Abstract:
The clue of a good financial management for any bank or financial institution is risk
management. The most important part of the process of risk management is to
identify and determine the source of risk. This study is carried out in order to identify
and analyze the factors that influence credit risk, liquidity risk and capital risk of
both Islamic and conventional banks in QISMUT countries (Qatar, Indonesia, Saudi
Arabia, Malaysia, UAE and Turkey) during the period from 2011 to 2015 taking in
to consideration answering research question if determinants of risk in Islamic
banking sector are the same as conventional banking sector or not. Concerning credit
risk log of bank size is only common factor that significantly affects both Islamic and
conventional banks. Bank fund management is the only factor that shows significant
impact to both Islamic and conventional banks. Deposits structure is considered to be
the only significant factor that influence capital adequacy of both Islamic and
conventional banks. From the investigated factors for each risk there is only factor
which has significant impact on Islamic and conventional banks. This indicates that
there is a big difference in the factors that influence risk in Islamic and conventional
banks and this may be due to the factors mentioned in chapter 1 that differentiate
Islamic banking from conventional banking.
Keywords: Islamic banks, Conventional banks, Credit risk, Liquidity risk, Capital
risk.
Description:
Master of Science in Banking and Finance. Thesis (M.S.)--Eastern Mediterranean University, Faculty of Business and Economics, Dept. of Banking and Finance, 2017. Supervisor: Prof. Dr. Eralp Bektaş.