**2.2 Objectives**

The main objective of this study is to fill the gap in selecting the best ratios of CAMEL Dimensions indicators, that can measure bank's soundness.

## **2.3 Methodology**

The research follows survey method to search sample consist of five full-fledge Islamic banks worked in GCC as population. But each a selected bank its age less

than 10 years will excluded, because its experience cannot able it to achieve competitiveness. The total of full-fledge Islamic banks in GCC are 20 banks; they are distributed over 6 countries (see **Tables 1** and **2**).

While population is homogenies (because the Islamic banks in GCC are homogenies) the researcher ranked these banks according to their establishment date (see **Table 2**), in order to use simple random sample with lottery method using serial number as assigned number to give equal chance for each bank, but each selected bank its age less than ten year should be excluded,because the period of study extend to fourteen years.Thus The age of selected bank Alizz bank is excluded because its age less than 10 years. Then start from the beginning and Al Salam Bank was chosen. After that the researcher examines normality distribution to ensure that this sample represents the population figures show histogram normality test results, are (**Figures 1**–**3**) moreover researcher employed one sample Kolmogorov– Smirnov test (K-S test) (**Table 3**) ensured that distribution of the sample is normal. Which allow researcher to used parametric test (linear regression).

Then secondary data were collected from annual reports of studied banks, and General Economic development indicators (GDP, Inflation rate, Exchange rate) for each country of GCC from World Bank site.

Multiple linear regressions is used to investigate causal relation between CAMEL ratios and Z score, also it used to discover the impact of economic factors (GDP, Inflation rate, exchange rate) on Z score of Islamic banks.

**Figure 1.** *Normality distribution of Islamic banks names.*

**2.4 The significant of the study**

*Source the researcher from data analysis.*

*Test distribution is Normal.*

*Lilliefors Significance Correction.*

*Calculated from data.*

*Normality test result.*

**One-Sample Kolmogorov–Smirnov Test**

*DOI: http://dx.doi.org/10.5772/intechopen.95028*

*Normality test of the country names.*

**2.5 Organization**

Most Extreme Differences

**Figure 3.**

*a*

*b*

*c*

**Table 3.**

loan/Gross loan.

**305**

The structure of the paper as following: Section Two provides research design, Section Three briefly reviews the literature on the financial distress concept, measurement, and Section Four specifies the model and indicates the sources of data and setting up the statistical methodology used in the study. Section Five, contains the main findings of the study, their analyses and assessments. The final section contains conclusions and policy implications, recommendation, and limitations.

**Bank name**

N 168 168 168 168 Normal Parametersa,b Mean 6.49 3.50 3.51 2012.50

*Determinants of Islamic Banks Distress in Gulf Council Countries (GCC)*

Test Statistic .100 .143 .147 .092 Asymp. Sig. (2-tailed) .000<sup>c</sup> .000<sup>c</sup> .000<sup>c</sup> .001<sup>c</sup>

**Country name**

Std. Deviation 3.448 1.713 1.716 4.043

Absolute .100 .143 .147 .092 Positive .098 .143 .143 .092 Negative �.100 �.143 �.147 �.092

**Currency name**

**Financial year**

Contribution of this study representing in a recommendation for amendment of

Total liabilities to Total Assets ratio + Total loan to T. assets +Share market price+ net loan to Total Assets +Earning Per share+ provision Non-performing

Camels rating model should be constructing as following:

**Figure 2.** *Normality distribution of financial years.*

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

**Figure 3.**

than 10 years will excluded, because its experience cannot able it to achieve competitiveness. The total of full-fledge Islamic banks in GCC are 20 banks; they are

While population is homogenies (because the Islamic banks in GCC are homogenies) the researcher ranked these banks according to their establishment date (see **Table 2**), in order to use simple random sample with lottery method using serial number as assigned number to give equal chance for each bank, but each selected bank its age less than ten year should be excluded,because the period of study extend to fourteen years.Thus The age of selected bank Alizz bank is excluded because its age less than 10 years. Then start from the beginning and Al Salam Bank was chosen. After that the researcher examines normality distribution to ensure that this sample represents the population figures show histogram normality test results, are (**Figures 1**–**3**) moreover researcher employed one sample Kolmogorov– Smirnov test (K-S test) (**Table 3**) ensured that distribution of the sample is normal.

Which allow researcher to used parametric test (linear regression).

Inflation rate, exchange rate) on Z score of Islamic banks.

Then secondary data were collected from annual reports of studied banks, and General Economic development indicators (GDP, Inflation rate, Exchange rate) for

Multiple linear regressions is used to investigate causal relation between CAMEL ratios and Z score, also it used to discover the impact of economic factors (GDP,

distributed over 6 countries (see **Tables 1** and **2**).

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

each country of GCC from World Bank site.

**Figure 1.**

**Figure 2.**

**304**

*Normality distribution of Islamic banks names.*

*Normality distribution of financial years.*

*Normality test of the country names.*


*Source the researcher from data analysis.*

*a Test distribution is Normal. b*

*Calculated from data.*

*c Lilliefors Significance Correction.*

### **Table 3.**

*Normality test result.*
