Article Per Year (5 Year)
p-Index From 2020 - 2025
0.778
P-Index
This Author published in this journals
All Journal International Journal of Electrical and Computer Engineering IAES International Journal of Artificial Intelligence (IJ-AI) Jurnal Edukasi Matematika dan Sains Research of Islamic Economics (RIE)
Mahmud, Imran
Unknown Affiliation
Computer Science & IT Economics, Econometrics & Finance Electrical & Electronics Engineering Engineering Mathematics

Published : 4 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search
Journal : Research of Islamic Economics (RIE)

 1 
The Impact of Basel Standards on Default Risk: A Case of Islamic Banks in Bangladesh Ahmed, Md. Adnan; Mahmud, Imran
Research of Islamic Economics Vol. 3 No. 1 (2025): JULY 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rie.v3i1.460

Abstract

Default risk is a major concern for banks and is shaped by both internal and external factors. Regulatory frameworks like Basel III aim to mitigate such risks. This study investigates the impact of Basel III standards on the default risk of Islamic banks in Bangladesh, focusing on three key indicators: Capital Adequacy Ratio (CAR), Liquidity Coverage Ratio (LCR), and Net Stable Funding Ratio (NSFR). The research covers all Islamic banks in Bangladesh and utilizes secondary data from annual reports. Default risk is assessed using the z-score, where a higher score indicates a lower probability of insolvency. Control variables include credit risk, investment propensity, off-balance sheet exposure, economic growth, and lending rates. A Random Effects Model is employed, with Panel-Corrected Standard Errors (PCSE) applied to address heteroskedasticity, autocorrelation, and cross-sectional dependency. Findings reveal that CAR, LCR, and NSFR significantly reduce default risk, highlighting the effectiveness of Basel III measures in strengthening financial stability. This study uniquely emphasizes Islamic banks and explores the alignment between globally recognized regulatory standards and Sharia-compliant banking. The results offer valuable insights for regulators, policymakers, and bank managers striving to balance regulatory compliance with the principles of Islamic finance.
Co-Authors Ahmed, Kazi Rifat Ahmed, Md. Adnan Arni, Arindra Dey Chakraborty, Narayan Ranjan Ghosh, Shomitro Kumar Hridoy, Rashidul Hasan Jahan, Nusrat Majid, Majid Masud, Adiba Mim, Nusrat Jahan Sarson W DJ Pomalato Sharmin, Sazia Tasnim, Nusrat