Liquidity Risk, Its Relationship and Its Impact on the Liquidity and Profitability of the Islamic Bank
(An applied study of a sample of the Iraqi private sector banks for the period from 2011-2017)
Keywords:
Risk, liquidity risk, liquidity and its indicators, profitability and indicators, Iraqi National Islamic Bank.
Abstract
This study aims to shed light on the risk in its general form and the risk of liquidity in its own form that Islamic banks are exposed to and what is the relationship and implications for the bank’s liquidity and profitability, as the Iraqi National Islamic Bank was chosen as a sample for the study, and the available data has been used and used to measure the risk of bank liquidity To which the bank is subjected to the study sample for the period from 2011-2017, where the problem of the study lies in explaining the most important obstacles that it suffers from and which have a significant impact on the smooth flow of its daily work, which is the areas of liquidity and profitability that researchers used Their indicators in the analysis and then it was tested by (F, P - Value) and effect statement through the determination coefficient (R 2) using the analysis of variance (ANOVA), and the study reached the negation of its hypotheses and acceptance of its alternatives, i.e. there is a relationship between liquidity risk and the liquidity and profitability of the bank, Likewise, there is an effect of the liquidity risk on both the liquidity and profitability of the bank, which resulted in the exit of some necessary recommendations, the most important of which was the necessity of high attention in the composition of other financial resources that enable it to face financial risks, especially with regard to liquidity risks in the event of exposure to it, as well as seeking to find opportunities An investment capable of employing SEO So as to achieve cash the bank's profitability in its business, and try to earn a derivative dealers with the bank.
References
اولاً: المصادر العربية
1. التقارير المالية للمصرف الوطني الاسلامي العراقي للفترة من 2011 – 2017 المنشورة ضمن سوق العراق للأوراق المالية .
2. الحيالي ، وليد ناجي ، " التحليل المالي " ، من منشورات الاكاديمية العربية المفتوحة في الدانيمارك ، 2007 .
3. الربيعي ، حاكم محسن ، وحمد عبد الحسين راضي ، " حوكمة البنوك وأثرها في الاداء والمخاطرة " ، دار اليازوري العلمية للنشر والتوزيع ، ط (1) ، عمان ، الاردن ، 2011 .
4. الشمري ، أرشد عبد الامير جاسم ، " الابداع الوظيفي والعوامل الاستراتيجية وتداخلاتها بالمقدرات الجوهرية والتفوق في الاداء المالي للمنظمات الخدمية / دراسة تحليلية مقارنة لعينة من المصارف الاهلية العراقية للمدة من 2001- 2004" ، مجلة الغري للعلوم الاقتصادية والادارية، المجلد الرابع عشر ، العدد (1) ، 2017 .
5. العارضي ، جليل كاظم مدلول ، الشمري ، أرشد عبد الامير جاسم ، " استراتيجيات الادارة المالية "، دار الصفاء للنشر والتوزيع ، ط(1) ، عمان ، الاردن ، 2012 .
6. الميداني ، محمد أيمن عزت ، " الادارة التمويلية في الشركات " ، الاصدار الثاني ، ط(4 ) ، مكتبة العبيكان ، الرياض ، السعودية ، 2004.
ثانياً : المصادر الاجنبية :
7. Amiling, F., " Investment/ An Introduction to Analysis and management ", 4th,ed., New jersey:prentice – Hall INC., 1972.
8. Aohi, " The effects of capital Adequacy Ratio on Risk Early – warning of credit Guarantee Institution " ,Inter-national conference on Management and service science, wuhan, china, 2009.
9. Bareikaite & Kauliene, 2014: 65.
10. Beatty & Zajac," Managerial Incentive Monitoring and Risk Bearing A study of Executive Compensation, Ownership, and Board Structure in Initial public offering ", Administrative Science Quarterly,June, 1994.
11. Benic , Vladimir & Franic, Lvna, " Stock Market Liquidity: Comparative Analysis of creation and Regional Ma-rket ", Financial theory and practice, Mc Graw- Hill, USA, 2009.
