*Determinants of Islamic Banks Distress in Gulf Council Countries (GCC) DOI: http://dx.doi.org/10.5772/intechopen.95028*


*Source researcher from data analysis.*

*a Predictors: Total Loan /Total Assets*

*b For regression through the origin (the no-intercept model), R Square measures the proportion of the variability in the dependent variable about the origin explained by regression. This CANNOT be compared to R Square for models which include an intercept.*

#### **Table 10.**

*Model Summary between Z score and Assets Quality dimension.*


*Source researcher from data analysis.*

*a Dependent Variable: Z Score*

*b Linear Regression through the Origin*

*c Predictors: T.Loan /T.Assets*

*d This total sum of squares is not corrected for the constant because the constant is zero for regression through the origin.*

#### **Table 11.**

*The significance of the model.*


*Source researcher from data analysis.*

*Table 12 shows that total loan to total assets positively on Z score. <sup>a</sup>*

*Dependent Variable: Z Score.*

*b Linear Regression through the Origin.*

#### **Table 12.**

**4.2 Asset quality (AQ) dimension**

**Model Unstandardized**

*Coefficientsa,b of the test between Z score and capital adequacy dimension.*

**Model Variables Entered Variables Removed Method**

*a*

*b*

*a*

*b*

*c*

*a*

*b*

**312**

**Table 9.** *Test method.*

**Table 8.**

**Table 7.**

*Dependent Variable: Z Score*

*Linear Regression through the Origin*

*Source the researcher from data analysis.*

*Linear Regression through the Origin*

**Variables Entered/Removeda,b**

*Dependent Variable: Z Score.*

*Linear Regression through the Origin.*

*Predictors in the Model: T.Liabilities/T.Assets*

*Dependent Variable: Z Score*

*Excluded Variablesa,b.*

**Coefficients**

*Linear and Non-Linear Financial Econometrics - Theory and Practice*

**B Std. Error Beta** 1 T.Liabilities/T.Assets 8.898 .554 .888 16.051 .000 2 T.Liabilities/T.Assets 7.267 .918 .725 7.918 .000 Equity/ total assets ratio 6.586 2.997 .201 2.197 .031

**Model Beta In t Sig. Partial Correlation Collinearity Statistics**

1 T.Loan /T.Assets . Stepwise (Criteria: Probability-of-F-to-enter <

*Source researcher from data analysis to Assets ratio interpret 88% of changes in Z score at significance level 0.0001.*

1 Equity/ total assets ratio .201<sup>c</sup> 2.197 .031 .257 .346

**Standardized Coefficients t Sig.**

**Tolerance**

= .050, Probability-of-F-to-remove > = .100).

Non-performing loan to Total loan.

Three ratios are examined: Total loans / total assets; Loan Loss Reserve;

**Table 9** shows test method **(**Variables Entered/Removed method). **Table 10** shows<sup>3</sup> model summary between Z score and Total Loan to Total Assets, it indicates that Loan to Assets ratio interpret 88% of changes in Z score by positive causal relation = 11.45 point, at significance level 0.0001, see **Tables 11**–**13** indicates that the best ratio can measure Assets Quality is Total Loan to Total Assets. However both provision of non-performing loan to net loans and Non-Performing Loan to Total Loan ratios are excluded because they have high multi collinearity

statistics. (They are highly correlated with each other).

<sup>3</sup> Loan means Islamic finance portfolio in Assets side of the bank

*Individual effect of independent variables: Coefficients.a,b*


*Source researcher from data analysis.*

*a Dependent Variable: Z Score*

*b Linear Regression through the Origin*

*c Predictors in the Model: T.Loan /T.Assets*

**Table 13.** *Excluded Variablesa,b.*
