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Performance Analysis of Commercial Banks in the Kingdom of Bahrain (2001-2015)

Author

Listed:
  • Iqbal Thonse Hawaldar

    (Department of Accounting and Finance, College of Business Administration & Assistant to the President for Accreditation and Quality Assurance, Kingdom University, Kingdom of Bahrain,)

  • Lokesha

    (Sahyadri College of Engineering & Management, Mangalore, Karnataka, India,)

  • K. Abhaya Kumar

    (Sahyadri College of Engineering & Management, Mangalore, Karnataka, India,)

  • Prakash Pinto

    (Department of Business Administration, St. Joseph College of Engineering, Mangalore, Karnataka, India,)

  • Sheila M. Sison

    (Department of Business Management, College of Business Administration, Kingdom University, Kingdom of Bahrain.)

Abstract

Banking sector plays a leading role in financing a country's economic activities. Its performance is crucial in determining a country's economic growth. This paper examines the performance of commercial retail banks (conventional and Islamic) in Bahrain and financial ratios were used for the period of 15 years 2001-2015 on parameters such as profitability, liquidity, operating efficiency, capital adequacy and leverage. The empirical results revealed that conventional retail banks, except for Bahrain development bank, have consistent performance in return on assets and return on equity while among the Islamic retail banks, the performance of Kuwait finance house is satisfactory in terms of profitability. The data also shows that all banks have satisfactory risk assets ratio. The commercial banks' profitability and capital adequacy as well as their profitability and efficiency are statistically correlated. There is a significant difference in the capital adequacy but no significant difference in profitability and liquidity was found among the listed commercial retail banks.

Suggested Citation

  • Iqbal Thonse Hawaldar & Lokesha & K. Abhaya Kumar & Prakash Pinto & Sheila M. Sison, 2017. "Performance Analysis of Commercial Banks in the Kingdom of Bahrain (2001-2015)," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 729-737.
    • Handle: RePEc:eco:journ1:2017-03-93
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    References listed on IDEAS

    as
    1. Dr. Mikail Altan & Habib Yusufazari & Aykut Bedük, 2014. "Performance Analysis of Banks in Turkey Using CAMEL Approach," Proceedings of International Academic Conferences 0902916, International Institute of Social and Economic Sciences.
    2. Iliana G. Chatzi & Mihail N.Diakomihalis & Evangelos ?. Chytis, 2015. "Performance of the Greek banking sector pre and throughout the financial crisis," Journal of Risk & Control, Risk Market Journals, vol. 2(1), pages 45-69.
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    Cited by:

    1. Jamil Salem Al Zaidanin, 2020. "A Study on Financial Performance of the Jordanian Commercial Banks using the CAMEL Model and Panel Data Approach," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 111-130, October.

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    More about this item

    Keywords

    Performance Analysis; Conventional Banks; Islamic Banks;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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