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Does Basil III Implementation Impact on Financial Performance? Evidence from Omani's Commercial Banks

Author

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  • Zaroug Osman Bilal

    (Department of Accounting and Finance, College of Commerce and Business Administration, Dhofar University, Salalah, Oman,)

  • Badreldin F. Salim

    (Department of Accounting and Finance, College of Commerce and Business Administration, Dhofar University, Salalah, Oman.)

Abstract

This research aims to investigate and examine the impact Basel III implementation on financial performance of commercial banks in Omani. The annual data for all Omani commercial banks during 2013-2015 are used for calculating key financial ratios in order to assess the impact of Basel III implementation on financial performance in Omani commercial banks. To test whether there is a relationship between Basel III implementation and profitability in commercial banking sector, the research used a correlation analyses model, Ordinary and least square estimation obtained from an SPSS 17.0 package is adopted to analyze the relationship between the variables, where financial performance or profitability of commercial banks was measured in terms of return on assets, return on equity, efficiency ratio (EFR), net interest margin (NIM) and debt-to equity ratio. The findings of the research established a positive impact of Basel III implementation on financial performance of commercial banks in Oman, however this impact is not statically significant.

Suggested Citation

  • Zaroug Osman Bilal & Badreldin F. Salim, 2016. "Does Basil III Implementation Impact on Financial Performance? Evidence from Omani's Commercial Banks," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 963-970.
    • Handle: RePEc:eco:journ1:2016-03-19
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    References listed on IDEAS

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    1. Alberto Locarno, 2011. "The macroeconomic impact of Basel III on the Italian economy," Rivista Bancaria - Minerva Bancaria, Istituto di Cultura Bancaria Francesco Parrillo, issue 5-6, november.
    2. Mr. Andre O Santos & Douglas Elliott, 2012. "Estimating the Costs of Financial Regulation," IMF Staff Discussion Notes 2012/011, International Monetary Fund.
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    Cited by:

    1. Ayodeji Michael Obadire & Vusani Moyo & Ntungufhadzeni Freddy Munzhelele, 2022. "Basel III Capital Regulations and Bank Efficiency: Evidence from Selected African Countries," IJFS, MDPI, vol. 10(3), pages 1-22, July.

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    More about this item

    Keywords

    Basel III; Commercial Banks; Financial Performance; Oman;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

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