COMPARISON OF LIQUIDITY RISK AND CREDIT RISK STABILITY OF ISLAMIC BANKING AND CONVENTIONAL
This study analyzes the comparison of the stability of Islamic banks and conventional banks based on credit risk and liquidity risk. Researchers chose the bank stability variable with a proxy, namely the Z-score as a means of testing the effect of liquidity risk on bank stability. And using a descriptive statistical approach, the classical assumption test. To test the relationship between liquidity risk and credit risk, then the Mann-Whitney U test is to compare the performance of Islamic banks and conventional banks. The research data were obtained from Islamic and conventional banking companies in Indonesia for the period 2008-2018 to then compare and analyze the test results. The expected result is that there is a significant negative influence between liquidity risk on bank stability and the better performance of Islamic banks than conventional banks.
Keywords: Liquidity Risk, Credit Risk, Stability Bank, Comparison of Sharia Banking and Conventional
Abedifar, P., Molyneux, P. & Tarazi, A., 2013. Risk in Islamic Banking. Review of Finance, 17 (6), pp. 2035-2096.
Adi, Tri. 2019. Problem banking liquidity of 2019. sharia Kontan- News Data Financial Tools
Adiwarman, A. Karim. 2006. Bank Islam Fiqh and Financial Analysis, Cet. 3 Jakarta: PT. King Grafindo Persada
Allen, F. & Carletti, E., 2008. The Role of Liquidity in Financial Crises. Jackson Hole Economic Policy Symposium, Volume retrieved from http://repository.upenn.edu/fnce_p.
Almarzoqi, R., Naceur, SB & Scopelliti, A. D., 2015. How does the bank competition affect solvency, liquidity, and credit risk? Evidence from the MENA countries. IMF working paper, Volume WP / 15/210.
Ashraf, D., Rizwan & L'Huillier, B., 2016. A net stable funding ratio for Islamic banks and its impact on financial stability: An international investigation. Journal of Financial Stability, Volume 25, pp. 47-57.
Baele, L., Farooq, M. & Ongena, S., 2014. Of religion and redemption: evidence from default on Islamic loans. Journal of Banking & Finance, Volume 44, pp. 141-159.
Beck, T., Demirgüç-Kunt, A. & Merrouche, O., 2013. Islamic vs. conventional banking: business models, efficiency and stability. Journal of Banking & Finance, 37 (2), pp. 433-447.
Čihák, M. & Hesse, H., 2010. Islamic Banks and Financial Stability: An Empirical Analysis. Journal of Financial Services Research, 38 (2-3), pp. 95-113.
Cornetta, MM, McNuttb, JJ, Strahanc,. P. E. & Tehraniand, H., 2011. Liquidity risk management and credit supply in the financial crisis. Journal of Financial Economics, 101 (2), pp. 297-312.
Hassan, T., Mohamad, S. & Bader, ICM, 2009. The efficiency of conventional versus Islamic banks: evidence from the Middle East. International. Journal of Islamic and Middle Eastern Finance and Management, 2 (1), pp. 46-65.
Hassan, M. Kabir., Et al. 2018. Liquidity Risk, Credit Risk, and Stability in the Islamic and Conventional Banks. Research in International Business and Finance.
Imbierowicz, B. & Rauch,. C., 2014. The relationship between liquidity risk and credit risk in banks. Journal of Banking & Finance, Volume 40, pp. 242-256. IMF Working Paper, Volume Working Paper No. 98/30.
Kabir, MN, Worthington, A. & Gupta, R., 2015. Comparative credit risk in Islamic and conventional banks. Pacific-Basin Finance Journal, Volume 34, pp. 327-353.
Kim, D. & Sohn, W., 2017. The effect of bank capital on lending: does liquidity matter?. Journal of Banking & Finance, April, Volume 77, pp. 95-107.
Loo, M., 2010. Attitudes and perceptions towards Islamic banking among muslims and non-muslims in Malaysia: Implications for marketing to baby boomers and X-generation. International Journal of Arts and Sciences, 3 (13), pp. 453-485.
Miah, MD & Uddin, H., 2017. Efficiency and Stability: A comparative study between Islamic and conventional banks in GCC countries. Future Business Journal, Volume 3, pp. 172-185.
Mollah, S. & Zaman, M., 2015. Shari'ah supervision, corporate governance and performance: conventional vs. Islamic banks. Journal of Banking & Finance, Volume 58, pp. 418-435.
Obaidullah, M., 2005. Islamic financial services. Islamic Economics Research Center, King Abdulaziz University, Jeddah, Saudi Arabia. Financial Services Authority - Statistics Islamic Banking, accessed on 06 April 2019.
Pujianti, R & Sitorus NH 2016. Analysis Banking and Market Structure Banking Stability In Indonesia (Before and After Policies Indonesian Banking Architecture). Journal of Economic Development. Vol. 5, N0 2, July 2016.
Richard, W., 2015. A century lost in economics: Three theories of banking and the conclusive evidence. International Review of Financial Analysis, Volume 46, pp. 361-379.
Saeed, M. & Izzeldin, M., 2016. Examining the relationship between default risk and efficiency in the Islamic and conventional banks. Journal of Economic Behavior Organization, Volume 132, pp. 127-154
Siswanto. Ely, Sulhan, Bank Management: Conventional and Sharia, (Malang: UIN-Malang Press, 2008), Cet. I, p. 151-15.
Wagner, W., 2007. The liquidity of banks assets and banking stability. Journal of Banking & Finance, Volume 31, pp. 121-139.
- There are currently no refbacks.