The impact of off-balance sheet activities on financial risk indicators in bank's listed on Arab-Asian markets

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dc.contributor.authorshahrazan frehat
dc.date.accessioned2025-08-05T07:03:13Z
dc.date.available2025-08-05T07:03:13Z
dc.date.issued2025-06-11
dc.description.abstractoff-balance-sheet activities; financial risks; financial leverage risk; liquidity risk; bankruptcy risk.
dc.description.sponsorshipThis study aimed to investigate the impact of off-balance-sheet activities on financial risk indicators in bank's listed on Arab-Asian markets. The study relied on 86 banks distributed across 9 Arab exchanges (Bahrain, Qatar, Oman, Jordan, Palestine, Saudi Arabia, Abu Dhabi, Dubai, and Kuwait) from 2015 to 2023. It considered off-balance-sheet activities as an independent variable, while financial leverage, liquidity, and bankruptcy risks were treated as dependent variables. Bank size, GDP, and profitability were used as control variables. The independent variable, off-balance-sheet activities, was measured by dividing the total off-balance-sheet activities by the total assets. As for the dependent variables, financial leverage risk was measured by dividing total liabilities by total assets. Liquidity risk was measured by dividing cash and cash equivalents by total assets, and the square of the difference between the average return on assets during the period and the average return on assets for each year measured bankruptcy risk. Regarding the control variables, bank size was measured using the logarithm of total assets, GDP was measured by the annual percentage change, and profitability was measured by return on assets, calculated by dividing net profit by total assets. The study employed descriptive analysis and regression analysis, and the regression analysis Results indicated that off-balance-sheet activities have a positive effect on liquidity risk and bankruptcy risk while having a negative effect on financial leverage risk. So, rationalizing decisions concerning OBSA balance sheet activities is essential for maintaining the overall stability of the financial system, with a particular emphasis on ensuring the robustness of the banking sector. Ultimately, a strategic focus on off-balance sheet operations contributes to a more resilient economic environment.
dc.identifier.urihttps://hdl.handle.net/20.500.11888/20328
dc.language.isoen
dc.publisherAn-Najah National University
dc.supervisorMuiz Abu Alia
dc.titleThe impact of off-balance sheet activities on financial risk indicators in bank's listed on Arab-Asian markets
dc.title.alternativeأثر الأنشطة خارج الميزانية العمومية على مؤشرات المخاطر المالية في البنوك المدرجة في الأسواق العربية الآسيوية
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