Determinants of liquidity risk in Islamic banks

Alzoubi, Tariq

doi:10.21511/bbs.12(3).2017.10

Cited by 30 publications

(44 citation statements)

References 8 publications

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“…Some previous studies present that among the crucial factors affecting NPL are economic growth, which negatively correlates with the NPL and NPF. Similar studies have found that macroeconomic factors have a significant relationship with NPL and NPF (Alzoubi, 2017;Do et al, 2020). Khemraj & Pasha (2009) stated GDP with a negative impact, but interest rate, inflation, forex, and excessive lending positively correlate with the increase of NPL and NPF.…”

Section: Introductionmentioning

confidence: 57%

The Relationship of Macro-risk Indicators, Internal Factors, and Risk Profile of Islamic Banking in Indonesia

2020

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This study is essential because of Islamic banks have a level of health with higher NPF than conventional banks and purposes to examines whether macroeconomic indicators (macro-risk), internal factors of banking (GCG-earnings-capital ) and risk profile have correlation in term Indonesian Islamic banking. The method used is the correlation analysis involving four macro-risk variables (Forex; BI rate; Inflation and GDP), three GEC variables (GCG; ROA, and CAR) and two risk profile (FDR and NPF). The number of samples of the ten largest Indonesia sharia commercial banks with the 2011-2018 period. We find that macroeconomic indicator is positively correlated to non-performing financing (NPF), the GEC positively correlated to NPF and FDR; GEC negatively correlated to macro-risk indicators, generally. However, some indicators negatively correlated such as GDP-corporate governance, Forex-profitability, GDP-efficiency, BI rate-capital and profitability-NPF. The study proposed implications for managerial to understand the role of relationship of macroeconomic, internal factors and risk profile in Islamic bank lending.

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Section: Introductionmentioning

confidence: 57%

The Relationship of Macro-risk Indicators, Internal Factors, and Risk Profile of Islamic Banking in Indonesia

2020

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“…The study recommended that Islamic bank have to improve their Profits and Losses Sharing (PLS) investment in order to reduce their liquidity risk and to reinforce Islamic instruments of liquidity risk management. Alzoubi (2017) has analysed the determinants of liquidity risk in a study of 42 Islamic banks from 15 countries for a period from 2007 to 2014. The author applied panel data analysis to test the independents variables impact to liquidity risk that measured by total deposits to total assets.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Therefore, we expect that the higher this ratio the less liquidity risk exposure in the bank. This ratio applied by Alzoubi (2017).…”

Section: Characteristics Of Variables and The Modelmentioning

confidence: 99%

The Determinants of Liquidity Risk in Islamic Banks: A Case of Sudanese Banking Sector

Mennawi

Ahmed

2020

ijibfr

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Liquidity risk either due to a surplus or serious shortage in liquidity has a significant impact to the performance and sustainability of Islamic banks. Nevertheless, there are still no common agreement on specific factors that determine the liquidity risk in Islamic banking. This study investigates the determinant factors that affect the liquidity risk of Sudanese Islamic banks. A sample of 11 banks has been selected for a period of 7 years (2012 – 2018). The study is based on secondary data that analysed using Pearson correlation and multiple regression analysis for hypotheses tests. It investigated the explanatory variables of the bank’s cash position (CASH), investment in short-term securities (SECA), degree of financing the assets from customers’ deposits (DPAS) and bad financing and credit risk (NPL) as representatives of banks’ specific factors plus one microeconomic factor which is Gross Domestic Product (GDP). The analysis found a significant and negative relation of CASH and SECA with the liquidity risk in Islamic banks. On the other hand, the results reveal that the DPAS and NPL variables have a positive relation and significant, while the GDP seen to be irrelevant to liquidity risk in Islamic bank. The importance of the study is that it touches the most significant type of risk that most of Sudanese Islamic banks face, and the data analysed covers a relatively longer period of time than similar studies for a single country. We target that the study contributes in providing decision-makers with reasonable ground for prediction and managing the liquidity risk. JEL Classification: G21, G17, G32.

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“…Kemudian penelitian yang dilakukan (Masruroh, 2018) (Sulistia, 2018). Hasil penelitian ini mendukung penelitian yang dilakukan oleh (Alzoubi, 2017), (Bani & Yaya, 2015), (Effendi & Disman, 2017), (Chowdhury et al, 2019), (Ahmed & Ahmed, 2011)…”

Section: Penelitian Ini Membuktikan Bahwaunclassified

Pengaruh Capital Adequacy Ratio, Solvabilitas, Dan Ukuran Perusahaan Terhadap Risiko Likuiditas Pada Bank Umum Syariah Di Indonesia

Jaiz¹,

Rahmawati²,

Asriany³

2020

wahana-akuntansi

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This study aims to determine the effect of Capital Adequacy Ratio, solvability, and firm size on liquidity risk in Islamic banks in Indonesia. The population in this study were Islamic banks in Indonesia from 2014 to 2018. The research sample was 11 Islamic banks in Indonesia which were obtained by purposive sampling technique. The results showed the variable Capital Adequacy Ratio and solvability had a positive effect on liquidity risk in Islamic banks. Firm size does not have a positive effect on liquidity risk in Islamic banks.

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Determinants of liquidity risk in Islamic banks

Cited by 30 publications

References 8 publications

The Relationship of Macro-risk Indicators, Internal Factors, and Risk Profile of Islamic Banking in Indonesia

The Relationship of Macro-risk Indicators, Internal Factors, and Risk Profile of Islamic Banking in Indonesia

The Determinants of Liquidity Risk in Islamic Banks: A Case of Sudanese Banking Sector

Pengaruh Capital Adequacy Ratio, Solvabilitas, Dan Ukuran Perusahaan Terhadap Risiko Likuiditas Pada Bank Umum Syariah Di Indonesia

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