Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries
Cost efficiency plays a significant role in bank risk taking behaviour. This paper examines the effect of cost efficiency on the liquidity risk of Islamic banks and conventional banks in 16 OIC countries from 1999 to 2013. The findings suggest that cost efficiency has a positive effect on liquidity...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2017
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| Online Access: | http://journalarticle.ukm.my/11613/1/jeko_51%282%29-5.pdf |
| _version_ | 1796931518631772160 |
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| author | Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah, |
| author_facet | Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah, |
| author_sort | Syajarul Imna Mohd Amin, |
| collection | UKM |
| description | Cost efficiency plays a significant role in bank risk taking behaviour. This paper examines the effect of cost efficiency on the liquidity risk of Islamic banks and conventional banks in 16 OIC countries from 1999 to 2013. The findings suggest that cost efficiency has a positive effect on liquidity risk. Other significant factors of liquidity risk include capital, bank specialization, credit risk, profitability, size, GDP and inflation whereas market concentration is not significant contributor to banking liquidity risk. There is weak evidence to support the notion that Islamic banks have higher level of liquidity risk than conventional banks. The findings imply the need to provide liquidity, probably through a well-functioning money market to lower liquidity risk in banking. |
| first_indexed | 2024-03-06T04:19:09Z |
| format | Article |
| id | ukm.eprints-11613 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:19:09Z |
| publishDate | 2017 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-116132018-04-30T00:47:49Z http://journalarticle.ukm.my/11613/ Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah, Cost efficiency plays a significant role in bank risk taking behaviour. This paper examines the effect of cost efficiency on the liquidity risk of Islamic banks and conventional banks in 16 OIC countries from 1999 to 2013. The findings suggest that cost efficiency has a positive effect on liquidity risk. Other significant factors of liquidity risk include capital, bank specialization, credit risk, profitability, size, GDP and inflation whereas market concentration is not significant contributor to banking liquidity risk. There is weak evidence to support the notion that Islamic banks have higher level of liquidity risk than conventional banks. The findings imply the need to provide liquidity, probably through a well-functioning money market to lower liquidity risk in banking. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11613/1/jeko_51%282%29-5.pdf Syajarul Imna Mohd Amin, and Shamsher Mohamad, and Mohamed Eskandar Shah, (2017) Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries. Jurnal Ekonomi Malaysia, 51 (2). pp. 55-71. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2017-2.html |
| spellingShingle | Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah, Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries |
| title | Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries |
| title_full | Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries |
| title_fullStr | Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries |
| title_full_unstemmed | Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries |
| title_short | Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries |
| title_sort | do cost efficiency affects liquidity risk in banking evidence from selected oic countries |
| url | http://journalarticle.ukm.my/11613/1/jeko_51%282%29-5.pdf |
| work_keys_str_mv | AT syajarulimnamohdamin docostefficiencyaffectsliquidityriskinbankingevidencefromselectedoiccountries AT shamshermohamad docostefficiencyaffectsliquidityriskinbankingevidencefromselectedoiccountries AT mohamedeskandarshah docostefficiencyaffectsliquidityriskinbankingevidencefromselectedoiccountries |