المؤلف

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الملخص

Political stability is characterized by flexibility that indicates the ability of the system to contain conflicts without the use of coercion or obligation except in the narrowest range, as well as the ability of the system to deal with crises facing it and reduce them, and this situation has a positive impact on the profitability of banks, which helps to create a sector A stable banker and creates increased confidence to deal with banks, and this is what happened in the banking sector in the Arab countries after 2010, as this period witnessed an adverse situation represented by political instability, the results of which turned against the stability of the banking sector and then financial stability as it represents the largest part of the financial system . This research came to demonstrate that the existence of political stability in the sample countries results in the failure to impose the rule of law by force and smooth and organized banking procedures, and vice versa, as instability creates power enforcement by force and an increase in strict procedures, which limits banking activities, which has a negative impact on the profitability of this sector, i.e. The banking sector . And that the banking sector often loses its stability as a result of the destabilization of investor confidence in it as a natural reflection of the political instability in the country and therefore countries must maintain the banking sector's gains in times of political stability, which is the focus of financing the economic development of any country. The research relies on multiple regression analysis to show the effect of political stability expressed in terms of (the degree of political stability, the rule of law) on banking stability represented by a value (z-score) for the banking sector, which measures the degree of risk of profitability of banks, if this indicator increases with higher levels of profitability and decreases with their levels The low sample, and the research sample was (10) Arab countries for the period (2010-2017) is divided according to (Cluster analysis) to classify its degree of political stability.



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