Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks

Volume: 5 Number: 2 June 1, 2015
  • Waeibrorheem Waemustafa
  • Suriani Sukri
EN

Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks

Abstract

The study analyzes the macroeconomic and bank specific determinants of credit risk in Islamic and Conventional Banks. Multivariate Regression analysis is applied on the sample of 15 conventional banks and 13 Islamic Banks in Malaysia over the period between 2000-2010. The finding shows that the banks specific determinants of credit risk are uniquely influenced the credit risk formation of Islamic and Conventional banks. The study found that risky sector financing; regulatory capital and Islamic Contract are significant to credit risk of Islamic banks. For Conventional Banks, loan loss provision, debt-to-total asset ratio, regulatory capital, size, earning management and Liquidity are significant factors influencing credit risk. As for macroeconomic factors only Inflation and M3 are significant to credit risk for both Islamic and Conventional banks.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Waeibrorheem Waemustafa This is me

Suriani Sukri This is me

Publication Date

June 1, 2015

Submission Date

June 1, 2015

Acceptance Date

-

Published in Issue

Year 2015 Volume: 5 Number: 2

APA
Waemustafa, W., & Sukri, S. (2015). Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks. International Journal of Economics and Financial Issues, 5(2), 476-481. https://izlik.org/JA67FA26UY
AMA
1.Waemustafa W, Sukri S. Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks. IJEFI. 2015;5(2):476-481. https://izlik.org/JA67FA26UY
Chicago
Waemustafa, Waeibrorheem, and Suriani Sukri. 2015. “Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks”. International Journal of Economics and Financial Issues 5 (2): 476-81. https://izlik.org/JA67FA26UY.
EndNote
Waemustafa W, Sukri S (June 1, 2015) Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks. International Journal of Economics and Financial Issues 5 2 476–481.
IEEE
[1]W. Waemustafa and S. Sukri, “Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks”, IJEFI, vol. 5, no. 2, pp. 476–481, June 2015, [Online]. Available: https://izlik.org/JA67FA26UY
ISNAD
Waemustafa, Waeibrorheem - Sukri, Suriani. “Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks”. International Journal of Economics and Financial Issues 5/2 (June 1, 2015): 476-481. https://izlik.org/JA67FA26UY.
JAMA
1.Waemustafa W, Sukri S. Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks. IJEFI. 2015;5:476–481.
MLA
Waemustafa, Waeibrorheem, and Suriani Sukri. “Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks”. International Journal of Economics and Financial Issues, vol. 5, no. 2, June 2015, pp. 476-81, https://izlik.org/JA67FA26UY.
Vancouver
1.Waeibrorheem Waemustafa, Suriani Sukri. Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks. IJEFI [Internet]. 2015 Jun. 1;5(2):476-81. Available from: https://izlik.org/JA67FA26UY