Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries

Research on liquidity risk of Islamic banks (IBs) in the GCC countries is very scarce despite being one of the main international banking markets, key international oil suppliers and hold largest Islamic assets share globally. Hence, this study offers fresh insight on Islamic banks liquidity risk us...

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Main Author:	Shamas, Ghanim Bakhit
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	HB Economic Theory
Online Access:	https://etd.uum.edu.my/9364/1/s95865_01.pdf https://etd.uum.edu.my/9364/2/s95865_02.pdf https://etd.uum.edu.my/9364/3/s95865%20-references.docx
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id	my-uum-etd.9364
record_format	uketd_dc
spelling	my-uum-etd.93642023-03-15T01:49:25Z Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries 2019 Shamas, Ghanim Bakhit Zainol, Zairani Zainol, Zairy Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HB Economic Theory Research on liquidity risk of Islamic banks (IBs) in the GCC countries is very scarce despite being one of the main international banking markets, key international oil suppliers and hold largest Islamic assets share globally. Hence, this study offers fresh insight on Islamic banks liquidity risk using bank-specific and macroeconomic indicators. To highlight the impact of bank-specific and macroeconomic variables on 26 IBs liquidity risk, the generalized methods of moments (GMM) was used over the period of 2002-2016. The study also examines the moderating effect of staff efficiency on the relationship between bank-specific characteristics and liquidity risk using the hierarchical moderated GMM regression. The results show that both indices of changes in oil prices (WTI and Brent) have a positive and significant impact on liquidity risk, indicating that oil prices are directly related to the liquidity risk of IBs in oil-exporting countries. This suggests that a rise in oil prices leads to lower liquidity risk. The hierarchical moderated GMM regression reveals that staff efficiency has a significant moderating effect on the relationship between bank-specific factors and liquidity risk. Furthermore, both macroeconomic including changes in oil prices, GDP, inflation and bank-specific factors play vital roles in determining the liquidity risk of IBs in GCC. Evidently, these banks benefit from increased cash flows caused by positive oil price shocks. The study findings have a clear theoretical implications, the study provides proof to support liquidity creation and risk transformation theory, contingency theory of risk management, and resource-based view theory. In terms of policy implications, the findings of this study have implications to regulators, bankers, investors and market participants. Policymakers could use these findings in formulating appropriate monetary policies regarding capital adequacy requirements and supervisory schemes in managing liquidity risk. 2019 Thesis https://etd.uum.edu.my/9364/ https://etd.uum.edu.my/9364/1/s95865_01.pdf text eng public https://etd.uum.edu.my/9364/2/s95865_02.pdf text eng public https://etd.uum.edu.my/9364/3/s95865%20-references.docx text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Zainol, Zairani Zainol, Zairy
topic	HB Economic Theory
spellingShingle	HB Economic Theory Shamas, Ghanim Bakhit Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries
description	Research on liquidity risk of Islamic banks (IBs) in the GCC countries is very scarce despite being one of the main international banking markets, key international oil suppliers and hold largest Islamic assets share globally. Hence, this study offers fresh insight on Islamic banks liquidity risk using bank-specific and macroeconomic indicators. To highlight the impact of bank-specific and macroeconomic variables on 26 IBs liquidity risk, the generalized methods of moments (GMM) was used over the period of 2002-2016. The study also examines the moderating effect of staff efficiency on the relationship between bank-specific characteristics and liquidity risk using the hierarchical moderated GMM regression. The results show that both indices of changes in oil prices (WTI and Brent) have a positive and significant impact on liquidity risk, indicating that oil prices are directly related to the liquidity risk of IBs in oil-exporting countries. This suggests that a rise in oil prices leads to lower liquidity risk. The hierarchical moderated GMM regression reveals that staff efficiency has a significant moderating effect on the relationship between bank-specific factors and liquidity risk. Furthermore, both macroeconomic including changes in oil prices, GDP, inflation and bank-specific factors play vital roles in determining the liquidity risk of IBs in GCC. Evidently, these banks benefit from increased cash flows caused by positive oil price shocks. The study findings have a clear theoretical implications, the study provides proof to support liquidity creation and risk transformation theory, contingency theory of risk management, and resource-based view theory. In terms of policy implications, the findings of this study have implications to regulators, bankers, investors and market participants. Policymakers could use these findings in formulating appropriate monetary policies regarding capital adequacy requirements and supervisory schemes in managing liquidity risk.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Shamas, Ghanim Bakhit
author_facet	Shamas, Ghanim Bakhit
author_sort	Shamas, Ghanim Bakhit
title	Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries
title_short	Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries
title_full	Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries
title_fullStr	Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries
title_full_unstemmed	Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries
title_sort	moderating role of staff efficiency in determining liquidity risk of islamic banks in the gcc countries
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2019
url	https://etd.uum.edu.my/9364/1/s95865_01.pdf https://etd.uum.edu.my/9364/2/s95865_02.pdf https://etd.uum.edu.my/9364/3/s95865%20-references.docx
_version_	1776103728285220864

Moderating role of staff efficiency in determining liquidity risk of Islamic banks in the GCC countries

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