Scrutinizing dual banking fragility: evidence from high-income and middle-income countries / Nur Hazimah Amran

The fragility of an individual bank impacts significantly on other banks given, the nature of the banking system in which various banks are interconnected, especially in terms of inter-financing activities. This creates a domino effect that could possibly jeopardize the whole banking system in the c...

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Bibliographic Details
Main Author: Amran, Nur Hazimah
Format: Thesis
Language:English
Published: 2022
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/78290/1/78290.pdf
https://ir.uitm.edu.my/id/eprint/78290/
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Summary:The fragility of an individual bank impacts significantly on other banks given, the nature of the banking system in which various banks are interconnected, especially in terms of inter-financing activities. This creates a domino effect that could possibly jeopardize the whole banking system in the country, and to a large extent, might affect other countries. This could be attributed to the significance of the banking industry in a country. The stability of the banks empowers sustainability and growth in the industry. Banks become more fragile if excessive risks persist, especially liquidity risk and capital risk. This study aims (i) to investigate the possible factors influencing dual banks fragility; (ii) to assess the interaction effects of a) financing growth, b) banks size, c) credit risk, and d) income diversification on the relationship between the potential driver(s) and banks fragility; (iii) to distinguish the intensity of banks fragility between Islamic and conventional banks for high-income and middle-income countries; and (iv) to compare the level of banks fragility between high-income and middle-income countries for Islamic and conventional banks.