How size influences the credit risk in Islamic banks

Alzoubi, Tariq; Obeidat, Muhanned

doi:10.1080/23311975.2020.1811596

Cited by 8 publications

(5 citation statements)

References 15 publications

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“…They can diversify in a more efficient way and therefore are less exposed, unlike small banks. Similar results of a negative relationship between bank size and credit risk have been confirmed by Alzoubi and Obeidat's (2020) study that involved 48 banks in 16 different countries. In addition, our findings are in line with the results of other researchers such as Wahyudi, Pambudi, and Adha ( 2019) & Waemustafa and Sukri (2015).…”

Section: Discussionsupporting

confidence: 72%

The influence of internal factors on loan risk management - Case study commercial banks of Kosovo

Sahiti¹,

Sahiti

Yurtsever

et al. 2023

IJAEFA

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The main purpose of this study is to empirically analyse key internal factors influencing loan risk management of Kosovo’s commercial banks. This research adopts parametric statistics and employs a multilinear regression model. The data used for the analysis covers 7 banks for the 12 years from 2008 to 2019. The dependent variable is credit risk measured by dividing total debt by total assets. The independent variables are the size of the bank, the ratio of non-performing loans, the capital adequacy ratio, the debt-to-capital ratio, and asset management. The hypotheses raised in this research were tested through the SPSS software package using quantitative methodology. The results obtained through multiple linear regressions have shown that credit risk is positively correlated and statistically significant with non-performing loans and debt-to-equity ratio and statistically significant and negatively correlated with bank size, capital adequacy, and asset management. Considering our results, it can be considered that Kosovo’s commercial banks have performed very well so far by assessing internal factors that impact credit risk. The findings of this research have direct practical implications for the banking sector in Kosovo regarding the credit risk management approach because it can be used further to enhance the effectiveness of using proper mechanisms and regulations to minimize credit risk exposure.

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Section: Discussionsupporting

confidence: 72%

The influence of internal factors on loan risk management - Case study commercial banks of Kosovo

Sahiti¹,

Sahiti

Yurtsever

et al. 2023

IJAEFA

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“…Studies have explored the impact of financing diversification and the determinants of non-performing financing in Islamic banks, highlighting the importance of efficient operations and risk management practices ( (Lantara et al, 2022) (Mansour et al, 2021) (Ariani et al, 2022). Furthermore, the COVID-19 pandemic has underscored the importance of sound asset quality and operational efficiency in Islamic banking, particularly in the context of supporting Small-Medium Enterprises (SMEs) and navigating economic shocks ( (Alzoubi & Obeidat, 2020) (Pratiwi, 2023) (Fakhrunnas & Hasanah, 2022). The pandemic has also influenced the financial performance of Islamic banks, necessitating a comprehensive understanding of the factors affecting non-performing financing and the stability of banking operations (Canggih et al, 2022).…”

Section: Discussionmentioning

confidence: 99%

Beyond the Crisis: Tracking SME Non-Performing Loan in Indonesia Before and After the COVID-19 Stimulus

Cahyono,

Bayuny,

Rusmita

et al. 2024

RIA

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This study evaluates the impact of two Indonesian government economic stimulus packages on the performance of Non-Performing Loans (NPLs) in the Small and Medium Enterprises (SME) financing sector. It compares the NPLs in conventional and rural banks with Non-Performing Financing (NPF) in Islamic commercial and rural banks, before and after the stimulus, during the COVID-19 crisis period. The two policies are in the form of interest/margin subsidies and credit/financing restructuring for debtors in the SMEs sector. The approach used is a quantitative approach with three analytical methods consisting of ANOVA, MANOVA and DiD (Difference in Difference). The secondary data in this study were sourced from official publications of government institutions such as the Financial Services Authority and the Ministry of Finance. The results showed that there were significant differences in the performance of NPL/F of Conventional banks, Islamic Commercial Banks, Conventional Rural banks, and Islamic Rural banks before and after the government's economic stimulus policy was determined.

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“…Penelitian sebelumnya dilakukan oleh (Wahyudi et al, 2019) menunjukan bahwa ukuran bank berpengaruh positif terhadap pengambilan risiko bank, sedangkan (Alzoubi & Obeidat, 2020) menunjukan ukuran bank berdampak negatif terhadap pengambilan risiko bank. Penelitian oleh (Nguyen et al, 2021) menunjukan bahwa pertumbuhan kredit berpengaruh positif terhadap pengambilan risiko bank, sedangkan (Bhowmik & Sarker, 2021) menunjukan, pertumbuhan kredit yang berlebihan berpengaruh negatif terhadap pengambilan risiko bank.…”

Section: Pendahuluanunclassified

Pengaruh Ukuran Bank, Kredit, Kredit Bermasalah, Modal Dan Produk Domestik Bruto Terhadap Pengambilan Risiko Bank

Tandeas,

Setyawan

2024

JIMEA

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Penelitian ini mempunyai tujuan untuk menguji pengaruh dari Ukuran Bank, Kredit, Kredit Bermasalah, Modal, Produk Domestik Bruto pada pengambilan risiko Bank. Data pada penelitian ini diperoleh dari laporan keuangan perbankan selama 5 periode, dari tahun 2018–2022 yang diunduh di situs www.idx.co.id. Untuk jumlah sample yang digunakan sebanyak 50 data dari 10 entitas subsektor perbankan, setelah dilakukan purposive sampling dengan jenis data sekunder. Hasil penelitian menggunakan PYTHON yang menunjukkan bahwa ukuran bank (SIZE) dan kredit bermasalah (NPL) berpengaruh negatif terhadap pengambilan risiko bank. Sedangkan untuk kredit (LDR), modal (CAR), dan produk domestik bruto (PDB) tidak berpengaruh signifikan terhadap pengambilan risiko Bank.

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How size influences the credit risk in Islamic banks

Cited by 8 publications

References 15 publications

The influence of internal factors on loan risk management - Case study commercial banks of Kosovo

The influence of internal factors on loan risk management - Case study commercial banks of Kosovo

Beyond the Crisis: Tracking SME Non-Performing Loan in Indonesia Before and After the COVID-19 Stimulus

Pengaruh Ukuran Bank, Kredit, Kredit Bermasalah, Modal Dan Produk Domestik Bruto Terhadap Pengambilan Risiko Bank

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