Determinants of banking crises in ASEAN countries

Research output: Contribution to journalArticle

Abstract

This paper attempts to estimate the determinants of crises on Islamic banking system during financial crises using early warning system (EWS) with particular focus on the element of profit-loss sharing. Profit-loss sharing has significant impact in reducing crisis probability experienced by the Islamic banking system. This suggests that profit-loss sharing may be considered as one of the risk mitigation techniques for bank to remain resilient during the crises. The results further show that full-fledged Islamic banks have higher chances of experiencing crises relative to the Islamic subsidiaries banks. In addition, economic freedom and overvaluation in the currency are more likely exposed to banks to the crises.

Original languageEnglish
Article number1850009
JournalJournal of International Commerce, Economics and Policy
Volume9
Issue number3
DOIs
Publication statusPublished - 1 Oct 2018

Fingerprint

Banking crisis
Profit
Islamic banking
Banking system
Islamic financial institutions
Risk mitigation
Subsidiaries
Currency
Financial crisis
Economic freedom
Overvaluation
Early warning system

Keywords

  • Early Warning System
  • Financial crisis
  • Islamic banks
  • logit model

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Finance
  • Economics and Econometrics

Cite this

Determinants of banking crises in ASEAN countries. / Othman, Norfaizah; Abd Majid, Mariani; Abdul Rahman, Aisyah.

In: Journal of International Commerce, Economics and Policy, Vol. 9, No. 3, 1850009, 01.10.2018.

Research output: Contribution to journalArticle

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