Loading...
Determinants of Liquidity Risk in Indonesian Islamic and Conventional Banks
Sukmana, Raditya Suryaningtyas, Sari
Sukmana, Raditya
Suryaningtyas, Sari
Author(s)
Author(s) (Additional)
Illustrator(s)
Producer(s)
Contributor(s)
Contributor(s) (Other)
Editor(s)
Advisor(s)
Contact(s)
Data Collector(s)
Collections
Files
Research Projects
Organizational Units
Journal Issue
Online Access
Abstract
The purpose of the study is to examine the causes of the liquidity risk in Islamic and conventional banks in Indonesia using panel data regression method. The study found the significant and positive relation of ROA and NPF with the liquidity risk, whereas the negative and significant relation of CAR with the liquidity risk in Indonesian Conventional Banks. Meanwhile in Islamic banks, CAR result significantly positive effect on liquidity risk, while ROA shows negative and significant result. Possible explanation for this is that given the huge profit by the conventional banks, it has more chance to allocate it as liquidity reserve as well as increasing the facilities (improvement on technology). When the NPL is high, the conventional banks will increase the liquid assets as a buffer. Unlike the conventional banks, the Islamic banks in Indonesia might allocate capital as liquidity reserves and might allocate ROA in fixed assets or financing or technology. The result confirms that the role of capital and bank’s performance is indeed important to the banking liquidity.
Note(s)
Topic
Type
Journal volume
Date
2016-07
Identifier
ISBN
DOI
Copyright/License
With permission of the license/copyright holder