This project is a research paper that investigates how credit expansion is connected with the financial stability and sustainability performance of the Gulf Cooperation Council (GCC) banks for the period 2005-2022.

For this purpose, a Generalized Method of Moments regression analysis is employed by using 510 firm-year observations. This regression analysis examines the effects of credit expansion measured by the credit growth rate of every institution on the GCC banks' financial stability and sustainability performance. The Z-Score was employed to measure financial stability and for robustness of results, the non-performing loans (NPL) was also employed. For sustainability performance, the sustainability index was used. Key words: Credit expansion, Financial stability, Sustainability, GCC