12. Birchall, A., " Financial analysis and control: Financial awareness for student and managers " , Butterworth –Heineman, 1991.
13. Brian, Eagles, A., " Financial Risk Management ", London, progressive printing (U.K), Itd, 1995.
14. Brigham & Ehrhardt," Financial Management- Theory and practice-15e ", Cengage Learning, WCN: 02-200-203, Print Number: 01, Canada, 2017.
15. Brigham F. Eugene & Houston F. Joel, " Fundamentals of Financial Management ", Fifteenth sedition, cengage Learning Inc., USA, 2019.
16. Brockington, R.," Financial Management", D.P. publications ltd,6th ,ed., Great Britain, London: progress sieve Printing (U.K) ltd., 1993/1994.
17. Chege, Joseph, Macharia, " The Relationship Between Insider Lending and Financial Risk of commercial Ba- nks in KENYA ",Master thesis, School of Business, University of Nairobi, KENYA,2016.
18. Constantin Zopounidis, Emilios Galariotis," Quantitative financial risk management :theory and practice",ISBN, 978-1-118-73818-4 ( hardback),USA, 2015.
19. Curley, A., & Bear, R.," Investment Analysis and Management ", N.Y: Harper and Row publisher,Inc.,1979.
20. Dimitrios, patmanidis S.," BANKS AND LIQUIDITY" ,master thesis , city university of seattle, 2009.
21. Essendi, Lillan kisivuli, " The Effect of credit Risk Management on Loans portfolio Among SACCOS in KENYA",A Research project submitted in partial fulfillment of the Requirement of the Degree of Masters of Business Administration (MBA), University of Nairobi, KENYA,2013.
22. Fisher, Donald E,& Jordan, R.," Security Analysis and portfolio Management",6th , ed., New Delhi: prentice- Hall Inc., 1996.
23. For Himalaya publishing House pvt. LTD.,"Ramdoot", Dr. Bhalerao Mary Girgaon, Mumbai- 400004,New Delhi, 2013.
24. Frilland, G.T., & Schleifer, L.L.," Essentials of financial analysis ",Vol.23, John wiley & Sons, 2003.
25. Ghenimi , Ameni , chaibi, Hasna, omri,Mohamed Ali Brahim, "The effects of liquidity risk and credit Risk on bank stability : Evidence from the MENA region", Article available online, Borsa Istanbul Review,2017.
26. Hamediam, Bahmanyar, " Financial Performance of Islamic Banks Vs. conventional Bank : The case of Malaysia ", Eastern Meditorranean University , Gazimagusa , North Cyprus, January, 2013 .
27. Hampton, J., " Financial Decision – making concepts, problems, and cases" , 1st ed. USA.,Prentic –Hall,Inc.,1996.
28. Hill , Charles, w.I., and jones, Gareth, R., " Strategic Management theory An Integrated Approach ", 8 thed , Houghton Mifflin company, New york, USA, 2008.
29. Hirschey Mark & Nofsinger John, " Investment Analysis and Behavior",2th ed ,New York :Mc Graw-Hill Irwin, 2010.
30. Howells, peter, Bain, keith, "Financial Markets and Institutions ", 3ed, prentice Hall,2000.
31. http//www.(isx- iq.net) .
32. http//www.elsevier.com/journals/borsa-istanbul-review/2214-8450
33. Imam, Patrick, & kangni kpodar, " Islamic banking : How has it has it diffused ", International monetary fund,2010.
34. Iqbal , Munawar and Molyneux, Philip, " Thirty years of Islamic Banking : History performance and Prospects ", court Road, London, British, 2005.
35. Jin, pan, " Managing credit Risks with knowledge Management for financial Banks ", third International sym- posium on knowledge Acquisition and Modeling, Economics and Management School of wuhan, china,2010,Panjin 20102010@163.com.
