Financial Appraisal of Banking Sector in GCC Countries

Abstract

In common parlance, a financial system is a pivotal, effective and efficient platform newlinethat connects savers and investors. Merton and Bordie (2004) noted that a key element of a newlinemeaningful financial system is earning a return on investment. In other words, economic agents newlineand financial intermediaries present in any financial system, at some point of time in the future, newlineexpect to earn profits or returns on their investments. This implies that risk, uncertainties, and newlinepotential losses are an inherent part of financial markets; a key component of a financial system. newlineThe selection of investment projects to finance and ultimately tracing their performance is an newlineessential aspect of this system; a measure of ensuring financial effectiveness and risk newlinemanagement. newline