DOES CORPORATE GOVERNANCE MATTER FOR ASSET QUALITY OF ISLAMIC BANKS?

DOES CORPORATE GOVERNANCE MATTER FOR ASSET QUALITY OF ISLAMIC BANKS?

This study investigates the impact of corporate governance on asset quality of Islamic banks by employing data on 129 Islamic banks from 29 countries spanning the period from 2008 to 2017. The study shows that asset quality of Islamic banks is positively and significantly sensitive to an increase in...

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Bibliographic Details
Main Authors: Ejaz Aslam, Aziz Ur-Rehman, Anam Iqbal
Format: Article
Language:Indonesian
Published: Bank Indonesia 2021-06-01
Series:Bulletin Ekonomi Moneter dan Perbankan
Subjects:
corporate governance
2sys-gmm
loan to assets
loan to deposit
non-performing loans
oic countries
Online Access:https://www.bmeb-bi.org/index.php/BEMP/article/view/1344
Description
Summary:This study investigates the impact of corporate governance on asset quality of Islamic banks by employing data on 129 Islamic banks from 29 countries spanning the period from 2008 to 2017. The study shows that asset quality of Islamic banks is positively and significantly sensitive to an increase in board independence, Shariah board, and audit committee effectiveness. The study finds that female participation in management as CEOs seems to detract from good performance and that more board meetings can be harnessed to improve banks’ asset quality. These empirical findings have practical policy implications regarding asset quality management and board construction within the Islamic banking sector.
ISSN:1410-8046
2460-9196

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