Determinants of Islamic bank credit risk in ASEAN countries / Kamarudin Othman … [et al.]

Othman, Kamarudin and Laidin, Jamilah and Ismail, Shahiszan and Ismail, Nor Azira (2020) Determinants of Islamic bank credit risk in ASEAN countries / Kamarudin Othman … [et al.]. Journal of Emerging Economies & Islamic Research, 8 (3). pp. 1-16. ISSN (e-ISSN): 2289-2559

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Abstract

Islamic banking system have been establish more than 30 years ago around the world. However, until today it still facing a lot of obstacles especially in term of credit risk. Thus, the aims of this study is to examine the external (macroeconomic) and internal economic factors that influencing Islamic bank credit risk in ASEAN countries. By using 29 of Islamic banking data in ASEAN from years 2011 until 2018, panel data model was applied in this study. The results from the long run regression of FLOMS, DLOS and PMG suggest management efficiency (MGT) and capital ratio (CR) are the internal factors affects the credit risk of ASEAN Islamic bank. Economic growth, inflation and interest rates are external factors that also found could influencing the Islamic bank credit risk. More research ought to be carried out so that one can understand how credit risk is created in Islamic banking. The finding obtained will provide the further understanding of how Islamic banks should tackle the obstacles they face in order to manage their credit risk.

Metadata

Item Type: Article
Creators:
Creators
Email
Othman, Kamarudin
kbo176617@uitm.edu.my
Laidin, Jamilah
UNSPECIFIED
Ismail, Shahiszan
UNSPECIFIED
Ismail, Nor Azira
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HG Finance > Banking > Bank loans. Bank credit. Commercial loans
H Social Sciences > HJ Public Finance > Finance, Islamic
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Business and Management
Journal or Publication Title: Journal of Emerging Economies & Islamic Research
UiTM Journal Collections: UiTM Journal > Journal of Emerging Economies and Islamic Research (JEEIR)
ISSN: (e-ISSN): 2289-2559
Volume: 8
Number: 3
Page Range: pp. 1-16
Official URL: https://doi.org/10.24191/jeeir.v8i3.8851
Item ID: 47447
Uncontrolled Keywords: ASEAN, Islamic Banking, Credit Risk
URI: https://ir.uitm.edu.my/id/eprint/47447

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47447

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