Transparency and bank risk-taking in GCC Islamic banking

Srairi, Samir

doi:10.1016/j.bir.2019.02.001

Cited by 57 publications

(60 citation statements)

References 45 publications

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“…The Islamic bank's specific variables that influence the stability are size and capital (Ghenimi, Chaibi, & Omri, 2017;Trad, Trabelsi, & Goux, 2017). While macroeconomic conditions that affect the stability are inflation, domestic output, and the exchange rate (Ghenimi et al, 2017;Trad et al, 2017;Srairi, 2019). Some empirical literature also examined the stability of small and large Islamic banks.…”

Section: Introductionmentioning

confidence: 99%

Stability of Islamic banks in Indonesia: Autoregressive Distributed Lag Approach

Widarjono

2020

Jurnal Keuangan Dan Perbankan

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Islamic banks in Indonesia are very vulnerable to the instability of their business processes because of their small market share. Moreover, based on their financial performances, Islamic banks are worse than those of conventional banks due to lower profits (ROA) and higher Non-performing financing (NPF). Our study investigates the stability of Islamic banks. We measure the stability using Z-score and NPF. Instead of an individual bank, the study applies an aggregate data of Islamic banks encompassing Islamic commercial banks along with Islamic business units. Monthly time series data, covering January 2010 to December 2018 are selected. We apply the Autoregressive Distributed Lag (ARDL) model. The findings document that the Islamic bank's specific variables affecting stability are size, CAR, and efficiency. The larger size and CAR support the Islamic bank's stability. Lower efficiency increases the Islamic bank's instability. Meanwhile, Inflation and exchange rates affect the Islamic bank's stability. Economic downturns due to inflation and depreciation of rupiah increase the instability of Islamic banks. AbstrakBank Islam di Indonesia sangat rentan terhadap ketidakstabilan proses bisnis mereka karena pangsa pasar yang kecil. Selain itu, berdasarkan kinerja keuangan mereka, bank syariah lebih buruk daripada bank konvensional karena laba lebih rendah (ROA) dan pembiayaan bermasalah (NPF) lebih tinggi. Penelitian ini menyelidiki stabilitas bank Islam. Stabilitas keuangan diukur dengan menggunakan Z-score dan NPF. Penelitian ini menggunakan data agregat bank syariah yang mencakup bank komersial syariah bersama dengan unit bisnis syariah. Data yang digunakan adalah bulanan dari Januari 2010 hingga Desember 2018. Penelitian ini mengaplikasikan model Autoregressive Distributed Lag (ARDL). Temuan penelitian ini mendokumentasikan bahwa variabel spesifik bank Islam yang memengaruhi stabilitas adalah besarnya asset, CAR, dan efisiensi. Aset dan CAR yang tinggi mendukung stabilitas bank syariah. Efisiensi yang lebih rendah meningkatkan ketidakstabilan bank syariah. Sementara itu, inflasi dan nilai tukar memengaruhi stabilitas bank Islam. Penurunan ekonomi akibat inflasi dan depresiasi rupiah meningkatkan ketidakstabilan bank Islam.

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Section: Introductionmentioning

confidence: 99%

Stability of Islamic banks in Indonesia: Autoregressive Distributed Lag Approach

Widarjono

2020

Jurnal Keuangan Dan Perbankan

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“…It observes that the incentive to disclose information is negatively associated with a bank's capital ratio and positively correlates with the number of other competing banks that disclose information. Using a sample of 29 Islamic banks in five Gulf Cooperation Council countries over the period , Srairi (2019 shows that an improvement in transparency significantly impacts banks' stability. Goldstein and Leitner (2018) study optimal disclosure policy of banks and conclude that corporate disclosure can hurt risk-sharing opportunities for banks, thus, confirming the Hirshleifer (1971) effect of information disclosure.…”

Section: Review Of Related Studiesmentioning

confidence: 99%

“…The value addition of this study to the existing literature is three-fold. First, previous studies on disclosure (e.g., Chauhan & Kumar, 2018;Chen, Li, Hu, & Hu, 2019;Cheng et al, 2020;Goldstein & Yang, 2019;Haque & Jones, 2020;Rezaee & Tuo, 2017;Srairi, 2019;Ting, 2020;Tsai, Tu, & Hung, 2016) have not specifically tackled the effect of corporate disclosure on credit market development. We demonstrate from our data that corporate disclosure accelerates credit market development.…”

Section: Introductionmentioning

confidence: 99%

Corporate disclosure and credit market development

Adusei

Adeleye

2021

Journal of Applied Economics

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The nexus between corporate disclosure and credit market development as well as whether the nexus is sensitive to the income classification of countries is not well delineated in the empirical literature. The objective of this paper is to interrogate these issues. In addressing these important issues, we rely on a panel of 122 countries and deploy a battery of econometric techniques. Generally, we find that corporate disclosure promotes credit market development. The results from the analysis of subsamples suggest that the effect of corporate disclosure on credit market development is sensitive to creditor rights protection and the income status of a country. In particular, there is evidence that the interaction between corporate disclosure and creditor rights protection significantly benefits the credit markets only in upper-middle-income countries.

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“…The ratio of NPF is aimed to measure the level of financing problems faced by sharia banks where the higher number of the ratio which indicates the sharia bank financing quality is getting worse. There are two main reasons for the increment of NPF that are economic crisis affect macroeconomic conditions, miss financial allocation and deliberate financing fraud [9]. The information on its performance derives from selected banks and the annual reports and related publications on general banking performaces in each country…”

Section: Non-performing Financing/npfmentioning

confidence: 99%

Contributing Factors That’s Effect to Istishna Mode of Financing Performance at Sharia Banking in Indonesia and Malaysia

Jasin¹,

Astuti²,

Nugraha³

2019

Proceedings of the the First International Conference on Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Banda

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The development of Islamic banks along with sharia units from year to year reflects increase the public confidence to istishna mode of financing of sharia bank. This study aimed to determine the influence of deposits, equity, non-performing financing, and growth non-performing financing to istishna financing both on partial and simultaneous measurements. The sample selected in this study was sharia commercial banks operating in Indonesia and Malaysia. This research used purposive sampling method, the sampling research was includes BRI Syariah, Maybank, Mandiri Syariah, Muamalat, Malaysia Affin Islamic Bank Berhad. The analytical method used regression analysis of the balanced panel. The f test results showed that the variable of deposits, equity, non performing financing and growth non performing financing simultaneous had has positif effect on Istishna financing. The t test results showed deposit variable, equity, and growth non performing financing partially had has positif effect on the Istishna financing. The only non performing financing has a significant negative relationship to the variable of financing Istishna. While The coefficient of determination showed all independent variables contributed predominant percentage portion to the dependent variable. The remaining minor percentage portion might be influenced by other variables, which did not exists in this research such as Capital Adequacy Ratio, Loan Deposit Ratio, and the level of foreign currencies reserve owned by the banks etc.

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Transparency and bank risk-taking in GCC Islamic banking

Cited by 57 publications

References 45 publications

Stability of Islamic banks in Indonesia: Autoregressive Distributed Lag Approach

Stability of Islamic banks in Indonesia: Autoregressive Distributed Lag Approach

Corporate disclosure and credit market development

Contributing Factors That’s Effect to Istishna Mode of Financing Performance at Sharia Banking in Indonesia and Malaysia

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