SHS Web Conf.
Volume 119, 20213rd International Conference on Quantitative and Qualitative Methods for Social Sciences (QQR’21)
|Number of page(s)||9|
|Section||Empirical Studies: Quantitative and Qualitative|
|Published online||24 August 2021|
Analysis of the determinants of bank liquidity risk: The case of Islamic banks in the UAE
Management and Development of Organizations Laboratory, Higher School of Technology, Mohammed First University, Oujda, Morocco
* Corresponding author: email@example.com
This article aims to examine the principal parameters that impact the liquidity risk incurred by Islamic banks in the UAE. The study examines annual data from four Islamic banks in the UAE. The Data is extracted from their annual activity reports and financial results. A multiple linear regression model is used to assess the impact of six bank-specific variables (Return on Equity, return on assets, size of the bank, liquidity gaps, non-performing loans and capital adequacy ratio) on the liquidity risk of UAE Islamic banks. The designed model shows that ROA and NPL negatively impact the liquidity risk of the studied banks, while the other determinants, namely size, ROE, liquidity gaps and CAR contribute to the improvement of liquidity of UAE banks. Thus, our empirical results complement the existing studies related to the analysis of liquidity risk determinants incurred by Islamic banks operating in the MENA region, especially Emirati banks.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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