A comparative analysis of the level of risk in investment financing between Islamic and conventional banks in Kenya

Simple item page
dc.contributor.authorAbdi, Ali Sadam
dc.date.accessioned2017-03-03T13:32:16Z
dc.date.available2017-03-03T13:32:16Z
dc.date.issued2015
dc.description.abstractThis study investigates whether Islamic banks are more risky in terms of their business model than Conventional banks in Kenya and the impact of these risks in the business model on both banking systems. A sample offour Conventional banks and two fullyfledged Islamic banks were selected. The study employed secondary data that cover a period 0.(four years, i.e. 20JJ-20J4. Three models were used each representing different risk. Credit, liquidity and operational risk were regressed against five explanatory variables i.e. bank size, NPL ratios, capital adequacy ratios, debt-to-equity ratios and asset management. The studyfound that Islamic banks in Kenya face greater credit and operational risk in their business model activities than their conventional counterparts. The Islamic banking model's credit and operational risk had a stronger and positive relationship with most explanatory variables than the Conventional banking model; as a result, the credit and operational risks were found to have a greater impact on the overall performance 0.( Islamic banks than Conventional banks. The liquidity risk in the business model was found to be greater in the Conventional banking model than the Islamic banking model as a result of the stronger relationship between liquidity risk and the explanatory variables of the Conventional banking model.en_US
dc.identifier.urihttp://hdl.handle.net/11071/5117
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectConventional Banksen_US
dc.subjectIslamic Banksen_US
dc.subjectCredit Risken_US
dc.subjectLiquidity Risken_US
dc.subjectOperational Risken_US
dc.titleA comparative analysis of the level of risk in investment financing between Islamic and conventional banks in Kenyaen_US
dc.typeLearning Objecten_US
Files
Collections
BBSE Research projects (2015)