Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.]
This study empirically examines the behaviour of Islamic bank financing activities to the fluctuations in the macroeconomics environment. An unbalanced panel data analysis was employed on 24 Islamic bank institutions’ annual data growth from various countries for the period within the span of 1998-...
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my.uitm.ir.432042021-03-10T06:45:00Z http://ir.uitm.edu.my/id/eprint/43204/ Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.] Abu Bakar, Mohd Afandi Abdul Kader, Radiah Zakaria, RozaHazli Wahid, Hairunnizam Mohd Harun, Mohd Fauzi General works. Financial institutions Money supply Credit. Debt. Loans Malaysia Commercial credit. Commercial loans. Credit management Financial management. Business finance. Corporation finance This study empirically examines the behaviour of Islamic bank financing activities to the fluctuations in the macroeconomics environment. An unbalanced panel data analysis was employed on 24 Islamic bank institutions’ annual data growth from various countries for the period within the span of 1998-2008. Bank micro data such as the total financing, reserve and loan loss provision are used to determine the behaviour after controlling for banks’ specific characteristics. The finding shows that Islamic bank financing operations is not tied to the changes in the real GDP growth that makes it more stable and resilient. The bank’s reserve and loan loss provision manage to play its role to mellow down the Islamic bank financing behaviour and act as banks’ buffers to protect the institutions from the fluctuations in the macroeconomics environment. The finding shows that the bank total financing growth is stronger during strong economic growth and weakens when economic is weaker. Though the degree of association is low as opposed to the GDP growth and the buffers policy that is positively associated to it, the institutions need to be more careful so that over-financing of fixed rate financing can be avoided. The empirical finding suggests that the Islamic bank should go for more into the profit and risk sharing to avoid any unwelcome results from the fixed rate financing instrument. 2012 Conference or Workshop Item PeerReviewed text en http://ir.uitm.edu.my/id/eprint/43204/1/43204.pdf Abu Bakar, Mohd Afandi and Abdul Kader, Radiah and Zakaria, RozaHazli and Wahid, Hairunnizam and Mohd Harun, Mohd Fauzi (2012) Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.]. In: 1st International Conference on Innovation and Technology for Sustainable Built Environment 2012 (ICITSBE 2012), 16-17 April 2012, Universiti Teknologi MARA Cawangan Perak. |
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General works. Financial institutions Money supply Credit. Debt. Loans Malaysia Commercial credit. Commercial loans. Credit management Financial management. Business finance. Corporation finance |
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General works. Financial institutions Money supply Credit. Debt. Loans Malaysia Commercial credit. Commercial loans. Credit management Financial management. Business finance. Corporation finance Abu Bakar, Mohd Afandi Abdul Kader, Radiah Zakaria, RozaHazli Wahid, Hairunnizam Mohd Harun, Mohd Fauzi Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.] |
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This study empirically examines the behaviour of Islamic bank financing activities to the fluctuations in the
macroeconomics environment. An unbalanced panel data analysis was employed on 24 Islamic bank institutions’ annual data growth from various countries for the period within the span of 1998-2008. Bank micro data such as the total financing, reserve and loan loss provision are used to determine the behaviour after controlling for banks’ specific characteristics. The finding shows that Islamic bank financing operations is not tied to the changes in the real GDP growth that makes it more stable and resilient. The bank’s reserve and loan loss provision manage to play its role to mellow down the Islamic bank financing behaviour and act as banks’ buffers to protect the institutions from the fluctuations in the macroeconomics environment. The finding shows that the bank total financing growth is stronger during strong economic growth and weakens when economic is weaker. Though the degree of association is low as opposed to the GDP growth and the buffers policy that is positively associated to it, the institutions need to be more careful so that over-financing of fixed rate financing can be avoided. The empirical finding suggests that the Islamic bank should go for more into the profit and risk sharing to avoid any unwelcome results from the fixed rate financing instrument. |
format |
Conference or Workshop Item |
author |
Abu Bakar, Mohd Afandi Abdul Kader, Radiah Zakaria, RozaHazli Wahid, Hairunnizam Mohd Harun, Mohd Fauzi |
author_facet |
Abu Bakar, Mohd Afandi Abdul Kader, Radiah Zakaria, RozaHazli Wahid, Hairunnizam Mohd Harun, Mohd Fauzi |
author_sort |
Abu Bakar, Mohd Afandi |
title |
Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.] |
title_short |
Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.] |
title_full |
Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.] |
title_fullStr |
Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.] |
title_full_unstemmed |
Islamic bank financing behaviour : a preliminary study / Mohd Afandi Abu Bakar ... [et al.] |
title_sort |
islamic bank financing behaviour : a preliminary study / mohd afandi abu bakar ... [et al.] |
publishDate |
2012 |
url |
http://ir.uitm.edu.my/id/eprint/43204/1/43204.pdf http://ir.uitm.edu.my/id/eprint/43204/ |
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1695534657343324160 |
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13.160551 |