The Impact of Oil Price Crisis on Financial Performance of Commercial Banks in Bahrain
Banks and Bank Systems, November 2017, Vol. 12, No.4, pp.4-16.
14 Pages Posted: 2 Jan 2020
Date Written: November 30, 2017
Oil export is the major source of revenue for the countries in the Middle East. Their economies are sensitive to fluctuations in oil prices. The present study examines the impact of oil crisis on the performance of selected banks of Kingdom of Bahrain using profitability, efficiency, capital adequacy and liquidity ratios in the pre-crisis and crisis periods. The study reveals that there is no significant difference in the performance of banks in the pre-crisis and crisis period. The results indicate that there is a significant difference in the performance of сonventional banks and Islamic banks in the pre-crisis period. However, there is no significant difference in the performance of сonventional banks and Islamic banks during the crisis period.
Keywords: oil crisis, bank performance, financial ratios
JEL Classification: F40, G21, G30
Suggested Citation: Suggested Citation