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Liquidity risk determinants: are Islamic banks different from conventional banks?

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dc.contributor.authorSyajarul Imna Mohd Amin
dc.contributor.supervisorShamsher Mohamad Ramadili Mohd
dc.contributor.supervisorMohamed Eskandar Shah Mohd Rasid
dc.date.accessioned2017-04-27T11:06:11Z
dc.date.available2017-04-27T11:06:11Z
dc.date.issued2016
dc.description.abstractThis research examines comparatively the impact of cost efficiency and other relevant determinants of liquidity risk of Islamic banks and conventional banks in 16 OIC countries from 1999 to 2013. The study employs three-stage empirical approaches to analyse the data. First, cost efficiency is estimated using DEA with the input output specifications based on intermediation approach and value added approach for traditional versus non-traditional banking activities. Second, liquidity risk determinants model is analysed using panel static (LSDV) and panel dynamic model (system GMM). However given the limitations of static panel and the superiority of dynamic GMM, the second approach is expected to generate more reliable results and therefore, serve as the main findings. Third, the one-step and two-step system GMM estimator is applied to establish the dynamic relationship between efficiency and liquidity risk and uses Wald test to conclude on the Granger causality relationship. The findings suggest that cost efficiency is positively related to liquidity risk and, the relationship is sensitive to the choice of input output mixes. Other significant factors include capital, bank specialisation, credit risk, profitability, size, and inflation whereas market concentration is not significant. The study found weak evidence on the important effect of GDP growth and the higher level of liquidity risk of Islamic banks than conventional banks. The findings imply the importance of money market to provide liquidity as indicated by the lower liquidity risk of banks in Malaysia as compared to other countries that are devoid of such facility. The most important factor affecting liquidity risk in Islamic banks is cost efficiency while for conventional banks, it is bank specialisation. Finally, regulation on asset restriction restrains liquidity risk in banking.en_US
dc.identifier.citationMohd Amin, S. I. (2016). Liquidity risk determinants: are Islamic banks different from conventional banks? (Doctoral dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/2404en_US
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/2404
dc.languageEnglish
dc.language.isoengen_US
dc.publisherINCEIFen_US
dc.rights2016. INCEIF
dc.sourceGS
dc.subjectBank liquidity
dc.subjectRisk management
dc.subjectIslamic banking
dc.titleLiquidity risk determinants: are Islamic banks different from conventional banks?en_US
dc.typePhDen_US
dlc.maintopicIslamic bankingen_US
dspace.entity.typePublication
ikr.doctypeTheses
ikr.licenseAvailable in physical copy and downloadable format (Call Number: t HG 1656 A3 S981)
ikr.topic.maintopicIslamic bankingen_US
relation.isAuthorOfPublication33b91dde-0170-454c-8f2b-ec4b208837b9
relation.isAuthorOfPublication33b91dde-0170-454c-8f2b-ec4b208837b9
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