scholarly journals Credit & Liquidity Risk of Asia Pacific Islamic Bank: Evidence from Indonesia & Malaysia

2021 ◽  
Vol 4 (1) ◽  
pp. 68
Author(s):  
Resi Asrianti ◽  
Yaser Taufik Syamlan
Keyword(s):  
Credit Risk ◽  
Risk Taking ◽  
Time Series Data ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Third Party ◽  
Asia Pacific ◽  
Series Data ◽  
Islamic Banks ◽  
Islamic Bank

This study aims to analyze the effect of Third Party Funds (TPF), Capital Adequacy Ratio (CAR), Bank Age, Non Performing Financing (NPF), and Return On Assets (ROA) on the level of risk taking of Islamic banks in Indonesia and Malaysia. Risk taking in this study is proxied by Financing Asset Ratio (FAR) and Financing to Deposit Ratio (FDR). The data used in this study are the cross section data of Islamic banks in Indonesia and time series data of 2010 to 2017 from each of the financial statements of Islamic banks in Indonesia and Malaysia which act as the object of this research. This research uses panel data regression method.  Based on the analysis, The TPF and the CAR has big impact on the Credit and Liquidity Risk in both observed country. CAR significantly influenced the credit risk, when the CAR goes up, it is resulted from the addition of equity due to the rise of NPF. Moreover, in the liquidity risk in Indonesia is caused by the mismatch nature of Indonesian funding side. On the other hand, the credit risk in Malaysia rises whenever the TPF increase and the liquidity is caused by the deposit taking and risk taking activity. The introduction of investment account by the Bank Negara is among the factors of significant as well as negative result of it.   This paper urges the OJK to speed up the implementation of Investment Account product in Indonesian Islamic bank since it will reduce the liquidity risk and at the end will decrease the credit risk.

scholarly journals Risk Analyses on Islamic Banks in Indonesia

2020 ◽  
Author(s):  
Dimas Bagus Wiranatakusuma ◽  
Imamuddin Yuliadi ◽  
Ikhwan Victhori
Keyword(s):  
Time Series ◽  
Financial Services ◽  
Time Series Data ◽  
Liquidity Risk ◽  
Series Data ◽  
Islamic Banks ◽  
Monthly Basis ◽  
Income Ratio ◽  
Financing Risk ◽  
Risk Vulnerability

This study aims to analyze the risks on Islamic banks in Indonesia by identifying which risk is significantly dominant in triggering other risks to happen. For that purpose, the study uses time series data on a monthly basis from 2010:M1 to 2018:M8. The data are obtained from the Financial Services Authority (OJK) Indonesia and analyzed using vector autoregression (VAR). Some variables are employed to proxy risk vulnerability including financing-to-deposit ratio (FDR) as a proxy of liquidity risk, nonperforming financing (NPF) as a proxy of financing risk, and cost-to-income ratio (BOPO) as a proxy of operational risk. The findings suggest that financing risk is the most dominant risk triggering vulnerability on Islamic banks in Indonesia.

scholarly journals Capital structure and profitability: An empirical study of South African banks

2016 ◽  
Vol 14 (1) ◽  
pp. 8-19 ◽  
Author(s):  
Kudzai Raymond Marandu ◽  
Athenia Bongani Sibindi
Keyword(s):  
Capital Structure ◽  
Credit Risk ◽  
South African ◽  
Time Series Data ◽  
Emerging Market ◽  
Strong Relationship ◽  
Capital Adequacy ◽  
Series Data ◽  
Bank Capital ◽  
The Relationship

The bank capital structure debacle in the aftermath of the 2007-2009 financial crises continues to preoccupy the minds of regulators and scholars alike. In this paper we investigate the relationship between capital structure and profitability within the context of an emerging market of South Africa. We conduct multiple linear regressions on time series data of big South African banks for the period 2002 to 2013. We establish a strong relationship between the ROA (profitability measure) and the bank specific determinants of capital structure, namely capital adequacy, size, deposits and credit risk. The relationship exhibits sensitivity to macro-economic shocks (such as recessions), in the case of credit risk and capital but is persistent for the other determinants of capital structure.

