Impact of Financial and Oil Price Crisis on the Financial Performance of Selected Banks in Bahrain

Abstract

This paper focuses on analysing the impact of financial and oil price crisis on the financial performance of selected banks in Bahrain.We selected a sample of seven commercial banks out of which three Islamic banks and four conventional banks. The study covered a period of eleven years, from 2005 to 2015.We used ratio, descriptive statistics and single factor ANOVA. The financial performance of banks in terms of profitability, efficiency, leverage and liquidity is analysed through ratios. We found that there was not much impact on the financial performance of the banks during the crisis and pre-crisis period but the impact was observed in postfinancial crisis. The oil price crisis has an impact on the financial performance of banks all the banks. Moreover, it was observed that there is a difference in the financial performance of individual banks during the crisis period.

Keywords: financial performance of Banks, financial crisis, oil price crisis, Bahrain

JEL Classification: G01, G21