Shamas, Ghanim and Zainol, Zairani and Zainol, Zairy (2017) The Moderating Role of Staff Efficiency in the Relationship between Bank’s Specific Variables and Liquidity Risk in Islamic Banks of Gulf Cooperation Council (GCC) Countries. International Journal of Economics and Finance, 9 (12). pp. 278-290. ISSN 1916-971X

Preview

PDF Available under License Attribution 4.0 International (CC BY 4.0). Download (462kB) | Preview

Abstract

The efficiency of bank’s staff plays a crucial role in managing and mitigating the financial risks like liquidity risk.The aim of this paper is to propose a conceptual model/framework for investigating the moderating role of staff efficiency on the relationship between bank’s specific variables and liquidity risk in Islamic banks in Gulf Cooperation Council (GCC).GCC economies depend heavily on oil revenues which makes it subject to oil prices fluctuations. Therefore, liquidity in GCC banks, especially Islamic banks almost always suffers liquidity pressure.Thus, the issue of liquidity in this region has grown in importance in light of recent oil decline.Several attempts have been made to investigate the determinants of liquidity risk, yet the findings lack consistency. Most of the previous studies have ignored GCC region and have focused on other environments like credit risk but gave less attention to the moderating role of staff efficiency function in the Islamic banks with respect to liquidity risk. This paper offers a framework by adding a moderator of staff efficiency to the existing models of the bank’s specific determinants of liquidity risk with a particular attention to the GCC countries which are heavily dependent on oil revenues and always are subject to the impact of oil prices instabilities. Many stakeholders should benefit from the outcomes of this study.It should pave the way for bankers, regulators, investors and researchers to have a better understanding and insight about the factors that affect liquidity risk in the aforesaid banks.

Item Type:	Article
Uncontrolled Keywords:	GCC, Islamic banks, liquidity risk, staff efficiency
Subjects:	H Social Sciences > HG Finance
Divisions:	Islamic Business School
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	24 May 2018 00:15
Last Modified:	24 May 2018 00:15
URI:	https://repo.uum.edu.my/id/eprint/24133

Actions (login required)

View Item