36. Jones, C.," Investment: Analysis and management " ,5th ,ed.,USA, John Wiley and Sons, Inc., 1996.
37. Kadrimi, llda, " The Management of credit Risk in the Banking system during a period of 5 years(2009- 2014), A academic Journal of Interdisciplinary studies, Rome – Itaiy, Vol (4),No(2),S2,2015.
38. Koutsoyiannis,A.," Modren Microcomie", London, Macmillan, 1979.
39. Kumar, Manish & Yadav, Ghanshyam chand, "LIQUIDITY RISK MANAGEMANT IN BANK" ,Journal of Manag - ement & Research, Volume,(7), Issue (2/4), 2013.
40. Lukie, Aleksandar, " Type of Risks and Risk Management in the contemporary Banking operations " , International Journal of Advanced Research, vol (3), No(3), 2015.
41. Majumdar, N.C.," Fundamentals of Modern Banking ",New Central Ageny (p). Ltd, London,2010.
42. Makrodakis, S.& S.C. Weeliwright, " Forrecasting Methods and Application ", New York,3. Wiley and sons,1978..
43. Muriithi, Jane Gathigia, Waweru, Kennedy Munyua, willy Mwangi, " Effect of credit on Risk on Financial pe-rformance of Commercial Banks Kenya", IOSR journal of Economics and Finance, Volume (7),Issue(4),Ver. 1,2016.
44. Naceur, Srami Ben: Barajas, Adolfo and Massara, Alexander, " Can Islamic Banking Increase Financial Incusion " , IMF working paper , International Monetary Fund, 2015.
45. Oino, Isaiah, " A comparison of credit Risk Management in private And public Banks In India", International Journal of Business and Finance Research , Vol(10), No.(1), 2016.
46. Pakhchanyan, Suren, " Operational Risk Management in Financial Institutions: A Literature Review ",International Journal of financial studies,University of Oldenburg , Germany,2016.
47. Paul , sujan Chandra & Bhowmik, probir kumar & Islam, Mohammad Rakibul & kaium . Md. Abdul& Al Masusd , Abdullah, " Profitability and Liquidity of conventional Banking and Islamic in Bangladesh : A comparative Study ", Journal of Business and Mangement , Vol.(5), No.(24), 2013.
48. Pindych, R.S. and D.L.,Rubinfeld, " Econometric models and Economic Forcasts", Internal Student, Edition, Tokyi, Mc Graw Hill,Inc.1976.
49.
50. Rose, peter S.& Hudgins Sylvia C., "Bank Management & Financial Services" , 9ed, Mc Graw-Hill,2010.
51. Rose, peter S.& Hudgins Sylvia C., "Bank Management & Financial Services" , 9ed, Mc Graw-Hill,2013.
52. Rose, peter S.& Hudgins Sylvia C., "Bank Management & Financial Services" , seventh Edition, Mc Graw-Hill Companies, Inc.,New York, U.S.,2008.
53. Rose, S. Peter , " Commercial bank management ", 4th , ed, Mc-Grow, Hill companies , inc, 1999.
54. Schall, L., & Haley, C., " Introduction to Financial Management", 4th ,ed.,Singapora: MC. Grow – Hall Book co.,1986.
55. Spuchlakova, Erika, Valaskova, Katarina, A damko, Peter, " The credit Risk and its Measurement, Hedging And Monitoring " ,procedia Economics and Finance ,Volume ,(24),2015.
56. Stephen Foerster," Financial Management: Concepts and Applications", pearson Education, Inc., All rights Reserved, IS13N.10:0.13.293664-X, Manufactured in United States of America, 2015.
