Savedrecs

FN Clarivate Analytics Web of Science
VR 1.0
PT J
AU Suhartanto, Dwi
Gan, Christopher
Sarah, Ira Siti
Setiawan, Setiawan
TI Loyalty towards Islamic banking: service quality, emotional or religious
driven?
SO JOURNAL OF ISLAMIC MARKETING
VL 11
IS 1
BP 66
EP 80
DI 10.1108/JIMA-01-2018-0007
PD DEC 7 2019
PY 2019
AB Purpose This paper aims to integrate and examine three loyalty routes
(i.e. service quality, emotional attachment and religiosity) in
developing customer loyalty towards Islamic banking.
Design/methodology/approach Data were collected from 412 Islamic bank
customers from Indonesia. Variance-based structural equation modelling
was applied to evaluate the association between service quality,
emotional attachment, religiosity and customer loyalty. Findings This
study reveals that customer loyalty is more driven by emotional
attachment and religiosity rather than by perceived service quality.
Although not directly affecting customer loyalty, service quality
strengthens customer satisfaction towards Islamic banks. Practical
implications - This study provides an opportunity for Islamic bank
managers to increase their customer loyalty through the development of
emotional attachment and religiosity. To improve customer loyalty, this
study suggests that Islamic banks have to provide prompt, accurate and
non-personal service. It is also important for Islamic bank managers to
keep the bank operation compliant with the Sharia law. Originality/value
This study is the first attempt to assess the three loyalty routes
simultaneously in influencing customer loyalty.
RI , Setiawan/B-8765-2018
OI , Setiawan/0000-0002-7069-5210
ZS 0
TC 4
Z8 0
ZA 0
ZB 0
ZR 0
Z9 4
U1 1
U2 1
SN 1759-0833
EI 1759-0841
UT WOS:000506256800005
ER
PT J
AU Asnawi, Nur
Sukoco, Badri Munir
Fanani, Muhammad Asnan
TI The role of service quality within Indonesian customers satisfaction and
loyalty and its impact on Islamic banks
VL 11
IS 1
BP 192
EP 212
DI 10.1108/JIMA-03-2017-0033
PD DEC 7 2019
PY 2019
AB Purpose Loyalty among customers is the baseline for services to use to
grow and sustain their competitive advantage, particularly in the
banking industry. There are two primary objectives of this research.
First, this study aims to empirically test the Muslim Consumer Service
Quality (MCSQ). Second, this study aims to test the mediating effect of
Muslim Consumer Satisfaction (MCS) on the relationship between MCSQ and
Muslim Consumer Loyalty (MCL) in Indonesian Islamic banks.
Design/methodology/approach The proposed hypotheses were tested by
collecting data from 280 Indonesian Islamic customers. The collected
data were tested using PLS-Graph 3.0. Findings The findings indicate
that MCSQ (consisting of Islamic values, Sharia compliance, honesty,
modesty, humaneness and trustworthiness) positively influenced MCS and
MCL significantly. Further, the results indicate that MCS partially
mediates the influence of MCSQ on MCL. Research limitations/implications
- The data were mainly gathered in Indonesia and the model needs to be
tested in other contexts. Furthermore, the questionnaire was distributed
among the customers of Islamic banks, and future studies could compare
it with the customers of conventional banks or dual account (Islamic and
conventional bank) customers. Moreover, further studies should compare
between the expectations and reality of the delivered services to
understand the service quality gap, which this study did not measure.
Practical implications - The findings indicate that by measuring the
service quality in the Islamic context of Islamic banks, such as MCSQ,
the managers can design their services to specifically target their
Muslim customers. Furthermore, customer satisfaction must be the focus
for the bank's managers when developing MCSQ to close the gap between
the expectations and reality of the delivered services.
Originality/value This study empirically tests the developed MCSQ in the
context of Indonesian Islamic banks, which is expected to enrich the
literature of service marketing. Furthermore, a partial mediation effect
of MCS was identified on the influence of MCSQ on MCL, which few studies
have discussed previously.
RI Sukoco, Badri Munir/AAD-8880-2019
ZB 0
ZS 0
ZR 0
Z8 0
ZA 0
TC 1
Z9 1
U1 8
U2 8
SN 1759-0833
EI 1759-0841
UT WOS:000506256800012
ER
PT J
AU Pitchay, Anwar Bin Allah
Thaker, Mohamed Asmy Bin Mohd Thas
Azhar, Zubir
Mydin, Al Amin
Thaker, Hassanudin Bin Mohd Thas
TI Factors persuade individuals' behavioral intention to opt for Islamic
bank services Malaysian depositors' perspective
VL 11
IS 1
BP 234
EP 250
DI 10.1108/JIMA-02-2018-0029
PD DEC 7 2019
PY 2019
AB Purpose The sustainable development of Islamic banking services has
motivated a significant number of depositors to choose Islamic bank
services instead of the conventional bank. There are various factors
that can persuade the depositors' choice to choose an Islamic bank. This
paper aims to examine the factors that persuade individuals' behavioral
intention to choose Islamic bank services. Design/methodology/approach
To achieve this objective, this study uses the theory of planned
behavior (TPB) as the underlying theory to measure the factors that
persuade the depositors' behavioral intention to choose Islamic bank
services. A total of 300 questionnaires were distributed to the
Malaysian Islamic Bank's depositors in Peninsular Malaysia. The data
from the questionnaires were analyzed using structural equation modeling
(SEM). Findings The result showed the three variables that predicted
behavioral intentions of the depositors, namely, attitude (ATT),
subjective norms (SN) and perceived behavioral control (PBC), were found
to be significant in persuading depositors' behavioral intention to
choose Islamic bank services. Furthermore, the findings of the study
also confirmed the relevance of using TPB to measure the depositors'
behavioral intention. The results could advance knowledge in the area of
Islamic finance and also have positive implications for practitioners.
Originality/value The study offers an insight into the present
environment involving Islamic banking services which was established in
Malaysia 30 years ago. In the context of the current study, the present
environment refers to the depositors' intention to opt for the service
and the factors that influence the depositors to choose Islamic banking
services apart from the religious factor which has been well
acknowledged by a significant number of previous studies.
RI Thaker, Hassanudin Mohd Thas/J-8058-2019; Azhar, Zubir/D-8355-2015
OI Azhar, Zubir/0000-0003-0567-2642
TC 1
ZA 0
ZR 0
ZB 0
Z8 0
ZS 0
Z9 1
U1 2
U2 2
SN 1759-0833
EI 1759-0841
UT WOS:000506256800014
ER
PT J
AU Albaity, Mohamed
Rahman, Mahfuzur
TI The intention to use Islamic banking: an exploratory study to measure
Islamic financial literacy
SO INTERNATIONAL JOURNAL OF EMERGING MARKETS
VL 14
IS 5
BP 988
EP 1012
DI 10.1108/IJOEM-05-2018-0218
PD DEC 2 2019
PY 2019
AB Purpose Several research models have been proposed in the existing
literature to understand the intention to use Islamic banking where
conventional bank customers are not primarily addressed. Upon measuring
the level of Islamic financial literacy (IFL) among the customers of
conventional banks in the UAE, the purpose of this paper is to examine
the direct and indirect effects of IFL, awareness, cost and benefit,
reputation and attitude towards Islamic banking on the intention of
potential customers to use Islamic banking.
Design/methodology/approach Using judgmental sampling techniques,
questionnaires were distributed to working individuals who did not have
accounts with Islamic banks. A total of 350 completed and usable
questionnaires were received and used for further analysis. The SmartPLS
3.0 software was used to analyse the data.
Findings The results revealed that the level of IFL was high across the
respondents and differed significantly as a function of gender, income
level and years of work experience. The findings showed that IFL,
awareness, reputation and attitude towards Islamic banking significantly
influenced the intention to use Islamic banking, while cost and benefit
appear not to. Interestingly, IFL was negatively correlated with the
intention to use Islamic banking, but when the attitude towards Islamic
banking mediated the relationship between IFL and the intention to use
Islamic banking it then became positive.
Research limitations/implications Future research should consider
looking at non-Muslim economies, which might be more vulnerable to IFL.
In addition, a comparison between the current customers of Islamic banks
and potential customers might be relevant to see whether the IFL of the
current customers differs from the new customers.
Practical implications The implications of the research are twofold.
First the study suggests that IFL is crucial for an Islamic bank's
potential new customers. Islamic bank managers should design and focus
their policies toward enriching the knowledge of the public about
Islamic banks and their products. Second, IFL alone does not lead to a
higher level of intention to use Islamic banks unless there is a
positive attitude towards such banks.
Originality/value To the authors' knowledge, this is one of the first
studies to consider the IFL measure used in this paper. Therefore, this
study will be the foundation for future research on IFL.
RI Rahman, Mahfuzur/P-5952-2019; Albaity, Mohamed/
OI Rahman, Mahfuzur/0000-0003-2072-5829; Albaity,
Mohamed/0000-0002-0805-8392
TC 1
Z8 0
ZA 0
ZS 0
ZB 0
ZR 0
Z9 1
U1 8
U2 10
SN 1746-8809
EI 1746-8817
UT WOS:000497872800013
ER
PT J
AU Nomran, Naji Mansour
Haron, Razali
TI Dual board governance structure and multi-bank performance: a
comparative analysis between Islamic banks in Southeast Asia and GCC
countries
SO CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY
VL 19
IS 6
BP 1377
EP 1402
DI 10.1108/CG-10-2018-0329
PD DEC 2 2019
PY 2019
AB Purpose This paper aims to examine the effect of dual board governance
structure, i.e. Shari'ah supervisory board (SSB) and board of directors
(BoD), on the performance of Islamic banks (IBs) in Southeast Asia
region versus banks in the Gulf Cooperation Council (GCC) region.
Design/methodology/approach This study uses a sample of 45 IBs over
seven countries covering the period of 2007-2015 based on the GMM
estimator - First Difference (2-step). Findings The findings reveal that
SSB and BoD for IBs in both regions are segmented in terms of ROA
(negative interaction) and integrated in terms of Zakat ratio (Zakat on
equity [ZOE]) (positive interaction) only for Southeast Asia region.
Furthermore, SSBs positively affect multi-bank performance in Southeast
Asia while its effect is absent for GCC. This suggests that Shari'ah
governance practices for IBs in Southeast Asia are stronger compared to
GCC IBs. Finally, BoD has a significant association with low ZOE for IBs
in both the regions. Research limitations/implications - The
implications of this research is that the unique agency theory depicted
in this study can be inferred when analyzing how dual board structure
affects IBs' performance. Practical implications - For regulators in
both regions, SSBs must be given real power to monitor BoD. They should
also balance the number of SSB scholars with experience in Shari'ah, as
well as in law, accounting and finance. It is also important that such a
balance of scholars with PhD in these areas be required for Southeast
Asia IBs. For the GCC's regulators, CG practices need to be improved by
giving due importance to SSB characteristics and BoD structure.
