The effect of financial liberalization towards financial stability of Islamic banks in Malaysia / Nur Afizah Muhamad Arifin … [et al.]

Muhamad Arifin, Nur Afizah and Mohd Arifin, Noraini and Ramly, Zulkufly and Hashim, Maryam Jameelah and Abdul Aziz, Nor Farradila and Kamaralzaman, Surianor (2020) The effect of financial liberalization towards financial stability of Islamic banks in Malaysia / Nur Afizah Muhamad Arifin … [et al.]. Advance in Business Research International Journal, 6 (2). pp. 62-68. ISSN (e-ISSN): 2462-1838

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Abstract

Zulkufly Ra Financial liberalization will affect the stability of the financial system due to excessive risk. Liberalization effort in Islamic banks players raises the issues of the ability of how Islamic banks can survive in the financial liberalization regime. Financial liberalization induced competition and thus impact on financial stability due to excessive risk taking. Malaysia is operating in dual financial system, the effect of mediating roles of competition and interest rate between financial liberalization is expected to be vary at some extend due to shariah constraint. This paper aims to analyze the effect financial liberalization and financial stability. Structural equation model – Partial least square (PLS-SEM) is used to analyze the research model with a comprehensive data set covering the Islamic banks over 1994 -2017. The empirical results denote a significant negative impact of financial liberalization on Islamic banks' financial stability in Malaysia. Lastly, it can be concluded that this study has an implication for policymakers and the banking industry

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Item Type: Article
Creators:
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Muhamad Arifin, Nur Afizah
UNSPECIFIED
Mohd Arifin, Noraini
UNSPECIFIED
Ramly, Zulkufly
UNSPECIFIED
Hashim, Maryam Jameelah
UNSPECIFIED
Abdul Aziz, Nor Farradila
UNSPECIFIED
Kamaralzaman, Surianor
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
H Social Sciences > HJ Public Finance > Finance, Islamic
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Business and Management
Journal or Publication Title: Advance in Business Research International Journal
UiTM Journal Collections: UiTM Journal > Advances in Business Research International Journal (ABRIJ)
ISSN: (e-ISSN): 2462-1838
Volume: 6
Number: 2
Page Range: pp. 62-68
Item ID: 47166
Uncontrolled Keywords: Banking, Financial Liberalization, Financial Stability, Islamic Banks
URI: https://ir.uitm.edu.my/id/eprint/47166

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47166

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