Measuring the Performance of the Kuwaiti Banking Sector Before and After the Recent Financial CrisisAtyeh MH1*, Yasin J2 and Khatib AM1
- *Corresponding Author:
- Dr. Atyeh MH
Assistant Professor, School of Business
Australian College of Kuwait
E-mail: [email protected]
Received: November 09, 2015; Accepted: November 17, 2015; Published: November 30, 2015
Citation: Atyeh MH, Yasin J, Khatib AM (2015) Measuring the Performance of the Kuwaiti Banking Sector Before and After the Recent Financial Crisis. J Bus Fin Aff 5:156. doi:10.4172/2167-0234.1000156
Copyright: © 2015 Atyeh MH, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The objective of this research is to investigate the determinants of the performance of the Kuwaiti banking sector before and after the recent financial crisis over the period of 2006-2012. The data utilized is based on the yearly financial statements of the Kuwaiti banks that are listed on Kuwait Stock Exchange over the same period. There are several methods have been used to identify the determinants which impact the performance of the banking sector. In this research, a ratio analysis technique is considered efficient and more reliable method than other approaches. Other factors such as trend, government regulations and other economic factors are also included. The study found that the overall banking sector performance increased considerably in the first two years of the analysis. A significant change in trend is noticed at the onset of the global financial crisis in September 2008, reaching its peak before the global financial crisis. This resulted in decreasing the profitability, return on equity, assets and capital.