Credit risk of Islamic banks in GCC countries
This paper is about factors affecting credit risk of Islamic banks in the Gulf Cooperation Council countries using website data covering 25 Islamic banks over 2006 to 2010.This study uses non-performing loans as a proxy for credit risk, which is the dependent variable with three macro-economic, and...
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| Format: | Article |
| Language: | English |
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Faculty of Business, Bond University
2013
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| Online Access: | https://repo.uum.edu.my/id/eprint/10402/1/H1.pdf |
| _version_ | 1803626041481101312 |
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| author | Al-Wesabi, Hamid A. H. Ahmad, Nor Hayati |
| author_facet | Al-Wesabi, Hamid A. H. Ahmad, Nor Hayati |
| author_sort | Al-Wesabi, Hamid A. H. |
| collection | UUM |
| description | This paper is about factors affecting credit risk of Islamic banks in the Gulf Cooperation Council countries using website data covering 25 Islamic banks over 2006 to 2010.This study uses non-performing loans as a proxy for credit risk, which is the dependent variable with three macro-economic, and six firm-specific independent variables.We find income is significantly negatively related to credit risk, which is consistent with findings in other countries about credit risk.Some firm-specific variables such as leverage, liquidity are also relevant variables for credit risk, which results are also consistent with bank behavior reported in other studies.Credit risk is also broadly affected by both macro and firm-specific factors as found in other regions.Inflation and interest rates do not appear to be relevant.These results would suggest non-performing loan is broadly correlated with factors identified in other studies of banks. |
| first_indexed | 2024-07-04T05:43:52Z |
| format | Article |
| id | uum-10402 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:43:52Z |
| publishDate | 2013 |
| publisher | Faculty of Business, Bond University |
| record_format | dspace |
| spelling | uum-104022016-04-20T01:12:15Z https://repo.uum.edu.my/id/eprint/10402/ Credit risk of Islamic banks in GCC countries Al-Wesabi, Hamid A. H. Ahmad, Nor Hayati HG Finance This paper is about factors affecting credit risk of Islamic banks in the Gulf Cooperation Council countries using website data covering 25 Islamic banks over 2006 to 2010.This study uses non-performing loans as a proxy for credit risk, which is the dependent variable with three macro-economic, and six firm-specific independent variables.We find income is significantly negatively related to credit risk, which is consistent with findings in other countries about credit risk.Some firm-specific variables such as leverage, liquidity are also relevant variables for credit risk, which results are also consistent with bank behavior reported in other studies.Credit risk is also broadly affected by both macro and firm-specific factors as found in other regions.Inflation and interest rates do not appear to be relevant.These results would suggest non-performing loan is broadly correlated with factors identified in other studies of banks. Faculty of Business, Bond University 2013-11 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/10402/1/H1.pdf Al-Wesabi, Hamid A. H. and Ahmad, Nor Hayati (2013) Credit risk of Islamic banks in GCC countries. International Journal of Banking and Finance (IJBF), 10 (2). pp. 121-135. ISSN 1675-7227 http://epublications.bond.edu.au/ijbf/vol10/iss2/8/ |
| spellingShingle | HG Finance Al-Wesabi, Hamid A. H. Ahmad, Nor Hayati Credit risk of Islamic banks in GCC countries |
| title | Credit risk of Islamic banks in GCC countries |
| title_full | Credit risk of Islamic banks in GCC countries |
| title_fullStr | Credit risk of Islamic banks in GCC countries |
| title_full_unstemmed | Credit risk of Islamic banks in GCC countries |
| title_short | Credit risk of Islamic banks in GCC countries |
| title_sort | credit risk of islamic banks in gcc countries |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/10402/1/H1.pdf |
| work_keys_str_mv | AT alwesabihamidah creditriskofislamicbanksingcccountries AT ahmadnorhayati creditriskofislamicbanksingcccountries |