Forum for Economic and Financial Studies

This study investigates the multifaceted impacts of COVID-19, GDP, exchange rates, unemployment, and economic policy uncertainty on bank depositors in Arab economies: Algeria, Comoros, Djibouti, Egypt, Iraq, Jordan, Lebanon, Libya, Mauritania, Morocco, Palestine, Somalia, Sudan, Syria, Tunisia, and Yemen, between 2017 and 2022. Using ordinary least square analysis, the research uncovers significant relationships between these variables and banking indicators. COVID-19 has emerged as a dominant force, displaying a substantial and adverse link to the number of deposit accounts and depositors. While GDP, exchange rates, unemployment, and economic policy uncertainty also exhibit influences on banking metrics, their effects are comparatively smaller. This underscores the pandemic’s exceptional sway over banking behaviors within the region, emphasizing the pressing need to address COVID-19’s implications for financial stability and strategies to reinforce banking resilience amidst diverse economic challenges.