Financial nexus: Efficiency and soundness in banking and capital markets

Dima, Bogdan; Dincă, Marius Sorin; Spulbăr, Cristi

doi:10.1016/j.jimonfin.2014.05.002

Cited by 34 publications

(24 citation statements)

References 34 publications

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“…Based on the above discussion, we argue that market power has a significant positive impact on stability for both Islamic and conventional banks. This supports the traditional competition-fragility hypothesis for both banking systems and corresponds with the findings in Ariss (2010b) and Dima, Dincă, and Spulbăr (2014). In addition, the impact of market power on stability is larger for conventional banks than Islamic banks.…”

Section: Comparative Analysis Of Conventional and Islamic Bankssupporting

confidence: 88%

“…Quantile regression, as opposed to least squares estimation, provides robust estimation if the treatment of the program varies across different segment of the population, and was first developed by Koenker and Bassett Jr (1978). As argued by Schaeck and Cihák (2014) and Dima et al (2014), response from weak banks towards competition may differ from the stable banks. Thus, employing quantile regression would give a better predictive ability on the relationship between competition and stability.…”

Section: Two-stage Quantile Regressionmentioning

confidence: 99%

“…We also derive impulse response functions (IRF) and undertake variance decomposition through which we investigate how the shock of one variable affects the other variable in future periods. According to Schaeck and Cihák (2014) and Dima et al (2014), the response of riskier banks may significantly differ from that of more stable banks when competition increases or decreases. Thus, we specify two-stage quantile regressions by which we can identify the impact of competition at different stability levels for both Islamic and conventional banks.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The ‘competition–stability/fragility’ nexus: A comparative analysis of Islamic and conventional banks

Kabir

Worthington

2017

International Review of Financial Analysis

149

119

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The 'competition-stability/fragility' nexus is one of the more debated issues in the banking literature. However, while there is ample evidence concerning the relationship between competition and stability/fragility in different countries and regions, no prior study investigates this in the context of Islamic and conventional banks. We do this using data on both types of banks drawn from 16 developing economies over the period 2000-12. We measure the lack of competition using the Lerner index, and stability using both accountingbased measures, comprising the Z-score and the nonperforming loan ratio, and market-based measures, including Merton's distance to default. We employ panel vector autoregression and two-stage quantile regression to estimate the relationship. Our results lend support to the competition-fragility hypothesis in both Islamic and conventional banks. We also find the magnitude of the market power effect on stability is greater for conventional banks than Islamic banks. Lastly, banks in the median quantile of stability have a greater ability to reduce credit risk through gaining market power than banks in the lower and upper quantiles.

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Section: Comparative Analysis Of Conventional and Islamic Bankssupporting

confidence: 88%

Section: Two-stage Quantile Regressionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The ‘competition–stability/fragility’ nexus: A comparative analysis of Islamic and conventional banks

Kabir

Worthington

2017

International Review of Financial Analysis

149

119

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“…Kepercayaan dapat diperoleh dengan menjaga tingkat kesehatan bank (Dima, Dinca, & Spulbar, 2014) dengan melakukan kegiatan operasional perbankan secara normal dan mampu memenuhi kewajiban dengan baik dengan caracara yang sesuai peraturan perbankan yang berlaku (D. G. D. A. Paramartha & Mustanda, 2017).…”

Section: Kajian Pustakaunclassified

Analisis Komponen Tingkat Kesehatan Bank Terhadap Harga Saham Bank Umum Swasta Nasional Devisa Yang Terdaftar Di Bursa Efek Indonesia Periode 2012-2016