Originality/value Though the effects of dual board structure on IBs'
performance has been previously examined in the literature, only SSB
size has been used as a single proxy of SSB governance. Furthermore, no
empirical evidence is recorded to date on this issue in Southeast Asia
and the GCC regions. One of the innovations of this paper is the use of
multi-bank performance measures in the IBs performance and corporate
governance.
RI Haron, Razali/AAG-3205-2019
OI Haron, Razali/0000-0003-0415-4093
ZA 0
ZS 0
TC 3
ZB 0
ZR 0
Z8 0
Z9 3
U1 7
U2 10
SN 1472-0701
EI 1758-6054
UT WOS:000496998400014
ER
PT J
AU Jan, Amin
Marimuthu, Maran
Hassan, Rohail
Mehreen
TI Sustainable Business Practices and Firm's Financial Performance in
Islamic Banking: Under the Moderating Role of Islamic Corporate
Governance
SO SUSTAINABILITY
VL 11
IS 23
AR 6606
DI 10.3390/su11236606
PD DEC 2019
PY 2019
AB This paper examines the moderating role of Islamic corporate governance
on the link between sustainable business practices and the firm's
financial performance. A post-crisis period sustainability data for the
decade of 2008-2017 was collected by the study. For data collection,
this study used the weighted content method. The Generalized Method of
Moments (GMM) statistical test was used for empirical testing. The
results of the study found that the link between sustainable business
practices with the firm's financial performance measured from the
shareholders' and the management's perspective is positive, while the
subjected link measured from the market perspective was found to be
insignificant. This implies that the market stakeholders of the Islamic
banks are reluctant for their bank's spending on sustainable business
practices. Interestingly, the insignificant link between sustainable
business practices and market performance became significant with the
moderating role of Shariah governance and managerial ownership. It shows
that the moderating role of Shariah governance and managerial ownership
is giving confidence to market stakeholders of Islamic banks for
receiving a higher financial return through sustainable business
practices initiatives. These results may provide insights for several
policymakers of the Islamic banking industry about integrating vital
sustainability practices in their business models and about the balanced
moderating role of Islamic corporate governance in the link between
sustainable business practice and the firm's financial performance. It
provides a roadmap to the Islamic banking industry for efficient
management of sustainability practices from an Islamic perspective and
subsequently improvement of financial performance through it.
RI Hassan, Rohail/G-1213-2015; Mehreen, Mehreen/; Jan, Amin/
OI Hassan, Rohail/0000-0002-7825-0283; Mehreen,
Mehreen/0000-0003-1052-4206; Jan, Amin/0000-0002-5943-4247
ZA 0
Z8 0
ZR 0
ZB 0
ZS 0
TC 1
Z9 1
U1 3
U2 3
EI 2071-1050
UT WOS:000508186400078
ER
PT J
AU Ezzati, Morteza
TI Contributing factors on the allocation of funds in the Islamic society
The case of financing tools for Islamic banks
VL 10
IS 4
BP 1074
EP 1090
DI 10.1108/JIMA-02-2017-0017
PD NOV 11 2019
PY 2019
AB Purpose This paper aims to explain and present a theoretical framework
for providing people with savings to finance two sectors: profitable
investment and Gharz-al-Hassane. To do this first, assumptions and
presumptions of the theory and framework are expressed, and then the
effect of belief on this behavior is explained. Subsequently, this
theoretical framework is evaluated in an empirical research.
Design/methodology/approach The theoretical framework is explained by
mathematical and logical methods. The experimental study is carried out
using real data of 500 households from Zahedan (Center of Sistan and
Baluchestan Province of Iran). Data were collected using questionnaire
and were analyzed using statistical and econometric methods. Findings
The result indicates that demands of Iranian people are not met within
the framework of official markets. This disparity in supply and demand
has led to the actions of people outside the formal framework, and so,
banks and financial institutions cannot exploit the supply of people's
savings. On this basis, key factors determining people supply in a
variety of markets are religious belief, age, income, education level,
religious experience and so on, which should be considered in designing
the Islamic banking and financial tools. Originality/value Today,
economics and marketing have shown that an enterprise needs to meet
customer demand to succeed. In the field of Islamic banking and finance,
financial firms and banks should know this too. However, there are not
many research studies in this area.
ZS 0
ZB 0
ZR 0
TC 1
ZA 0
Z8 0
Z9 1
U1 0
U2 1
SN 1759-0833
EI 1759-0841
UT WOS:000491159100004
ER
PT J
AU Suhartanto, Dwi
TI Predicting behavioural intention toward Islamic bank: a multi-group
analysis approach
VL 10
IS 4
BP 1091
EP 1103
DI 10.1108/JIMA-02-2018-0041
PD NOV 11 2019
PY 2019
AB Purpose This study aims to examine behavioural intention towards Islamic
bank including three determinants: religiosity, trust and image across
customers and non-customers. Design/methodology/approach This study uses
400 samples, consisting of customers and non-customers of Islamic banks
collected from Bandung, Indonesia. Partial least square was applied to
evaluate the association between religiosity, trust, image and
behavioural intention. Findings This study reveals a direct effect of
religiosity on behavioural intention and indirect effect through trust
and image for both customers and non-customers of Islamic banks.
Although the impact of religiosity on trust, image and behavioural
intention is significant in both the customer and non-customer sample,
the effect of religiosity on the customer is higher compared to that of
non-customer. Practical implications - This study provides an
opportunity for Islamic bank managers to increase the behavioural
intention among the customer, as well as non-customer. To increase
behavioural intention amongst customers and non-customers, Islamic bank
managers need to keep the bank operation compliant with the Sharia law,
maintain a good image and gain trust from both customers and
non-customers. Originality/value This study is the first attempt to
evaluate the behavioural intention towards Islamic bank across customers
and non-customers.
ZS 0
ZR 0
Z8 0
TC 5
ZB 0
ZA 0
Z9 5
U1 0
U2 2
SN 1759-0833
EI 1759-0841
UT WOS:000491159100005
ER
PT J
AU Abu-Alhaija, Ahmad Saifalddin
Raja Yusof, Raja Nerina
Hashim, Haslinda
Jaharuddin, Norsiah
TI The influence of religious orientation on viewers' loyalty towards
satellite TV channels The case of Muslim viewers
VL 10
IS 4
BP 1196
EP 1218
DI 10.1108/JIMA-01-2018-0008
PD NOV 11 2019
PY 2019
AB Purpose This paper aims to examine the influence of religious
orientation on viewers' loyalty, viewers' satisfaction and perceived
content quality; to examine the influences of perceived content quality
and viewers' satisfaction on viewers' loyalty; and to examine the
mediating roles of perceived content quality and viewers' satisfaction.
Design/methodology/approach A set of questionnaires was distributed to
750 respondents in Jordan using convenience sampling. The data were
analysed using structural equation modelling. Findings The following are
the findings: religious orientation has a direct positive influence on
viewer's loyalty, viewer's satisfaction and perceived content quality;
perceived content quality has a positive influence on viewer's
satisfaction; viewer's satisfaction has positive influence on viewer's
loyalty; perceived content quality does not have any direct influence on
viewer's loyalty; perceived content quality has partial mediation role
in the relationship between religious orientation and viewer's
satisfaction, while viewer's satisfaction has full mediation role in the
relationship between perceived content quality and viewer's loyalty.
Originality/value It is different from the previous studies that mostly
focussed on religious commitment and religiosity as the important
predictors of customer's loyalty, and this study emphasised on the
influence of religious orientation (the motivational approach of
religion) as one of the religious dimensions that can affect customer's
loyalty model. The selected approach may provide additional insights
into the existing loyalty models.
RI Jaharuddin, Nor Siah/M-1899-2013
Z8 0
ZA 0
ZR 0
ZB 0
TC 1
ZS 0
Z9 1
U1 2
U2 5
SN 1759-0833
EI 1759-0841
UT WOS:000491159100010
ER
PT J
AU Rahman, Matiur
TI Islamic banks with mutuality and neutrality: A
balance-sheet-based-theoretical framework
SO QUARTERLY REVIEW OF ECONOMICS AND FINANCE
VL 74
BP 3
EP 8
DI 10.1016/j.qref.2018.02.001
PD NOV 2019
PY 2019
AB The sole purpose of this paper is to develop a simple
balance-sheet-based theoretical model for Islamic banks by incorporation
of mutuality and neutrality characteristics as evidenced in large credit
unions. The theoretical results reveal that an optimum combination of
investment in Sharia'h-compliant securities and permissible lending in
response to relative changes in expected average return of securities,
lending rate and deposit rate. Counter-intuitively, the Islamic banks do
not tend to change the optimum combination of loans and securities due
to increase in risk unless it is massive and persistent springing from
deep negative economic shocks. The findings of this paper have potential
policy implications for Islamic banks and other business entities. As
for policy implications, they should i) maintain balanced portfolio with
moderate risk exposure, as applicable; ii) keep buffer capital higher
than the minimum required to withstand unforeseen financial turmoil;
iii) carefully assess costs and benefits of each permissible project;
iv) monitor customer profiles to assess individual situations; v)
recognize common bond; vi) balance member benefits for neutrality; vii)
be transparent and ethical in dealing with clients; and viii) operate
according to financial capacities. (c) 2018 Board of Trustees of the
University of Illinois. Published by Elsevier Inc. All rights reserved.
ZS 0
Z8 0
TC 1
ZA 0
ZB 0
ZR 0
Z9 1
U1 0
U2 0
SN 1062-9769
EI 1878-4259
UT WOS:000499696300002
ER
PT J
AU Toumi, Kaouther
Viviani, Jean-Laurent
Chayeh, Zeinab
TI Measurement of the displaced commercial risk in Islamic Banks
VL 74
BP 18
EP 31
DI 10.1016/j.qref.2018.03.001
PD NOV 2019
PY 2019
AB The objective of the research is to quantify the displaced commercial
risk (DCR) based on quantitativefinance techniques. We develop an
internal model based on the Value-at-risk (VaR) measure of risk to
assess the DCR-VaR and the alpha coefficient alpha(CAR) in the capital
adequacy ratio of Islamic banks. We identify first the scenarios of
exposure of Islamic banks to DCR that depend on the actual return on
unrestricted profit sharing investment accounts (PSIA(U)), the benchmark
return as well as the level of the existing profit equalization reserve
(PER) and investment risk reserve (IRR). Second, we quantify the DCR-VaR
and the alpha coefficient alpha(CAR-VaR) for a given holding period and
for given confidence level. We illustrate the DCR-VaR model on selected
Islamic banks from Bahrain. Our model helps to better assess the needed
equity to cover the DCR and an accurate capital adequacy ratio for
Islamic banks. The model has also policy implications for regulators and
the IFSB to develop better guidance on good practices in managing this
risk. (c) 2018 Board of Trustees of the University of Illinois.
Published by Elsevier Inc. All rights reserved.
