Liquidity risk and bank portfolio management in a financial system without deposit insurance: Empirical evidence from prewar Japan

Sawada, Michiru

doi:10.1016/j.iref.2009.10.010

Cited by 17 publications

(15 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…It is also negatively correlated with operational risk and found to be significant at approximately 95% confidence level. These findings are in accordance with previous research (Ishaq & Bokpin, 2009;Sawada, 2010). Capital adequacy ratio is significant and positively related to both liquidity risk and operational risk.…”

Section: Findings and Analysissupporting

confidence: 93%

“…In addition, securities market plays a crucial role in mitigating liquidity risk for financial institutions (Franck & Krausz, 2007) and short term returns for institutions are dependent on exposure to liquidity risk (Zheng, 2006). Research suggests that flexibility and regulation are key characteristics in determining exposure to liquidity risk in specific geographical markets, indicating that more liquid markets are superior to less liquid markets (Mianelli, 2008;Sawada, 2010).…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

See 1 more Smart Citation

Empirical Analysis of Liquidity Risk and Operational Risk in Islamic Banks: Case of Pakistan

Sadiq

Mushtaq

Hussain

2015

IBFR

View full text Add to dashboard Cite

his paper aims to identify the impact of firm specific factors on liquidity risk and operational risk management for Islamic banks. The performance of Islamic financial institutions has been explored at length in regards to their operational differences, product offering and customer patronage. However, firm specific factors related to risk management have not been explored in Pakistan. This paper intends to fill that gap using empirical analysis. This study utilizes full-fledged Islamic banks operating in Pakistan during the period of 2006-2014. The ratio of capital to total assets us used as a proxy for liquidity risk and the ratio of return on assets is used as a proxy for operational risk. Size, NPL ratio, capital adequacy ratio, leverage and asset management have been used as independent variables. Results show that CAR, NPL ratio, leverage and asset management have a significant impact on liquidity risk. Size, car, and asset management have a significant impact on operational risk. The findings of this study can be utilized to create policies for enhanced risk management for Islamic financial institutions.

show abstract

Section: Findings and Analysissupporting

confidence: 93%

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Empirical Analysis of Liquidity Risk and Operational Risk in Islamic Banks: Case of Pakistan

Sadiq

Mushtaq

Hussain

2015

IBFR

View full text Add to dashboard Cite

show abstract

“…The size of the bank has a positive and significant association with liquidity risk; therefore, H 1 is accepted. Sawada's (2010) study that showed there is no association between liquidity risk and ROE or ROA. CAR has a positive and a significant association with liquidity risk in Islamic banks in the UAE.…”

Section: Anova Resultsmentioning

confidence: 95%

An empirical investigation between liquidity and key financial ratios of Islamic banks of United Arab Emirates (UAE)

Tabash¹

2018

BEH

View full text Add to dashboard Cite

This paper empirically analyzes the impact of liquidity risk on key financial performance aspects of Islamic banks in the UAE. To document the association between liquidity risk and other performance ratios, time series data are taken for full-fledged Islamic banks working in the UAE from 2000 to 2014. Liquidity ratios and capital adequacy ratios, profitability ratios, and tangibility ratios are determined. Correlation and regression analyses are used to test the study hypotheses using SPSS. The findings indicate that capital adequacy and tangibility ratios are the main factors to determine liquidity risk of UAE Islamic banks. Furthermore, the results showed that the size of Islamic banks' assets and capital adequacy had a positive and significant association with liquidity risk. Policymakers and Islamic finance experts should devote more attention to enhancing the base of Islamic finance assets to manage liquidity issues. JEL Classifications: G21, G32

show abstract

“…Bank size has been much discussed by previous researchers on liquidity risk but less discussed on market risk. [22] examines the connection between liquidity and reduction of bank portfolio in the financial system without having deposit insurance in Japan and find a positive relationship between size of banks and liquidity. This shows that banks are typically sized to hold more loans and have a larger gap of financing and this is one of the problems with liquidity in banking.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Liquidity and Market Risk and the Effect on Bank Performance in Bahrain and Malaysia Banking

Zolkifli¹,

Samsudin²,

Yusof³

2019

IJTEF

View full text Add to dashboard Cite

This paper examines the determinants of liquidity and market risk of conventional and Islamic banks for two countries; Malaysia and Bahrain and the effect of the determinants on bank performance. Data were collected from 2008 to 2016 and analyzes using panel data analysis. The results reveal that bank capitalization and interest rate are significant determinants of liquidity and market risk respectively in both countries. In addition, banks capitalization and non-interest income/income attributable significantly affects performance in both banking system. The findings of this study among others can assist the banks in complying with the existing guidelines on risk management and supervision provided by the Basel Committee on Banking Supervision and Islamic Financial Services Board. Instead of that, this result also can coordinating technical and vocational education and training development with government departments responsible for trade and industry especially in banking system, workplace relations, and science and technology, to align skills being taught with government policy directions.

show abstract

Liquidity risk and bank portfolio management in a financial system without deposit insurance: Empirical evidence from prewar Japan

Cited by 17 publications

References 16 publications

Empirical Analysis of Liquidity Risk and Operational Risk in Islamic Banks: Case of Pakistan

Empirical Analysis of Liquidity Risk and Operational Risk in Islamic Banks: Case of Pakistan

An empirical investigation between liquidity and key financial ratios of Islamic banks of United Arab Emirates (UAE)

Determinants of Liquidity and Market Risk and the Effect on Bank Performance in Bahrain and Malaysia Banking

Contact Info

Product

Resources

About