Assessing the Islamic Banks Performance in the Gulf Cooperation Council Countries: An Empirical Study

Abstract

This paper aims to ask lots of questions about the effect of various factors on the performance of the Islamic Banking Sector (IBS) in the Gulf Cooperation Council (GCC) countries. Both panel data analysis relating to random effect (RE) regression and generalized method of moments (GMM) in the system are utilized to quantify the relationship between board features and banks performance. The population of this research was 40 Islamic banks in the GCC zone with the perception went from 2005 to 2016. Our outcomes point to show that regression with GMM in system confirms the RE results just for the degree of bank capital, demonstrating a positive and significant connection between this variable and the bank performance at a 5% criticalness level. Notwithstanding, sharia board size and board duality apply a positive and huge hit on bank performance just when RE regression technique is utilized. These discoveries are applicable and valuable contribution for Islamic banks in dealing with their speculations inside their establishments. All the more significantly, Islamic banks in GCC should allow more significance to the degree of the capital bank, the structure and nature of the board, and the board duality to improve their performance.