ZB 0
TC 3
Z8 0
ZS 0
ZR 0
ZA 0
Z9 3
U1 1
U2 3
SN 1062-9769
EI 1878-4259
UT WOS:000499696300004
ER
PT J
AU Belkhir, Mohamed
Grira, Jocelyn
Hassan, M. Kabir
Soumare, Issouf
TI Islamic banks and political risk: International evidence
VL 74
BP 39
EP 55
DI 10.1016/j.qref.2018.04.006
PD NOV 2019
PY 2019
AB We investigate the relation between political risk and the volatility of
Islamic and conventional banks' assets. Using an international sample of
34,452 and 1245 bank-year observations of conventional and Islamic banks
respectively over the period 1999-2013, we show that conventional banks
are more exposed to political risk compared to Islamic banks. Our
results are robust to the use of different country specific factors,
sub-sample analysis, alternative measures of asset quality and bank
profitability. (c) 2018 Board of Trustees of the University of Illinois.
ZS 0
Z8 0
TC 3
ZR 0
ZB 0
ZA 0
Z9 3
U1 1
U2 1
SN 1062-9769
EI 1878-4259
UT WOS:000499696300006
ER
PT J
AU Asmild, Mette
Kronborg, Dorte
Mahbub, Tasmina
Matthews, Kent
TI The efficiency patterns of Islamic banks during the global financial
crisis: The case of Bangladesh
VL 74
BP 67
EP 74
DI 10.1016/j.qref.2018.04.004
PD NOV 2019
PY 2019
AB The Global Financial Crisis (GFC) has refocussed attention on Islamic
banking as an alternative business model for banking. Studies of the
performance of Islamic banks during the Global Financial Crisis have
typically used one-step or two-step methods based on Data Envelopment
Analysis (DEA) with mixed results. But such techniques are limited by
the inability to identify the nature and structure of the inefficiencies
with respect to the improvement potentials on different variables. In
this paper we apply Multidirectional Efficiency Analysis (MEA) which
facilitates an understanding of the differences in inefficiency patterns
for a set of banks in Bangladesh from 2001 to 2015. We confirm the
consensus finding that Islamic banks outperformed conventional
commercial banks during the GFC period but additionally identify
differences in inefficiency from specific variables. Such information
can provide important insights to managers and regulators. (c) 2018
Board of Trustees of the University of Illinois. Published by Elsevier
Inc. All rights reserved.
RI Matthews, Kent/AAE-5927-2020
OI Matthews, Kent/0000-0001-6968-3098
ZR 0
ZB 0
Z8 0
ZA 0
ZS 0
TC 1
Z9 1
U1 3
U2 3
SN 1062-9769
EI 1878-4259
UT WOS:000499696300008
ER
PT J
AU Tabash, Mosab I.
TI An Empirical Investigation on the Relation between Disclosure and
Financial Performance of Islamic Banks in the United Arab Emirates
SO JOURNAL OF ASIAN FINANCE ECONOMICS AND BUSINESS
VL 6
IS 4
BP 27
EP 35
DI 10.13106/jafeb.2019.vol6.no4.27
PD NOV 2019
PY 2019
AB The paper examines the level of disclosure on Islamic banks' performance
in the United Arab Emirates (UAE). The data was collected through
content analysis of annual reports and fmancial statements of all
fully-fledged Islamic banks working in the UAE over the period 2009 to
2013. Return on Assets is used as a proxy for the performance of Islamic
banks while disclosure index is used as a proxy for Islamic banks'
disclosure. Also, predetermined variables are used in the study like
Size, Deposits, Non-Performing Investments and Capital to Risk Weighted
Assets Ratio. Two-Stage Least-Square regression method is used to check
the interdependence relationships between disclosure and performance of
Islamic banks in the UAE. The results show a significant relationship
between performance and disclosure in the UAE Islamic banks. Our
regression results show that Islamic banks with higher levels of
disclosure lead to higher operating performance. Furthermore, the
performance has a great impact on the level of disclosure which means
Islamic banks with high performance measures will disclose more
information for investors and other institutions in order to reduce the
cost of equity and increase their values in the market. This study is
considered as a battery for further studies in the relationship between
disclosure and financial performance of Islamic banks at a global level.
OI Tabash, Dr. Mosab/0000-0003-3688-7224
ZB 0
ZS 0
TC 4
ZR 0
Z8 0
ZA 0
Z9 4
U1 0
U2 1
SN 2288-4637
EI 2288-4645
UT WOS:000497734000003
ER
PT J
AU ul Qayyum, Noor
Noreen, Umara
TI Impact of Capital Structure on Profitability: A Comparative Study of
Islamic and Conventional Banks of Pakistan
VL 6
IS 4
BP 65
EP 74
DI 10.13106/jafeb.2019.vol6.no4.65
PD NOV 2019
PY 2019
AB This study has two main purposes; first, it examines the effect of
capital structure on profitability of Islamic and conventional banks;
second, it determines that whether the capital structure of Islamic and
conventional banks is same or not. A sample of ten banks was taken over
the period 2006-2016. Independent samples T-test was used for finding
the comparison between the capital structure of Islamic and conventional
banks while for assessing the impact of capital structure on
profitability, regression analysis (Fixed effects model) was used.
Results showed that the capital structure of both types of banks was
similar except for bank size which differed significantly. Moreover, ROA
was negatively correlated to the capital structure of both conventional
and Islamic banks. In contrast, ROE was positively correlated to the
capital structure of both conventional and Islamic banks. In addition to
that, two explanatory variables were positively correlated while two
were negatively correlated to EPS for both Islamic and conventional
banks. This study proves the existence of prominent theories of capital
structure (pecking order theory and trade-off theory) for both
conventional and Islamic banks in Pakistan and also validates the
economies of scale.
ZB 0
ZA 0
TC 3
ZR 0
ZS 0
Z8 0
Z9 3
U1 1
U2 1
SN 2288-4637
EI 2288-4645
UT WOS:000497734000007
ER
PT J
AU Aracil, Elisa
TI Corporate social responsibility of Islamic and conventional banks The
influence of institutions in emerging countries
VL 14
IS 4
SI SI
BP 582
EP 600
DI 10.1108/IJOEM-12-2017-0533
PD OCT 14 2019
PY 2019
AB Purpose The purpose of this paper is to compare the sustainability
practices of Islamic and conventional banks, with the aim of evaluating
whether their Corporate Social Responsibility (CSR) strategies converge
or diverge in response to formal and informal institutions in an
emerging country. Design/methodology/approach Drawing on institutional
theory, this study contextualizes the competitive scenario through the
National Business System (NBS) framework, and showcases the CSR
strategies employed by large conventional and Islamic banks in Turkey.
CSR patterns are examined from different angles such as motivations,
strategy, actions and institutional results. Findings Within the same
institutional environment, Islamic and non-Islamic banks combine
convergent and divergent models to accommodate institutional realities
in their CSR policies. Islamic banks exhibit an implicit commitment to
CSR that is mostly based on informal institutions, whereas conventional
banks use explicit CSR strategies as a means to fill the voids in formal
institutions. In addition, philanthropy-oriented CSR prevails in Islamic
banks, as opposed to the CSR actions associated with core business that
are followed by conventional banks. Originality/value This study
contributes to the paucity of research, from an institutional
perspective, related to CSR practices amongst Islamic and conventional
banks in emerging countries.
RI Aracil, Elisa/AAS-4055-2020
OI Aracil, Elisa/0000-0002-8413-8204
TC 1
ZS 0
ZB 0
ZA 0
ZR 0
Z8 0
Z9 1
U1 8
U2 23
SN 1746-8809
EI 1746-8817
UT WOS:000487068300005
ER
PT J
AU Mahadin, Bushra K.
Akroush, Mamoun N.
TI A study of factors affecting word of mouth (WOM) towards Islamic banking
(IB) in Jordan
VL 14
IS 4
SI SI
BP 639
EP 667
DI 10.1108/IJOEM-10-2017-0414
PD OCT 14 2019
PY 2019
AB Purpose The purpose of this paper is to identify factors affecting
word-of-mouth (WOM) towards Islamic Banking (IB) in Jordan through
understanding the roles of service quality and perceived value.
Design/methodology/approach A self-administered survey was
hand-delivered to the targeted sample of Islamic banks customers in
Jordan. The authors delivered 400 questionnaires to customers from which
352 were deemed valid for the analysis. Exploratory and confirmatory
factor analyses were performed to assess the research constructs
validity and composite reliability. Structural path analysis was also
used to test the research model and hypothesised relationships between
the variables. Findings Service quality has a positive and significant
effect on perceived value and WOM towards IB. Convenience has a positive
and significant effect on perceived value. Finally, perceived value has
a positive and significant effect on WOM towards IB. Service quality
exerted the strongest effect on perceived value and WOM. Also, 38 per
cent of variation in perceived value was caused by religious motives,
service quality and convenience path, whereas 34 per cent of variation
in WOM towards IB was caused by perceived value, service quality and
convenience path.
Originality/value This study is the first of its kind to test a model of
WOM determinants in IB in Jordan. The study is thought to have made a
reasonable contribution to consumer behaviour literature and,
specifically, for decision-making process through developing and testing
a model of WOM determinants towards IB. The study offers CEOs and
marketing managers of Islamic banks new insights into the determinants
of WOM and how they contribute to consumers' decision-making process and
attitudes to achieve the intended behavioural outcomes towards IB, which
were not available at their hands before. These empirical findings are
crucial inputs for marketing strategy formulation and implementation.
ZS 0
ZR 0
Z8 0
ZB 0
ZA 0
TC 2
Z9 2
U1 1
U2 7
SN 1746-8809
EI 1746-8817
UT WOS:000487068300008
ER
PT J
AU Hamid, Baharom Abdul
Azmi, Wajahat
Ali, Mohsin
TI Bank Risk and Financial Development: Evidence Form Dual Banking
Countries
SO EMERGING MARKETS FINANCE AND TRADE
VL 56
IS 2
BP 286
EP 304
DI 10.1080/1540496X.2019.1669445
EA SEP 2019
PD JAN 26 2020
PY 2020
AB This study examines the impact of financial development on bank
risk-taking, measured as bank capitalization and bank income
diversification. We observe the relationship using annual bank-level
data from countries with dual-banking systems. The dataset spans from
2000 to 2014. Our results suggest that the impact of financial
development on bank capitalization is heterogeneous across Islamic and
conventional commercial banks. Moreover, the effect is different across
listed and unlisted banks. However, on average, the response of income
diversification to financial development is similar across most
specifications. Additionally, bank risk is found to be countercyclical,
suggesting that bank risk increases in good times. On average, these
results (countercyclical evidence) hold across bank types (Islamic and
conventional) and ownership structure (listed and unlisted). However,
these results are contingent on the size (small vs. large) factor. The
results are robust to alternative proxies of financial development.
