Potential risks of liquidity and credit affecting the efficiency of Islamic banks in Bangladesh

Chowdhury, Md. Asad Iqbal; Uddin, Mohammad Shamsu; Ahmmed, Monir; Hassan, Md. Rizwan; Kabir, Mohammad Jonaed

doi:10.1080/23322039.2023.2209950

Cited by 5 publications

(7 citation statements)

References 81 publications

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“…On the other hand, Musiega et al [48] and Chowduhry and Zaman [20] reported that liquidity and bank performance are harmful in the case of developing countries. Kalimashi et al [41] examined the effect of liquidity risk management on the performance of commercial banks in the Western Balkans.…”

Section: Liquidity and Financial Performancementioning

confidence: 99%

“…The bank size is more likely to affect bank efficiency due to economies of scale as suggested by contemporary financial intermediary theory [2,18,20,40]. This would allow banks to leverage their operational expenses, reducing costs and leading to higher profitability.…”

Section: Additional Bank-specific and Macroeconomic Determinants Of B...mentioning

confidence: 99%

“…Several studies assessed the relationship between liquidity risk, bank stability, and performance [20,46,66]. According to these studies, liquidity risk not only affects the bank's performance but also significantly impacts the bank's reputation.…”

Section: Introductionmentioning

confidence: 99%

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GCC banks liquidity and financial performance: does the type of financial system matter?

Bilal,

AlGhazali,

Samour

2024

Futur Bus J

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This study examines whether the type of financial structure in the GCC influences the relationship between liquidity risk and banks’ performance from 2007 to 2021. By employing fixed effects and fully modified ordinary least squares (FMOLS), we find that the impact of liquidity risk on bank profitability differs among bank-based and market-based systems. Specifically, the results show that the profitability of banks operating in bank-based countries is positively influenced by the liquidity risk compared to their counterparts. The study also demonstrates that the global financial crisis increases banks’ profitability in the bank-based financial system. Furthermore, the results show that gross domestic product growth (GDPG) determines banks’ financial profitability in the banks-based market. This study offers some important implications for policymakers to consider the type of financial system to stimulate bank stability.

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Section: Liquidity and Financial Performancementioning

confidence: 99%

Section: Additional Bank-specific and Macroeconomic Determinants Of B...mentioning

confidence: 99%

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GCC banks liquidity and financial performance: does the type of financial system matter?

Bilal,

AlGhazali,

Samour

2024

Futur Bus J

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“…Como outputs se consideraron: (1) total depósitos (Depósitos), que en los estados financieros de la banca peruana se denominan obligaciones con el público y (2) total de créditos vigentes (Créditos), que está conformada por la variable créditos menos provisiones e intereses y comisiones no devengados. Este producto fue empleado por Chowdhury et al (2023). Es importante destacar que la elección de los inputs y outputs es condicionada o limitada por el tipo de información pública disponible en los portales del sistema bancario.…”

Section: Issn Online 2007-9621unclassified

Contribución de las inversiones en recursos humanos según el tipo de eficiencia técnica de la banca múltiple peruana

Flores Gutiérrez,

Castillo Inche,

Tejada Portilla

2023

Acta Universitaria

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Se evaluó la contribución de las inversiones en recursos humanos (RRHH) a la eficiencia técnica de la banca múltiple peruana durante el 2021. Además, se demostró qué tipo de frontera de producción prevalece y se generó un plan benchmarking. A una muestra censal de 16 bancos se les midieron tres inputs (remuneraciones al personal, gastos del directorio y activos) y dos outputs (total de depósitos y total de créditos vigentes). Se identificaron siete bancos en la frontera de eficiencia técnica global (ETG), 12 bancos en la de eficiencia técnica pura (ETP) y siete bancos en la de eficiencia de escala (EE). La media de la ETG fue 0.86, la de ETP fue 0.95 y la de EE fue 0.91. Se determinó que prevalecen los rendimientos variables a escala, que la eficiencia de los bancos no varía con el nivel de inversión en recursos humanos, y se formuló un plan de mejoras potenciales.

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“…The study emphasizes the importance of governance and social initiatives for value creation in banks. Chowdhury and Zaman (2018) examined liquidity risk in the performance of Islamic banks in Bangladesh from 2012 to 2016. Their study showed a significant relationship between bank performance and liquidity indicators, but the regression analysis suggests a negative relationship.…”

Section: Introductionmentioning

confidence: 99%

Using the Tobin Q model to evaluate the impact of credit risks on the bank’s market value during the corona pandemic

Mkalaf

Hilo

2023

JIABR

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Purpose This paper aims to assess the impact of credit risk on the market values of private banks during the corona pandemic. Design/methodology/approach This study is identifying critical issues of credit risk at six great private banks. A conceptual framework is designed based on the Tobin Q model for investigating study hypotheses. Quantitative financial analysis methods have been used for processing data, such as financial ratios, arithmetic mean and multiple linear regression. Findings The most important result of this study is the lack of influence of credit risk on the market value of selected banks. Because the dimensions of credit risk have critical importance in increasing or decreasing the market value, these banks must continue to adopt quantitative financial analysis to measure credit risks to avoid their risk. Originality/value This study elaborates the need for financial indicators to help assess the market value of banks during the economic crises caused by the closure of commercial institutions during the corona pandemic. There is continued increase in bank credit to support these institutions, borrowers and cash withdrawals, which may affect their market reputation.

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Potential risks of liquidity and credit affecting the efficiency of Islamic banks in Bangladesh

Cited by 5 publications

References 81 publications

GCC banks liquidity and financial performance: does the type of financial system matter?

GCC banks liquidity and financial performance: does the type of financial system matter?

Contribución de las inversiones en recursos humanos según el tipo de eficiencia técnica de la banca múltiple peruana

Using the Tobin Q model to evaluate the impact of credit risks on the bank’s market value during the corona pandemic

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