to financial crises.