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Panel Data Analysis of Fee Income Activities Islamic Banks تحليل البيانات الإحصائية لأنشطة البنوك الإسلامية المدرة للعمولات

Author

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  • Shahida Shahimi,

    (Candidate of Islamic economics and assistant lecturer of Islamic economics, banking & finance, Email: , Universiti Kebangsaan Malaysia, Malaysia _ Professor of banking and finance , Email: agibab@pkrisc.cc.ukm.my , Universiti Kebangsaan Malaysia, Malaysia _ Lecturer of Islamic economics and statistical economics, Email: nep@pkrisc.cc.ukm.my , Universiti Kebangsaan Malaysia, Malaysia.)

  • ABD. GHAFAR B. ISMAIL

    (Professor of banking and finance, Economics and Finance Research Group School of Economics Universiti Kebangsaan Malaysia.)

  • SANEP B. AHMAD

    (Lecturer of Islamic economics and statistical economics, Islamic Economics and Finance Research Group School of Economics Universiti Kebangsaan Malaysia.)

Abstract

In recent years, commercial banking worldwide has experienced a significant decline in its traditional business of accepting deposits and offering loans. Simultaneously, banks have become more involved in nontraditional activities that provide financial services and generate fee income. As a result, income from nontraditional activities has risen relative to income from traditional activities. This article presents an empirical investigation of Islamic banks’ involvement in various fee income activities. Our theoretical hypotheses relate the level of fee income activities at an individual bank to asset size, profitability, core deposits, capital risk as well as credit risk. These hypotheses are tested empirically using bank-specific information from a panel of Malaysian Islamic commercial banks for the years 1994 to 2004. The results imply that banks with higher levels of fee-generating activities tend to have higher assets and core deposits as well as exhibit less risk. These findings show that banks involved in nontraditional activities have more diverse sources of funds and greater access to financial markets, which reduces risk. Since the findings suggest that banks with a greater involvement in nontraditional activities must resort to alternative sources of funds to finance their operations, nontraditional activities appear to be one method a bank can use to generate income. Furthermore, institutions engaged in such activities tend, to a larger extent, to be safer. Therefore, the underutilized fee income plays an important alternative source of revenue, hence able to reduce the over-dependence of Islamic banks on debt-financing as the main source of revenue. في غضون السنين الأخيرة انخفض المستوى التقليدي لحجم الودائع لدى البنوك التجارية وكذلك القروض الممنوحة، كظاهرة عالمية ملحوظة. وفي نفس الوقت اتجهت أنظار البنوك التجارية نحو النشاطات المالية غير التقليدية. نتيجة لذلك ، ارتفعت إيرادات الخدمات المالية غير التقليدية مقارنة بالخدمات التقليدية. ويهدف هذا البحث إلى إجراء دراسة إحصائية عن نشاطات البنوك المدرة للعمولات. تقوم الدراسة الاحصائية على فرضيات حول العلاقة بين العمولات الايرادية التي تحصل عليها البنوك وحجم الأصول والربحية والودائع الأساسية ومخاطر رأس المال ومخاطر الائتمان. وقد تم اختيار هذه الفرضيات احصائيا باستخدام بيانات عن بنوك معينة مستقاة من مجموعة من البنك الإسلامية في ماليزيا خلال الأعوام 1994ـ 2004م. وقد أظهرت نتائج الاختبار الاحصائي علاقة موجبة بين مستوى النشاطات المدرة للعوائد وحجم الأصول والودائع الأساسية وعلاقة سالبة مع مستوى المخاطر. وتوحي هذه النتائج بأن البنوك التي تقدم خدمات غير تقليدية تتميز بتنوع مواردها المالية وقدرة أكبر على استقطاب هذه الموارد مما يخفض من مستوى المخاطر لديها . هذه الميزة تشكل رافدا مهما لهذه البنوك في توليد عوائد إضافية، في نفس الوقت الذي تستطيع أن تخفض من مستوى تعرضها للمخاطر. من هذا المنطلق يمكن القول إن هذه المصادر غير التقليدية المولدة للعمولات الإيرادية، يمكن أن تشكل موردا مالياً، وإن كان لا يزال متواضعا، إلا أنه في تزايد من حيث الأهمية مقارنة بالمصادر التقليدية، ويمكن الاعتماد عليه في التحرر من قبضة الاعتماد المفرط على النشاطات التقليدية وأهمها الإقراض.

Suggested Citation

  • Shahida Shahimi, & ABD. GHAFAR B. ISMAIL & SANEP B. AHMAD, 2006. "Panel Data Analysis of Fee Income Activities Islamic Banks تحليل البيانات الإحصائية لأنشطة البنوك الإسلامية المدرة للعمولات," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 19(2), pages 23-35, January.
  • Handle: RePEc:abd:kauiea:v:19:y:2006:i:2:no:2:p:23-35
    DOI: 10.4197/islec.19-2.2
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    References listed on IDEAS

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