scholarly journals DETERMINANT FACTORS OF MSME FINANCING IN ISLAMIC BANK (STUDY CASE IN INDONESIA)

2019 ◽  
Vol 3 (1) ◽  
pp. 75-81
Author(s):  
Irena Paramita Pramono ◽  
Rudy Hartanto ◽  
Tria Apriliana
Keyword(s):  
Time Series Data ◽  
Third Party ◽  
Series Data ◽  
Determinant Factors ◽  
Islamic Bank ◽  
Bank Financing ◽  
Lack Of Information ◽  
Medium Enterprise ◽  
High Employment ◽  
Study Case

Micro, Small and Medium Enterprise (MSME) is an important segment of the Indonesian economy. The amount of MSME in Indonesia is 99,9% of the total entrepreneurs, it has high employment absorption and has a big contribution to the GDP. Despite the importance of MSME in Indonesia, financing, and lack of information become the main problem in MSMEs growth. In addition to financial assistance, Indonesia's MSMEs also need partner and guidance to help them grow. Islamic bank is an important segment in Indonesia's banking industry. We believe with a good coherency within Islamic Bank and MSME, both can support each other better either in financial aspect and management aspect. Therefore this research try to give an understanding what is the determinant factors of Islamic Bank financing for MSME, either in bank umum syariah and unit usaha syariah. This research use time series data of Islamic Bank financing, which monthly released by Otoritas Jasa Keuangan. There are several factors examined in this paper, which are Net Performing Financing (NPF), Return On Financing (ROA), Third Party Funds or Dana Pihak Ketiga (DPK), number of offices, number of workers and policy rate.

Profit- and loss-sharing impact on Islamic bank liquidity in GCC countries

2020 ◽  
Vol 11 (9) ◽  
pp. 1791-1806
Author(s):  
Khoutem Ben Jedidia
Keyword(s):  
Liquidity Risk ◽  
Profit Sharing ◽  
Capital Adequacy ◽  
Empirical Literature ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Gcc Countries ◽  
Long Run ◽  
The Impact

Purpose The purpose of this paper is to empirically assess the impact of the principle of profit- and loss-sharing (PLS) on the exposure to liquidity risk of Islamic banks in Gulf Corporation Council (GCC) countries. The Islamic bank activity is distinguished by a PLS principle, which is likely to involve specificities in the bank liquidity issue. Design/methodology/approach This paper investigates the determinants of Islamic bank liquidity over the period 2005–2016 using a panel of 23 Islamic banks in GCC. The system of generalized method of moment estimators is applied. Findings The findings reveal that while profit-sharing investment accounts (PSIAs) are inversely proportional to Islamic bank liquidity, the PLS investment does not seem to act as a determinant of the bank liquidity. The fact that PSIAs are globally short-run accounts, but finance long-run projects leads to a substantial maturity mismatches, which limits the availability of liquidity buffer and exacerbates the bank’s exposure to liquidity risk. Moreover, capital adequacy ratio has significant and positive association with bank liquidity, as a strong capital ratio helps to strengthen the liquidity control. However, return on assets has a negative significant impact on bank liquidity. For instance, if the bank holds more cash, it deprives itself from placing funds and earning returns, which causes its profitability to decline. Practical implications This paper gives further insights to better improve the liquidity risk management in a context of scarcity of Shariah-compliant instruments. Islamic bank needs to determine the PLS purpose and goals to be consistent with the “bank’s financing policy” and convince its depositors to use their deposits for medium and long-run investments. Originality/value Unlike previous empirical research, this investigation tries to better grasp the Islamic bank liquidity issue by focusing on the PLS impact on liquidity risk. It aims to fill in the gap in the empirical literature on this topic.