RI Hamid, Baharom Abdul/AAE-1718-2019
OI Hamid, Baharom Abdul/0000-0001-7335-9119
TC 2
ZB 0
Z8 0
ZA 0
ZS 0
ZR 0
Z9 2
U1 0
U2 5
SN 1540-496X
EI 1558-0938
UT WOS:000489279600001
ER
PT J
AU Farhat, Kashif
Aslam, Wajeeha
Sanuri, Bin Mohd. Mokhtar Sany
TI Predicting the intention of generation M to choose family takaful and
the role of halal certification
VL 10
IS 3
BP 724
EP 742
DI 10.1108/JIMA-12-2017-0143
PD SEP 9 2019
PY 2019
AB Purpose The purpose of this paper is to investigate the factors that
influence the intention to choose family takaful in Pakistan through
using theory of reasoned action (TRA) model. While family takaful is not
a new financial solution in the market, the main factors that motivate
customers to purchase family takaful remain unexplored. To fill this
gap, this paper investigated the impact of attitude (ATT), subjective
norm (SBN) with the addition of Halal certification (HCT) to predict the
behavioral intention of customers in Pakistan.
Design/methodology/approach The sample data of 250 respondents was drawn
for this paper. The respondents were the regular visitors to the Islamic
banks in Pakistan and were selected through judgmental sampling. Of 250,
total 237 responses were included in the final study, after excluding
the inappropriate and missing responses. For the final data, EFA, CFA
and SEM were used to test the significance of relationships between the
IVs (ATT, SBN and HCT) and DV (BI). Findings Findings from the SEM
analysis suggest that ATT, SBN and HCT have positive significant
relationships with BI. SBN appeared to be the most influencing factor
that influences the behavioral intention to purchase family takaful.
Research limitations/implications - The paper has practical implications
for takaful managers and academics. Bank managers can draw marketing
communication policy based on the findings of this paper. While for
academics, this paper laid a foundation for future studies by
integrating Halal certification in TRA as a predictor to the behavioral
intention towards selecting family takaful. The empirical nature of this
paper will enhance understanding of the Islamic financial market and its
customers specifically. Practical implications - The findings of the
paper also hold significance for managers and policy-makers of Islamic
financial institutes. It guides to design the marketing strategies to
develop the right attitude of customers, emphasize subjective norms and
Halal certification when communicating the family takaful products to
customers. As such, brand managers of family takaful may leverage the
role of belief in developing the right attitude and then linking it to
the family takaful brand. The attitude is rooted in the belief, and for
family takaful brands, it potentially be useful to allow it a broader
space in the brand strategies. Likewise, subjective norms in terms of
choosing family takaful comprises the perceived social pressure of
customers feel towards purchasing takaful for families. It highlights
the role of social contacts and effect of their behavior and choices
over customers. The recommendations and positive feedback customers
receive from their social contacts can be instrumental in instilling the
sale of family takaful. In the context of Halal certification, the
findings of this paper call takaful brand managers' attention to the
significant role Shariah compliance plays for potential customers of
family takaful. Social implications The findings of the paper also have
significance for managers and policy-makers of Islamic financial
institutes. The findings of this paper guide them to develop marketing
strategies, develop the right attitude of customers, emphasize
subjective norms and Halal certification when communicating the family
Takaful products to customers. Originality/value Family takaful is
relatively a new phenomenon that demands empirical evidence for
academics and managers.
This is one of the early studies that investigates the determinants of
purchase of family takaful through extended TRA model. Therefore, this
investigation will serve as a cornerstone to the scant knowledge of
family takaful in Pakistan and around the globe.
RI Farhat, Kashif/N-8961-2015
OI Farhat, Kashif/0000-0003-1460-9784
TC 2
ZR 0
ZB 0
Z8 0
ZA 0
ZS 0
Z9 2
U1 2
U2 4
SN 1759-0833
EI 1759-0841
UT WOS:000484956500003
ER
PT J
AU Shabbir, Malik Shahzad
Rehman, Awais
TI Layers of misconceptions about Islamic banking Are Islamic banks
threats, challenges and opportunities for investors?
VL 10
IS 3
BP 874
EP 892
DI 10.1108/JIMA-02-2018-0026
PD SEP 9 2019
PY 2019
AB Purpose This paper aims to identify some important misconceptions about
Islamic banks, which impact investor's portfolio in term of threats,
challenges and opportunities. This paper is trying to attempt to present
five different layers of misconceptions regarding investor portfolio.
Design/methodology/approach This paper distributed 132 questionnaires
among investors of Islamic financial institutions and multiple
regression of least significant difference (LSD) method implied for data
analysis. Findings The results of this paper show that two variables,
such as opportunity and challenge, out of three are positively
significant and the remaining one variable, threat, is insignificant
regarding investor portfolio. Originality/value This paper is the first
ever attempt in its nature to identify the different misconceptions
about Islamic banking system and its impact on investor portfolio.
ZS 0
ZB 0
ZR 0
ZA 0
Z8 0
TC 1
Z9 1
U1 1
U2 1
SN 1759-0833
EI 1759-0841
UT WOS:000484956500012
ER
PT J
AU Nugraheni, Peni
Khasanah, Erlinda Nur
TI Implementation of the AAOIFI index on CSR disclosure in Indonesian
Islamic banks
SO JOURNAL OF FINANCIAL REPORTING AND ACCOUNTING
VL 17
IS 3
BP 365
EP 382
DI 10.1108/JFRA-02-2018-0013
PD SEP 2 2019
PY 2019
AB Purpose The purpose of this study is to discuss the extent to which
Indonesian Islamic banks (IBs) disclose corporate social responsibility
(CSR) according to the Accounting and Auditing Organization for Islamic
Financial Institutions (AAOIFI) index. It also empirically examines the
determinants of CSR disclosure in Indonesian IBs, based on disclosure
from AAOIFI index, which is based on Islamic principles.
Design/methodology/approach The determinant used in this paper is the
corporate governance (CG) mechanism, which focuses on the board of
commissioners (BOC) and Sharia Supervisory Board (SSB) and their
characteristics. The paper uses multiple regression analysis to examine
the influence of these variables on CSR. Findings The results indicate
that the level of CSR disclosure of IBs measured by the AAOIFI index
continues to be low. The statistical results reveal that CSR disclosure
has an insignificant relationship with BOC size and SSB qualifications,
while the other results show a negative association between the
composition of independent BOCs and CSR disclosure, and the frequency of
BOC and SSB meeting has a positive effect on this. Research
limitations/implications - The study focuses on Indonesian IBs. The
variables of the CG mechanismare limited to the BOC and SSB, while the
BOC exists only in countries that adopt two-tier boards. Practical
implications - IBs should provide a wider range of information to be
disclosed. The government should establish specific items that need to
be disclosed by IBs, considering there are no specific CSR disclosure
regulations for IBs in Indonesia. Originality/value This study uses the
AAOIFI index, which may be a suitable measure of CSR in IBs. The study
also analyzes why certain items in the index have a high disclosure
level and others do not.
RI Nugraheni, Peni/AAB-4265-2020; Nugraheni, Peni/
OI Nugraheni, Peni/0000-0003-3999-9221
ZA 0
ZB 0
ZR 0
TC 1
ZS 0
Z8 0
Z9 1
U1 0
U2 2
SN 1985-2517
EI 2042-5856
UT WOS:000490924400001
ER
PT J
AU Aljughaiman, Abdullah A.
Salamaa, Aly
TI Do banks effectively manage their risks? The role of risk governance in
the MENA region
SO JOURNAL OF ACCOUNTING AND PUBLIC POLICY
VL 38
IS 5
AR 106680
DI 10.1016/j.jaccpubpol.2019.106680
PD SEP-OCT 2019
PY 2019
AB This study aims to investigate (1) the effects of the creation of a
board-level risk committee (RC) and the designation of a chief risk
officer (CRO) on the risk-taking practices undertaken by financial
institutions and (2) whether these mechanisms improve the risk
management effectiveness of both conventional banks (CBs) and Islamic
banks (IBs). We contribute to the scarce literature on the relationship
between risk governance and risk-taking behaviour and investigate IBs in
this context. Using a sample of 573 observations representing 65 banks
(28 CBs and 37 IBs) in the Middle East and North Africa (MENA) region
from 2005 to 2015, we find a negative association between the risk
governance indices and their risk perspectives across both types of
banks for the post-crisis period. Interestingly, we find that the
existence of risk governance mechanisms in IBs is associated with higher
risk taking for the pre-crisis period, i.e., before the recent
amendments to the risk governance principles in the MENA region. This
result implies that IBs can respond to regulatory reforms in the
post-crisis period by curbing excessive risk taking. We offer further
evidence that the risk governance effect on overall risk taking stems
only from the stand-alone board-level RC and not from the role of the
CRO. We note that the CBs' performance is more associated with risk
taking for banks with stronger board-level RCs. The board-level RCs
improve the effectiveness of risk management within CBs but do not
influence the risk management effectiveness of IBs. (C) 2019 Elsevier
OI Salama, Professor Aly/0000-0002-7150-6899; Aljughaiman, Abdullah
A/0000-0002-6123-3671
ZR 0
Z8 0
ZA 0
ZS 0
ZB 0
TC 1
Z9 1
U1 9
U2 13
SN 0278-4254
EI 1873-2070
UT WOS:000498753300002
ER
PT J
AU Laila, Nisful
Saraswati, Karina Ayu
Kholidah, Himmatul
TI EFFICIENT PORTOFOLIO COMPOSITION OF INDONESIAN ISLAMIC BANK FINANCING
SO ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES
VL 7
IS 1
BP 34
EP 43
DI 10.9770/jesi.2019.7.1(3)
PD SEP 2019
PY 2019
AB The purpose of this research is to determine the composition of an
efficient portfolio in the financing of ten Islamic banks. The theory of
efficient portfolio by Markowitz is a modem portfolio theory used for
analyzing the combination of various investment instruments to form
efficient portfolio points at efficient frontier lines. The efficient
composition portfolio measurement of Islamic bank in this study uses
return, standard deviation, variance-covariance, correlation
coefficient, and variation coefficient of investment instruments between
2011 and 2015. This study uses quantitative research achieved using
Microsoft Excel. The result of this research shows that the average
composition of an efficient portfolio of each Islamic bank is as
follows: 48.62% for Mudharabah-Musyarakah, 41.63% for Murabahah, 8.03%
for Ijarah, and 8.31% for Istishna. It can be seen that
Mudharabah-Musyarakah and Murabahah are more dominant than the other
financing types.
OI Laila, Nisful/0000-0001-7985-7370
TC 1
Z8 0
ZB 0
ZA 0
ZS 0
ZR 0
Z9 1
U1 0
U2 1
SN 2345-0282
UT WOS:000483355000003
ER
PT J
AU Almutairi, Ali R.
Quttainah, Majdi A.
