Macroeconomic Conditions and Soundness of UAE Banking Sector

DISSERTATION WITH DISTINCTION

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Ali, Dhuha Musleh Fadhel (author)
منشور في: 2012
الموضوعات:
الوصول للمادة أونلاين:http://bspace.buid.ac.ae/handle/1234/111
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author Ali, Dhuha Musleh Fadhel
author_facet Ali, Dhuha Musleh Fadhel
author_role author
dc.creator.none.fl_str_mv Ali, Dhuha Musleh Fadhel
dc.date.none.fl_str_mv 2012-04
2013-05-21T07:41:26Z
2013-05-21T07:41:26Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv 90123
http://bspace.buid.ac.ae/handle/1234/111
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv The British University in Dubai (BUiD)
dc.subject.none.fl_str_mv macroeconomics
banking sector
United Arab Emirates (UAE)
UAE national banks
assets quality
profitability
dc.title.none.fl_str_mv Macroeconomic Conditions and Soundness of UAE Banking Sector
dc.type.none.fl_str_mv Dissertation
description DISSERTATION WITH DISTINCTION
id budr_85c171fd8defc0da26bcfacdbf8b5106
identifier_str_mv 90123
language_invalid_str_mv en
network_acronym_str budr
network_name_str The British University in Dubai repository
oai_identifier_str oai:bspace.buid.ac.ae:1234/111
publishDate 2012
publisher.none.fl_str_mv The British University in Dubai (BUiD)
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
spelling Macroeconomic Conditions and Soundness of UAE Banking SectorAli, Dhuha Musleh Fadhelmacroeconomicsbanking sectorUnited Arab Emirates (UAE)UAE national banksassets qualityprofitabilityDISSERTATION WITH DISTINCTIONUsing a panel data for 19 UAE national banks covering the period 2005-2010, this research analyzes the impact of selected macroeconomic and bank-specific variables on financial soundness indicators (FSIs) related to banks. Capital adequacy, Assets quality and profitability are key indicators for banks’ soundness and they are believed to have a robust correlation with business cycle and other macroeconomic indicators. The study finds that banks’ FSIs are strongly related to the business cycle and inflation rate. Banks tend to increase their capital ratios in downturns while reducing them in upturns causing a pro-cyclical effect on the business cycle. Also, inflation rate has a strong negative relationship with capital ratios due to its impact on banks’ costs and profitability. Probability of default tends to increase during adverse macroeconomic conditions and thus increases non-performing loans in the banking sector. Moreover, some bank-specific characteristics showed significant relationship with soundness indicators of banks. Cost of adjusting capital and risk appetite of banks have significant impact on the CAR ratios. Also, higher spread between lending rate and deposit rate increases the debt servicing burden on borrowers and thus increases the probability of default, while banks with lower leverage ratios can be more profitable due to their low cost of funding.The British University in Dubai (BUiD)2013-05-21T07:41:26Z2013-05-21T07:41:26Z2012-04Dissertationapplication/pdf90123http://bspace.buid.ac.ae/handle/1234/111enoai:bspace.buid.ac.ae:1234/1112021-10-06T11:42:01Z
spellingShingle Macroeconomic Conditions and Soundness of UAE Banking Sector
Ali, Dhuha Musleh Fadhel
macroeconomics
banking sector
United Arab Emirates (UAE)
UAE national banks
assets quality
profitability
title Macroeconomic Conditions and Soundness of UAE Banking Sector
title_full Macroeconomic Conditions and Soundness of UAE Banking Sector
title_fullStr Macroeconomic Conditions and Soundness of UAE Banking Sector
title_full_unstemmed Macroeconomic Conditions and Soundness of UAE Banking Sector
title_short Macroeconomic Conditions and Soundness of UAE Banking Sector
title_sort Macroeconomic Conditions and Soundness of UAE Banking Sector
topic macroeconomics
banking sector
United Arab Emirates (UAE)
UAE national banks
assets quality
profitability
url http://bspace.buid.ac.ae/handle/1234/111