Acceso abierto

The Role of Stress Tests in Enhancing Bank Transparency: A Comparative Study of Islamic and Conventional Banks


Cite

Abad, P., Robles, M.-D. and Alonso Orts, C. (2023). Stress testing programs and credit risk opacity of banks: USA vs Europe. Journal of International Financial Markets, Institutions and Money, 89. https://doi.org/10.1016/j.intfin.2023.101876 Search in Google Scholar

Abdymomunov, A. and Gerlach, J. (2014). Stress testing interest rate risk exposure. Journal of Banking & Finance, 49, 287–301. https://doi.org/10.1016/j.jbankfin.2014.08.013 Search in Google Scholar

Abid, L., Ouertani, M.N. and Zouari-Ghorbel, S. (2014). Macroeconomic and Bank-specific Determinants of Household’s Non-performing Loans in Tunisia: A Dynamic Panel Data. Procedia Economics and Finance, 13, 58–68. https://doi.org/10.1016/S2212-5671(14)00430-4 Search in Google Scholar

Abrigo, M.R.M. and Love, I. (2016). Estimation of Panel Vector Autoregression in Stata. The Stata Journal: Promoting Communications on Statistics and Stata, 16 (3), 778–804. https://doi.org/10.1177/1536867X1601600314 Search in Google Scholar

Acharya, V. V., Engle, R. F., & Melzer, M. (2012). Financial market reactions to stress tests. Journal of Monetary Economics, 59(1), 102-119. https://www.sciencedirect.com/journal/journal-of-monetary-economics Search in Google Scholar

Agarwal, V., D. Chambers, and M. McQuinn. (2009). The impact of stress tests on bank lending and credit risk. Journal of Finance, 64(6), 2537-2572. https://onlinelibrary.wiley.com/journal/15406261 Search in Google Scholar

Akinlo, O. and Emmanuel, M. (2014). Determinants of non-performing loans in Nigeria. Accounting & Taxation, 6(2), 21–28. Stress testing in Islamic banking: Challenges and opportunities https://doi.org//10.14738/abr.51.2368 Search in Google Scholar

Al-Haddad, A., Haron, N. A., & Majid, M. Z. (2015). Stress testing in Islamic banking: Challenges and opportunities. Journal of Islamic Banking and Finance, 3(2), 163-179. http://jibfnet.com/vol-3-no-2-december-2015-jibf Search in Google Scholar

Al-Hussainy, F., R. Hassan, and C. R. Nelson (2016). Stress testing in Islamic banking: Issues and challenges. Journal of Banking and Finance, 69, 389-400. https://www.sciencedirect.com/journal/journal-of-banking-and-finance/vol/69/suppl/C Search in Google Scholar

Al-Khater, M. A., Al-Khater, H. H., & Jantan, M. N. (2019). Stress testing in Islamic banks: A review of the literature. International Journal of Financial Studies, 7(2), 24. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3840056 Search in Google Scholar

Ameer, W., Xu, H., Sohag, K., Halwan, M.M. and Amin, A. (2022). Research methods in economics and its implications for capital formation. Economic Research-Ekonomska Istraživanja, 35(1), 5536–5555, https://doi.org/10.1080/1331677X.2022.2030244 Search in Google Scholar

Amin, A., Bte Mohamed Yusoff, N.Y., Yousaf, H., Peng, S., Işık, C., Akbar, M. and Abbas, S. (2023). The influence of renewable and non-renewable energy on carbon emissions in Pakistan: evidence from stochastic impacts by regression on population, affluence, and technology model. Frontiers in Environmental Science, 11, 1182055, https://doi.org/10.3389/fenvs.2023.1182055 Search in Google Scholar

BCBS; Basel Committee on Banking Supervision (2009). Principles for sound stress testing practices and supervision, Bank for International Settlements. Working paper. https://www.bis.org/publ/bcbs147.pdf Search in Google Scholar

Beck, R., Jakubik, P. and Piloiu, A. (2013). Non-Performing Loans: What Matters in Addition to the Economic Cycle? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2214971 Search in Google Scholar

Blau, B.M., Brough, T.J. and Griffith, T.G. (2017). Bank opacity and the efficiency of stock prices. Journal of Banking & Finance, 76, 32–47. https://doi.org/10.1016/j.jbankfin.2016.11.026 Search in Google Scholar

Bofondi, M. and Ropele, T. (2011). Macroeconomic Determinants of Bad Loans: Evidence from Italian Banks. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1849872 Search in Google Scholar

Brown, S., R. F. Green, and M. Manely. (2011). Stress testing as a regulatory tool: How it has evolved and how it might be improved. Journal of Financial Intermediation, 20(2), 311-327. https://www.sciencedirect.com/journal/journal-of-financial-intermediation/vol/20/issue/3 Search in Google Scholar

