This paper empirically investigates the effects of bank ownership and institutional factors on the banking sector financial stability for a sample of 76 banks in the GCC markets. We used the GMM estimator and Merton’s DD and PD as our main dependent variables on annual data of 14 years in order to assess the financial stability. The analysis sub-sampled considering private vs state, domestic vs foreign owned, Islamic vs conventional and small vs large vs all banks in the GCC markets. We found all state-owned banks to be more stable than privately-owned banks. However, after controlling for size this finding is true for small but not large state-owned banks. This means as state-owned banks grow in size, they appear to lose their previously held stability advantage and privatisation might be pondered to preserve their financial stability. We also found, in line with the global advantage hypothesis, that foreign-owned banks to be more stable and have a lower probability of default than the domestically- owned banks. In addition, even though our analysis shows that the Islamic banking model did not change the stability level, Islamic banks were found to register a higher probability of default than their conventional counterparts. Finally, with the exception of the rule of law variable, the other three institutional variables were found to positively affect the financial stability the GCC banking sector.

本文对海湾合作委员会市场中76家银行的样本进行了实证研究，研究了银行所有权和机构因素对银行业金融稳定性的影响。我们使用GMM估算器和Merton的DD和PD作为14年年度数据的主要因变量，以评估财务稳定性。该分析对GCC市场中的私人，国有，国内，外资，伊斯兰，传统，小型与大型与所有银行进行了二次抽样。我们发现，所有国有银行都比私有银行更稳定。但是，在控制规模之后，这一发现对于小型但不是大型的国有银行是正确的。这意味着随着国有银行规模的扩大，它们似乎失去了先前拥有的稳定性优势，并且可能需要考虑私有化以保持其金融稳定性。我们还发现，根据全球优势假设，外资银行比外资银行更稳定，违约几率更低。此外，尽管我们的分析表明伊斯兰银行模式并未改变稳定性水平，但发现伊斯兰银行的违约概率要比传统银行高。最后，除法治变量外，其他三个制度变量也对海湾合作委员会银行业的金融稳定性产生积极影响。发现伊斯兰银行的违约概率要比传统银行高。最后，除法治变量外，其他三个制度变量也对海湾合作委员会银行业的金融稳定性产生积极影响。发现伊斯兰银行的违约概率要比传统银行高。最后，除法治变量外，其他三个制度变量也对海湾合作委员会银行业的金融稳定性产生积极影响。