Liquidity Risk: Comparison between Islamic and Conventional Banking

Kharisya Ayu Effendi, Disman Disman
European Research Studies Journal, Volume XX, Issue 2A, 308-318, 2017
DOI: 10.35808/ersj/643


The purpose of this study is to analyze the influence of micro-economy or bank-specific to the liquidity risk in Islamic and conventional banks. The data in this study using secondary data consists of 20 Islamic banks and 12 conventional banks obtained from seven countries, namely Albania, Saudi Arabia, Bahrain, Malaysia, Dubai, Qatar and Indonesia from 2009 to 2015.This research method is based on quantitative techniques using panel data regression. The results showed that in the Islamic bank found the best model is the fixed effect model while conventional banks best model is the random effect model. The variables that affect the liquidity risk in Islamic banks are the FLP and the NPF. While the variables that affect liquidity risk in conventional banks are FEXP, FLP, NPF and ROA.In Islamic banking capital adequacy, profitability and company size does not affect the liquidity risk, similar to Islamic banking but the profitability has a significant effect on the liquidity risk in conventional banking.

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