Title: The dynamic effects of privatisation on the performance of privatised banks and the role of economic, political, and institutional factors: empirical evidence from OECD and MENA countries

Authors: Makram Nouaili

Addresses: University College of Duba, University of Tabuk, Tabuk, Kingdom of Saudi Arabia

Abstract: This study examines the post-privatisation performance of 87 banks in OECD and MENA countries, while identifying the various factors that may influence the privatisation-performance relationship. By using the seemingly unrelated regressions (SUR) model, the results show that in the post-privatisation period, performance slightly decreases in the MENA region. However, over time, privatisation yields significant improvements in the performance of privatised banks in OECD countries. The results also show that the economic and organisational circumstances and the political and institutional environment in which privatised banks operate affect the privatisation-performance relationship. Our results support, therefore, that the factor of private-public ownership must be differentiated from the other factors that also influence the effect of privatisation on the performance of privatised banks.

Keywords: bank performance; privatisation; seemingly unrelated regressions model; SUR.

DOI: 10.1504/AAJFA.2026.152396

Afro-Asian Journal of Finance and Accounting, 2026 Vol.16 No.2, pp.180 - 206

Received: 02 Feb 2025
Accepted: 12 Jun 2025
Published online: 18 Mar 2026 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article