MACROECONOMIC OUTLOOK AND BANK STABILITY: THE CASE OF SHARIAH BANK ON MIDDLE EAST COUNTRY

There have been many studies on the impact of war and the economy on Middle East countries. However, specific studies on banking stability and macroeconomic conditions have not been found. This study aims to find the interaction between macroeconomic and banking stability in the Middle East. Panel data with 12 middle east countries during 2014-2023 was employed in this study. Our study found that inflation, GDP, exchange rate, and unemployment rate cause banking stability.