Tinjauan dan Analisis Sektor Perbankan di Enam Negara GCC

Abstract

This study aims to analyze the development of the banking sector in six GCC countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). Based on data from the Fitch rating agency and Market Review released by China Trade Research, the GCC country is a Middle Eastern country that is classified as safe, which is in the range of the political risk index of 50-70. Because of safety risks, economic growth and the banking sector are classified as good. By using a comparative descriptive research method, this study describes the development of the banking sector in each GCC country then compares its achievements from the previous year. Data used Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loans (NPL) and Return on Assets (ROA) in the 2016- 2017 period. Broadly speaking, the banking sector in the six GCC countries has quite good performance, both the conventional banking sector and Islamic banking experienced good growth with the monitoring of each Central Bank focused on technology development and product innovation, the application of Basel III, IFRS 9 and implement new regulations related to Value Added Tax (VAT). However, if it is reviewed in each country, the Kuwaiti banking sector is the best among the 5 other GCC countries. Shown with a high CAR, LDR and ROA ratio, while the NPL ratio is very low. Kuwait's banking sector is the most developed and healthy. Kuwait Islamic bank received the award as The Global Winner of the World's Best Islamic Digital Bank. Meanwhile, the Bahraini Government is quite careful in channeling banking sector funds given the highest number of non-performing loans in this country compared to the other 5 GCC countries. However, this caution is quite relevant to the highest number of capital adequacy ratios among GCC countries. Keywords: CAR, LDR, NPL, ROA