TY - JOUR T1 - Have Foreign Banks Contributed to the Spread<br/>of the Global Financial Crisis to Saudi Arabia? JF - The Journal of Wealth Management SP - 104 LP - 111 DO - 10.3905/jwm.2012.15.2.104 VL - 15 IS - 2 AU - Mahmoud Haddad AU - Sam Hakim Y1 - 2012/07/31 UR - https://pm-research.com/content/15/2/104.abstract N2 - The authors analyzed the role of domestic and foreign banks in Saudi Arabia during the financial crisis that has ravaged the world since 2007. The study is based on the growth rate in market share of the credit extended by each bank and investors’ perceptions about the risk exposure of this financial institution, distinguishing between purely domestic banks and institutions with joint ownership (local and foreign shareholders). Although there is a suspicion that partly owned foreign banks are more risk exposed than their purely domestic counterparts, these findings suggest otherwise. Specifically, the authors do not find evidence that foreign shareholders of Saudi banks, who suffered losses and liquidity problems in their home countries, cut credit in Saudi Arabia or acted in a manner inconsistent with their domestic counterparts. As such, the evidence does not support recommendations for a double standard in banking regulation.TOPICS: Financial crises and financial market history, global ER -