scholarly journals Pengaruh Kecukupan Modal, Efisiensi dan Likuiditas Terhadap Rentabilitas di Bank Syariah Milik Pemerintah Indonesia

2019 ◽  
Vol 5 (2) ◽  
pp. 158
Author(s):  
I Wayan Sunarya
Keyword(s):  
Structural Analysis ◽  
Time Series Data ◽  
Capital Adequacy ◽  
Series Data ◽  
Islamic Banks ◽  
Financial Health ◽  
Vector Error Correction ◽  
Vector Error ◽  
Determining Factors

<p>The ratio of financial statements to Islamic banks is one of the determining factors in financial health within the bank itself. For this reason, it is necessary to analyze the influence of capital adequacy, efficiency and liquidity on profitability in the Indonesian state-owned Islamic banks from 2009-2017. This study aims to model the influence of capital adequacy (CAR), Efficiency (BOPO) and Liquidity (FDR) on Rentability (ROA), then analyze the model, and provide forecasting and structural analysis of the model. Therefore, the method used in this study is the analysis of Vector Error Correction Model which is applied to time series data from the level of CAR, BOPO, FDR to ROA. Based on the specification, estimation and examination of the model, the VECM (2) model was obtained as the best model. The results of the model analysis say that there is a long-term and short-term causality relationship between the levels of CAR, BOPO, FDR against ROA. Then, based on forecasting and structural analysis, it can be concluded that the results obtained are accurate.</p>

scholarly journals Development Of Small Medium Entreprise With External, Internal, And Religiosity Factors In Islamic Banks

KINERJA ◽  
2017 ◽  
Vol 21 (1) ◽  
pp. 17
Author(s):  
Roikhan Mochamad Aziz
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Small And Medium Enterprises ◽  
Third Party ◽  
Series Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Independent Variables ◽  
Medium Enterprises ◽  
Positive Effect

The purpose of this research is to analyze the influence of external, internal and religiosity variable that proxies to inflation, Bank Indonesia Certificate Sharia (SBIS), Non Performing Financing (NPF) and Third Party Fund (DPK) to Small and Medium Enterprises Financing in the Islamic Bank in Indonesia. The data is used Time Series data periods of January: 2011 – March: 2016 from Statistic Banking of Indonesia by analyzed of Multiple Linear Regression and Hahslm method. The results of this research indicate that the variable Inflation, Bank Indonesia Sharia Certificate (SBIS), Non Performing Financing (NPF) and Third Party Fund (DPK) have partially influence to Small and Medium Enterprises Financing. This is showed by the value of Adjusted R Square of 60,7% while the remaining 39,3% influence by other factors. In this research showed Inflation, Non Performing Financing (NPF) and Third Party Fund (DPK) have a significantly and positive effect on the Small and Medium Enterprises Financing. Meanwhile, Bank Indonesia Sharia Certificate (SBIS) has no significantly effect on Small and Medium Enterprises Financing. Simultaneously, the overall independent variables have a significant influence to Small and Medium Enterprises Financing.Keywords: Inflation, SBIS, NPF, Islamic Banking.

scholarly journals Analisis Faktor-Faktor yang Memengaruhi Risiko Likuiditas pada Bank Umum Syariah di Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 71-84
Author(s):  
Regita Nur Fitriani ◽  
Dimas Sumitra Danisworo
Keyword(s):  
Descriptive Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Third Party ◽  
Islamic Banks ◽  
Quantitative Descriptive Analysis ◽  
Factors Affecting ◽  
Quantitative Descriptive

