Testing the Financial Stability of Banks in GCC Countries: Pre and Post Financial Crisis

Authors

  • Prof. Dr. Hatem Hatef Abdulkadhim Altaee Cihan University – Sulaimaniya Kurdistan Region – Iraq
  • Ibaa M. Anis Talo M.Sc. Financial Management M.Sc. Islamic Banking United Nations, Damascus – Syria
  • Mustafa Hassan Mohammad Adam, Ph.D ihan University – Sulaimaniya Kurdistan Region – Iraq

DOI:

https://doi.org/10.18533/ijbsr.v3i4.33

Keywords:

Testing, Financial Stability, Banks, Financial Crisis, GCC Countries

Abstract

Stability of the banking system is underpinned through an effective bank monitoring mechanism since the sector is resilient to a range of single and combined shocks. Banks financial stability in the Gulf Cooperation Council (GCC) countries was empirically assessed by using z-score as a dependent variable. A group of macro and microeconomic independent variables were selected to measure their effects on banks stability. All banks in this region that are considered Conventional or Islamic banks were selected. The targeted period was 2003-2010 to cover pre- and post- financial crisis. It was found that there is no evidence that there is a significant difference between the financial stability of Conventional and Islamic banks for the periods 2003-2010, 2003-2007, and 2008-2010. However, Conventional banks tend to be financially stronger than Islamic banks for the pre- financial crisis.

 

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Issue

Vol. 3 No. 4 (2013): April

Section

Article

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