Bank lending behaviour under a liquidity constraint

Hatakeda, Takashi

doi:10.1016/s0922-1425(99)00040-7

Cited by 8 publications

(6 citation statements)

References 9 publications

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“…It is an advantage of microdata analysis that we can overcome an identification problem. In contrast, time series analysis using macrodata potentially suffers from identification problems (e.g., Romer and Romer, 1990;Bernanke and Blinder, 1992;Kashyap et al, 1993;Hoshi et al, 1993a;Ueda, 1993;Hosono, 1995;Ramey, 1993;Hatakeda, 1997Hatakeda, , 2000Miyagawa and Ishihara, 1997). …”

Section: Introductionmentioning

confidence: 99%

The transmission mechanism of monetary policy in Japan: Evidence from banks' balance sheets

Hosono

2006

Journal of the Japanese and International Economies

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Section: Introductionmentioning

confidence: 99%

The transmission mechanism of monetary policy in Japan: Evidence from banks' balance sheets

Hosono

2006

Journal of the Japanese and International Economies

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“…a. Model Specification Our study follows the models by Hassan (1993), Hatakeda (2000), Cebenoyan and Strahan (2004), and Sarantis and Nicholas (2009) to examine the role of bank-specific variables, monetary policy and macroeconomic variables in financing growth in Malaysian Islamic banks. Formally, the model used may be presented as follows:…”

Section: Methodsmentioning

confidence: 99%

“…To examine the behaviour of Islamic banks financing decisions, this article employs the Generalised Methods of Moments (GMM) estimators. Following the studies on the bank policies in providing loan/financing by Hassan (1993), Hatakeda (2000), Cebenoyan and Strahan (2004) and Sarantis and Nicholas (2009), the use of a dynamic model is important to capture the persistence of financing over time. GMM estimation has gained attention over the years and has provided significant theoretical and applied contributions to the econometrics literature.…”

Section: Methodsmentioning

confidence: 99%

Exposure to Interbank Investment and Financing Risk by Islamic Banks: A Dynamic Panel Analysis of Malaysia

Mohamad¹,

Mohamad²,

Jodi³

et al. 2019

IJBSS

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The government of Malaysia has developed an Islamic Interbank Money Market (IIMM) since January 1994 with the objective to facilitate funding for the Islamic banking sector in the country. This platform also enables Islamic banks to obtain Shariah-compliant funds from other Islamic banks. This article examines the effects of interbank investment and financing risk on the financing decisions of Malaysia's Islamic bank between 1994 The financing decisions are used as financing measures to determine the effect of investing in the interbank market and financing risk indicators on financing. Research methodologies are the descriptive, correlation and dynamic panel analysis results are derived with the help of Limdep 9.0 software. The study found a negative relationship between the interbank investment variable with the financing decisions of Islamic banks. This reflects that an increase in interbank investment leads Islamic banks to reduce their level of financing. These findings prove the investment activities between Islamic banks had a "substitution effect" and decreased their capability of financing because of their tendency to maintain liquidity. Islamic banks are confident that they will generate higher profits in the coming financial year. The economic conditions of Malaysia do not influence Islamic banks' financing decisions, whereas Islamic banks in this study are more dependent on the balance sheet indicators.

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“…Our study follows the models by Hassan (1993), Hatakeda (2000), Cebenoyan and Strahan (2004), and Sarantis and Nicholas (2009) to examine the role of bank-specific variables, monetary policy and macroeconomic variables in financing growth in Malaysian Islamic banks. Formally, the model used may be presented as follows:…”

Section: Methodology a Model Specificationmentioning

confidence: 99%

Exposure to Interbank Investment and Financing Risk by Islamic Banks: A Dynamic Panel Analysis of Malaysia

Mohamad¹,

Sulaiman²,

Jodi³

et al. 2019

IJBSS

View full text Add to dashboard Cite

The government of Malaysia has developed an Islamic Interbank Money Market (IIMM) since January 1994 with the objective to facilitate funding for the Islamic banking sector in the country. This platform also enables Islamic banks to obtain Shariah-compliant funds from other Islamic banks. This article examines the effects of interbank investment and financing risk on the financing decisions of Malaysia's Islamic bank between 1994-2015. The financing decisions are used as financing measures to determine the effect of investing in the interbank market and financing risk indicators on financing. Research methodology are the descriptive, correlation and dynamic panel analysis results are derived with the help of Limdep 9.0 software. The study found a negative relationship between the interbank investment variable with the financing decisions of Islamic banks. This reflects that an increase in interbank investment leads Islamic banks to reduce their level of financing. These findings prove the investment activities between Islamic banks had a "substitution effect" and decreased their capability of financing because of their tendency to maintain liquidity. Islamic banks are confident that they will generate higher profits in the coming financial year. The economic conditions of Malaysia do not influence Islamic banks' financing decisions, whereas Islamic banks in this study are more dependent on the balance sheet indicators.

show abstract

Bank lending behaviour under a liquidity constraint

Cited by 8 publications

References 9 publications

The transmission mechanism of monetary policy in Japan: Evidence from banks' balance sheets

The transmission mechanism of monetary policy in Japan: Evidence from banks' balance sheets

Exposure to Interbank Investment and Financing Risk by Islamic Banks: A Dynamic Panel Analysis of Malaysia

Exposure to Interbank Investment and Financing Risk by Islamic Banks: A Dynamic Panel Analysis of Malaysia

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