Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector
This study provides a crucial understanding of the influence of crude oil price volatility on the systematic risk within the Saudi Arabian banking sector, particularly during the COVID-19 pandemic. By employing a VAR model and DCC dynamic conditional correlation analysis, the research identifies the...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2025.2473998 |
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| _version_ | 1850109030383484928 |
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| author | Mohamed Amin Chakroun Sami Mensi |
| author_facet | Mohamed Amin Chakroun Sami Mensi |
| author_sort | Mohamed Amin Chakroun |
| collection | DOAJ |
| description | This study provides a crucial understanding of the influence of crude oil price volatility on the systematic risk within the Saudi Arabian banking sector, particularly during the COVID-19 pandemic. By employing a VAR model and DCC dynamic conditional correlation analysis, the research identifies the dependent relationship between oil market volatility and banking sector risk. Notably, the findings reveal that oil market shocks significantly elevate systematic risk in the banking sector. This insight is vital for regulators and policymakers in oil-exporting countries, highlighting the need for enhanced financial stability measures. The study underscores the importance of banking solvency and financial autonomy while identifying credit risk, liquidity risk, and operational inefficiency as critical factors that exacerbate market risk. The results provide actionable strategies for mitigating systemic risk and ensuring economic resilience in the face of oil price uncertainties. |
| format | Article |
| id | doaj-art-e37defac51804e428ef80da3988c0de7 |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-e37defac51804e428ef80da3988c0de72025-08-20T02:38:11ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2473998Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sectorMohamed Amin Chakroun0Sami Mensi1Department of Business Administration, College of Science and Arts Al-Namas, University of Bisha, Bisha, Saudi ArabiaDepartment of Economics, Ecole Supérieure de Commerce de Tunis (ESCT) Business School, University of Manouba, Manouba, TunisiaThis study provides a crucial understanding of the influence of crude oil price volatility on the systematic risk within the Saudi Arabian banking sector, particularly during the COVID-19 pandemic. By employing a VAR model and DCC dynamic conditional correlation analysis, the research identifies the dependent relationship between oil market volatility and banking sector risk. Notably, the findings reveal that oil market shocks significantly elevate systematic risk in the banking sector. This insight is vital for regulators and policymakers in oil-exporting countries, highlighting the need for enhanced financial stability measures. The study underscores the importance of banking solvency and financial autonomy while identifying credit risk, liquidity risk, and operational inefficiency as critical factors that exacerbate market risk. The results provide actionable strategies for mitigating systemic risk and ensuring economic resilience in the face of oil price uncertainties.https://www.tandfonline.com/doi/10.1080/23322039.2025.2473998Systematic riskvolatility riskoilDCC-GARCHVARFinance |
| spellingShingle | Mohamed Amin Chakroun Sami Mensi Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector Cogent Economics & Finance Systematic risk volatility risk oil DCC-GARCH VAR Finance |
| title | Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector |
| title_full | Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector |
| title_fullStr | Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector |
| title_full_unstemmed | Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector |
| title_short | Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector |
| title_sort | impact of crude oil price uncertainty on systematic risk in the saudi arabia banking sector |
| topic | Systematic risk volatility risk oil DCC-GARCH VAR Finance |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2025.2473998 |
| work_keys_str_mv | AT mohamedaminchakroun impactofcrudeoilpriceuncertaintyonsystematicriskinthesaudiarabiabankingsector AT samimensi impactofcrudeoilpriceuncertaintyonsystematicriskinthesaudiarabiabankingsector |