57. Sumaila, NA-IHMATU ," Explaining Bank Liquidity in Ghana ", master thesis, university of Ghana, 2015.
58. Suvendu Narayan Roy, " Financial management with new approach ", First edition,Mrs. Meena pandey
59. Suvendu Narayan Roy, " Financial Management With New Approach ", Himalaya Publishing House, First edit-ion, 2013.
60. Weston, Fred, Besley, Scott and Brigham," Essentials of Managemant finance ", N.Y: Holt Rinehart and Wiston, 1987.
61. Weston, Fred, Besley, Scott and Brigham," Managerial Finance "6th, ed.,Hinsodte, illonois: the Dryden press,1978.
62. Yan, Meilan, " An assessment of uk banking liquidity regulation and supervion ", A Doctoral thesis, Loughbo-rough university, 2013.
63.
1. التقارير المالية للمصرف الوطني الاسلامي العراقي للفترة من 2011 – 2017 المنشورة ضمن سوق العراق للأوراق المالية .
2. الحيالي ، وليد ناجي ، " التحليل المالي " ، من منشورات الاكاديمية العربية المفتوحة في الدانيمارك ، 2007 .
3. الربيعي ، حاكم محسن ، وحمد عبد الحسين راضي ، " حوكمة البنوك وأثرها في الاداء والمخاطرة " ، دار اليازوري العلمية للنشر والتوزيع ، ط (1) ، عمان ، الاردن ، 2011 .
4. الشمري ، أرشد عبد الامير جاسم ، " الابداع الوظيفي والعوامل الاستراتيجية وتداخلاتها بالمقدرات الجوهرية والتفوق في الاداء المالي للمنظمات الخدمية / دراسة تحليلية مقارنة لعينة من المصارف الاهلية العراقية للمدة من 2001- 2004" ، مجلة الغري للعلوم الاقتصادية والادارية، المجلد الرابع عشر ، العدد (1) ، 2017 .
5. العارضي ، جليل كاظم مدلول ، الشمري ، أرشد عبد الامير جاسم ، " استراتيجيات الادارة المالية "، دار الصفاء للنشر والتوزيع ، ط(1) ، عمان ، الاردن ، 2012 .
6. الميداني ، محمد أيمن عزت ، " الادارة التمويلية في الشركات " ، الاصدار الثاني ، ط(4 ) ، مكتبة العبيكان ، الرياض ، السعودية ، 2004.
ثانياً : المصادر الاجنبية :
7. Amiling, F., " Investment/ An Introduction to Analysis and management ", 4th,ed., New jersey:prentice – Hall INC., 1972.
8. Aohi, " The effects of capital Adequacy Ratio on Risk Early – warning of credit Guarantee Institution " ,Inter-national conference on Management and service science, wuhan, china, 2009.
9. Bareikaite & Kauliene, 2014: 65.
10. Beatty & Zajac," Managerial Incentive Monitoring and Risk Bearing A study of Executive Compensation, Ownership, and Board Structure in Initial public offering ", Administrative Science Quarterly,June, 1994.
11. Benic , Vladimir & Franic, Lvna, " Stock Market Liquidity: Comparative Analysis of creation and Regional Ma-rket ", Financial theory and practice, Mc Graw- Hill, USA, 2009.
12. Birchall, A., " Financial analysis and control: Financial awareness for student and managers " , Butterworth –Heineman, 1991.
13. Brian, Eagles, A., " Financial Risk Management ", London, progressive printing (U.K), Itd, 1995.
14. Brigham & Ehrhardt," Financial Management- Theory and practice-15e ", Cengage Learning, WCN: 02-200-203, Print Number: 01, Canada, 2017.
15. Brigham F. Eugene & Houston F. Joel, " Fundamentals of Financial Management ", Fifteenth sedition, cengage Learning Inc., USA, 2019.
16. Brockington, R.," Financial Management", D.P. publications ltd,6th ,ed., Great Britain, London: progress sieve Printing (U.K) ltd., 1993/1994.
17. Chege, Joseph, Macharia, " The Relationship Between Insider Lending and Financial Risk of commercial Ba- nks in KENYA ",Master thesis, School of Business, University of Nairobi, KENYA,2016.
