ROLES OF BANKS DURING FINANCIAL CRISIS

Abstract

The financial turmoil has spread to a wide range of other markets and economies around the world, morphing into a global financial crisis. This study outlines the role of banks in financial crises as well as the relationship between market liquidity and banking sector liquidity during the crisis. The aim of this study is to identify the performance and role of bank in financial crisis through qualitative approach by analysing the graphical data of profitability and credit ratio. The data are obtained from balance sheet and income statement that retrieved from Bloomberg. The selected Saudi banks in this study namely NCB, Samba and BSFR. The obtained statistical data reflected that each individual bank purposes differently and varies from one another in the subject of any financial ratios is it credit ratio or profitability ratio. The finding of this study suggested that the banks confidently have a main role in stabilize the economy.