The impact of liquidity risk, credit risk, and operational risk on financial stability in conventional banks in Jordan

Q1 Decision Sciences

Uncertain Supply Chain Management Pub Date : 2023-01-01 DOI:10.5267/j.uscm.2023.3.006

Sawsan Ismail, Emad Ahmed

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引用次数: 2

Abstract

This study examines the impact of unsystematic financial risk, including liquidity risk, credit risk, and operational risk, on financial stability in conventional banks listed on the Amman Stock Exchange in Jordan. Understanding and managing these risks is crucial for protecting investors, maintaining financial stability, encouraging foreign investment, and strengthening the financial sector in Jordan. The study adopts a descriptive approach to collect and describe data and utilizes cross-sectional panel data over five years from 2016 to 2021 to establish cause-and-effect relationships between study variables, while controlling for other relevant factors that may influence the relationship. The findings suggest that while liquidity risk may not directly impact financial stability, it remains a critical risk factor that requires attention in risk management strategies. Credit risk has a negative impact on financial stability, highlighting the importance of effective credit risk management strategies to maintain a stable financial system. The study finds that operational risk has no direct impact on financial stability. Still, unsystematic operational risks can have significant implications for individual financial institutions and may indirectly affect overall stability. The study underscores the importance of comprehensive risk management strategies to mitigate the negative impact of unsystematic financial risk on financial stability. Future research may consider analyzing the impact of other types of risks on financial stability.

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流动性风险、信用风险和操作风险对约旦传统银行金融稳定的影响

本研究探讨非系统性金融风险(包括流动性风险、信用风险和操作风险)对在约旦安曼证券交易所上市的传统银行金融稳定性的影响。了解和管理这些风险对于保护投资者、维持金融稳定、鼓励外国投资和加强约旦的金融部门至关重要。本研究采用描述性的方法收集和描述数据，并利用2016年至2021年五年间的横断面面板数据建立研究变量之间的因果关系，同时控制可能影响关系的其他相关因素。研究结果表明，尽管流动性风险可能不会直接影响金融稳定，但它仍然是风险管理策略中需要注意的关键风险因素。信用风险对金融稳定具有负面影响，这凸显了有效的信用风险管理策略对维持金融体系稳定的重要性。研究发现，操作风险对金融稳定没有直接影响。不过，非系统性操作风险可能对个别金融机构产生重大影响，并可能间接影响整体稳定。该研究强调了综合风险管理战略对于减轻非系统性金融风险对金融稳定的负面影响的重要性。未来的研究可以考虑分析其他类型的风险对金融稳定的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Uncertain Supply Chain Management Decision Sciences-Statistics, Probability and Uncertainty

CiteScore

5.60

自引率

0.00%

发文量

112

期刊介绍： Supply chain management (SCM) plays an essential role in managing the movement of raw materials into an organization, certain issues of the internal processing of materials into finished goods, and the movement of finished products out of the organization for end-consumer delivery. The goal of SCM is to improve trust and collaboration among supply chain partners and to improve inventory visibility. However, many SCM problems deal with uncertain events such as uncertainty in demand, supply, quality, price, etc. This forum is dedicated to all scholars who wish to share their ideas about uncertainty in SCM problems. Uncertain supply chain management is a quarterly publication dedicated to all scientists in all over the world who wish to share their experiences and knowledge in this field. Our policy is to perform a peer review on all submitted articles and publishes original and high quality articles.