TI Corporate governance and accounting conservatism in Islamic banks
SO THUNDERBIRD INTERNATIONAL BUSINESS REVIEW
VL 61
IS 5
SI SI
BP 745
EP 764
DI 10.1002/tie.22063
PD SEP 2019
PY 2019
AB We examine whether Islamic banks are more likely to be conservative in
their financial reporting than conventional banks, as well as how
Islamic banks' unique corporate governance system affects accounting
conservatism behaviors. Using a large sample of Islamic banks and their
matched non-Islamic banks; based on total assets and geographic
location, in 15 countries, we find Islamic banks are more likely to
deploy accounting conservatism as measured by loss avoidance, abnormal
loan loss provisions, and C-score, respectively. Islamic banks are about
95% more likely to be more conservative in accounting practices than
their counterparts, depending on different model specifications. In
addition, we report several board characteristics, such as size,
independence, reputation, tenure, and diversity, are important
determinants of accounting conservatism in Islamic banks. This
relationship indicates certain board traits lead to greater monitoring
roles, consequently reducing unethical behavior and increasing the
degree of conservatism in accounting practices.
ZB 0
ZA 0
TC 1
Z8 0
ZS 0
ZR 0
Z9 1
U1 3
U2 6
SN 1096-4762
EI 1520-6874
UT WOS:000478750300010
ER
PT J
AU Buallay, Amina
TI Intellectual capital and performance of Islamic and conventional banking
Empirical evidence from Gulf Cooperative Council countries
SO JOURNAL OF MANAGEMENT DEVELOPMENT
VL 38
IS 7
BP 518
EP 537
DI 10.1108/JMD-01-2019-0020
PD AUG 12 2019
PY 2019
AB Purpose Intellectual capital (IC) is considered as a lifeblood of the
high-tech and knowledge-based sectors. Therefore, there is a great need
to highlight the importance of IC in the banking sector. Since the
banking sector in the gulf countries is mainly based on Islamic and
conventional banking, the purpose of this paper is to provide a
comparative empirical analysis between IC efficiency in Islamic and
conventional banks, and its impacts on a bank's operational, financial
and market performance. Design/methodology/approach This study examined
59 banks for five years to end up with 295 observations. The independent
variable is the modified value added IC components; the dependent
variables are performance indicators (return on assets, return on equity
and Tobin's Q). Two control variables are utilized in this study:
bank-specific and macroeconomic. Findings The findings deduced from the
empirical results demonstrate that there is a positive relationship
between IC efficiency and financial performance (ROE) and market
performance (TQ) in Islamic banks. However, in conventional banks, there
is a positive relationship between IC and operational performance (ROE)
and financial performance (ROE). Originality/value The results of this
study can be used to present a successful model for the Islamic and
conventional banks to concentrate more on the role of IC in enhancing
the bank's performance. In addition, the results of this study may
provide a wake-up call for Islamic banks to examine the reasons for the
imperfect relationship between the IC and asset efficiency (ROA), as
well as for conventional banks to examine the reasons for an imperfect
relationship between the IC and market value (TQ).
ZA 0
ZS 0
ZR 0
TC 1
ZB 0
Z8 0
Z9 1
U1 1
U2 8
SN 0262-1711
EI 1758-7492
UT WOS:000481530000001
ER
PT J
AU Jan, Amin
Marimuthu, Maran
Isa, Muhammad Pisol bin Mohd Mat
TI The nexus of sustainability practices and financial performance: From
the perspective of Islamic banking
SO JOURNAL OF CLEANER PRODUCTION
VL 228
BP 703
EP 717
DI 10.1016/j.jclepro.2019.04.208
PD AUG 10 2019
PY 2019
AB This paper evaluated the nexus between sustainability practices and
financial performance from the Islamic banking perspective. For the
purpose, this study proposed a sustainability measurement framework for
Islamic banking. A decade of sustainability data 2008-2017 was collected
from the annual reports using a weighted content analysis technique.
Results of the Generalized Method of Moments GMM statistical method
showed that sustainability practices have a significant positive
association with the financial performance indicators of the Islamic
banks indicating management and the shareholders' perspective. The
impact of sustainability practices on the financial performance of the
Islamic banks measured from the market perspective was found
insignificant. In-depth analysis revealed that the market is not
interested in banks spending for its environmental and social
sustainability except for their economic sustainability practices. Based
on the Islamic financial index created of management, shareholders and
the market financial performance indicators, the results showed that
sustainability practices have a significant positive association with
the Islamic financial index as well. The finding generally implies that
improvement in sustainability practices will add financial values to the
management, shareholder and the market financial performance indicators
of the Islamic banking industry across the world. Results of this study
are also providing insights to the policymakers of the Islamic banking
industry around the world regarding efficient sustainability management,
achieving higher sustainability ratings, and improving the subsequent
financial performance through efficient sustainability practices. (C)
2019 Elsevier Ltd. All rights reserved.
RI Jan, Amin/X-7343-2018; Jan, Amin/AAF-6738-2019; Jan, Amin/
OI Jan, Amin/0000-0002-5943-4247
ZR 0
ZB 0
TC 7
ZA 0
ZS 0
Z8 0
Z9 7
U1 5
U2 24
SN 0959-6526
EI 1879-1786
UT WOS:000470947000058
ER
PT J
AU Abbas, Jaffar
Hussain, Iftikhar
Hussain, Safdar
Akram, Sabahat
Shaheen, Imrab
Niu, Ben
TI The Impact of Knowledge Sharing and Innovation on Sustainable
Performance in Islamic Banks: A Mediation Analysis through a SEM
Approach
SO SUSTAINABILITY
VL 11
IS 15
AR 4049
DI 10.3390/su11154049
PD AUG 2019
PY 2019
AB This research is among the very few studies seeking a focalized
examination on the relationship between knowledge sharing within a firm
and organizational innovation. This specific study establishes that the
knowledge sharing and innovation processes in Islamic banks are integral
parts of the survival and progress of business organizations. Knowledge
sharing and creativity are essential elements in the development of
innovative strategies, but few studies have sought to investigate this
relationship. This study proposes a framework with five hypotheses,
which predicts the influences of knowledge sharing and organizational
innovation on the Pakistani banking sector. This survey scrutinizes the
impacts of knowledge sharing and innovation, and its primary objective
is to determine how learning in Islamic banks mediates the relationship,
and enhances the performance, of Pakistani Islamic banks. The authors
distributed a self-administered survey, and randomly selected 554
employees from Mirpur AJ&K, Rawalpindi and Islamabad, Pakistan. We
screened and tested the data received using SPSS version 25 for analysis
purposes to measure the strength of the relationships which exist among
the studied variables. The findings indicate that all of the proposed
hypotheses have significant positive relationships, proving that
knowledge sharing and organizational innovation have mediating impacts
upon organizational learning. The findings can also be used to propose a
systematic and holistic framework for attaining an improved performance
in Islamic banks through the mediating role of organizational learning.
This study offers empirical evidence and original data to examine the
connection between knowledge sharing, innovation processes and learning
culture in Islamic Banks. The generalizability of these findings is
restricted to Islamic banks, and the study delivers valuable insights
and suggestions for imminent research studies.
RI Hussain, Iftikhar/Q-8413-2019; Abbas, Jaffar/Z-3914-2019; Hussain, Safdar/
OI Hussain, Iftikhar/0000-0001-5063-6267; Abbas,
Jaffar/0000-0002-8830-1435; Hussain, Safdar/0000-0002-3757-5620
TC 1
ZS 0
ZB 0
ZR 0
Z8 0
ZA 0
Z9 1
U1 1
U2 5
EI 2071-1050
UT WOS:000485230200054
ER
PT J
AU Usman, Nurodin
Andrivani, Lilik
Pambuko, Zulfikar Bagus
TI Productivity of Islamic Banks in Indonesia: Social Funds versus
Financial Funds
VL 6
IS 3
BP 115
EP 122
DI 10.13106/jafeb.2019.vol6.no3.115
PD AUG 2019
PY 2019
AB Under the Act No. 21 of 2008, Islamic banks in Indonesia as an
intermediary institution are obligated to manage the resources
simultaneously, the financial funds as well as the social funds, e.g.
zakah, infaq, and sadaqah. This study aims to investigate the
productivity change of social funds and financial funds of Islamic Banks
in Indonesia. Non-parametric tests of Malmquist Productivity Index (MPI)
is applied to annual data from period 2012 to 2017, encompassing
post-reform of banking authority from Bank Indonesia to The Financial
Services Authority (OJK) at 2012. The samples are nine Islamic banks in
Indonesia which were able to provide the data during observation period.
The results indicate that social funds are more productive than
financial funds and productivity change tends to trade off. The
productivity of social funds is progressed by 8.2% while the financial
funds is regressed by 5.4%. Overall, the productivity change of Islamic
banks is influenced by technological aspect rather than the efficiency
aspect. Besides, BRI Syariah is the best performer in managing financial
funds while BCA Syariah as the best performer in social funds. It
implies that the policymakers may strengthen the supervisory and
coaching to increase the Islamic banks' productivity in both activities.
RI Pambuko, Zulfikar Bagus/W-1578-2017
OI Pambuko, Zulfikar Bagus/0000-0002-3944-2485
ZR 0
ZS 0
TC 1
ZA 0
Z8 0
ZB 0
Z9 1
U1 2
U2 2
SN 2288-4637
EI 2288-4645
UT WOS:000484352800010
ER
PT J
AU Tabash, Mosab, I
Albugami, Moteb A.
Salim, Mairaj
Akhtar, Asif
TI Service Quality Dimensions of E-retailing of Islamic Banks and Its
Impact on Customer Satisfaction: An Empirical Investigation of Kingdom
of Saudi Arabia
VL 6
IS 3
BP 225
EP 234
DI 10.13106/jafeb.2019.vol6.no3.225
PD AUG 2019
PY 2019
AB The study aims to explore key dimensions of service quality of
E-Retailing of Islamic banks in the Kingdom of Saudi Arabia. The
convenience sample size consists of 373 respondents who regularly use
online Islamic banking facilities in Saudi Arabia was used. For
measuring the consumers' perspective, a four-factor E-SERVQUAL scale;
namely efficiency, system availability, fulfillment, and privacy was
used. Exploratory Factor Analysis and Confirmatory Factor Analysis are
used to test the model fitness. Structural equation modelling is
utilized to determine the impact of E-service quality dimensions on
customers' satisfaction. The results of the study reveal that 1)
reliability as a dimension of E-retailing of Islamic banks made a
significant impact on customers' overall satisfaction; 2) there is a
positive significant relationship between responsiveness and customers'
overall satisfaction. One unit increased in responsive leads to 0.763
unit increases in the overall satisfaction of the customer; and 3) ease
of use is the most important dimensions of service quality of
E-retailing of Islamic banks. One unit increases in Security/ Privacy
leads to 0.473 unit increases in overall satisfaction. There is a
positive impact of good E-service on customers' satisfaction, but it
does not override unsatisfactory performance in other areas.
