Determinants of Islamic Banks Distress in Gulf Council Countries (GCC)
Bakhita Hamdow Braima
A chapter in Linear and Non-Linear Financial Econometrics -Theory and Practice from IntechOpen
Abstract:
The study aims to investigate the relation between Z score and internal factors represented in Camel rating system ratios. To discover the best ratios that can be used as indicator. Also it aims to investigate the impact of external economic factors GDP, Inflation rate and currency exchange rate on the Islamic banks soundness.it follows quantitative method, simple random sample of five full-fledge Islamic banks in Gulf Council Countries is selected, parametric statistical analysis is used, especially linear multiple regression tool. The results of linear regression model showing that, there are some ratios affect positively and significantly on Z score,those are, Total equities to T. Asset; Total loan to Total Assets; market share price and Earning per share.; moreover the GDP and inflation rate do not effect on the Islamic banks soundness. Implication of the results in Islamic banks they should increase their Z score through increasing some ratios such as liabilities to Assets ratio, loan to Assets ratio, share market price, most important implication of the study result is a recommendation for amendment of Camel rating model. Further works are recommended with more statistical techniques. The relation between camel dimensions ratios and bankometer model should be conducted.
Keywords: Z score; bankometer; Camel; GDP; Islamic banks (search for similar items in EconPapers)
JEL-codes: C01 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:213569
DOI: 10.5772/intechopen.95028
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