Abstract
Given the important role played by the banking sector in supporting economic growth in a way that enhances the economies of countries, supports employment and productivity, and raises the level of average income, the study came to analyze and interpret the impact mechanisms through which trade and financial openness policies can play their role in developing the banking sector and improving its performance. Where the study aimed to frame the theoretical foundations of the concepts of financial and commercial openness policies and to determine their impact on the development of the banking sector, in addition to building some quantitative models that can diagnose and clarify the nature of the impact of these policies on the development of the banking sector in a group of Arab countries (Egypt, Jordan, Tunisia, Saudi Arabia, the United Arab Emirates, Qatar, and the Sultanate of Oman) for the period 2004-2019, which was based on balanced panel data whose views amounted to 112 views. The nature of the effect was proportional to the positive and negative, and in some cases neutral, Therefore, it is necessary to adopt effective and efficient strategies that enable the application of financial and commercial openness policies through legislation and laws that will raise the efficiency of applying these policies and avoid the shortcomings that result in the absence of these strategies, as well as supporting the positive aspects that are reflected in the development of the banking sector.
