The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia
Studies on problematic loans have identified several contributing bank specific factors such as loan loss provision, loan size, non-performing loan and equity capital. These are financial factors. This paper investigates the impact of bank specific factors on impaired financing of Islamic and conven...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Global Business Entrprenuership
2019
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/31351/1/HLBC%2003%2012%202019%2092-104.pdf |
| _version_ | 1811674110670929920 |
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| author | Mat Nor, Alias Osman, Amirul Faiz Ahmad, Nor Hayati Rahman, Md Mahfujur Abu Bakar, Azizi |
| author_facet | Mat Nor, Alias Osman, Amirul Faiz Ahmad, Nor Hayati Rahman, Md Mahfujur Abu Bakar, Azizi |
| author_sort | Mat Nor, Alias |
| collection | UUM |
| description | Studies on problematic loans have identified several contributing bank specific factors such as loan loss provision, loan size, non-performing loan and equity capital. These are financial factors. This paper investigates the impact of bank specific factors on impaired financing of Islamic and conventional banks in Malaysia. The results allow comparative evaluation between the two distinct banking systems operating together in the dual banking system in Malaysia. Financial data covering 2012 to 2016 study periods were obtained from Fitch Connect database and analysed using hierarchical regression. This study provides empirical evidence that some of the internal factors have influenced on impaired financing for both Islamic and conventional banks but the results are more profound for conventional banks. In addition, there are also significant differences of the effect of the bank specific factors on impaired financing of Islamic and conventional banks. The differences accentuate that conventional banks should adopt different approaches to mitigate their credit risk compared to Islamic banks in managing impaired financing |
| first_indexed | 2024-10-01T01:44:29Z |
| format | Article |
| id | uum-31351 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-10-01T01:44:29Z |
| publishDate | 2019 |
| publisher | Global Business Entrprenuership |
| record_format | eprints |
| spelling | uum-313512024-08-29T11:12:48Z https://repo.uum.edu.my/id/eprint/31351/ The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia Mat Nor, Alias Osman, Amirul Faiz Ahmad, Nor Hayati Rahman, Md Mahfujur Abu Bakar, Azizi HG Finance Studies on problematic loans have identified several contributing bank specific factors such as loan loss provision, loan size, non-performing loan and equity capital. These are financial factors. This paper investigates the impact of bank specific factors on impaired financing of Islamic and conventional banks in Malaysia. The results allow comparative evaluation between the two distinct banking systems operating together in the dual banking system in Malaysia. Financial data covering 2012 to 2016 study periods were obtained from Fitch Connect database and analysed using hierarchical regression. This study provides empirical evidence that some of the internal factors have influenced on impaired financing for both Islamic and conventional banks but the results are more profound for conventional banks. In addition, there are also significant differences of the effect of the bank specific factors on impaired financing of Islamic and conventional banks. The differences accentuate that conventional banks should adopt different approaches to mitigate their credit risk compared to Islamic banks in managing impaired financing Global Business Entrprenuership 2019 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/31351/1/HLBC%2003%2012%202019%2092-104.pdf Mat Nor, Alias and Osman, Amirul Faiz and Ahmad, Nor Hayati and Rahman, Md Mahfujur and Abu Bakar, Azizi (2019) The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia. Journal of Humanities, Language, Culture and Business, 3 (12). pp. 92-104. ISSN 0126-8147 https://www.icohlcb.com/ |
| spellingShingle | HG Finance Mat Nor, Alias Osman, Amirul Faiz Ahmad, Nor Hayati Rahman, Md Mahfujur Abu Bakar, Azizi The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia |
| title | The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia |
| title_full | The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia |
| title_fullStr | The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia |
| title_full_unstemmed | The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia |
| title_short | The Impact of Bank Specific Factors on Impaired Financing: Comparative Analysis Between Islamic and Conventional Banks in Malaysia |
| title_sort | impact of bank specific factors on impaired financing comparative analysis between islamic and conventional banks in malaysia |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/31351/1/HLBC%2003%2012%202019%2092-104.pdf |
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