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Bank Business Models in MENA and African Countries: The Relevance of Contextual Variables

Ayadi, R., Bongini, P., Casu, B. ORCID: 0000-0003-3586-328X & Cucinelli, D. (2023). Bank Business Models in MENA and African Countries: The Relevance of Contextual Variables. Review of Corporate Finance, 3(3), pp. 329-359. doi: 10.1561/114.00000043


Using a large sample of banks from the Middle East and North Africa (MENA), and African countries, we identify bank business models in the region. We use an Activity-Funding Approach (AFA) and cluster analysis, and we uncover a range of diverse business models heterogeneously distributed across countries. We then evaluate business model change between 2010 and 2019, a turbulent time in many of our sample countries. We find a high persistence of bank business models. Finally, we consider the determinants of bank business models, including bank-specific and macroeconomic factors, and the internationalisation of banks in the region. We find that country-specific characteristics play a crucial role in influencing banks’ choices. Regardless of the country of origin, foreign banks are more likely to diversify their assets and less likely to focus on lending than domestic banks.

Publication Type: Article
Additional Information: The final publication is available from now publishers via
Publisher Keywords: Business models, banks, MENA region
Subjects: D History General and Old World > DT Africa
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
Departments: Bayes Business School
Bayes Business School > Finance
SWORD Depositor:
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