Liquidity in the UAE Islamic banks

ElMassah, Suzanna; Al-Sayed, Ola; Bacheer, Shereen Mostafa

doi:10.1108/jiabr-02-2017-0018

Cited by 5 publications

(6 citation statements)

References 13 publications

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“…This evidence is in conformity with the conclusion of Akhtar et al (2011) and Shamas et al (2018). This is, however, different from other studies that reached a positive statistically significant relationship (Ahmed et al, 2011;Iqbal, 2012) or negative and statistically significant link (Ghenimi and Omri, 2015;Alzoubi, 2017;Elbadry, 2018;ElMassah et al, 2019) between bank size and liquidity risk. This can be explained by the fact that GCC Islamic banks tend to keep a surplus of liquidity regardless of their size.…”

Section: Estimation Results and Discussionsupporting

confidence: 84%

“…For the macroeconomic variable, we found that GDP real growth rate has a positive but insignificant association with Islamic bank liquidity in GCC countries. In the same vein, ElMassah et al (2019) found an insignificant relationship between real GDP and three liquidity ratios for seven UAE Islamic banks during the period 2008-2014. This result is contrary to that of Rashid et al (2017), concluding that GDP growth is among the important determinants of bank's liquidity in Malaysia and GCC countries.…”

Section: Estimation Results and Discussionmentioning

confidence: 80%

“…They concluded that provisions, leverage, ratio of loans to deposits and bank size have a negative and significant effect on liquidity risk. Recently, ElMassah et al (2019) investigated factors that account for liquidity risk in seven UAE Islamic banks over the period 2008–2014 by applying random effects panel data model. Their empirical evidence varies according to the chosen liquidity proxy among five alternative liquidity ratios.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

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Profit- and loss-sharing impact on Islamic bank liquidity in GCC countries

Jedidia¹

2020

JIABR

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Purpose The purpose of this paper is to empirically assess the impact of the principle of profit- and loss-sharing (PLS) on the exposure to liquidity risk of Islamic banks in Gulf Corporation Council (GCC) countries. The Islamic bank activity is distinguished by a PLS principle, which is likely to involve specificities in the bank liquidity issue. Design/methodology/approach This paper investigates the determinants of Islamic bank liquidity over the period 2005–2016 using a panel of 23 Islamic banks in GCC. The system of generalized method of moment estimators is applied. Findings The findings reveal that while profit-sharing investment accounts (PSIAs) are inversely proportional to Islamic bank liquidity, the PLS investment does not seem to act as a determinant of the bank liquidity. The fact that PSIAs are globally short-run accounts, but finance long-run projects leads to a substantial maturity mismatches, which limits the availability of liquidity buffer and exacerbates the bank’s exposure to liquidity risk. Moreover, capital adequacy ratio has significant and positive association with bank liquidity, as a strong capital ratio helps to strengthen the liquidity control. However, return on assets has a negative significant impact on bank liquidity. For instance, if the bank holds more cash, it deprives itself from placing funds and earning returns, which causes its profitability to decline. Practical implications This paper gives further insights to better improve the liquidity risk management in a context of scarcity of Shariah-compliant instruments. Islamic bank needs to determine the PLS purpose and goals to be consistent with the “bank’s financing policy” and convince its depositors to use their deposits for medium and long-run investments. Originality/value Unlike previous empirical research, this investigation tries to better grasp the Islamic bank liquidity issue by focusing on the PLS impact on liquidity risk. It aims to fill in the gap in the empirical literature on this topic.

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Section: Estimation Results and Discussionsupporting

confidence: 84%

Section: Estimation Results and Discussionmentioning

confidence: 80%

Section: Empirical Literature Reviewmentioning

confidence: 99%

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Profit- and loss-sharing impact on Islamic bank liquidity in GCC countries

Jedidia¹

2020

JIABR

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“…Hasil penelitian ini sama dengan hasil penelitian (Hediati & Hasanuh, 2021), (Grilseda & Riyadi, 2021) dan (ElMassah et al, 2019) yang menyatakan CAR berpengaruh positif terhadap ROA. Hal ini menggambarkan bahwa semakin meningkat CAR akan meningkatkan ROA maka semakin tinggi kemampuan permodalan bank dalam menjaga timbulnya resiko kerugian yang mungkin terjadi, juga akan semakin banyak dana yang tersalurkan.…”

Section: Pembahasan Pengaruh Car Terhadap Profitabilitas (Roa)unclassified

Pengaruh CAR, NPL, BOPO Dan LDR terhadap Retrun on Assets pada Bank Pembangunan Daerah:

Iklin

2023

ajeks

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This study aims to study and understand the effect of CAR, BOPO and NPL simultaneously on the Return On Assets of Regional Development Banks throughout Java Island for the period 2005 – 2021. And also to examine and understand the effect of CAR, NPL, BOPO and LDR partially on Return On Assets of Regional Development Banks throughout Java Island for the period 2005 – 2021. The population used in this study are Regional Development Banks throughout Java Island from 2005 to 2021 which have complete and published financial reports. The type of data used in this research is secondary data. Purposive Sampling Technique. Collecting data in this study using the documentation method. The analysis technique used is multiple linear regression with a significance level of 5%. The results showed that CAR partially had a significant positive effect on Profitability (ROA). BOPO partially has a significant positive effect on Profitability (ROA). NPL partially has a significant positive effect on Profitability (ROA). LDR partially has a significant positive effect on Profitability (ROA). CAR, NPL, BOPO and LDR jointly affect Profitability (ROA). Keywords: CAR, NPL, BOPO, LDR dan Return on Assets

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“…The functioning of Mit Ghamr Local Savings Banks in Egypt from 1963 to 1967 is believed as a pioneering experiment of the current development of the Islamic banking industry worldwide (Maali and Napier 2010;Haniffa and Hudaib 2010;Hafsa Orhan Åström 2013;Jinjiri Ringim 2014;Alharbi 2017;Islam and Rahman 2017;Shome et al 2018;Lujja et al 2018;Mohammed et al 2019;Farooq 2019;ElMassah et al 2019;Pitchay et al 2019;Chamberlain et al 2020).…”

Section: Introductionmentioning

confidence: 99%

Islamic Banking Performance: A Bibliometric Review

Buana¹,

Hudaefi²,

Caraka³

2020

Preprint

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Islamic banks (IBs) have been criticized as not being genuinely Islamic, and the methods in measuring their performances have been debatable. While the literature on IBs performance has been emerging, such studies precisely assess its recent development remains absent. Therefore, we aim to evaluate the development of scholarly articles that measure IBs’ performances. We employ bibliometric analysis and sample related articles from the Scopus database. We find that the development of IBs performance literature may be understood by 111 peer-reviewed journal articles, 4 conference papers, 1 book, and 1 book series. We analyze these materials based on publication sources, country and institution affiliation, keywords association, and cluster dendrogram. Our model that quantifies the keywords association and cluster dendrogram provides a novelty in assessing IBs performance literature development. Future studies may replicate our model to cluster and identify the keyword associations from the unstructured data sources.

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Liquidity in the UAE Islamic banks

Cited by 5 publications

References 13 publications

Profit- and loss-sharing impact on Islamic bank liquidity in GCC countries

Profit- and loss-sharing impact on Islamic bank liquidity in GCC countries

Pengaruh CAR, NPL, BOPO Dan LDR terhadap Retrun on Assets pada Bank Pembangunan Daerah:

Islamic Banking Performance: A Bibliometric Review

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