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Development and performance of domestic and foreign banks in GCC countries

Mazhar M. Islam (Sultan Qaboos University)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 March 2003

2158

Abstract

An analysis of domestic and foreign banks’ internal performance by investigating their financial ratios shows that banks in Bahrain, Oman, the United Arab Emirates (GCC countries) have improved their performance over the past several years. Commercial banks in these GCC economies are well capitalised and have adopted modern banking services. Most banks are found to be financially sound by international standards, measured by all key financial ratios. Their operations can be characterised by satisfactory asset quality, more than minimum BIS capital/asset ratio, and high level of profitability. External performance is measured by evaluating banks’ market shares, regulatory compliance and public confidence; and most of the banks show better progress. Harmonization of the banks’ supervisory and accounting systems towards IAS has contributed to the safety and competitiveness of the banking sector.

Keywords

Citation

Islam, M.M. (2003), "Development and performance of domestic and foreign banks in GCC countries", Managerial Finance, Vol. 29 No. 2/3, pp. 42-72. https://doi.org/10.1108/03074350310768689

Publisher

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MCB UP Ltd

Copyright © 2003, MCB UP Limited

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