Abstract
Purpose
The purpose of this paper is to investigate the determinants of Islam banks (IBs) liquidity.
Design/methodology/approach
In this paper, the author uses a generalized least square fixed effect model on an unbalanced panel data set of all IBs operating in the Organization of Islamic Cooperation countries over the period 1989-2008.
Findings
The estimation results show that all the determinants have statistically significant relationships with IBs’ liquidity but with different signs. On the one hand, foreign ownership, credit risk, profitability, inflation rate, monetary policy and deposit insurance negatively affected IBs liquidity. On the other hand, capital ratio, size gross domestic product growth and concentration have a positive nexus with IBs’ liquidity.
Originality/value
According to the best of the author’s knowledge, this is the first empirical study to investigate the determinants of IBs liquidity using cross-country data with a large sample of IBs (110 banks) and over a long period (19 years). Also, the paper included variables that had not been discussed on the previous studies, which used cross-country data, such as efficiency, deposit insurance, monetary policy, concentration and market capitalization.
Subject
Strategy and Management,Accounting,Business and International Management
Reference59 articles.
1. Basel III liquidity requirement ratios and Islamic banking;Journal of Banking Regulation,2015
2. Liquidity risk and Islamic banks: evidence from Pakistan;Interdisciplinary Journal of Research in Business,2011
3. The GCC banking sector: topography and analysis,2010
4. How does deposit insurance affect bank risk? Evidence from the recent crisis;Journal of Banking and Finance,2014
Cited by
10 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献