This research was conducted to analyze what factors affecting the liquidity risk in Islamic Banks in Indonesia. In this study, the measurement of liquidity risk will be seen from other factors that can affects liquidity risk including Cash Ratio (CsR), Size of Bank (SOB), Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Net Working Capital (NWC), and Investment (INV). The research method used in this research is a quantitative descriptive analysis uses the Eviews 9 program. The object of this analysis is twelve Islamic Banks in Indonesia which have been operating from 2014-2018. The analysis technique used is multiple regression analysis with Random Effect Model (REM) regression model. The results of this study indicate that CsR, SOB, and NWC have a significant effect on liquidity risk. While DPK, CAR, and INV have an insignificant effect on liquidity risk.

scholarly journals CAMEL Rating System and Financial Performance of Islamic Banks in Kenya

2021 ◽  
pp. 37-53
Author(s):  
Grace Rehema Denje ◽  
Clement O. Olando
Keyword(s):  
Credit Risk ◽  
Financial Performance ◽  
Emerging Market ◽  
Investment Strategy ◽  
Capital Adequacy ◽  
Rating System ◽  
Islamic Banks ◽  
Management Efficiency ◽  
Islamic Bank ◽  
Rating Model

Kenyan Islamic banks are facing a myriad of credit risk issues adversely affecting their financial performance. Importantly. CAMEL rating system has been identified as an effective approach when making credit risk management decisions. However, most of the research associating financial performance of Islamic banks has ignored issues arising in emerging market such as Kenya, a knowledge gaps this research locked. Quantitative approach was utilised while adopting correlational research design. The research had its target population as being the three (3) Islamic banks which had been operating in Kenya between the year 2012and 2020 where census was employed. The researcher compiled financial data from secondary data for between 2012 and 2020. Quantitative analysis approach was applied in the analysis to yield respective statistics; descriptive and inferential. The study concludes that; capital adequacy has a statistically significant positive, assets quality has a statistically significant negative, management efficiency has a statistically significant positive, earnings ability has a statistically significant positive, and liquidity has significant negative, effect on financial performance of Islamic banks in Kenya. Accordingly, CAMEL rating model is appropriate for assessing financial performance of Islamic bank in Kenya. The study recommends that the Kenyan Islamic bank, should employ the optimal investment strategy for capital adequacy determination, manage their assets, enhance their management efficiency capability, improve their earnings ability, and strictly adhere to recommended liquidity levels. The research recommends that Kenyan IBs should be employing CAMEL rating model on yearly basis to identify elements requiring special attention.

scholarly journals THE DETERMINANT OF CREDIT RISK IN INDONESIAN ISLAMIC COMMERCIAL BANKS

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Yaser Taufik Syamlan ◽  
Wardatul Jannah
Keyword(s):  
Credit Risk ◽  
Central Asia ◽  
Cross Section ◽  
Risk Taking ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Section Data ◽  
Capital Adequacy Ratio ◽  
Negative Effect

