Nuradli Ridzwan Shah Mohd Dali [Supervisor]Areen Zuhair Abdallah Alta’ani2024-05-292024-05-292023-01Areen Zuhair Abdallah Alta’ani. (2023). Evaluating The Relationship Between Credit And Liquidity Risk Exposures And Financial Performance Of Listed Islamic And Conventional Banks In Jordan And Selected GCC Countries [Doctoral dissertation, Universiti Sains Islam Malaysia]. USIM Research Repository.https://oarep.usim.edu.my/handle/123456789/13315Matric: 4172483 (FEM)The effects of credit and liquidity risk exposures on bank performance have received much attention in the last years in both developing and developed countries due to the collapse of a number of large banks and numerous financial scandals. Furthermore, credit and liquidity risks are the most significant risks faced by banks, as granting credit is one of the main sources of income for banks. Banks may fail if they do not maintain adequate liquidity, despite having good asset quality, strong earnings, and sufficient capital. This thesis aims to (1) examine the relationship between credit and liquidity risk exposures and the financial performance of listed banks in Jordan, (2) compare credit and liquidity risk exposures between Jordanian, Qatari, and Saudi Arabian banks, (3) compare credit and liquidity risk exposures between IBs and CBs in Jordan, Saudi Arabia, and Qatar, and (4) to develop a new model (CRETY) for evaluating credit and liquidity risk exposures in Islamic and conventional banks. This study adds four contributions to existing practical and theoretical knowledge: First, this thesis developed a new comprehensive model (CRETY) for measuring risk disclosures practices, particularly credit and liquidity risk, which includes a unique set of financial structure and bank-specific determinants of performance. Second, this thesis increases the understanding of bank performance in a new contextual benchmark, credit and liquidity risk exposures of IBs and CBs. Third, this thesis developed a comparative risk exposures model by comparing three banking sectors in Jordan, Saudi Arabia, and Qatar with different types and sizes of banks. Fourth, Islamic rules have a significant impact on bank performance; it extends the knowledge on the relationship between credit and liquidity risk exposures and bank performance by comparing between IBs and CBs. This thesis collected data from CBs and IBs in Jordan, Qatar, and Saudi Arabia from 2013 to 2017. The data were analyzed using random, fixed effects, and feasible generalized least square regression analysis. Credit risk exposures were measured using non-performing loans, capital adequacy ratio, cost per loan, loan loss reserve, and loan growth ratio, while liquidity risk exposures were measured using current ratio, loan to deposit ratio, loan to assets ratio, cash to deposit ratio, and leverage ratio. Bank performance was measured using ROA, ROE, and Tobin’s Q. The results showed that Jordanian banks had higher non-performing loans, cost per loan, and loan loss reserve ratio, thus credit risk exposures in Saudi Arabia and Qatar banks is lower than Jordanian banks. Jordanian banks had the lowest loan to deposit ratio and loan to asset ratio, and they had the highest cash to deposit ratio and leverage ratio. Thus, liquidity risk exposures in the Jordanian banking sector are lower than the Saudi Arabia and Qatar. In addition, the findings showed that IBs have lower credit risk than CBs, particularly in non-performing loans and loan loss reserve. IBs had higher current ratio and cash to deposit ratio, and therefore higher liquidity. The FGLS results showed there is a significant relationship between CRE and LRE and Jordanian bank performance. The findings indicate that regulators and policy makers should take into consideration the specific features of Islamic compliant contracts in developing effective risk management tools and applying them to the entire banking sector. In addition, this study is useful for academics, regulators, policy makers, and users of financial statements in Jordan and GCC countries. This study recommends comparing credit and liquidity risk exposures under Basel III standards and IFRS 9 to determine whether the new standard has a real impact on the performance of banks in Jordan and GCC countries. In addition, future studies can expand this scope to include the risk management and financial performance of insurance firms, cooperative banks, and development banks. Further research could consider other approaches, such as interview or questionnaire, to examine this issue from other perspectives.en-USFinancial risk managementBank liquidity--ManagementBanks and banking, InternationalCredit and liquidity risk, Islamic and conventional banks.Thesis