Brunnermeier, M. K., Cherny, A., & Sundaresen, S. (2016). Stress testing. Handbook of Macroeconomics, 2, 209-272. Search in Google Scholar

Castro, V. (2013). Macroeconomic determinants of the credit risk in the banking system: The case of the GIPSI. Economic Modelling, 31, 672–683. https://doi.org/10.1016/j.econmod.2013.01.027 Search in Google Scholar

Chaibi, H. and Ftiti, Z. (2015). Credit risk determinants: Evidence from a cross-country study. Research in International Business and Finance, 33, 1–16. https://doi.org/10.1016/j.ribaf.2014.06.001 Search in Google Scholar

Chakrabarti, M. (2015). Risk analysis and management in Indian banking sector: An overview. International Journal of Informative & Futuristic Research, 2 (7), 2133–2143. https://www.academia.edu/15832062/Risk_Analysis_And_Management_In_Indian_Banking_Sector_An_Overview Search in Google Scholar

Commission, U.S.F.C.I. (2010). The Financial Crisis Inquiry Report: Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States, Government Printing Office. https://www.govinfo.gov/app/details/GPO-FCIC Search in Google Scholar

De Mendonça, H.F., Galvão, D.J.C. and Loures, R.F.V. (2013). Credit and bank opaqueness: How to avoid financial crises?. Economic Modelling, 33, 605–612. https://doi.org/10.1016/j.econmod.2013.05.001 Search in Google Scholar

Darwez, F., Alharbi, F., Ifa, A., Bayomei, S., Mostfa, E., Lutfi, A. and Alrawad, M. (2023). Assessing the Impact of Oil Price Volatility on Food Prices in Saudi Arabia: Insights From Nonlinear Autoregressive Distributed Lags (NARDL) Analysis. ECONOMICS-Innovative and Economics Research Journal, 11(2), 5–23. https://doi.org/10.2478/eoik-2023-0056 Search in Google Scholar

Dluhopolskyi, O., Kozlovskyi, S., Popovskyi, Y., Lutkovska, S., Butenko, V., Popovskyi, T., ... & Kozlovskyi, A. (2023). Formation of the Model of Sustainable Economic Development of Renewable Energy. ECONOMICS-Innovative and Economics Research Journal, 11(2), 51-78. https://doi.org/10.2478/eoik-2023-0050 Search in Google Scholar

Ellahie, A. (2012). Bank stress tests and information asymmetry. Annual Meeting and Conference on Teaching and Learning Accounting, American Accounting Association, Washington Dc. https://aaahq.org/Meetings/2022/CTLA Search in Google Scholar

Erkişi, K. and Boğa, S. (2023). Does Financial Inclusion Improve Income Equality? The Case of Türkiye. ECONOMICS- Innovative and Economics Research Journal, 11(2), 79–95. https://doi.org/10.2478/eoik-2023-0049 Search in Google Scholar

FCIR (2011). The Financial Crisis Inquiry Report, Final Report of The National Commission On The Causes Of The Financial And Economic Crisis In The United States. Official Government Edition. Réalisé par The Financial Crisis Inquiry Commission. https://www.govinfo.gov/app/details/GPO-FCIC Search in Google Scholar

Flannery, M., Hirtle, B. and Kovner, A. (2017). Evaluating the information in the federal reserve stress tests. Journal of Financial Intermediation, 29, 1–18. https://doi.org/10.1016/j.jfi.2016.08.001 Search in Google Scholar

Flannery, M.J., Kwan, S.H. and Nimalendran, M. (2013). The 2007–2009 financial crisis and bank opaqueness. Journal of Financial Intermediation, 22 (1), 55–84. https://doi.org/10.1016/j.jfi.2012.08.001 Search in Google Scholar

Ghosh, A. (2015). Banking-industry specific and regional economic determinants of non-performing loans: Evidence from US states. Journal of Financial Stability, 20, 93–104. https://doi.org/10.1016/j.jfs.2015.08.004 Search in Google Scholar

Gick, W.H. and Pausch, T. (2012). Optimal Disclosure of Supervisory Information in the Banking Sector. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2006852 Search in Google Scholar

Goldstein, I. (2014). Should Banks’ Stress Test Results be Disclosed? An Analysis of the Costs and Benefits. Foundations and Trends® in Finance, 8 (1), 1–54. https://doi.org/10.1561/0500000038 Search in Google Scholar

