IMPACT OF CREDIT RISK AND CAPITAL ADEQUACY ON ISLAMIC AND CONVENTIONAL BANKING HEDGING

Authors

  • Abbokar Siddiq Coordinator Of P.G Studies In Commerce, University College, Mangalore University, India
  • Ebrahim Al-Gamal Research Scholar, Commerce Department, University College, Mangalore University, India https://orcid.org/0000-0002-9639-2533

DOI:

https://doi.org/10.29121/granthaalayah.v8.i10.2020.1410

Keywords:

Credit Risk, Capital Adequacy, Baking Hedging, Yemen

Abstract [English]

This study aims to examine the relationship between credit risk and capital adequacy with the banking hedging of Islamic and conventional banks in Yemen. A sample of 4 conventional banks and 3 Islamic banks was used during (2012-2017). Using Pearson correlation and regression analysis, the study concludes that there is a statistically significant relationship between credit risk and banking hedging and a strong statistically significant relationship between capital adequacy and banking hedging. Based on the type of bank, results indicate a negative relationship but no statistical significance between conventional banks' credit risk and banking hedging. There is a statistically significant relationship between credit risk and banking hedging of Islamic banks. Capital adequacy positively interacts with the banking hedging in both banks.

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Published

2020-11-02

How to Cite

siddiq, A., & Gamal, E. A. (2020). IMPACT OF CREDIT RISK AND CAPITAL ADEQUACY ON ISLAMIC AND CONVENTIONAL BANKING HEDGING. International Journal of Research -GRANTHAALAYAH, 8(10), 198–206. https://doi.org/10.29121/granthaalayah.v8.i10.2020.1410