Liquidity Management and The Islamic Bank Financing Constraints
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2017, Vol 7, Issue 12
Abstract
The major source of income for a bank comes from the financing operations. Insufficient amount of fund resources a bank have, consequently, a negative relationship between liquid assets holding, reserve, capital requirement, and provision for bad and doubtful financing with financing operations is expected. Thus, the study aim to examine the degree of constraint the liquidity management has on the Islamic bank financing activities. To realise the objectives of the study, this study utilised the dynamic panel data, Generalized Method of Moments (GMM) estimator applied to Malaysia Islamic banks annual data for the period of 1998 to 2014. The finding shows a negative relationship between liquidity and financing, which means an insufficient fund, is a constraint to the Islamic bank's financing operations. Thus, the liquid assets holding and securities holdings have a negative impact on Islamic bank financing activities, hence, excessive holding of liquidity consequently will reduce bank’s financing volumes.
Authors and Affiliations
Mohd Afandi Abu Bakar, Noormahayu Mohd Nasir, Farrah Dina Abd Razak, Nor Samsinar Kamsi, Abdul Malek A. Tambi
Keywords
Related Articles
- EP ID EP638529
- DOI 10.6007/IJARBSS/v7-i12/3599
- Views 84
- Downloads 0
Readers’ Preferences for Print and Online Newspapers in Northwestern Nigeria
Print newspaper circulation declines as the online versions are available for free. This study determines the extent of readership preferences for both print and online newspapers in northwestern Nigeria. Daily Trust, be...
Investigating the Needs to Develop an Integrated Holistic Marriage Education Module (IHMEM)
Due to the escalating statistical figure of divorce rate amongst Muslim couples in Malaysia, there is a need to enhance the marriage education program to be more effective in overcoming the problems of marriage, as well...
Leadership Competencies and Organizational Performance: Review and Proposed Framework
Leadership competencies are the skills of a leader that contribute to superior performance. By developing leadership competencies, organisation can better identify and develop their next generation of leaders. Leadership...
Fisheries Economic Activities among the Malay Society at the Terengganu Coast in the early 20th century
This study focus on the fisheries activities at the Terengganu coast among the Malay society in the early of 20th century. Terengganu shows fisheries industry’s improvement as a result of high demind from the local and n...
Human Resources Professionals’ Point of Views On Applying of the Human Resources Planning: ‘Example of Isbir Synthetic’
Nowadays when the technology effect on managements is ingreasingly continuing day by day, the factors composing business to business rivalry discrepancy, Show an alteration depending on this state. In this sense, the con...