Do oil and gas price shocks have an impact on bank performance?
The paper examines the impact of oil and gas price shocks on bank performance in the major oil and gas exporting GCC countries, using data for the period 2000–2017. Results indicate that oil and gas price rises have a direct bearing on bank performance through the channel of price-induced bank depos...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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2020
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| Online Access: | https://repo.uum.edu.my/id/eprint/27450/1/JCM%202020%201%2034.pdf |
| _version_ | 1825805649943986176 |
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| author | Saif-Alyousfi, Abdulazeez Y.H. Saha, Asish Md Rus, Rohani Taufil Mohd, Kamarun Nisham |
| author_facet | Saif-Alyousfi, Abdulazeez Y.H. Saha, Asish Md Rus, Rohani Taufil Mohd, Kamarun Nisham |
| author_sort | Saif-Alyousfi, Abdulazeez Y.H. |
| collection | UUM |
| description | The paper examines the impact of oil and gas price shocks on bank performance in the major oil and gas exporting GCC countries, using data for the period 2000–2017. Results indicate that oil and gas price rises have a direct bearing on bank performance through the channel of price-induced bank deposits and related lending to business activities. The negative impact on bank performance due to a drop in oil and gas prices is greater than the positive effect of a rise in prices. Findings suggest that oil and gas price volatility has an asymmetric effect on conventional and Islamic banks. Conventional banks reap more benefit from the increased cash flow created by oil and gas prices, compared to Islamic banks. While Islamic banks are generally vulnerable to adverse oil and gas price shocks, conventional banks tend to benefit more from positive oil and gas price shocks. The association between oil and gas price shocks and bank performance in GCC has been distorted by the global financial crisis, the Arab Spring, and the ongoing Yemen War, which have lowered performance. The findings of the study have significant policy implications for the central banks as well as the governments in the oil and gas-exporting countries. |
| first_indexed | 2024-07-04T06:35:43Z |
| format | Article |
| id | uum-27450 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:35:43Z |
| publishDate | 2020 |
| record_format | eprints |
| spelling | uum-274502020-11-04T01:51:03Z https://repo.uum.edu.my/id/eprint/27450/ Do oil and gas price shocks have an impact on bank performance? Saif-Alyousfi, Abdulazeez Y.H. Saha, Asish Md Rus, Rohani Taufil Mohd, Kamarun Nisham HC Economic History and Conditions The paper examines the impact of oil and gas price shocks on bank performance in the major oil and gas exporting GCC countries, using data for the period 2000–2017. Results indicate that oil and gas price rises have a direct bearing on bank performance through the channel of price-induced bank deposits and related lending to business activities. The negative impact on bank performance due to a drop in oil and gas prices is greater than the positive effect of a rise in prices. Findings suggest that oil and gas price volatility has an asymmetric effect on conventional and Islamic banks. Conventional banks reap more benefit from the increased cash flow created by oil and gas prices, compared to Islamic banks. While Islamic banks are generally vulnerable to adverse oil and gas price shocks, conventional banks tend to benefit more from positive oil and gas price shocks. The association between oil and gas price shocks and bank performance in GCC has been distorted by the global financial crisis, the Arab Spring, and the ongoing Yemen War, which have lowered performance. The findings of the study have significant policy implications for the central banks as well as the governments in the oil and gas-exporting countries. 2020 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/27450/1/JCM%202020%201%2034.pdf Saif-Alyousfi, Abdulazeez Y.H. and Saha, Asish and Md Rus, Rohani and Taufil Mohd, Kamarun Nisham (2020) Do oil and gas price shocks have an impact on bank performance? Journal of Commodity Markets. pp. 1-34. ISSN 24058513 http://doi.org/10.1016/j.jcomm.2020.100147 doi:10.1016/j.jcomm.2020.100147 doi:10.1016/j.jcomm.2020.100147 |
| spellingShingle | HC Economic History and Conditions Saif-Alyousfi, Abdulazeez Y.H. Saha, Asish Md Rus, Rohani Taufil Mohd, Kamarun Nisham Do oil and gas price shocks have an impact on bank performance? |
| title | Do oil and gas price shocks have an impact on bank performance? |
| title_full | Do oil and gas price shocks have an impact on bank performance? |
| title_fullStr | Do oil and gas price shocks have an impact on bank performance? |
| title_full_unstemmed | Do oil and gas price shocks have an impact on bank performance? |
| title_short | Do oil and gas price shocks have an impact on bank performance? |
| title_sort | do oil and gas price shocks have an impact on bank performance |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/27450/1/JCM%202020%201%2034.pdf |
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