TC 2
Z8 0
ZA 0
ZS 0
ZB 0
ZR 0
Z9 2
U1 0
U2 0
SN 2288-4637
EI 2288-4645
UT WOS:000484352800021
ER
PT J
AU Srairi, Samir
TI Transparency and bank risk-taking in GCC Islamic banking
SO BORSA ISTANBUL REVIEW
VL 19
BP S64
EP S74
DI 10.1016/j.bir.2019.02.001
SU 1
PD AUG 2019
PY 2019
AB This study examines the impact of corporate transparency on bank risk
for a sample of 29 Islamic banks operating in five Gulf Cooperation
Council countries over the period 2013-2016. We construct a transparency
index based on several international regulatory documents and we measure
the index using content analysis on the banks' annual reports. The
results reveal wide variation in terms of disclosure among Islamic
banks. Only two countries, Bahrain and the United Arab Emirates, have a
higher level of transparency. We also find a lack of transparency
related to corporate governance, Sharia governance and management risk
dimensions. Our regression findings using the random-effect GLS
technique show that an increase in the transparency of Islamic banks has
a significant impact on banks' stability. Finally, we identify several
internal and external variables that impact bank risk, namely size,
efficiency, level of deposit, growth of assets, GDP growth, depth of
credit information risk and concentration. Copyright (C) 2019, Borsa
Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V.
Z8 0
ZB 0
ZR 0
ZA 0
TC 3
ZS 0
Z9 3
U1 0
U2 3
SN 2214-8450
EI 2214-8469
UT WOS:000481666200007
ER
PT J
AU Bursztyn, Leonardo
Fiorin, Stefano
Gottlieb, Daniel
Kanz, Martin
TI Moral Incentives in Credit Card Debt Repayment: Evidence from a Field
Experiment
SO JOURNAL OF POLITICAL ECONOMY
VL 127
IS 4
BP 1641
EP 1683
DI 10.1086/701605
PD AUG 1 2019
PY 2019
AB We study the role of morality in debt repayment, using an experiment
with the credit card customers of a large Islamic bank in Indonesia. In
our main treatment, clients receive a text message stating that
"non-repayment of debts by someone who is able to repay is an
injustice." This moral appeal decreases delinquency by 4.4 percentage
points from a baseline of 66 percent and reduces default among customers
with the highest ex ante credit risk. Additional treatments help
benchmark the effects against direct financial incentives and rule out
competing explanations, such as reminder effects, priming religion, and
provision of new information.
OI Fiorin, Stefano/0000-0002-6513-366X
ZA 0
ZB 0
Z8 0
TC 4
ZR 0
ZS 0
Z9 4
U1 8
U2 23
SN 0022-3808
EI 1537-534X
UT WOS:000480603900006
ER
PT J
AU Ali, Syed Faraz
Naeem, Muhammad
TI Does service quality increase the level of banks performance Comparative
analysis between conventional and Islamic banks
SO JOURNAL OF MANAGEMENT DEVELOPMENT
VL 38
IS 6
BP 442
EP 454
DI 10.1108/JMD-05-2018-0149
PD JUL 8 2019
PY 2019
AB Purpose The purpose of this paper is to unfold the relationship between
service quality and level of performance of conventional and Islamic
banks. Also, it intends to uncover what are the features of service
quality which can raise the level of performance either in conventional
banks or Islamic banks. There is rare literature available that focused
on comparative study between above stated banking systems based on
emerging parameters of SERVQUAL model. Design/methodology/approach To
meet the objectives of this investigation, research data has been from
450 customers who have had accounts and dealings with conventional and
Islamic banks in the previous five years. The customers are selected
based on cluster sampling from regional offices of conventional and
Islamic banks. Findings The collected data have been analyzed by using
confirmatory factor analysis (CFA) technique followed by common method
variance (CMV), multiple regression test and independent sample t-test
used to examine the parameters of service quality in the context of
banks performance. The purpose of CFA is to find the model validity,
while multiple regression and t-test is performed in order to examine
the influence of service quality parameters on banks performance.
Originality/value The study used compliance as a one of the emerging and
unique dimension of service quality. This dimension is rarely
investigated in the context of measuring the level of bank performance
of conventional and Islamic banking systems. Findings reveal
responsiveness and assurance is the strongest predictor of conventional
banking performance. Compliance and reliability has significant and
positive impact on the level of performance of Islamic banks. Moreover,
the study has practical implications for the top management and
stakeholders of conventional and Islamic banks to increase the level of
performance by using SERVQUAL model.
ZS 0
TC 1
ZA 0
Z8 0
ZB 0
ZR 0
Z9 1
U1 0
U2 1
SN 0262-1711
EI 1758-7492
UT WOS:000475919500001
ER
PT J
AU Vu Quang Trinh
Elnahass, Marwa
Salama, Aly
Izzeldin, Marwan
TI Board busyness, performance and financial stability: does bank type
matter?
SO EUROPEAN JOURNAL OF FINANCE
VL 26
IS 7-8
SI SI
BP 774
EP 801
DI 10.1080/1351847X.2019.1636842
EA JUL 2019
PD MAY 23 2020
PY 2020
AB This study examines the impact of board busyness (i.e. multiple
directorships of outside board members) on the performance and financial
stability of banks in a dual banking system (Islamic and conventional).
We consider banks from 14 countries for the period 2010-2015. The
results provide strong evidence that conventional banks with busy boards
exhibit high bank performance (i.e. high profitability and low cost to
income) and greater financial stability (i.e. low insolvency risk,
credit risk, liquidity risk, asset risk, and operational risk). These
findings are in line with the reputation hypothesis, which asserts that
the expertise and connections of busy outside directors lead to better
decision making, more efficient resource utilisation and more effective
monitoring. In contrast, Islamic banks' performance and stability are
adversely affected by the presence of busy board members, with Islamic
banks show low profitability, high cost to income and high risk-taking.
This result might be attributed to the complex governance structure of
Islamic banks and the uniqueness of their financial products, which
require additional effective monitoring.
RI Trinh, Vu Quang/AAK-5745-2020; Elnahass, Marwa/; Salama, Professor Aly/
OI Trinh, Vu Quang/0000-0003-2606-2958; Elnahass,
Marwa/0000-0002-8809-4165; Salama, Professor Aly/0000-0002-7150-6899
TC 3
ZR 0
ZA 0
ZS 0
ZB 0
Z8 0
Z9 3
U1 3
U2 12
SN 1351-847X
EI 1466-4364
UT WOS:000474953600001
ER
PT J
AU Salih, Abdalla
Ghecham, Mahieddine Adnan
Al-Barghouthi, Sameer
TI The impact of global financial crisis on conventional and Islamic banks
in the GCC countries
SO INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS
VL 24
IS 3
BP 1225
EP 1237
DI 10.1002/ijfe.1713
PD JUL 2019
PY 2019
AB Using large dataset from audited financial statements of 81 banks in the
Gulf Cooperation Council (GCC) region, this article aims at assessing
the performance of Islamic banks and conventional banks during the 2008
financial crisis. Unlike major studies that explored this area of study
in the GCC countries, this paper investigates the performance of both
types of banks before, during, and after the 2008 financial crisis,
while covering four different financial performance measures, namely,
efficiency, profitability, liquidity, and solvency. Moreover, this
investigation is undertaken while covering a larger time span
(2006-2012) than perhaps all similar works that covered similar study on
the GCC region. With the use of mixed-effect linear regression, the
paper shows that, compared with Islamic banks, conventional banks have
sustained a better performance over the 2006-2012 period in relation to
efficiency and return on assets. In this context, the paper puts a note
on the shortcomings of the institutional arrangement of the Islamic
banks that impeded their performance during the crisis as well as on the
active role of GCC governments during the financial crash.
OI Ghecham, Mahieddine Adnan/0000-0002-0376-6189
ZB 0
ZA 0
TC 2
Z8 0
ZR 0
ZS 0
Z9 2
U1 2
U2 5
SN 1076-9307
EI 1099-1158
UT WOS:000473600300010
ER
PT J
AU Thaker, Mohamed Asmy Bin Mohd Thas
Bin Amin, Md Fouad
Pitchay, Anwar Bin Allah
TI What keeps Islamic mobile banking customers loyal?
VL 10
IS 2
BP 525
EP 542
DI 10.1108/JIMA-08-2017-0090
PD JUN 10 2019
PY 2019
AB Purpose This study aims to find important factors of Malaysian Islamic
banking customers' loyalty or continuance intention to use Islamic
mobile banking services. Design/methodology/approach The primary data
are collected from the survey administered to 250 customers in the Klang
Valley and the analysis is conducted using partial least squares (PLS).
Findings Based on the findings, continuance intention of using Islamic
mobile banking services was found to be depended on the usability of
mobile banking services, customer service provided by Islamic banks
towards mobile banking services, customer satisfaction on mobile banking
services and trust of customers towards mobile banking services. In
addition, the mediating effect of Islamic mobile banking services
continuance adoption is significantly influenced by customer
satisfaction and trust.
Originality/value This paper offers an additional literature on Islamic
mobile banking, especially from the Malaysian context. There is a lack
of study that focuses on loyalty towards Islamic mobile banking
services. The paper is considered to be the first attempt to examine the
factors that influence Malaysian Islamic banking customers' loyalty or
continuance intention to use Islamic mobile banking services.
RI Thaker, Hassanudin Mohd Thas/J-8058-2019
ZR 0
TC 3
ZB 0
ZS 0
ZA 0
Z8 0
Z9 3
U1 3
U2 7
SN 1759-0833
EI 1759-0841
UT WOS:000479241000010
ER
PT J
AU Anouze, Abdel Latef M.
Alamro, Ahmed Salameh
Awwad, Abdulkareem Salameh
TI Customer satisfaction and its measurement in Islamic banking sector: a
revisit and update
VL 10
IS 2
BP 565
EP 588
DI 10.1108/JIMA-07-2017-0080
PD JUN 10 2019
PY 2019
AB Purpose The purpose of this study is to answer the following questions:
How to measure customer satisfaction from the provisioning service of
both: Islamic and Conventional banks? Can we trust one tool to measure
such satisfaction or both banks are different identities and there is a
need for separate measurement tool? What is the relationship between
banks operating style (Islamic or Conventional) and bank performance?
Design/methodology/approach A cross-sectional survey design was
conducted to analyze a sample of customers. A total of 480 Jordanian
participants were included in the study. Findings The results of
confirmatory factor analysis show that the most important drivers of
customer satisfaction are Sharia' compliance, complaints, pricing and
convenience, whereas the least important drivers are e-banking, the
perception of employees, enjoyment and tangibles. Also, the result of
the multi-group analysis shows that the significant impacts of all
drivers on customer satisfaction differ from Islamic banks to
Conventional banks except for the enjoyment. The significant effects of
customer satisfaction on bank performance also differ from Islamic to
Conventional banks.
Originality/value This study is intended to add to the existing
literature in three ways: There is a lack of studies on the main drivers
of customer satisfaction, especially those based on a consumer's
decision-making process in Arabic countries like Jordan. This study
broadens the scope by testing the proposed model using data from a
sample of consumers in Jordan. This study serves to propose and validate
the drivers that influence customer satisfaction and bank performance
and elucidate the manner of their influence, to help with the
development of more effective business strategies.
