Factors affecting credit risk in Indonesian Islamic banks
This study uses dynamic panel data methods to examine the factors affecting credit risk in Indonesian Islamic banks. The panel data is collected from 11 full-fledged Islamic banks and 22 Islamic business units (windows) in conventional banks from 2004-2012, taking into account both macroeconomic var...
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| Format: | Article |
| Language: | English |
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IIUM Press
2016
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| Online Access: | http://irep.iium.edu.my/53043/ http://irep.iium.edu.my/53043/1/53043_Factors%20affecting%20credit%20risk%20in%20Indonesian%20Islamic%20banks.pdf |
| _version_ | 1848784167355023360 |
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| author | Haryono, Yono Mohd. Ariffin, Noraini Hamat, Mustapha |
| author_facet | Haryono, Yono Mohd. Ariffin, Noraini Hamat, Mustapha |
| author_sort | Haryono, Yono |
| building | IIUM Repository |
| collection | Online Access |
| description | This study uses dynamic panel data methods to examine the factors affecting credit risk in Indonesian Islamic banks. The panel data is collected from 11 full-fledged Islamic banks and 22 Islamic business units (windows) in conventional banks from 2004-2012, taking into account both macroeconomic variables and bank-specific variables. The Generalized Method of Moments (GMM), as proposed by Arellano and Bond (1991), is utilized to estimate the model. The results show that the GDP growth rate and the unemployment rate with a one-year lag have a strong effect on the level of the non-performing financing. Moreover, bank-specific variables such as bank’s diversification and financing structure have a positive effect on the problem financing although its direction is not as expected. It is hoped that the findings could draw attention to factors affecting credit risk in Islamic banks so that credit risk can be properly managed. |
| first_indexed | 2025-11-14T16:32:56Z |
| format | Article |
| id | iium-53043 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T16:32:56Z |
| publishDate | 2016 |
| publisher | IIUM Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-530432017-02-07T03:36:33Z http://irep.iium.edu.my/53043/ Factors affecting credit risk in Indonesian Islamic banks Haryono, Yono Mohd. Ariffin, Noraini Hamat, Mustapha HG1501 Banking This study uses dynamic panel data methods to examine the factors affecting credit risk in Indonesian Islamic banks. The panel data is collected from 11 full-fledged Islamic banks and 22 Islamic business units (windows) in conventional banks from 2004-2012, taking into account both macroeconomic variables and bank-specific variables. The Generalized Method of Moments (GMM), as proposed by Arellano and Bond (1991), is utilized to estimate the model. The results show that the GDP growth rate and the unemployment rate with a one-year lag have a strong effect on the level of the non-performing financing. Moreover, bank-specific variables such as bank’s diversification and financing structure have a positive effect on the problem financing although its direction is not as expected. It is hoped that the findings could draw attention to factors affecting credit risk in Islamic banks so that credit risk can be properly managed. IIUM Press 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/53043/1/53043_Factors%20affecting%20credit%20risk%20in%20Indonesian%20Islamic%20banks.pdf Haryono, Yono and Mohd. Ariffin, Noraini and Hamat, Mustapha (2016) Factors affecting credit risk in Indonesian Islamic banks. Journal of Islamic Finance, 5 (1). pp. 12-25. ISSN 2289-2109 E-ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/95 |
| spellingShingle | HG1501 Banking Haryono, Yono Mohd. Ariffin, Noraini Hamat, Mustapha Factors affecting credit risk in Indonesian Islamic banks |
| title | Factors affecting credit risk in Indonesian Islamic banks |
| title_full | Factors affecting credit risk in Indonesian Islamic banks |
| title_fullStr | Factors affecting credit risk in Indonesian Islamic banks |
| title_full_unstemmed | Factors affecting credit risk in Indonesian Islamic banks |
| title_short | Factors affecting credit risk in Indonesian Islamic banks |
| title_sort | factors affecting credit risk in indonesian islamic banks |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/53043/ http://irep.iium.edu.my/53043/ http://irep.iium.edu.my/53043/1/53043_Factors%20affecting%20credit%20risk%20in%20Indonesian%20Islamic%20banks.pdf |