Investigation Of Credit Risk Performance Relationship In Islamic Banks In Pakistan

Author by : Azam Ali
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 71
Total Download : 353
File Size : 49,5 Mb
GET BOOK

Description : Pakistan financial sector was influenced by the 2007-08 global financial crises (GFC), particularly its banking industry suffered the most. Both conventional banks, as well as, Islamic banks showed serious concerns of not having proper risk management systems to desist from the vulnerabilities of crises. Out of six, two full-fledged Islamic banks could not absorb the GFC' shocks and resultantly, one of them was dissolved, while the other amalgamated. To know the extent, of which the GFC affected the Islamic banks' credit risk that ultimately deteriorated the performance of one-third of Islamic banks in Pakistan, this study was motivated to analyze the GFC impact on the credit risk and performance relationship in Islamic banks. The study therefore, investigates the relationship between performance and credit risks and impact of GFC on this relationship of all full-fledged Islamic banks operating in Pakistan during the period 2002QII-2012QIV. On the basis of Islamic banks' quarterly published data, Seemingly Unrelated Regression (SUR) model is applied for the analysis of unbalanced panel data at aggregate banks level and at the individual bank level. This study is not only attempts to present a comprehensive analysis to investigate the credit risk-performance relationship of Islamic banks in Pakistan' at both the aggregate and individual banks' levels, but also explores the GFC impact on this relationship during three periods of the crises, pre-crisis period 2005-07, the crisis period 2007-09 and the post-crisis period 2009-12. The findings reveal that size, funding cost, regulatory capital, risk weighted assets and risky sector financings have significant relationships with profitability, liquidity and financing variables of Islamic banks' performances, both at aggregate bank level and individual bank level. The study also confirms the negative relationship between credit risk predictors and performance variables of Islamic banks in Pakistan. Further, the results exhibit that the GFC impact on this relationship found to be more influential during the crisis period as compared to the pre-crisis period and post-crisis period. This happened because of the unavailability of risk evasion measurements with Islamic banks in Pakistan. The findings suggest several policy implications: Firstly, Islamic banks' should develop early warning systems to desist from vulnerabilities of such crises in future. Secondly, serious attention should be given by banks taking into account those performance variables that have significant relationships with the credit risk. Thirdly, Islamic banks need to develop sustainable systems to examine the worthiness of borrowers that help reduce the default risks. Fourthly, regulator should conduct periodic reviews on the quality of financing disbursed to borrowers to enhance the confidence of the general public in Islamic banking. Finally, regulator should ensure the effectiveness and implementation of its existing policies to prevent banks from financing/disbursements to risky sectors. A cross country study is recommended to develop generalized conclusion.


Islamic Finance Risk Sharing And Macroeconomic Stability

Author by : Muhamed Zulkhibri
Languange : en
Publisher by : Springer
Format Available : PDF, ePub, Mobi
Total Read : 12
Total Download : 876
File Size : 49,8 Mb
GET BOOK

Description : The concept of risk-sharing in financial and social contracts is one of the unique features of Islamic finance. Many theoretical studies generally claim superiority of an Islamic financial system based on pure equity and participatory modes of financing, while empirical studies provide mixed results. Studies and discussions are needed to fully understand how Islamic finance could contribute to the ongoing discussion of financial stability. Against this background, this book addresses various aspects of Islamic finance and the risk-sharing mechanism contributions to the overall macroeconomic and financial stability. Undoubtedly, the findings and recommendation from this book should be of great interest not only to future academic researchers in the field of macroeconomic stability and Islamic finance, but also to policy makers and regulators who are keen on drawing lessons from Islamic finance experiences to prevent similar crisis in the future.


Commercial Banking

Author by : Christopher Gan
Languange : en
Publisher by : MDPI
Format Available : PDF, ePub, Mobi
Total Read : 81
Total Download : 343
File Size : 53,6 Mb
GET BOOK

Description : The existence of financial intermediaries is arguably an artifact of information asymmetry. Beyond simple financial transactions, financial intermediation provides a mechanism for information transmission, which can reduce the degree of information asymmetry and consequently increase market efficiency. During the process of information transmission, the bank is able to provide unique services in the production and exchange of information. Therefore, banks have comparative advantages in information production, transmission, and utilisation. This book provides an overview of commercial banking and includes empirical methods in banking such risk and bank performance, capital regulation, bank competition and foreign bank entry, bank regulation on bank performance, and capital adequacy and deposit insurance.


Papers In Itjemast 11 13 2020

Author by : Anonim
Languange : en
Publisher by : International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies
Format Available : PDF, ePub, Mobi
Total Read : 28
Total Download : 858
File Size : 55,8 Mb
GET BOOK

Description : International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies publishes a wide spectrum of research and technical articles as well as reviews, experiments, experiences, modelings, simulations, designs, and innovations from engineering, sciences, life sciences, and related disciplines as well as interdisciplinary/cross-disciplinary/multidisciplinary subjects. Original work is required. Article submitted must not be under consideration of other publishers for publications.


Recent Applications Of Financial Risk Modelling And Portfolio Management

Author by : Škrinjarić, Tihana
Languange : en
Publisher by : IGI Global
Format Available : PDF, ePub, Mobi
Total Read : 60
Total Download : 365
File Size : 53,5 Mb
GET BOOK

Description : In today’s financial market, portfolio and risk management are facing an array of challenges. This is due to increasing levels of knowledge and data that are being made available that have caused a multitude of different investment models to be explored and implemented. Professionals and researchers in this field are in need of up-to-date research that analyzes these contemporary models of practice and keeps pace with the advancements being made within financial risk modelling and portfolio control. Recent Applications of Financial Risk Modelling and Portfolio Management is a pivotal reference source that provides vital research on the use of modern data analysis as well as quantitative methods for developing successful portfolio and risk management techniques. While highlighting topics such as credit scoring, investment strategies, and budgeting, this publication explores diverse models for achieving investment goals as well as improving upon traditional financial modelling methods. This book is ideally designed for researchers, financial analysts, executives, practitioners, policymakers, academicians, and students seeking current research on contemporary risk management strategies in the financial sector.


The Times Index

Author by : Anonim
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 63
Total Download : 463
File Size : 49,6 Mb
GET BOOK

Description : Indexes the Times and its supplements.


Annual Index

Author by : Anonim
Languange : en
Publisher by : Unknown
Format Available : PDF, ePub, Mobi
Total Read : 93
Total Download : 993
File Size : 40,5 Mb
GET BOOK

Description :