GRM 2010 GRM 2011

Abstract Details

 
AUTHOR NAME
 
Family Name:
Hassan
 
First Name:
Kabir
 
ABSTRACT OF PAPER
 
Title of Paper:
Financial Liberalization and the Domestic Banking Performance in the Gulf and Middle Eastern Countries
 
Paper Proposal Text :
This paper examines the impact of financial liberalization and foreign bank entry on the domestic banking sector from 1996 to 2007 in a number of Gulf Cooperation Council (GCC) and Middle Eastern Countries. We find that foreign bank entry, financial liberalization, ownership structure and degree of openness of foreign bank entry positively impact domestic banking system operating efficiency, capitalization, risk management, long term soundness, financial performance in addition to economic and financial development. However, foreign bank entry is associated with reduced profit margins and increased operating costs of domestic banks in countries with less developed capital markets. Empirical evidence seems to support the argument that foreign bank presence leads to better allocation of capital and eliminates connected lending practices.
Keywords: Bank Performance, GCC, Financial Liberalization, Ownership, Government Policy
JEL Classification: G15, 21, 28
 
 
 

WITH THE GENEROUS SUPPORT OF