Credit risk, bank performance and Islamic banking: a panel data evidence from Pakistan
by Azam Ali; Muhamed Zulkhibri; Tanveer Kishwar
International Journal of Services, Economics and Management (IJSEM), Vol. 9, No. 3/4, 2018

Abstract: This study examines the relationship between credit risk and performance using unbalanced quarterly panel data, of six Islamic banks in Pakistan. The study uses panel data instrumental variables regression, utilising the seemingly unrelated regression (SUR) models to identify the bank specific variables that affect credit risk and performance of Islamic banks. The results show that credit risk is an endogenous determinant of bank performance. The causes of credit risk may include components of credit assets, which is dependent on bank specific factors. Besides, the results also suggest that the credit risk of bank specific variables lowers bank profitability. Therefore, the results support the views that credit risk is negatively related to bank performance in the case of banking sector in Pakistan.

Online publication date: Sat, 09-Feb-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services, Economics and Management (IJSEM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com