The Role of Islamic Banks in the Transmission of Liquidity Shocks Across Countries

Mili, Mehdi; Sahut, Jean‐Michel; Trimeche, Eryj

doi:10.1080/00213624.2015.1013887

Cited by 4 publications

(2 citation statements)

References 28 publications

(23 reference statements)

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“…According to Mili et al (2015), higher loan ratios may reduce the bank's liquidity and increase the number of defaulters. Mpuga (2002) found a positive relationship between CAR and the share of loans.…”

Section: Methodological Approachmentioning

confidence: 99%

Determinants of the capital adequacy ratio of foreign banks’ subsidiaries: The role of interbank market and regulation

Mili

Sahut²,

Trimeche

et al. 2017

Research in International Business and Finance

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This paper examines the factors influencing the capital adequacy ratio (CAR) of foreign banks. We test whether the CAR of subsidiaries and branches in developed and developing countries depends on the same factors. We use data from 310 subsidiaries and 265 branches to test the impact of the parent banks' fundamentals on subsidiaries' and branches' capital ratios. We also study how the economic condition and regulatory environment in a bank's home country determine foreign banks' CAR. Our results provide strong evidence that the CAR of subsidiaries and branches operating in developing and developed countries do not depend on the same set of explanatory factors. We also find that the regulatory framework of a parent bank's home country affects the capitalization of its foreign subsidiaries in the host countries. Finally, we show that specific variables of the parent bank have a stronger effect for foreign banks highly related to the interbank market.

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Section: Methodological Approachmentioning

confidence: 99%

Determinants of the capital adequacy ratio of foreign banks’ subsidiaries: The role of interbank market and regulation

Mili

Sahut²,

Trimeche

et al. 2017

Research in International Business and Finance

Self Cite

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“…Being the largest shareholder of the Islamic subsidiary banks, it heightens our curiosity that the parent banks might give impact to its Islamic subsidiary banks' NPM. Furthermore, according to Mili et al (2015) the parent banks have the ability to influence its subsidiary's policy in deposit and financing. Therefore, we believe that there exists a tendency for that kind of influence to take place between the conventional parent banks and its Islamic subsidiary banks.…”

Section: Introductionmentioning

confidence: 99%

Net Profit Margin Determinants of Islamic Subsidiaries of Conventional Banks in Malaysia

2018

JEM

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This study investigates the determinants of Net Profit Margin (NPM) in Malaysia's Islamic banking system for the period of 2011-2015 by using static panel data analysis. In Malaysia, conventional banks through its Islamic subsidiary banks are dominating the Islamic banking system in terms of total assets, total loans and total deposits. Therefore this paper attempts to investigate the impact of these Islamic subsidiaries of conventional banks towards the NPM. In relation to that, the impact of the conventional parent banks' Net Interest Margin (NIM) towards its Islamic subsidiary banks' NPM is also investigated. For the first objective, the displayed results shows positive relationship indicating that the Islamic subsidiaries of conventional banks' NPM is higher than the full-fledge Islamic banks' NPM. While the empirical results on the banks' specific variables suggest that size, risk aversion and operating cost are positively related to NPM. However, credit risk tends to reduce NPM. Besides that, this study also finds that market concentrations and GDP growth will influence NPM in negative ways whilst inflation and Islamic stock market developments will increase NPM. Liquidity however is found insignificant to NPM. As for the second objective, the Islamic subsidiaries of conventional banks' NPM is observed as being independent from its conventional parent banks' NIM.

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Provisionnement et mesure de risque en assurance dommage dans le cadre de Solvabilité II

Khordj¹,

Haffar²,

Teulon³

2018

Gestion 2000

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The Role of Islamic Banks in the Transmission of Liquidity Shocks Across Countries

Cited by 4 publications

References 28 publications

Determinants of the capital adequacy ratio of foreign banks’ subsidiaries: The role of interbank market and regulation

Determinants of the capital adequacy ratio of foreign banks’ subsidiaries: The role of interbank market and regulation

Net Profit Margin Determinants of Islamic Subsidiaries of Conventional Banks in Malaysia

Provisionnement et mesure de risque en assurance dommage dans le cadre de Solvabilité II

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