GRM 2010 GRM 2011

Abstract Details

Family Name:
First Name:
Dr. Anis
Title of Paper:
The GCC Banking Sector: An Overview
Paper Proposal Text :
A well developed financial system contributes to economic growth. GCC financial systems are bank dominated and have been facing serious challenges in the wake of the global financial crisis. Concerns over the banking sector’s ability to carry its intermediation role have been rising in the face of shrinking assets, plunging credit, tight liquidity, negative profits, record level of provisioning against impaired loans, and credit downgrading at all levels.
Against this background, we conduct this study with the aim of assessing the structure, soundness and performance of the GCC banking sector using an exploratory research method. We first survey the literature about financial deepening and economic growth, GCC banking performance, and the use of financial ratios as early warning signals.
We then collect a wide range of financial sector indicators in order to appraise GCC level of financial deepening and development. We bring a particular emphasis to the increasing role of Islamic banking and finance and its sustainability as a source of financing. We use bank reported financial statements to analyze asset quality, liquidity, and profitability of UAE banks and compare it to that of banks in neighboring GCC countries. We differentiate between the performance of Islamic banks and that of conventional banks.
Research findings will be used to gain insight into areas of vulnerability, recommend best practices in addressing them, and set a research agenda towards future investigation of the banking and finance industry.