लेखांकन और वित्तीय अध्ययन अकादमी जर्नल

1528-2635

अमूर्त

Does Unsystematic Risk Management Affect the Relationship Between Banks' Performance and The Objectives of Saudi Arabia Economic Vision 2030

Dabboussi Moez, Lachachi Abdelhaq

While Banks’ performance was regarded as an important driver of economic growth, the relationship between Banks’ performance and economic growth is more complex than linear. Of many factors moderating this relationship, unsystematic risk management is one that received inadequate research attention. The present study aims to investigate the moderating effect of unsystematic risk management on the relationship between banks’ performance and Saudi Arabia's economic growth, which has been a key objective of the Kingdom Vision 2030. Focusing on a sample of 10 publicly traded banks during the period 2005-2017, this paper supports the positive relationship between Banks’ performance and economic growth. Even more, the results indicate that this positive relationship is weakened respectively by unsystematic risk management, especially by credit risk, liquidity risk, and operational risk.

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