Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia

Ahmad, Nor Hayati; Arif, Mohamed

doi:10.32890/mmj.8.1.2004.8755

Cited by 5 publications

(4 citation statements)

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“…This indicates that conventional banks have high overhead in controlling and monitoring of problem loan with credit risk. The past finding from Ahmad and Arif (2004) and found that FCOST are not significantly related to credit risk for both banking systems. Result of risk weighted asset (RWA) is not significant with credit risk in conventional banks.…”

Section: Regression Analysismentioning

confidence: 69%

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Determinants of Credit Risk in Islamic and Conventional Bank: Evidence from Malaysia

Hamid¹,

Janor²

2018

IJARBSS

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Risks in banking have to be managed properly to ensure that banks can sustain in the financial industry. This paper examines the credit risk with the factors that influence risk in Islamic and conventional banking. This study highlights the relationship between credit risk and factors that affect the risks in both banking systems. The data have collected from financial statements of respective banks for a period of 9 years, starting from 2008 to 2016 and panel data analysis was used in this study. The findings of this study show that management efficiency and leverage indicate the lower efficiency and the higher debt that shows higher credit risk in both banking systems. Findings from this research contribute in enriching and enhance literature on risk management of Islamic and conventional banks. The problem of credit risk regarding regulatory requirement will decrease and this will give banks to increase their profitability and improve their financial performance.

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Section: Regression Analysismentioning

confidence: 69%

“…The research model is as follows: The credit risk variable is represented non-performing loans to total loan. (Aldoseri, 2012;Vitria, 2008;Ahmad & Arif, 2004;Corsetti et. al, 1998;Berger & DeYoung, 1997.…”

Section: Credit Risk Modelmentioning

confidence: 99%

Determinants of Credit Risk in Islamic and Conventional Bank: Evidence from Malaysia

Hamid¹,

Janor²

2018

IJARBSS

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“…In addition, (Buch & Goldberg, 2015) measure liquidity risk through expectations of investor toward liquidity risk. Ahmad & Arif ( 2004) by using single factor analyses, they concluded that investment in risk do affect the exposure of deposit taking bank towards market risk. So, to cut the story short the previous literature shows that financial stability has something to do with insolvency risk but none have shown its relationship with liquidity risk.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Financing Structure Relates to Liquidity Risk? A Comparative Study of Islamic and Conventional Banks of Pakistan

Qadri¹,

Mustafa

Ali

2021

JIEBR

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The purpose of this paper is to find out whether financing in specific sectors increase bank liquidity risk and how this goes on with both Islamic and conventional banks. The paper used pooled regression, fixed effect model and random effect model decided on the basis of dummy joint significant test. The result shows that only financing concentration (SPEC) proved to have significant association with Islamic and overall banking sector for short run. And all other banks specific variables are unable to show a significant result. While the macroeconomic variable GDP and Inflation have a strong relationship in both long run and short run time period. This paper add value to the existing literature on liquidity risk under the new indicators issued by Basel III.

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“…risk measures Liquidity risk (LRISK) refers to the banks' inability to liquidate assets without incurring losses and promptly �inance cash out�lows. Liquidity risk is measured by loans to core deposits, as used byAhmad and Ariff (2004), El-Massah et al (2019), andSmaoui et al…”

mentioning

confidence: 99%

Comparative Analysis on Liquidity and Risk-Taking Behaviour between Islamic and Conventional Banks in MENA Region

Salihu

Hassan

Mohamed-Arshad

2022

JIEBR

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We compare the effect of liquidity on risk-taking between Islamic and conventional banks in the MENA region over the period 2005-2017. Using the fixed effect panel model with panel-corrected standard error, we found that funding liquidity in both Models significantly affects conventional banks' risk-taking behaviour, but the effect on the Islamic counterpart is insignificant. However, liquidity risk and bank activities represented by loans significantly affect Islamic bank risk-taking behaviour but show no significant effect on conventional banks. However, the effect varies with risk-taking proxies and the size of banks. This entails liquidity and bank risk-taking behaviour that differs with the type of banking system and the countries’ peculiarities. Thus, liquidity regulation should be implemented with the consideration of other region and their peculiarities.

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Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia

Cited by 5 publications

References 0 publications

Determinants of Credit Risk in Islamic and Conventional Bank: Evidence from Malaysia

Determinants of Credit Risk in Islamic and Conventional Bank: Evidence from Malaysia

Does Financing Structure Relates to Liquidity Risk? A Comparative Study of Islamic and Conventional Banks of Pakistan

Comparative Analysis on Liquidity and Risk-Taking Behaviour between Islamic and Conventional Banks in MENA Region

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