18. Constantin Zopounidis, Emilios Galariotis," Quantitative financial risk management :theory and practice",ISBN, 978-1-118-73818-4 ( hardback),USA, 2015.
19. Curley, A., & Bear, R.," Investment Analysis and Management ", N.Y: Harper and Row publisher,Inc.,1979.
20. Dimitrios, patmanidis S.," BANKS AND LIQUIDITY" ,master thesis , city university of seattle, 2009.
21. Essendi, Lillan kisivuli, " The Effect of credit Risk Management on Loans portfolio Among SACCOS in KENYA",A Research project submitted in partial fulfillment of the Requirement of the Degree of Masters of Business Administration (MBA), University of Nairobi, KENYA,2013.
22. Fisher, Donald E,& Jordan, R.," Security Analysis and portfolio Management",6th , ed., New Delhi: prentice- Hall Inc., 1996.
23. For Himalaya publishing House pvt. LTD.,"Ramdoot", Dr. Bhalerao Mary Girgaon, Mumbai- 400004,New Delhi, 2013.
24. Frilland, G.T., & Schleifer, L.L.," Essentials of financial analysis ",Vol.23, John wiley & Sons, 2003.
25. Ghenimi , Ameni , chaibi, Hasna, omri,Mohamed Ali Brahim, "The effects of liquidity risk and credit Risk on bank stability : Evidence from the MENA region", Article available online, Borsa Istanbul Review,2017.
26. Hamediam, Bahmanyar, " Financial Performance of Islamic Banks Vs. conventional Bank : The case of Malaysia ", Eastern Meditorranean University , Gazimagusa , North Cyprus, January, 2013 .
27. Hampton, J., " Financial Decision – making concepts, problems, and cases" , 1st ed. USA.,Prentic –Hall,Inc.,1996.
28. Hill , Charles, w.I., and jones, Gareth, R., " Strategic Management theory An Integrated Approach ", 8 thed , Houghton Mifflin company, New york, USA, 2008.
29. Hirschey Mark & Nofsinger John, " Investment Analysis and Behavior",2th ed ,New York :Mc Graw-Hill Irwin, 2010.
30. Howells, peter, Bain, keith, "Financial Markets and Institutions ", 3ed, prentice Hall,2000.
31. http//www.(isx- iq.net) .
32. http//www.elsevier.com/journals/borsa-istanbul-review/2214-8450
33. Imam, Patrick, & kangni kpodar, " Islamic banking : How has it has it diffused ", International monetary fund,2010.
34. Iqbal , Munawar and Molyneux, Philip, " Thirty years of Islamic Banking : History performance and Prospects ", court Road, London, British, 2005.
35. Jin, pan, " Managing credit Risks with knowledge Management for financial Banks ", third International sym- posium on knowledge Acquisition and Modeling, Economics and Management School of wuhan, china,2010,Panjin 20102010@163.com.
36. Jones, C.," Investment: Analysis and management " ,5th ,ed.,USA, John Wiley and Sons, Inc., 1996.
37. Kadrimi, llda, " The Management of credit Risk in the Banking system during a period of 5 years(2009- 2014), A academic Journal of Interdisciplinary studies, Rome – Itaiy, Vol (4),No(2),S2,2015.
38. Koutsoyiannis,A.," Modren Microcomie", London, Macmillan, 1979.
39. Kumar, Manish & Yadav, Ghanshyam chand, "LIQUIDITY RISK MANAGEMANT IN BANK" ,Journal of Manag - ement & Research, Volume,(7), Issue (2/4), 2013.
40. Lukie, Aleksandar, " Type of Risks and Risk Management in the contemporary Banking operations " , International Journal of Advanced Research, vol (3), No(3), 2015.
41. Majumdar, N.C.," Fundamentals of Modern Banking ",New Central Ageny (p). Ltd, London,2010.
42. Makrodakis, S.& S.C. Weeliwright, " Forrecasting Methods and Application ", New York,3. Wiley and sons,1978..
43. Muriithi, Jane Gathigia, Waweru, Kennedy Munyua, willy Mwangi, " Effect of credit on Risk on Financial pe-rformance of Commercial Banks Kenya", IOSR journal of Economics and Finance, Volume (7),Issue(4),Ver. 1,2016.
