The Moderating Role of Intellectual Capital between Relationship of Bank Specific Factors and Credit Risk of Islamic Banks

Evidence from Pakistan


  • Muhammad Nawaz Islamic Business School (IBS), UUM, Malaysia
  • Dr. Alias Mat Nor Islamic Business School (IBS), UUM, Malaysia
  • Dr. Habibah Tolos Schools of Economics, Finance and Banking (SEFB), UUM, Malaysia


Credit Risk, Intellectual Capital, Pakistan, Islamic Banks


Purpose-The Objective of this study is to investigate the moderating role of Intellectual Capital between the relationship of Bank internal factor and Credit Risk in Islamic banks of Pakistan.

Design/Methodology-Panel data are obtained from annual reports of 4 Islamic banks of Pakistan from the period 2006 to 2017. These are analyzed using hierarchical regression techniques, via Eviews 9 software.

Findings-The results showed that intellectual capital significantly moderates the relationship of bank internal variable and credit risk in Islamic banks in Pakistan.

Practical Implications-The study found that Intellectual Capital is a very important driver for credit risk. The investment in Intellectual Capital may lower the credit risk which will further help in the growth and sustainability of the bank and hence the growth in the economy. The results of the study will be useful for bank management, policy maker, and regulator and academia for future research.


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How to Cite

Nawaz, M., Nor, A. M. ., & Tolos, H. (2019). The Moderating Role of Intellectual Capital between Relationship of Bank Specific Factors and Credit Risk of Islamic Banks: Evidence from Pakistan. SEISENSE Journal of Management, 2(4), 79-87.