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Systematic and unsystematic risk determinants of liquidity risk between Islamic and conventional banks

Waemustafa, Waeibrorheem and Sukri, Suriani (2016) Systematic and unsystematic risk determinants of liquidity risk between Islamic and conventional banks. International Journal of Economics and Financial Issues, 6 (4). pp. 1321-1327. ISSN 2146-4138

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The fundamental function of banking remains unchanged throughout the the history of banking theory. The management of risk, asset and liability remain the core function of banking. The early signal of banking crisis can be observed from the volatility of liquidity risk. Hence, this study attempted to investigate the influence of external and internal factors affecting liquidity risk of Islamic and conventional banks. This study employs time series regression analysis of Islamic banks and conventional banks from 2000 to 2010. The study found that Islamic banks maintain higher liquidity compared to conventional banks. The multivariate regression analysis shows that four out of fourteen bank-specific factors and one macroeconomic factor significantly influence the liquidity risk of Islamic bank whereas conventional banks show that Five out of thirteen bank-specific factors are significant to liquidity risk.

Item Type: Article
Uncontrolled Keywords: Liquidity risk, Islamic banks mode of financing and unique risks.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Dr. Waeibrorheem Waemustafa
Date Deposited: 16 Nov 2016 00:55
Last Modified: 16 Nov 2016 00:55
URI: http://repo.uum.edu.my/id/eprint/19665

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