Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis

In this paper, we analyze the evolution of the banking sector in the six gulf cooperation council (GCC) countries including concentration, trends in credit growth, balance sheets, and financial safety as well as oil price over the period 2000–2014. In general, our analysis finds that the level of c...

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Main Authors: Saif-Alyousf, Abdulazeez Y. H., Md Rus, Rohani, Taufil Mohd, Kamarun Nisham
Format: Article
Language:English
Published: Econ Journal 2018
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Online Access:http://repo.uum.edu.my/27065/1/EJ%208%206%202018%2089%20101.pdf
http://repo.uum.edu.my/27065/
http://doi.org/10.32479/ijeep.7074
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spelling my.uum.repo.270652020-11-04T01:54:50Z http://repo.uum.edu.my/27065/ Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis Saif-Alyousf, Abdulazeez Y. H. Md Rus, Rohani Taufil Mohd, Kamarun Nisham HJ Public Finance In this paper, we analyze the evolution of the banking sector in the six gulf cooperation council (GCC) countries including concentration, trends in credit growth, balance sheets, and financial safety as well as oil price over the period 2000–2014. In general, our analysis finds that the level of capitalization of banks in GCC countries appears comfortable despite the adverse effect of the financial crisis. Despite apparent financial soundness, there are certain weaknesses in the banking sector of GCC countries which needs investigation. Firstly, GCC countries have registered sharp growth in of credit in consonance with the steady rise in the price of oil straining the liquidity position of banks. Secondly, some banking systems in GCC countries are highly exposed to households secured by their salaries especially in Bahrain (50–60%) and Qatar 70%). Thirdly, although the overall NPLs ratio in the GCC banking sector is at historically low levels, however, it has remained high when compared to the average NPLs ratio of the global banks. Finally, we find that banks in GCC countries seem to keep low levels of liquidity compared to international standards. Econ Journal 2018 Article PeerReviewed application/pdf en http://repo.uum.edu.my/27065/1/EJ%208%206%202018%2089%20101.pdf Saif-Alyousf, Abdulazeez Y. H. and Md Rus, Rohani and Taufil Mohd, Kamarun Nisham (2018) Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis. International Journal of Energy Economics and Policy, 8 (6). pp. 89-101. ISSN 21464553 http://doi.org/10.32479/ijeep.7074 doi:10.32479/ijeep.7074
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HJ Public Finance
spellingShingle HJ Public Finance
Saif-Alyousf, Abdulazeez Y. H.
Md Rus, Rohani
Taufil Mohd, Kamarun Nisham
Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis
description In this paper, we analyze the evolution of the banking sector in the six gulf cooperation council (GCC) countries including concentration, trends in credit growth, balance sheets, and financial safety as well as oil price over the period 2000–2014. In general, our analysis finds that the level of capitalization of banks in GCC countries appears comfortable despite the adverse effect of the financial crisis. Despite apparent financial soundness, there are certain weaknesses in the banking sector of GCC countries which needs investigation. Firstly, GCC countries have registered sharp growth in of credit in consonance with the steady rise in the price of oil straining the liquidity position of banks. Secondly, some banking systems in GCC countries are highly exposed to households secured by their salaries especially in Bahrain (50–60%) and Qatar 70%). Thirdly, although the overall NPLs ratio in the GCC banking sector is at historically low levels, however, it has remained high when compared to the average NPLs ratio of the global banks. Finally, we find that banks in GCC countries seem to keep low levels of liquidity compared to international standards.
format Article
author Saif-Alyousf, Abdulazeez Y. H.
Md Rus, Rohani
Taufil Mohd, Kamarun Nisham
author_facet Saif-Alyousf, Abdulazeez Y. H.
Md Rus, Rohani
Taufil Mohd, Kamarun Nisham
author_sort Saif-Alyousf, Abdulazeez Y. H.
title Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis
title_short Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis
title_full Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis
title_fullStr Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis
title_full_unstemmed Oil price and banking sectors in Gulf Cooperation Council economies before and after the global financial turmoil: Descriptive analysis
title_sort oil price and banking sectors in gulf cooperation council economies before and after the global financial turmoil: descriptive analysis
publisher Econ Journal
publishDate 2018
url http://repo.uum.edu.my/27065/1/EJ%208%206%202018%2089%20101.pdf
http://repo.uum.edu.my/27065/
http://doi.org/10.32479/ijeep.7074
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score 13.144533