Medyawicesar

Tarmedi

Purnamasari

2018

JBME

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ABSTRAKTujuan -Tujuan dari penelitian ini adalah untuk menganalisis tingkat kesehatan bank dengan menggunakan metode RGEC dan pengaruhnya terhadap harga saham Desain / metodologi / pendekatan -Metode yang digunakan dalam penelitian ini adalah metode deskriptif dan verifikatif. Data yang digunakan adalah data sekunder dari masing-masing Bank Umum Swasta Nasional Devisa yang terdaftar di BEI dengan teknik analisis menggunakan regresi linier multipel. Sampling dalam penelitian ini menggunakan purposive sampling. Temuan -Hasil penelitian menunjukkan NPL dan ROA berpengaruh positif terhadap harga saham, GCG dan NIM tidak berpengaruh terhadap harga saham, LDR dan CAR tidak berpengaruh terhadap harga saham tetapi arah regresi bertanda positif menunjukan hubungan yang searah dengan harga saham. Orisinalitas -Perbedaan penelitian dengan penelitian sebelumnya adalah pada objek dan metode penelitian, populasi dan sampel penelitian, periode penelitian, alat ukur dan hasil penelitian, serta sumber teori dan jurnal asing dan buku asing serta hasil penelitian. Kata kunci: Tingkat kesehatan bank, RGEC, harga saham, bank umum swasta nasional devisa Pasal Jenis: Penelitian Studi Kasus ABSTRACT Purpose -The purpose of this study was to analyze the description of Bank Soundness by using RGEC method and influence on stock price Design / methodology / approach -Method in this research used descriptive and verification methods. Data that used are secondary data of each Public bank foreign exchange on Indonesia Stock Exchange with analysis technique using multiple linear regression. Sampling in this research use purposive sampling Findings -The result of this research shows that NPL and ROA have positive effect to share price, GCG and NIM have no effect to stock price, LDR and CAR do not have an effect on stock price but regression direction with positive sign showing relationship with stock price. Originality -The difference of this research with previous research is on research object and method, population and research sample, research period, measuring instrument and research result, as well as foreign theory and journal source and foreign book and research result.

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“…Islamic subsidiaries of conventional banks apparently have superior performance indicators than stand-alone Islamic banks. This has implications for the long-run stability, as competition becomes the major driver for the growth and stability of the banks (Dima, Dincă, & Spulbăr, 2014).…”

Section: Introductionmentioning

confidence: 99%

Efficiency, Asset Quality and Stability of the Banking Sector in Malaysia

Ariff

Shawtari

2019

MJES

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Malaysia practices a dual banking system, where conventional banks coexist with Islamic banks. While conventional banks are well established, Islamic banks are growing rapidly. Since Islamic banks consist of two types, namely stand-alone or wholesome Islamic banks and Islamic subsidiaries of conventional banks, it would be revealing to examine if Islamic subsidiaries of conventional banks differ from standalone Islamic banks in terms of efficiency, stability and assets quality. A few studies in the literature that examine the issue have focused on comparisons between Islamic banks and conventional banks, with no consideration given to the differentiation between the two categories of Islamic banks. In this paper, we attempt to examine the differences among the players in the banking sector in Malaysia. This paper extends the traditional analysis of conventional versus Islamic banks to comparisons between stand-alone Islamic banks and Islamic subsidiaries of conventional banks. Using dynamic panel data "generalized methods of moments" (GMM), the study reports that there are differences among different types of banks, viz. conventional banks, Islamic subsidiaries of conventional parents, and stand-alone Islamic banks. It shows that Islamic subsidiaries of conventional banks perform better than stand-alone Islamic banks as well as their own conventional parents. Furthermore, the results show that Islamic subsidiaries are more stable in term of their financing income compared to the rest of the banks, while the stand-alone banks have lower asset quality in comparison with both Islamic subsidiaries and their parents.

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Financial nexus: Efficiency and soundness in banking and capital markets

Cited by 34 publications

References 34 publications

The ‘competition–stability/fragility’ nexus: A comparative analysis of Islamic and conventional banks

The ‘competition–stability/fragility’ nexus: A comparative analysis of Islamic and conventional banks

Analisis Komponen Tingkat Kesehatan Bank Terhadap Harga Saham Bank Umum Swasta Nasional Devisa Yang Terdaftar Di Bursa Efek Indonesia Periode 2012-2016

Efficiency, Asset Quality and Stability of the Banking Sector in Malaysia

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