44. Naceur, Srami Ben: Barajas, Adolfo and Massara, Alexander, " Can Islamic Banking Increase Financial Incusion " , IMF working paper , International Monetary Fund, 2015.
45. Oino, Isaiah, " A comparison of credit Risk Management in private And public Banks In India", International Journal of Business and Finance Research , Vol(10), No.(1), 2016.
46. Pakhchanyan, Suren, " Operational Risk Management in Financial Institutions: A Literature Review ",International Journal of financial studies,University of Oldenburg , Germany,2016.
47. Paul , sujan Chandra & Bhowmik, probir kumar & Islam, Mohammad Rakibul & kaium . Md. Abdul& Al Masusd , Abdullah, " Profitability and Liquidity of conventional Banking and Islamic in Bangladesh : A comparative Study ", Journal of Business and Mangement , Vol.(5), No.(24), 2013.
48. Pindych, R.S. and D.L.,Rubinfeld, " Econometric models and Economic Forcasts", Internal Student, Edition, Tokyi, Mc Graw Hill,Inc.1976.
49.
50. Rose, peter S.& Hudgins Sylvia C., "Bank Management & Financial Services" , 9ed, Mc Graw-Hill,2010.
51. Rose, peter S.& Hudgins Sylvia C., "Bank Management & Financial Services" , 9ed, Mc Graw-Hill,2013.
52. Rose, peter S.& Hudgins Sylvia C., "Bank Management & Financial Services" , seventh Edition, Mc Graw-Hill Companies, Inc.,New York, U.S.,2008.
53. Rose, S. Peter , " Commercial bank management ", 4th , ed, Mc-Grow, Hill companies , inc, 1999.
54. Schall, L., & Haley, C., " Introduction to Financial Management", 4th ,ed.,Singapora: MC. Grow – Hall Book co.,1986.
55. Spuchlakova, Erika, Valaskova, Katarina, A damko, Peter, " The credit Risk and its Measurement, Hedging And Monitoring " ,procedia Economics and Finance ,Volume ,(24),2015.
56. Stephen Foerster," Financial Management: Concepts and Applications", pearson Education, Inc., All rights Reserved, IS13N.10:0.13.293664-X, Manufactured in United States of America, 2015.
57. Sumaila, NA-IHMATU ," Explaining Bank Liquidity in Ghana ", master thesis, university of Ghana, 2015.
58. Suvendu Narayan Roy, " Financial management with new approach ", First edition,Mrs. Meena pandey
59. Suvendu Narayan Roy, " Financial Management With New Approach ", Himalaya Publishing House, First edit-ion, 2013.
60. Weston, Fred, Besley, Scott and Brigham," Essentials of Managemant finance ", N.Y: Holt Rinehart and Wiston, 1987.
61. Weston, Fred, Besley, Scott and Brigham," Managerial Finance "6th, ed.,Hinsodte, illonois: the Dryden press,1978.
62. Yan, Meilan, " An assessment of uk banking liquidity regulation and supervion ", A Doctoral thesis, Loughbo-rough university, 2013.
63.
Published
2020-08-08
How to Cite
Assist. Prof. Dr. Arshad Abdul Amir Jassim Al-Shammari, Assist. Prof. Ahmed Miri Ahmed Al-Hawizawi, & Lect. Hamid Majeed Hamid Al-Mousawi. (2020). Liquidity Risk, Its Relationship and Its Impact on the Liquidity and Profitability of the Islamic Bank: (An applied study of a sample of the Iraqi private sector banks for the period from 2011-2017). Journal of Arts, Literature, Humanities and Social Sciences, (57), 349-386. https://doi.org/10.33193/JALHSS.57.2020.232
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