IMF Working Papers

A Cross-Country Nonparametric Analysis of Bahrain’s Banking System

By Vlad Manole, David A. Grigorian

June 1, 2005

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Vlad Manole, and David A. Grigorian A Cross-Country Nonparametric Analysis of Bahrain’s Banking System, (USA: International Monetary Fund, 2005) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Bahrain's financial sector development strategy succeeded in building a leading regional banking center, which has become one of the main engines of growth and sources of employment. Although the simulations conducted in the paper suggest that the banking sector in Bahrain continues to occupy a front-runner position among those in a sample of member countries of the Gulf Cooperation Council, they also reveal that: (i) as expected, banks in Bahrain still lag behind their Singaporean counterparts, and (ii) there is strong competition from other countries in the region. The paper also finds that in terms of scale efficiency, the banks in Bahrain operate at the same level as banks in Singapore and their closest competitors in Qatar and the United Arab Emirates. The results appear to be robust with respect to changes in the sample size and model specifications.

Subject: Banking, Commercial banks, Competition, Islamic banking, Loans

Keywords: Bahrain, Ownership structure, Technical efficiency, WP

Publication Details

  • Pages:

    16

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2005/117

  • Stock No:

    WPIEA2005117

  • ISBN:

    9781451861365

  • ISSN:

    1018-5941