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...

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Bibliographic Details
Main Authors: Isam Saleh, Malik Abu Afifa
Format: Article
Language:English
Published: Taylor & Francis Group 2020-01-01
Series:Cogent Economics & Finance
Subjects:
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.
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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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