The credit risk in Islamic Banking rises significantly due to the escalation of non-performing financing. On the other hand, the asset growth of Islamic banks also not as explosive as happened in the year 2010 – 2014. This study aims to analyze the influence of bank size, leverage, bank ages, other competitor banks, Capital Adequacy Ratio (CAR) and Non-Performing Financing (NPF) on the level of risk-taking of Islamic banks in Indonesia. Risk-taking is peroxided by Financing Asset Ratio (FAR) which hasn’t been researched deeply by other researchers, especially in the Islamic banking industry. To measure the risk-taking, this research took cross-section data of Islamic banks in Indonesia from 2010 to 2017 which obtained from the financial reports of 5 full-fledged Islamic banks namely Bank Muamalat Indonesia, Bank Syariah Mandiri, Bank Syariah Mega Indonesia, Bank Syariah Bukopin, Bank Panin Syariah, Bank Rakyat Indonesia Syariah, Bank Central Asia Syariah, and Bank Negara Indonesia Syariah. This study uses a panel data regression method. The result shows that bank size and bank age have a significant positive effect on risk-taking. Leverage and other competitor banks have a significant negative effect on risk-taking, and CAR and NPF have a negative but insignificant effect. This study recommends that Islamic banks should try to diversify the risk by introducing the new product that is based on the Mudharabah Muqayyadah.==================================================================================================Determinan Risiko Kredit pada Bank Umum Syariah di Indonesia. Risiko kredit dalam Perbankan Syariah meningkat secara signifikan seiring dengan meningkatnya pembiayaan bermasalah. Di sisi lain, pertumbuhan aset bank syariah juga tidak semasif yang terjadi antara tahun 2010 - 2014. Penelitian ini bertujuan untuk menganalisis pengaruh ukuran bank, leverage, umur bank, bank pesaing lainnya, Capital Adequacy Ratio (CAR)  dan Non Performing Financing (NPF) terhadap tingkat pengambilan risiko bank syariah di Indonesia. Pengambilan risiko dipengaruhi oleh Financing Asset Ratio (FAR) yang belum diteliti secara mendalam oleh peneliti lain terutama di industri perbankan syariah. Untuk mengukur pengambilan risiko, penelitian ini mengambil data cross-section bank syariah di Indonesia dari 2010 hingga 2017 yang diperoleh dari laporan keuangan lima Bank Umum Syariah yaitu Bank Muamalat Indonesia, Bank Syariah Mandiri, Bank Syariah Mega Indonesia, Bank Syariah Bukopin, Bank Panin Syariah, Bank Rakyat Indonesia Syariah, Bank Central Asia Syariah, dan Bank Negara Indonesia Syariah. Data untuk penelitian ini dianalisis dengan metode regresi. Hasil penelitian menunjukkan bahwa ukuran bank dan usia bank memiliki pengaruh positif yang signifikan terhadap pengambilan risiko, sementara leverage dan bank pesaing lainnya memiliki efek negatif yang signifikan terhadap pengambilan risiko. Dua variabel lain, yaitu CAR dan NPF memiliki pengaruh negatif tetapi tidak signifikan terhadap pengambilan risiko. Penelitian ini merekomendasikan agar bank syariah mencoba untuk mendiversifikasi risiko dengan memperkenalkan produk baru yang didasarkan pada Mudharabah Muqayyadah.

scholarly journals DAMPAK PANDEMI COVID-19 TERHADAP PERTUMBUHAN DANA PIHAK KETIGA PADA BANK SYARIAH

El Dinar ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 44-61
Author(s):  
Hurriah Ali Hasan ◽  
Saidin Mansyur ◽  
Siti Walida Mustamin
Keyword(s):  
Time Series Data ◽  
Third Party ◽  
Series Data ◽  
Financial Risks ◽  
Islamic Banks ◽  
Growth Trend ◽  
Investment Funds ◽  
First Semester ◽  
Time Series Data Analysis ◽  
The Impact

The aim of this study is to analyze the impact of contagious of Covid-19 on the growth of Third Party Funds (DPK) in Islamic banks, to see the economic strength during the Covid-19 Pandemic. The analysis was carried out on the financial statements of two Islamic banks, are BNI Syariah and Bank Syariah Mandiri (BSM). By using time series data analysis in the aggregate time of the first semester for the period of January - June and the first month in the second semester in July 2020. The data source is taken from the financial publication monthly report from BNI Syariah and BSM. As a comparison, data for 2018 and 2019 are used in the same month period, so that obtained of the growth trend of DPK in Islamic Bank during normal times and during the Covid-19 pandemic. The results of correlation and comparison analysis, this study found that the Covid-19 pandemic has influenced the trend of public funds in Islamic banks. In choosing fund products at banks, the customer avoid investment risks by reducing deposits in the form of investment funds and prefer Wadiah as safe products. This caused DPK in Islamic banks both BNI Syariah and BSM have significant positive growth for Wadiah and decline in investment funds during the Covid-19 pandemic. This shows that Islamic banking faces financial risks in abnormal situations during the Covid-19 pandemic.

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