Bank Failures in the Middle East
A bank failure occurs when a bank is unable to meet its obligations to its depositors or other creditors. More specifically, a bank fails economically when the market value of its assets declines to a value that is less than the market value of its liabilities. As such, the bank is unable to fulfill the demands of all of its depositors on time.
The failure of a bank is generally considered to be of more importance than the failure of other types of business firms because of the interconnectedness of banking institutions. It is often feared that the effects of a failure of one bank can quickly spread throughout the economy and possibly result in the failure of other banks, whether or not those banks were solvent at the time. As a result, banking institutions are typically subjected to rigorous regulation, and bank failures are of major public policy concern in countries across the world.
Arab Banks Failures is the subject matter of this Article in Arabic http://www.graincon.org/files/headedpaper.pdf
