The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia

This research aims to study the systematic and unsystematic determinants that influence the liquidity creation of Islamic bank in Malaysia. The explanatory variables are categorized into systematic factors and unsystematic factors. The systematic factors include bank’s size, bank’s capital and non-p...

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Main Authors: Lee, Kok Man, Lim, Wooi Tong, Moh, Sau Tung, Ng, Enyang, Wong, June Phin
Format: Final Year Project / Dissertation / Thesis
Published: 2019
Subjects:
Online Access:http://eprints.utar.edu.my/3892/
http://eprints.utar.edu.my/3892/1/fyp_BF_2019_LKM_%2D_1700431.pdf
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author Lee, Kok Man
Lim, Wooi Tong
Moh, Sau Tung
Ng, Enyang
Wong, June Phin
author_facet Lee, Kok Man
Lim, Wooi Tong
Moh, Sau Tung
Ng, Enyang
Wong, June Phin
author_sort Lee, Kok Man
building UTAR Institutional Repository
collection Online Access
description This research aims to study the systematic and unsystematic determinants that influence the liquidity creation of Islamic bank in Malaysia. The explanatory variables are categorized into systematic factors and unsystematic factors. The systematic factors include bank’s size, bank’s capital and non-performing financing; meanwhile the unsystematic factors include inflation rate and unemployment rate. This research utilizes the secondary data collected from the data stream for systematic factors as well as yearly financial reports of Islamic banks in Malaysia during the year 2009 to 2017 for unsystematic factors. According to the result, bank’s size, bank’s capital, inflation rate and unemployment rate have significant impact on liquidity creation of Islamic bank in Malaysia. However, the non-performing financing has no significant impact on liquidity creation of Islamic bank in Malaysia. In addition, all of the variables are positively correlated with the Islamic banks’ liquidity creation. Various parties such as government, policy makers, academician and industry can be beneficial from this research paper in enhancing their welfare in relate of liquidity creation determination. Several implications and recommendations were proposed to the related parties and future researches in the last part of the research paper.
first_indexed 2025-11-15T19:31:49Z
format Final Year Project / Dissertation / Thesis
id utar-3892
institution Universiti Tunku Abdul Rahman
institution_category Local University
last_indexed 2025-11-15T19:31:49Z
publishDate 2019
recordtype eprints
repository_type Digital Repository
spelling utar-38922021-01-07T06:35:04Z The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia Lee, Kok Man Lim, Wooi Tong Moh, Sau Tung Ng, Enyang Wong, June Phin HG Finance This research aims to study the systematic and unsystematic determinants that influence the liquidity creation of Islamic bank in Malaysia. The explanatory variables are categorized into systematic factors and unsystematic factors. The systematic factors include bank’s size, bank’s capital and non-performing financing; meanwhile the unsystematic factors include inflation rate and unemployment rate. This research utilizes the secondary data collected from the data stream for systematic factors as well as yearly financial reports of Islamic banks in Malaysia during the year 2009 to 2017 for unsystematic factors. According to the result, bank’s size, bank’s capital, inflation rate and unemployment rate have significant impact on liquidity creation of Islamic bank in Malaysia. However, the non-performing financing has no significant impact on liquidity creation of Islamic bank in Malaysia. In addition, all of the variables are positively correlated with the Islamic banks’ liquidity creation. Various parties such as government, policy makers, academician and industry can be beneficial from this research paper in enhancing their welfare in relate of liquidity creation determination. Several implications and recommendations were proposed to the related parties and future researches in the last part of the research paper. 2019-07-25 Final Year Project / Dissertation / Thesis NonPeerReviewed application/pdf http://eprints.utar.edu.my/3892/1/fyp_BF_2019_LKM_%2D_1700431.pdf Lee, Kok Man and Lim, Wooi Tong and Moh, Sau Tung and Ng, Enyang and Wong, June Phin (2019) The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia. Final Year Project, UTAR. http://eprints.utar.edu.my/3892/
spellingShingle HG Finance
Lee, Kok Man
Lim, Wooi Tong
Moh, Sau Tung
Ng, Enyang
Wong, June Phin
The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia
title The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia
title_full The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia
title_fullStr The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia
title_full_unstemmed The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia
title_short The systematic and unsystematic factors that affect the liquidity creation of Islamic banks in Malaysia
title_sort systematic and unsystematic factors that affect the liquidity creation of islamic banks in malaysia
topic HG Finance
url http://eprints.utar.edu.my/3892/
http://eprints.utar.edu.my/3892/1/fyp_BF_2019_LKM_%2D_1700431.pdf