RI Anouze, Abdel Latef Majed/F-9779-2017
OI Anouze, Abdel Latef Majed/0000-0002-6989-8897
ZB 0
ZS 0
ZR 0
TC 2
ZA 0
Z8 0
Z9 2
U1 2
U2 4
SN 1759-0833
EI 1759-0841
UT WOS:000479241000012
ER
PT J
AU Setyowati, Nur
TI Macroeconomic Determinants of Islamic Banking Products in Indonesia
SO ECONOMIES
VL 7
IS 2
AR 53
DI 10.3390/economies7020053
PD JUN 2019
PY 2019
AB The purpose of the study was to investigate which factors determine
saving and financing in Islamic banks in Indonesia by using
Gregory-Hansen cointegration, vector error correction mode (VECM),
Granger causality, and the impulse response function. The results
disclose the existence of a long-running cointegrating relationship with
a structural break in the deposit and financing case to the consumer
price index, industrial production, interest rate, exchange rate, and
Jakarta Islamic Index. Most of the structural breaks appeared in January
2006 and April 2007 for both deposit and financing, revealing the first
stage of the financial crisis. Any short-term deviation between deposit
and financing will give rise to a stable relationship in the long term.
In the short-term, there is bidirectional causality between deposits and
industrial production and between the consumer price index and
financing. This finding shows that real activity, as measured by
industrial production, is a highly determinant factor of Islamic bank
deposits, while inflation, as measured by the customer price index, is
the determinant factor of Islamic bank financing. Our results also
suggest that a mix of dynamic behaviors from both Islamic bank savings
and financing was revealed in response to the shock of the macroeconomic
variable, giving better insight for the government and stakeholders into
Indonesian Islamic banking.
RI Setyowati, Nur/AAM-4226-2020
OI Setyowati, Nur/0000-0001-5446-8416
ZS 0
ZR 0
Z8 0
TC 0
ZB 0
ZA 0
Z9 0
U1 0
U2 1
SN 2227-7099
UT WOS:000475286900027
ER
PT J
AU Haris, Muhammad
Yao, HongXing
Tariq, Gulzara
Malik, Ali
Javaid, Hafiz Mustansar
TI Intellectual Capital Performance and Profitability of Banks: Evidence
from Pakistan
SO JOURNAL OF RISK AND FINANCIAL MANAGEMENT
VL 12
IS 2
AR 56
DI 10.3390/jrfm12020056
PD JUN 2019
PY 2019
AB The study contributes to the existing literature on intellectual capital
(IC) performance and profitability by extending evidence from Pakistan.
The study examines the impact of IC performance on the profitability of
Pakistani financial institutions. It further examines how corporate
governance, bank specific, industry specific, and country specific
indicators effect Pakistani banks' profitability. The result reports
both the linear and non-linear impact of IC performance on
profitability, which affirms an inverted U-shaped relationship. Among
the three value added intellectual coefficient (VAIC) components,
capital employed efficiency (CEE), and human capital efficiency (HCE)
are found to have a significantly positive and structural capital
efficiency (SCE) is found to have a significantly negative impact on
bank profitability. The study notes a positive impact on profitability
of factors like board independence, directors' compensation, and higher
capitalization. It reports a negative impact on profitability of factors
like board size, board meetings, credit risk, industry concentration and
economic growth. The results also indicate low profitability of banks
during the period of government transition. The study provides insights
into the important profitability drives and suggests that the impact of
investment in IC on profitability is limited to an extent. The findings
of this study are likely to be useful for policy makers, management, and
academics.
RI Haris, Muhammad/P-4984-2019; Javaid, Hafiz Mustansar/AAE-8234-2020; Haris,
Muhammad/S-1086-2017; Yao, Hongxing/
OI Haris, Muhammad/0000-0003-0440-8794; Haris,
Muhammad/0000-0003-0440-8794; Yao, Hongxing/0000-0002-5988-0378
TC 10
ZB 1
Z8 0
ZA 0
ZS 0
ZR 0
Z9 10
U1 0
U2 5
SN 1911-8066
EI 1911-8074
UT WOS:000475294000007
ER
PT J
AU Peng, Lee Siew
Moghavvemi, Sedigheh
Teng, Lee Su
TI Trust and Loyalty among Islamic and Conventional Bank Customers in
Malaysia
SO PERTANIKA JOURNAL OF SOCIAL SCIENCE AND HUMANITIES
VL 27
IS 2
BP 1275
EP 1295
PD JUN 2019
PY 2019
AB The purpose of this study is to explore the dimensions of service
quality and test an integrative model to study the influence of service
quality, image, and trust on customer loyalty in the Malaysian banking
sector. In this study; the service quality model is enhanced to improve
the bank's image. Structural Equation Modelling (SEM) was used to test
the proposed research model. The proposed model indicates that
delivering high-quality service can result in achieving the well-known
image; the result also shows a positive relationship between image and
trust, and trust and customer loyalty in both Islamic and conventional
banks. Therefore, based on the findings, service quality, bank image and
trust are considered to be antecedents of customer loyalty. Bank image
is indirectly related to customer loyalty through trust.
RI Lee, Su Teng/AAF-9314-2020; Moghavvemi, Sedigheh/AAU-1969-2020; /L-3286-2015
OI /0000-0002-9681-6535
TC 0
Z8 0
ZB 0
ZA 0
ZS 0
ZR 0
Z9 0
U1 0
U2 2
SN 0128-7702
EI 2231-8534
UT WOS:000473167800037
ER
PT J
AU Nawaz, Tasawar
TI Exploring the Nexus Between Human Capital, Corporate Governance and
Performance: Evidence from Islamic Banks
SO JOURNAL OF BUSINESS ETHICS
VL 157
IS 2
BP 567
EP 587
DI 10.1007/s10551-017-3694-0
PD JUN 2019
PY 2019
AB This paper offers novel insight into the Islamic banking business model
by considering the effect of investments in human capital and corporate
governance features on the market performance of Islamic banks. Based on
a sample of 47 banks (30 full-fledged Islamic banks and 17 Islamic
Shariah-windows) operating in different regions during the 2005-2010
period, and controlling for firm-specific characteristics, this paper
finds investments in human capital to have a significant positive impact
on the market value in the pre- and post-financial crisis period. Based
on a market measure, this paper finds board size and CEO power to have a
significant positive impact, while the size of Shariah Supervisory Board
(SSB) has the opposite effect on market performance. The results further
reveal that the Islamic banking sector is not a homogeneous group, with
full-fledged Islamic banks having lax corporate governance mechanisms
and large size, while their counterparts, Islamic Shariah-windows,
having strong corporate governance mechanisms tend to invest more in
human capital to yield positive market value. Overall, the analysis
suggests that the financial crisis may have further spurred the impact
of investments in human capital on the market performance.
ZA 0
Z8 0
TC 8
ZR 0
ZS 0
ZB 0
Z9 8
U1 4
U2 20
SN 0167-4544
EI 1573-0697
UT WOS:000471194900015
ER
PT J
AU Ariff, Mohamed
Shawtari, Fekri Ali
TI Efficiency, Asset Quality and Stability of the Banking Sector in
Malaysia
SO MALAYSIAN JOURNAL OF ECONOMIC STUDIES
VL 56
IS 1
BP 107
EP 137
DI 10.22452/MJES.vol56no1.6
PD JUN 2019
PY 2019
AB Malaysia practices a dual banking system, where conventional banks
coexist with Islamic banks. While conventional banks are well
established, Islamic banks are growing rapidly. Since Islamic banks
consist of two types, namely stand-alone or wholesome Islamic banks and
Islamic subsidiaries of conventional banks, it would be revealing to
examine if Islamic subsidiaries of conventional banks differ from
standalone Islamic banks in terms of efficiency, stability and assets
quality. A few studies in the literature that examine the issue have
focused on comparisons between Islamic banks and conventional banks,
with no consideration given to the differentiation between the two
categories of Islamic banks. In this paper, we attempt to examine the
differences among the players in the banking sector in Malaysia. This
paper extends the traditional analysis of conventional versus Islamic
banks to comparisons between stand-alone Islamic banks and Islamic
subsidiaries of conventional banks. Using dynamic panel data
"generalized methods of moments" (GMM), the study reports that there are
differences among different types of banks, viz. conventional banks,
Islamic subsidiaries of conventional parents, and stand-alone Islamic
banks. It shows that Islamic subsidiaries of conventional banks perform
better than stand-alone Islamic banks as well as their own conventional
parents. Furthermore, the results show that Islamic subsidiaries are
more stable in term of their financing income compared to the rest of
the banks, while the stand-alone banks have lower asset quality in
comparison with both Islamic subsidiaries and their parents.
Z8 0
ZR 0
ZA 0
TC 1
ZS 0
ZB 0
Z9 1
U1 0
U2 1
SN 1511-4554
UT WOS:000470897000006
ER
PT J
AU Alexakis, Christos
Izzeldin, Marwan
Johnes, Jill
Pappas, Vasileios
TI Performance and productivity in Islamic and conventional banks: Evidence
from the global financial crisis
SO ECONOMIC MODELLING
VL 79
BP 1
EP 14
DI 10.1016/j.econmod.2018.09.030
PD JUN 2019
PY 2019
AB We assess the performance and productivity of Islamic and conventional
banks using financial ratios, a two- and a four-component meta-frontier
Malmquist productivity index (MPI). We focus on the relatively
homogenous GCC region over the 2006-2012 period that covers the global
financial crisis. We find that Islamic banks exhibit worse cost and
profit performance but are on a par with regards to revenue performance
compared to the conventional ones. The components of the meta-frontier
MPI suggest that the technology of conventional banks improves markedly
in years leading to the financial crisis and declines thereafter.
Islamic banks show a similar but more muted pattern. By contrast, the
pronounced within-Islamic bank group variation in technical efficiency
and technology suggests that Islamic banks are quite heterogeneous as a
group. Overall, the MPI analysis suggests that the two bank types are
more aligned following the global financial crisis. Policy makers should
be wary of the important variations within the Islamic banking industry
when implementing bank regulations.
RI Johnes, Jill/AAB-2233-2020
OI Johnes, Jill/0000-0002-1607-1810
Z8 0
ZS 0
ZR 0
ZB 0
ZA 0
TC 3
Z9 3
U1 2
U2 27
SN 0264-9993
EI 1873-6122
UT WOS:000466824200001
ER
PT J
AU Naseri, Marjan
Bacha, Obiyathulla Ismath
Masih, Mansur
TI Too Small to Succeed versus Too Big to Fail: How Much Does Size Matter
in Banking?
