Article detail · 2021
Constructing a banking fragility index for Islamic banks: definition impact on the predictive power of an early warning system
YÖKSİS
OpenAlex
SJR Q3
JCR Q4
Citations 9
Percentile 78.8%
FWCI 0.92
- Year
- 2021
- ISSN
1350-4851- Type
- article
Data source split
- YÖKSİS YÖKSİS article record
- OpenAlex OpenAlex enrichment (abstract, citations, topics)
Abstract
English (OpenAlex)
This study aims to construct a banking sector fragility index for Islamic banks that gives substantial predictive power results. We develop various banking sector fragility indices using different combinations of proxies for credit, liquidity and market risk factors. Apart from the existing literature, we add profitability risk factor into fragility indices. Our results show that the predictive power of an Early Warning System (EWS) is highly sensitive to the proxies and combinations of the risk factors and, profitability risk has a positive impact on the predictive power results for Islamic banks.
Topics
- Islamic Finance and Banking Studies
- Banking stability, regulation, efficiency
- Insurance and Financial Risk Management
Primary topic Islamic Finance and Banking Studies