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Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence

Islamic banks are exposed to a unique risk such as Displaced Commercial Risk (DCR). DCR arises from the assets managed on behalf of the investment account holders which may be borne by the Islamic bank’s own capital, when the Islamic banks forgo part or all of its share of profits on the investment...

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Main Authors: Che Arshad, Noraziah, Zakaria, Roza Hazli, Sulaiman @ Mohamad, Ahmad Azam, Irijanto, Tubagus Thresna
Format: Article
Language:English
Published: University of Pasundan in Cooperation with Ikatan Sarjana Ekonomi Indonesia (ISEI) Bandung 2014
Subjects:
HB Economic Theory
Online Access:https://repo.uum.edu.my/id/eprint/31422/1/T%2013%2002%202014%20205-217.pdf
https://repo.uum.edu.my/id/eprint/31422/
https://www.journal.unpas.ac.id/index.php/trikonomika/article/view/615
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spelling my.uum.repo.314222024-10-12T09:11:55Z https://repo.uum.edu.my/id/eprint/31422/ Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence Che Arshad, Noraziah Zakaria, Roza Hazli Sulaiman @ Mohamad, Ahmad Azam Irijanto, Tubagus Thresna HB Economic Theory Islamic banks are exposed to a unique risk such as Displaced Commercial Risk (DCR). DCR arises from the assets managed on behalf of the investment account holders which may be borne by the Islamic bank’s own capital, when the Islamic banks forgo part or all of its share of profits on the investment account holders funds, in order to increase the return to the investment account holders. In a dual banking system, DCR could be a threat to the Islamic banks given the competition of fixed and higher return from the conventional banks. However, DCR would not be a threat to Islamic banks if their account holders choose Islamic banks due to religious obligatory factor. Pertaining to this issue, this paper aims to identify the determinants of factors influencing the DCR among the Islamic banks in the case of Malaysia. Results of the study suggest that the DCR is significantly determined by the Investment account holder funds, Islamic deposit, rate of return, and interest rate University of Pasundan in Cooperation with Ikatan Sarjana Ekonomi Indonesia (ISEI) Bandung 2014 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/31422/1/T%2013%2002%202014%20205-217.pdf Che Arshad, Noraziah and Zakaria, Roza Hazli and Sulaiman @ Mohamad, Ahmad Azam and Irijanto, Tubagus Thresna (2014) Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence. Trikonomika, 13 (2). pp. 205-217. ISSN 1411-514X https://www.journal.unpas.ac.id/index.php/trikonomika/article/view/615
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HB Economic Theory
spellingShingle HB Economic Theory
Che Arshad, Noraziah
Zakaria, Roza Hazli
Sulaiman @ Mohamad, Ahmad Azam
Irijanto, Tubagus Thresna
Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence
description Islamic banks are exposed to a unique risk such as Displaced Commercial Risk (DCR). DCR arises from the assets managed on behalf of the investment account holders which may be borne by the Islamic bank’s own capital, when the Islamic banks forgo part or all of its share of profits on the investment account holders funds, in order to increase the return to the investment account holders. In a dual banking system, DCR could be a threat to the Islamic banks given the competition of fixed and higher return from the conventional banks. However, DCR would not be a threat to Islamic banks if their account holders choose Islamic banks due to religious obligatory factor. Pertaining to this issue, this paper aims to identify the determinants of factors influencing the DCR among the Islamic banks in the case of Malaysia. Results of the study suggest that the DCR is significantly determined by the Investment account holder funds, Islamic deposit, rate of return, and interest rate
format Article
author Che Arshad, Noraziah
Zakaria, Roza Hazli
Sulaiman @ Mohamad, Ahmad Azam
Irijanto, Tubagus Thresna
author_facet Che Arshad, Noraziah
Zakaria, Roza Hazli
Sulaiman @ Mohamad, Ahmad Azam
Irijanto, Tubagus Thresna
author_sort Che Arshad, Noraziah
title Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence
title_short Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence
title_full Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence
title_fullStr Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence
title_full_unstemmed Determinants Of Displaced Commercial Risk In Islamic Banking Institutions: Malaysia Evidence
title_sort determinants of displaced commercial risk in islamic banking institutions: malaysia evidence
publisher University of Pasundan in Cooperation with Ikatan Sarjana Ekonomi Indonesia (ISEI) Bandung
publishDate 2014
url https://repo.uum.edu.my/id/eprint/31422/1/T%2013%2002%202014%20205-217.pdf
https://repo.uum.edu.my/id/eprint/31422/
https://www.journal.unpas.ac.id/index.php/trikonomika/article/view/615
_version_ 1814057300341555200
score 13.211869

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