The aim of this study is to evaluate the relationship
between the efficiency, capital and risk in the GCC banking sector in order to
determine the efficiency of the banking sector and its effect on capitalization
and risk. The study would utilize all listed banks of the GCC region and
utilize financial data for the period 2015 – 2018.
The balance sheet and P & L analysis would include
different considerations such as total assets, loans, advances and financing,
customer’s deposits, total equity, other income, total net operating income,
operating expense and net profit after tax considerations. The analysis for the
period 2015 to 2018 would include information extracted from the income
statement and balance sheet of all banks. The income statements of 5 banks will
consider total assets, loans, advances, financing, customer deposits, equity,
income, net operating income, operating expense and net profit after tax.
Variable
measuring efficiency
The input and output variables are the input prices and bank
specific characteristic of all GCC banks that are located in Oman. For
calculating the average size of banks the total assets are analyzed by the help
of balance sheets. It can be seen that Oman bank contain lowest loan loss
reserve ratio. This means that they their assets are completely stable. Another
things is that their risk based capital ratio is also extremely low. This shows that the bank in Oman contain huge
risks the main reason is that they contain highest NPL with least Tier-1 risks.
This shows that the bask in Oman contain high quality risks.
·
Input prices
·
Bank specific
characteristic of all GCC banks that are located in Oman.
1.
Capital is calculated
of GNU Compiler Collection System
software
•
Total assets of First
Abu Dhabi Bank increased from 406,564 to 7,438,886 from 2015 to 2018. With the
increase in assets, the net profit after tax increased from 5,232 to 12066 for
four years. Total assets of Emirates national bank show increasing trends from
406,560 to 500,343 from 2015 to 2018. With the increase in assets, the
monotonic increase is observed in net profit after tax increased from 2,386 to
5,001.4 for four years.
2. for risk provision for
of GNU Compiler Collection System
software
According to the four-year financial report of Samba
bank total assets were increased from 80,166 to 122,765 from 2015 to 2018. With
the increase in assets, the net profit after tax increased from 431 to 682.7
for four
years. Z-scoring
ratio has positive significant impact on the financial performance of conventional
banks in Oman. The balance sheet and P
& L analysis would include different considerations such as total assets,
loans, advances and financing, customer’s deposits, total equity, other income,
total net operating income, operating expense and net profit after tax
considerations.
3. efficiency of GNU Compiler
Collection System software
Productivity research has developed several approaches to inform the
development of global efficiency measures. The main important point in this
process is that the input-output variables should be chosen in accordance with
the type of efficiency being assessed. Efficiency in DEA is not confined to a
traditional sense of operating. Variables selected are sufficient to illustrate
the approach used to measure efficiency in the GCC banks
The expected conclusion of this study would be to determine
if capitalization of the banks is positively linked to its efficiency and
profitability while being negatively linked to the size, scope and quality of
risk undertaken by the bank. The results would act as a benchmark towards
policy implications for banks in the GCC region.
References of GNU
Compiler Collection System software
Gulfbusiness.
com . (2019). Revealed: Top 10 banks in
the GCC. Retrieved from gulfbusiness.com: https://gulfbusiness.com/revealed-top-10-banks-gcc/
Investing.
com. (2019). National Bank Of Kuwait Sak.
Retrieved from www.investing.com: https://www.investing.com/equities/national-bank-kt-balance-sheet
For
Saudi banks
https://www.tadawul.com.sa/wps/portal/tadawul/markets/equities/indices/today/!ut/p/z1/pZHRTsIwFIafhYteSs9gAfWumDBL5hIiw9GbpZYqTbZ2aYtTn97CnQkWCb076fcl5_w_ZrjCTPMP9c69Mpo3Yd6wST0aPdwmdynkkE8TIJMM6PIpHWdzwC8xALIEs4v8jBZTIEvyuJ6vV8EfX-dD-j8f_ngEzvmLc0BIcOd9d48AQd_3Q_XaDoVpEXy2jXYIOmu2CLbcc__VSQTCaC-1R2ClM3sr5I0wTSPFoRCHmdhx62vPnarF3tpA1i58Gour1ayg4R4W3ahI4sCxst_AiU6iwCH0IxBJtWvLsqy-87dnqigZDH4Avrn85g!!/p0/IZ7_NHLCH082KGN530A68FC4AN2O63=CZ6_22C81940L0L710A6G0IQM43GF0=MEtabIndex!ListedCompanies=chart_tasi_current_sector!TBNI==/?