After the catastrophic outcome of the 2008 financial crisis Basel III intrudes new instruments to increase the banks sector stability. Banking sectors depend on a sophisticated ensemble of information systems for bank risk management. Therefore, this study investigates the impact of bank capital, information systems, charter value, control systems and market discipline regarding bank risk. The presented focus is on understanding to what extent do information systems increase the stability of banking sectors by using panel data from Palestine over the period from 1996-2014. In addition, Partial Least Square (PLS) is used to analysis the sample which includes 244 questionnaires from listed banks. The findings show that information systems are the most important predictor of bank risk, which is partly supported by Basel III. Therefore, this study is important not just for Palestine but also to those that have concern of bank risk trying to find a solution to future bank default.
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