The Impact of Financial Postion on Risk Asset Ratios: Emirical Study of Banking Sector Listed in Muscat Security Market

Information
Title: The Impact of Financial Postion on Risk Asset Ratios: Emirical Study of Banking Sector Listed in Muscat Security Market
Issue: Vol. 8, No 3, 2015
Published date: 20-10-2015 (print) / 20-10-2015 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Faris Alshubiri
Keywords: Financial Position, Risk Asset, Empirical Analysis MSM, Banking Sector
DOI: 10.14254/2071-789X.2015/8-3/7
DOAJ: https://doaj.org/article/d0ae3d3f279c4b018ddf5dce02326308
Language: English
Pages: 95-107 (13)
JEL classification: G32, D22, G21
Website: https://www.economics-sociology.eu/?350,en_the-impact-of-financial-position-on-risk-asset-ratios-empirical-study-of-banking-sector-listed-in-muscat-security-market
File https://www.economics-sociology.eu/files/ES_8_3_Alshubiri.pdf
Abstract

This study aims to analysis the impact of financial position based on four groups of risk asset ratios as capital adequacy based on three variables in the banking sector listed in Muscat Security Market (MSM) of Oman. The population of this study is six banks from the period 2009 to 2013. The multiple regression results indicate there is an impact of asset quality and total regulatory capital ratio and between asset quality, profitably and tier 1 capital ratio and finally, debt, liquidity ratios and risk of default ratio. The results of person correlations matrix shows there is a relationship between asset quality, profitability, debt and liquidity in different variables and asset risk. The researcher recommends for banks do not focus on a specific sector lending, which may increase the risk and must search constantly for alternative plans of financing to maintain growth.