Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries

Cost efficiency plays a significant role in bank risk taking behaviour. This paper examines the effect of cost efficiency on the liquidity risk of Islamic banks and conventional banks in 16 OIC countries from 1999 to 2013. The findings suggest that cost efficiency has a positive effect on liquidity...

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Main Authors:	Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11613/ http://journalarticle.ukm.my/11613/ http://journalarticle.ukm.my/11613/1/jeko_51%282%29-5.pdf

id	ukm-11613
recordtype	eprints
spelling	ukm-116132018-04-30T00:47:49Z http://journalarticle.ukm.my/11613/ Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah, Cost efficiency plays a significant role in bank risk taking behaviour. This paper examines the effect of cost efficiency on the liquidity risk of Islamic banks and conventional banks in 16 OIC countries from 1999 to 2013. The findings suggest that cost efficiency has a positive effect on liquidity risk. Other significant factors of liquidity risk include capital, bank specialization, credit risk, profitability, size, GDP and inflation whereas market concentration is not significant contributor to banking liquidity risk. There is weak evidence to support the notion that Islamic banks have higher level of liquidity risk than conventional banks. The findings imply the need to provide liquidity, probably through a well-functioning money market to lower liquidity risk in banking. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11613/1/jeko_51%282%29-5.pdf Syajarul Imna Mohd Amin, and Shamsher Mohamad, and Mohamed Eskandar Shah, (2017) Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries. Jurnal Ekonomi Malaysia, 51 (2). pp. 55-71. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2017-2.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	Cost efficiency plays a significant role in bank risk taking behaviour. This paper examines the effect of cost efficiency on the liquidity risk of Islamic banks and conventional banks in 16 OIC countries from 1999 to 2013. The findings suggest that cost efficiency has a positive effect on liquidity risk. Other significant factors of liquidity risk include capital, bank specialization, credit risk, profitability, size, GDP and inflation whereas market concentration is not significant contributor to banking liquidity risk. There is weak evidence to support the notion that Islamic banks have higher level of liquidity risk than conventional banks. The findings imply the need to provide liquidity, probably through a well-functioning money market to lower liquidity risk in banking.
format	Article
author	Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah,
spellingShingle	Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah, Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries
author_facet	Syajarul Imna Mohd Amin, Shamsher Mohamad, Mohamed Eskandar Shah,
author_sort	Syajarul Imna Mohd Amin,
title	Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries
title_short	Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries
title_full	Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries
title_fullStr	Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries
title_full_unstemmed	Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries
title_sort	do cost efficiency affects liquidity risk in banking? evidence from selected oic countries
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11613/ http://journalarticle.ukm.my/11613/ http://journalarticle.ukm.my/11613/1/jeko_51%282%29-5.pdf
first_indexed	2023-09-18T20:00:44Z
last_indexed	2023-09-18T20:00:44Z
_version_	1777406831495217152

Do cost efficiency affects liquidity risk in banking? evidence from selected OIC countries

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