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379189

Factors Contributing to Bank Profitability in the GCC Region during Global Financial and Non-Financial Crises

Article

Last updated: 24 Dec 2024

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Abstract

The generalized method of moments (GMM) with an interaction dummy variable technique is used to analyze the factors contributing to the profitability of banks in the Gulf Cooperation Council (GCC) dual banking sector and the impact of global financial and non-financial crises. Our data covers 38 conventional GCC banks and 23 Islamic GCC banks from 2005 to 2022. While Islamic GCC banks are better capitalized, liquid, and diversified, they are less profitable and have higher operating costs than their conventional peers. Our results suggest that the global financial crisis has no significant impact on the two types of banks, while the non-financial crisis negatively affects only conventional banks. This suggests that Islamic banks operating in the GCC have proven to be resilient in financial and non-financial crises. Moreover, the impact of key factors contributing to the profitability of GCC banks varies considerably between conventional and Islamic banks. Moreover, an alternative estimation method, such as the dynamic bias-corrected LSDVC estimator, was used to confirm our results. The findings of this study provide valuable insights for managers, investors, policymakers, and regulators of GCC banks.

DOI

10.21608/acj.2024.379189

Keywords

bank profitability, GCC banks, Islamic banks, GMM, LSDVC

Authors

First Name

Mohammad

Last Name

Alsharif

MiddleName

-

Affiliation

Finance and Economics Department, College of Business Administration, Taibah University, Medina, Saudi Arabia

Email

malshareef@taibahu.edu.sa

City

المدينة المنورة

Orcid

0000-0001-5991-4091

Volume

61

Article Issue

5

Related Issue

50296

Issue Date

2024-09-01

Receive Date

2024-07-23

Publish Date

2024-09-01

Page Start

255

Page End

283

Print ISSN

2682-4183

Online ISSN

2682-4191

Article File

ACJ_Volume 61_Issue 5_Pages 255-283.pdf

PDF . 1.9MB

Link

https://acjalexu.journals.ekb.eg/article_379189.html

Detail API

https://acjalexu.journals.ekb.eg/service?article_code=379189

Order

8

Type

المقالة الأصلية

Type Code

759

Publication Type

Journal

Publication Title

مجلة جامعة الإسکندرية للعلوم الإدارية

Publication Link

https://acjalexu.journals.ekb.eg/

MainTitle

Factors Contributing to Bank Profitability in the GCC Region during Global Financial and Non-Financial Crises

Details

Type

Article

Created At

24 Dec 2024