The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market
This paper aims to investigate the effect of credit risk, liquidity risk and bank capital on bank profitability over a nine-year period (2010–2018) by examining empirical evidence from an emerging market. This study is grounded on econometric panel data using GMM methods. The results indicate that c...
Main Authors: | , |
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Format: | Article |
Language: | English |
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Taylor & Francis Group
2020-01-01
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Series: | Cogent Economics & Finance |
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Online Access: | http://dx.doi.org/10.1080/23322039.2020.1814509 |
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author | Isam Saleh Malik Abu Afifa |
author_facet | Isam Saleh Malik Abu Afifa |
author_sort | Isam Saleh |
collection | DOAJ |
description | This paper aims to investigate the effect of credit risk, liquidity risk and bank capital on bank profitability over a nine-year period (2010–2018) by examining empirical evidence from an emerging market. This study is grounded on econometric panel data using GMM methods. The results indicate that credit risk, liquidity risk, and bank capital variables have an impact on bank profitability. Understanding the Basel requirements and their importance by local and foreign bank managers is significant as enforcing them can improve the efficiency of the bank and increases profitability while barricading it from risk. |
first_indexed | 2024-12-23T14:40:47Z |
format | Article |
id | doaj.art-eaa48ece82de472494b460204f00a636 |
institution | Directory Open Access Journal |
issn | 2332-2039 |
language | English |
last_indexed | 2024-12-23T14:40:47Z |
publishDate | 2020-01-01 |
publisher | Taylor & Francis Group |
record_format | Article |
series | Cogent Economics & Finance |
spelling | doaj.art-eaa48ece82de472494b460204f00a6362022-12-21T17:43:13ZengTaylor & Francis GroupCogent Economics & Finance2332-20392020-01-018110.1080/23322039.2020.18145091814509The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging marketIsam Saleh0Malik Abu Afifa1Al Zaytoonah University of JordanAl Zaytoonah University of JordanThis paper aims to investigate the effect of credit risk, liquidity risk and bank capital on bank profitability over a nine-year period (2010–2018) by examining empirical evidence from an emerging market. This study is grounded on econometric panel data using GMM methods. The results indicate that credit risk, liquidity risk, and bank capital variables have an impact on bank profitability. Understanding the Basel requirements and their importance by local and foreign bank managers is significant as enforcing them can improve the efficiency of the bank and increases profitability while barricading it from risk.http://dx.doi.org/10.1080/23322039.2020.1814509credit riskliquidity riskbank capitalbank profitabilityemerging market |
spellingShingle | Isam Saleh Malik Abu Afifa The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market Cogent Economics & Finance credit risk liquidity risk bank capital bank profitability emerging market |
title | The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market |
title_full | The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market |
title_fullStr | The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market |
title_full_unstemmed | The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market |
title_short | The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market |
title_sort | effect of credit risk liquidity risk and bank capital on bank profitability evidence from an emerging market |
topic | credit risk liquidity risk bank capital bank profitability emerging market |
url | http://dx.doi.org/10.1080/23322039.2020.1814509 |
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