Factors affecting credit risk in Indonesian Islamic banks

Factors affecting credit risk in Indonesian Islamic banks

This study uses dynamic panel data methods to examine the factors affecting credit risk in Indonesian Islamic banks. The panel data is collected from 11 full-fledged Islamic banks and 22 Islamic business units (windows) in conventional banks from 2004-2012, taking into account both macroeconomic var...

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Main Authors: Haryono, Yono, Mohd. Ariffin, Noraini, Hamat, Mustapha
Format: Article
Language:English
Published: IIUM Press 2016
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/53043/
http://irep.iium.edu.my/53043/
http://irep.iium.edu.my/53043/1/53043_Factors%20affecting%20credit%20risk%20in%20Indonesian%20Islamic%20banks.pdf
id iium-53043
recordtype eprints
spelling iium-530432017-02-07T03:36:33Z http://irep.iium.edu.my/53043/ Factors affecting credit risk in Indonesian Islamic banks Haryono, Yono Mohd. Ariffin, Noraini Hamat, Mustapha HG1501 Banking This study uses dynamic panel data methods to examine the factors affecting credit risk in Indonesian Islamic banks. The panel data is collected from 11 full-fledged Islamic banks and 22 Islamic business units (windows) in conventional banks from 2004-2012, taking into account both macroeconomic variables and bank-specific variables. The Generalized Method of Moments (GMM), as proposed by Arellano and Bond (1991), is utilized to estimate the model. The results show that the GDP growth rate and the unemployment rate with a one-year lag have a strong effect on the level of the non-performing financing. Moreover, bank-specific variables such as bank’s diversification and financing structure have a positive effect on the problem financing although its direction is not as expected. It is hoped that the findings could draw attention to factors affecting credit risk in Islamic banks so that credit risk can be properly managed. IIUM Press 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/53043/1/53043_Factors%20affecting%20credit%20risk%20in%20Indonesian%20Islamic%20banks.pdf Haryono, Yono and Mohd. Ariffin, Noraini and Hamat, Mustapha (2016) Factors affecting credit risk in Indonesian Islamic banks. Journal of Islamic Finance, 5 (1). pp. 12-25. ISSN 2289-2109 E-ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/95
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Haryono, Yono
Mohd. Ariffin, Noraini
Hamat, Mustapha
Factors affecting credit risk in Indonesian Islamic banks
description This study uses dynamic panel data methods to examine the factors affecting credit risk in Indonesian Islamic banks. The panel data is collected from 11 full-fledged Islamic banks and 22 Islamic business units (windows) in conventional banks from 2004-2012, taking into account both macroeconomic variables and bank-specific variables. The Generalized Method of Moments (GMM), as proposed by Arellano and Bond (1991), is utilized to estimate the model. The results show that the GDP growth rate and the unemployment rate with a one-year lag have a strong effect on the level of the non-performing financing. Moreover, bank-specific variables such as bank’s diversification and financing structure have a positive effect on the problem financing although its direction is not as expected. It is hoped that the findings could draw attention to factors affecting credit risk in Islamic banks so that credit risk can be properly managed.
format Article
author Haryono, Yono
Mohd. Ariffin, Noraini
Hamat, Mustapha
author_facet Haryono, Yono
Mohd. Ariffin, Noraini
Hamat, Mustapha
author_sort Haryono, Yono
title Factors affecting credit risk in Indonesian Islamic banks
title_short Factors affecting credit risk in Indonesian Islamic banks
title_full Factors affecting credit risk in Indonesian Islamic banks
title_fullStr Factors affecting credit risk in Indonesian Islamic banks
title_full_unstemmed Factors affecting credit risk in Indonesian Islamic banks
title_sort factors affecting credit risk in indonesian islamic banks
publisher IIUM Press
publishDate 2016
url http://irep.iium.edu.my/53043/
http://irep.iium.edu.my/53043/
http://irep.iium.edu.my/53043/1/53043_Factors%20affecting%20credit%20risk%20in%20Indonesian%20Islamic%20banks.pdf
first_indexed 2023-09-18T21:15:06Z
last_indexed 2023-09-18T21:15:06Z
_version_ 1777411509948776448

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