Halwan, M.M., Bin, Z.Y., Ameer, W., Mumtaz, N., Mumtaz, A. and Amin, A. (2022). Research Methods in a Multinational Business Environment and Implications for Capital Formation: Application of Cross-Sectional Autoregressive Distributed Lag Methods. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.867891 Search in Google Scholar

Hilbers, M.P.L.C., Jones, M.M.T. and Slack, M.G.L. (2004). Stress Testing Financial Systems: What to Do When the Governor Calls. International Monetary Fund. Search in Google Scholar

Iqbal, Z., and P. Molyneux. (2015). Stress testing and Sharia-compliant banking. In Stress Testing in the Financial Industry, edited by F. Allen, R. Cont, and D. Gorton, 135-160. Springer, New York, NY. Search in Google Scholar

Jawadi, F. and Louhichi, W. (2017). Overview on the recent developments of banking and risk management. Research in International Business and Finance, 39, 896–898. https://doi.org/10.1016/j.ribaf.2016.11.001 Search in Google Scholar

Jedidia, K.B. (2018). Do Islamic banking standards convey more financial transparency than conventional banking ones? Turkish Journal of Islamic Economics, 5 (1), 109–132. https://doi.org/10.26414/tujise.2018.5.1.109-132 Search in Google Scholar

Kasman, S., Vardar, G. and Tunç, G. (2011). The impact of interest rate and exchange rate volatility on banks’ stock returns and volatility: Evidence from Turkey. Economic Modelling, 28(3), 1328–1334. https://doi.org/10.1016/j.econmod.2011.01.015 Search in Google Scholar

Khan, B. . (2023). CO2 Emissions and Economic Growth in Some Selected Countries of Ecowas: Panel Data Approach. ECONOMICS-Innovative and Economics Research Journal, 11(2), 245–256. https://doi.org/10.2478/eoik-2023-0055 Search in Google Scholar

Khaled m Alqudah, M. N. ., & Yusof, Y. . (2024). Improving Environmental Performance Through Innovative Academic Citizenship Behaviour: Green Training And Development, Green Recruitment And Selection As Antecedents In Jordanian Government University. ECONOMICS-Innovative and Economics Research Journal, 12(1). https://sciendo.com/article/10.2478/eoik-2024-0002 Search in Google Scholar

Khammassi, I. and Naoui, K. (2019). Credit risk and bank opacity: a comparative study of conventional and Islamic banks. American J. of Finance and Accounting, 6 (1), 56. https://doi.org/10.1504/AJFA.2019.104192 Search in Google Scholar

Khammassi, I., Boufateh, T. and Naoui, K. (2020). Do stress tests reduce liquidity risk opacity. American J. of Finance and Accounting, 6 (2), 135. https://doi.org/10.1504/AJFA.2020.110322 Search in Google Scholar

Kok, C., Müller, C., Ongena, S. and Pancaro, C. (2023). The disciplining effect of supervisory scrutiny in the EU-wide stress test. Journal of Financial Intermediation, 53. https://doi.org/10.1016/j.jfi.2022.101015 Search in Google Scholar

Kosmidou, K., Kousenidis, D., Ladas, A. and Negkakis, C. (2017). Determinants of risk in the banking sector during the European Financial Crisis. Journal of Financial Stability, 33, 285–296. https://doi.org/10.1016/j.jfs.2017.06.006 Search in Google Scholar

Kucukkocaoglu, G. and Altintas, M.A. (2016). Using non-performing loan ratios as default rates in the estimation of credit losses and macroeconomic credit risk stress testing: A case from Turkey. Risk Governance and Control: Financial Markets & Institutions, 6 (1). https://doi.org/10.22495/rgcv6i1art6 Search in Google Scholar

Louzis, D.P., Vouldis, A.T. and Metaxas, V.L. (2012). Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios. Journal of Banking & Finance, 36 (4), 1012–1027. https://doi.org/10.1016/j.jbankfin.2011.10.012 Search in Google Scholar

Makri, V., Tsagkanos, A. and Bellas, A. (2014). Determinants of non-performing loans: The case of Eurozone. Panoeconomicus, 61(2), 193–206. https://doi.org/10.2298/PAN1402193M Search in Google Scholar

Matthew T. et al (2004). Stress testing financial systems: What to do when the governor calls. Chicago: IMF. Search in Google Scholar

Mayer, C., Pence, K. and Sherlund, S.M. (2009). The Rise in Mortgage Defaults. Journal of Economic Perspectives, 23(1), 27–50. https://doi.org/10.1257/jep.23.1.27 Search in Google Scholar

Mishkin, F.S. (1999). Global Financial Instability: Framework, Events, Issues. Journal of Economic Perspectives, 13 (4), 3–20. https://doi.org/10.1257/jep.13.4.3 Search in Google Scholar

