Impact of Systemic Risks on Islamic Banks Performance

Bader Mustafa Al-Sharif

International Journal of Economics and Finance, 2018, vol. 10, issue 5, 221-230

Abstract: The current study aims at identifying impact of systemic risks on Islamic banks performance: evidence from Jordan as measured by return on assets. The financial reports issued by Islamic Bank of Jordan and Islamic International Arab Bank for the periods (2007-2016) were referred to. The analytical and descriptive approach were applied in order to achieve the objectives and the results of the current study. (E-views) software was applied in order to examine the hypotheses of the study and to answer its questions through Simple &Multiple Linear Regression analysis. The most significant findings of the study was the presence of statistically significant effect of systemic banking risks (capital risks, liquidity risks, credit risks, operational risks) on the performance of Jordanian Islamic banks. The current study recommended that Islamic banks should diversify in financing and investment methods to reduce systemic banking risks and to establish specialized risk departments and activate their role to reduce the negative effects of systemic risks on the performance of Islamic banks in order to continue in the market.

Keywords: systemic banking risks; performance; Islamic banks (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:10:y:2018:i:5:p:221-230

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