Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks
The study analyzes macroeconomic and bank specific determinants of credit risk in Islamic and Conventional Banks.Multivariate Regression analysis is applied on the sample of 15 conventional banks and 13 Islamic Banks in Malaysia over the period between 2000 and 2010. The finding shows that the banks...
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| Format: | Article |
| Language: | English |
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EconJournals
2015
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| Online Access: | https://repo.uum.edu.my/id/eprint/15267/1/1105.pdf |
| _version_ | 1825803507121258496 |
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| author | Waemustafa, Waeibrorheem Sukri, Suriani |
| author_facet | Waemustafa, Waeibrorheem Sukri, Suriani |
| author_sort | Waemustafa, Waeibrorheem |
| collection | UUM |
| description | The study analyzes macroeconomic and bank specific determinants of credit risk in Islamic and Conventional Banks.Multivariate Regression analysis is applied on the sample of 15 conventional banks and 13 Islamic Banks in Malaysia over the period between 2000 and 2010. The finding shows that the banks specific determinants of credit risk are uniquely influenced the credit risk formation of Islamic and Conventional banks.The study found that risky sector financing; regulatory capital (REGCAP) and Islamic Contract are significant to credit risk of Islamic banks.For Conventional Banks,loan loss provision, debt-to-total asset ratio, REGCAP, size, earning management and Liquidity are significant factors influencing credit risk. As for macroeconomic factors only Inflation and M3 are significant to credit risk for both Islamic and Conventional banks. |
| first_indexed | 2024-07-04T05:58:14Z |
| format | Article |
| id | uum-15267 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:58:14Z |
| publishDate | 2015 |
| publisher | EconJournals |
| record_format | eprints |
| spelling | uum-152672016-04-17T03:49:17Z https://repo.uum.edu.my/id/eprint/15267/ Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks Waemustafa, Waeibrorheem Sukri, Suriani HG Finance The study analyzes macroeconomic and bank specific determinants of credit risk in Islamic and Conventional Banks.Multivariate Regression analysis is applied on the sample of 15 conventional banks and 13 Islamic Banks in Malaysia over the period between 2000 and 2010. The finding shows that the banks specific determinants of credit risk are uniquely influenced the credit risk formation of Islamic and Conventional banks.The study found that risky sector financing; regulatory capital (REGCAP) and Islamic Contract are significant to credit risk of Islamic banks.For Conventional Banks,loan loss provision, debt-to-total asset ratio, REGCAP, size, earning management and Liquidity are significant factors influencing credit risk. As for macroeconomic factors only Inflation and M3 are significant to credit risk for both Islamic and Conventional banks. EconJournals 2015 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/15267/1/1105.pdf Waemustafa, Waeibrorheem and Sukri, Suriani (2015) Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks. International Journal of Economics and Financial Issues, 5 (2). pp. 476-481. ISSN 2146-4138 http://www.econjournals.com/index.php/ijefi/article/view/1105 |
| spellingShingle | HG Finance Waemustafa, Waeibrorheem Sukri, Suriani Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks |
| title | Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks |
| title_full | Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks |
| title_fullStr | Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks |
| title_full_unstemmed | Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks |
| title_short | Bank specific and macroeconomics dynamic determinants of credit risk in Islamic banks and conventional banks |
| title_sort | bank specific and macroeconomics dynamic determinants of credit risk in islamic banks and conventional banks |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/15267/1/1105.pdf |
| work_keys_str_mv | AT waemustafawaeibrorheem bankspecificandmacroeconomicsdynamicdeterminantsofcreditriskinislamicbanksandconventionalbanks AT sukrisuriani bankspecificandmacroeconomicsdynamicdeterminantsofcreditriskinislamicbanksandconventionalbanks |