Myers, S.C. and Majluf, N.S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. https://doi.org/10.1016/0304-405X(84)90023-0 Search in Google Scholar

Petrella, G. and Resti, A. (2013). Supervisors as information producers: Do stress tests reduce bank opaqueness? Journal of Banking & Finance, 37(12), 5406–5420. https://doi.org/10.1016/j.jbankfin.2013.01.005 Search in Google Scholar

Rahman, A.A., Ibrahim, M.H. and Meera, A.K.M. (2009). Lending structure and bank insolvency risk: a comparative study between Islamic and conventional banks. World Business Institute. Search in Google Scholar

Roland. B et al (2013) Non-performing loans: what matters in addition to the economic cycle?, ECB Working Paper No. 1515. Search in Google Scholar

Salas, V. and Saurina, J. (2002). Credit Risk in Two Institutional Regimes: Spanish Commercial and Savings Banks. Journal of Financial Services Research, 22(3), 203–224. https://doi.org/10.1023/A:1019781109676 Search in Google Scholar

Schuermann, T. (2010). Stress tests and bank disclosure: The European experience. Journal of Financial Intermediation, 19(4), 587-602. https://www.sciencedirect.com/journal/journal-of-financial-intermediation Search in Google Scholar

Shank, C.A. and Vianna, A.C. (2016). Are US-Dollar-Hedged-ETF investors aggressive on exchange rates? A panel VAR approach. Research in International Business and Finance, 38, 430–438. https://doi.org/10.1016/j.ribaf.2016.05.002 Search in Google Scholar

Singh. S.K et al (2021). The Effect of Non-Performing Loan on Profitability: Empirical Evidence from Nepalese Commercial Banks. Journal of Asian Finance, Economics and Business, 8 (4), 709–716. https://doi.org/10.13106/jafeb.2021.vol8.no4.0709 Search in Google Scholar

Stephen Kingu, P., Macha, D.S. and Gwahula, D.R. (2018). Impact of Non-Performing Loans on Bank’s Profitability: Empirical Evidence from Commercial Banks in Tanzania. International Journal of Scientific Research and Management, 6 (1). https://doi.org/10.18535/ijsrm/v6i1.em11 Search in Google Scholar

Supervision, B.C. on B. (2009). Principles for sound stress testing practices and supervision. Bank for International Settlements Basel. Search in Google Scholar

Sudhana Rao, K. ., Kolluru, M. ., & Hyams-Ssekasi, D. . (2022). Emerging Change: Exploring the New Economy Paradigm. ECONOMICS-Innovative and Economics Research Journal, 10(1). https://doi.org/10.2478/eoik-2022-0011 Search in Google Scholar

Topić-Pavković, B., Kovačević, S. ., & Kurušić, D. (2023). The Impact of Innovative Financial and Banking Development on the Economic Growth of Bosnia and Herzegovina. ECONOMICS-Innovative and Economics Research Journal, 11(1), 251–267. https://doi.org/10.2478/eoik-2022-0022 Search in Google Scholar

Ullah, A., Zhao, X., Amin, A., Syed, A.A. and Riaz, A. (2022). Impact of COVID-19 and economic policy uncertainty on China’s stock market returns: evidence from quantile-on-quantile and causality-in-quantiles approaches. Environmental Science and Pollution Research, 30 (5), 12596–12607. https://doi.org/10.1007/s11356-022-22680-y Search in Google Scholar

Ullah, A., Zhao, X., Sayed, A.A., Amin, A. and Riaz, A. (2023). Impact of COVID-19 on China’s business and economic conditions: the importance of quantile asymmetries. Environmental Science and Pollution Research, 30 (22), 61766–61777. https://doi.org/10.1007/s11356-023-26252-6 Search in Google Scholar

Ujkani, X., & Gara, A. (2023). Determinants of the Inflation Rate: Evidence from Panel Data. ECONOMICS-Innovative and Economics Research Journal, 11(2), 169–182. https://doi.org/10.2478/eoik-2023-0054 Search in Google Scholar

Vogiazas, S.D. and Nikolaidou, E. (2011). Investigating the Determinants of Nonperforming Loans in the Romanian Banking System: An Empirical Study with Reference to the Greek Crisis. Economics Research International, 1–13. https://doi.org/10.1155/2011/214689 Search in Google Scholar

Yu, Z., Kamran, H.W., Amin, A., Ahmed, B. and Peng, S. (2023). Sustainable synergy via clean energy technologies and efficiency dynamics. Renewable and Sustainable Energy Reviews, 187. https://doi.org/10.1016/j.rser.2023.113744 Search in Google Scholar