VL 56
IS 1
SI SI
BP 164
EP 187
DI 10.1080/1540496X.2019.1612359
EA MAY 2019
PD JAN 2 2020
PY 2020
AB Even though large banks could imply large risks and heightened
vulnerability for a country's macroeconomy, the presence of many small
banks with similar behavior such as Islamic banks could also cause
systemic risks. This article makes an initial attempt to investigate the
impact of bank size on banking performance. Our study spans 12 emerging
countries with dual banking systems and applies two-step dynamic system
GMM estimator. The results show that size really does matter in the
banking industry, and its impact on performance tends to be non-linear
with a trade-off between profitability and efficiency. Comparing
conventional with Islamic banks, we find that bank size has almost the
same impact on the performance of both types of banks.
Z8 0
ZR 0
ZB 0
ZS 0
TC 0
ZA 0
Z9 0
U1 0
U2 1
SN 1540-496X
EI 1558-0938
UT WOS:000469636800001
ER
PT J
AU Hanieh, Adam
TI Variegated Finance Capital and the Political Economy of Islamic Banking
in the Gulf
SO NEW POLITICAL ECONOMY
VL 25
IS 4
BP 572
EP 589
DI 10.1080/13563467.2019.1613354
EA MAY 2019
PD JUN 6 2020
PY 2020
AB The significant expansion of Islamic Finance (IF) over recent years
provides a useful vantage point for examining the variegated nature of
global finance. Nonetheless, within the substantial political economy
literature on IF, there has been surprisingly little reflection on the
concrete forms of class and capital accumulation underlying IF in
particular national contexts. Against a methodological tendency to
divorce Islamic financial markets from the wider circuit of capital,
this article employs a Marxian conception of 'finance capital' to
examine the class composition of Islamic banking in the six Arab states
of the Gulf Cooperation Council (GCC). The core argument is that the
expansion of GCC Islamic financial markets reflects the growth of a
distinct class-fraction of privately-controlled finance capital in the
Gulf. The specificity of this process in the Gulf involves a set of
privately-controlled conglomerates whose interests are uniquely
interlocked with the ownership of Islamic banks but extend beyond these
to a range of other moments of capital accumulation - most prominently
those connected to the transformation of the built environment. These
class relations differ from conventional banking in the Gulf, and
highlight the importance of critical political economy in developing
alternative interpretations to the dominant, industry-linked literature.
Z8 0
ZA 0
ZB 0
TC 1
ZS 0
ZR 0
Z9 1
U1 1
U2 5
SN 1356-3467
EI 1469-9923
UT WOS:000469549900001
ER
PT J
AU Azid, Toseef
Alnodel, Ali A.
TI Determinants of Shari'ah governance disclosure in financial institutions
Evidence from Saudi Arabia
SO INTERNATIONAL JOURNAL OF ETHICS AND SYSTEMS
VL 35
IS 2
BP 207
EP 226
DI 10.1108/IJOES-07-2018-0111
PD MAY 7 2019
PY 2019
AB Purpose This paper aims to investigate factors influencing Shari'ah
governance disclosure (SGD) in financial institutions.
Design/methodology/approach Using content analysis approach, 46 annual
reports published in 2015 by banks and insurance companies were
investigated based on a self-constructed disclosure index. Findings The
results show that the average level of voluntary disclosure of Shari'ah
governance in Saudi financial institutions is 11.7 per cent, which is
lower than expectations Moreover, regression analysis shows that
industry type, ownership structure and board composition significantly
determine the extent of voluntary disclosure of Shari'ah governance.
Local financial institutions which are owned by non-governmental
agencies are more likely to disclose voluntarily their Shari'ah
governance, in particular from the banking industry.
Originality/value This research extends the investigation of SGD into
insurance sector in a country that has a general policy about adhering
to Islamic principles. Financial institutions might go beyond the
country affirmations to legitimate their identity in response to the
society critiques about the issue. Accordingly, internal attributes and
strategies of financial institutions may play a significant role in
distinguishing its compliance with Islamic principles to respond to the
society critiques about financial transactions.
RI Alnodel, Ali A/A-1215-2015; Alnodel, Ali/
OI Alnodel, Ali/0000-0002-9134-1788
ZS 0
ZB 0
ZR 0
ZA 0
Z8 0
TC 0
Z9 0
U1 2
U2 7
SN 2514-9369
EI 2514-9377
UT WOS:000479240100004
ER
PT J
AU Mensi, Walid
Hammoudeh, Shawkat
Al-Jarrah, Idries Mohammad Wanas
Al-Yahyaee, Khamis Hamed
Kang, Sang Hoon
TI Risk spillovers and hedging effectiveness between major commodities, and
Islamic and conventional GCC banks
SO JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY
VL 60
BP 68
EP 88
DI 10.1016/j.intfin.2018.12.011
PD MAY 2019
PY 2019
AB This paper examines the dynamic risk spillovers and hedging
effectiveness between two important commodity markets (oil and gold) and
both the Islamic and conventional bank stock indices for five GCC
countries (Bahrain, Kuwait, Qatar, Saudi Arabia and UAE), using the
DECO-FIGARCH model and the spillover index of Diebold and Yilmaz (2012,
2014). The results of the DECO-FIGARCH model show evidence of a weak
average conditional correlation between all the GCC bank stock indices
and the two commodity markets. Moreover, we find significant risk
spillovers between these Islamic and conventional GCC bank stock indices
and the commodity markets. The spillovers rise considerably during the
2008-2009 global financial crisis and the 2014-2015 oil price collapse
periods. Further, oil, gold, and the conventional bank stock indexes of
Saudi Arabia, Kuwait and Qatar are net contributors of volatility
spillovers to the other markets, while all the Islamic bank indexes and
the conventional bank indexes of UAE and Bahrain are net recipients of
volatility spillovers. Finally, we show evidence asserting that
including gold and oil in a GCC portfolio offers better but different
diversification benefits and hedging effectiveness for the GCC banks.
(C) 2019 Elsevier B.V. All rights reserved.
RI mensi, walid/R-6139-2016; Al-Jarrah, Idries/
OI Al-Jarrah, Idries/0000-0002-5486-7107
Z8 0
ZA 0
TC 1
ZR 0
ZB 0
ZS 0
Z9 1
U1 0
U2 4
SN 1042-4431
UT WOS:000470121000005
ER
PT J
AU Baldwin, Kenneth
Alhalboni, Maryam
Helmi, Mohamad Husam
TI A structural model of "alpha" for the capital adequacy ratios of Islamic
banks
VL 60
BP 267
EP 283
DI 10.1016/j.intfin.2018.12.015
PD MAY 2019
PY 2019
AB The denominator of the capital adequacy ratio (CAR) for Islamic banks
includes an adjustment factor, alpha, arising from the subsidisation of
investment account holders' returns using bank equity. The methodology
established by the risk management standard-setting body for Islamic
banks, the IFSB, estimates an alpha for each country using panel-data
and normally distributed asset returns for its credit institutions.
Consequently, the IFSB methodology precludes bank-specific alphas linked
to the actual risk profile of underlying assets. There is also no
discernible mapping between alpha and a bank's own propensity to
subsidise cash returns. This paper instead develops a new theoretical
model for bank-specific alpha that is estimated for 43 Islamic banks in
11 countries. Our alpha values broadly correspond with those of the
IFSB. However, a form of regulatory arbitrage is shown to exist which
favors banks with relatively high alphas. This finding also has policy
implications for bank efficiency and systemic risk. (C) 2018 Elsevier
B.V. All rights reserved.
OI Baldwin, Kenneth/0000-0003-0606-5553
ZB 0
ZA 0
Z8 0
ZS 0
TC 2
ZR 0
Z9 2
U1 2
U2 6
SN 1042-4431
UT WOS:000470121000015
ER
PT J
AU Wanke, Peter
Azad, Md Abul Kalam
Emrouznejad, Ali
Antunes, Jorge
TI A dynamic network DEA model for accounting and financial indicators: A
case of efficiency in MENA banking
SO INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
VL 61
BP 52
EP 68
DI 10.1016/j.iref.2019.01.004
PD MAY 2019
PY 2019
AB Middle East and North Africa (MENA) countries present a banking industry
that is well-known for regulatory and cultural heterogeneity, besides
ownership, origin, and type diversity. This paper explores these issues
by developing a Dynamic Network DEA model in order to handle the
underlying relationships among major accounting and financial
indicators. Firstly, a relational model encompassing major profit sheet,
balance sheet, and financial health indicators is presented under a
dynamic network structure. Subsequently, the dynamic effect of
carry-over indicators is incorporated into it so that efficiency scores
can be properly computed for these three substructures. The impact of
contextual variables related to bank ownership, its type, and whether or
not it has undergone a previous merger and acquisition process is tested
by means of a stochastic non-linear model solved by differential
evolution, which combines bootstrapped Simplex, Tobit, Beta, and Simar
and Wilson truncated regression results. The results reveal that bank
type, origin, and ownership impact efficiency levels differently in
terms of profit sheet, balance sheet, and financial health indicators,
although the impact of culture and regulatory barriers seem to prevail
at the country level.
RI Emrouznejad, Ali/C-6707-2018; Wanke, Peter/G-3184-2010; Azad, Md. Abul Kalam/E-
2814-2016
OI Emrouznejad, Ali/0000-0001-8094-4244; Wanke, Peter/0000-0003-1395-8907;
Azad, Md. Abul Kalam/0000-0003-3463-2738
ZR 0
ZA 0
TC 8
ZS 0
ZB 0
Z8 0
Z9 8
U1 9
U2 24
SN 1059-0560
EI 1873-8036
UT WOS:000469161900004
ER
PT J
AU Ibrahim, Mansor H.
TI Oil and macro-financial linkages: Evidence from the GCC countries
VL 72
BP 1
EP 13
DI 10.1016/j.qref.2019.01.014
PD MAY 2019
PY 2019
AB We assess potential roles of recent oil price swings in macro -
financial linkages for the case of the Gulf Cooperation Council (GCC)
countries using bank-level panel data from 2000 - 2016. Employing both
dynamic panel and panel VAR modelling, we document evidence indicating
significant implications of oil price changes on the GCC financial and
real sectors and significant macro - financial linkages. The results are
robust in suggesting favourable effects of positive oil price changes on
bank profitability, credit growth and output growth. Likewise, we
document robust evidence indicating immediate contraction in credit
growth, deterioration in credit quality and decline in economic growth
following negative oil price changes. We also note that the implications
of oil price changes tend to be felt more strongly by small banks.
Finally, we find substantial causal interactions between output growth
and bank variables, notable of which are robust findings of significant
responses of (i) credit growth and bank profitability to business cycle
and (ii) business cycle to credit quality. With the documented roles of
oil prices on macro-financial linkages, the oil market developments
should be monitored closely and, in anticipation of oil price drops,
attention should be given to maintaining lending activity as well as
safeguarding banks' financial soundness such that the contraction of
real activity can be contained. (C) 2019 Board of Trustees of the
RI Ibrahim, Mansor/AAU-6887-2020
ZR 0
ZA 0
TC 2
ZB 0
Z8 0
ZS 0
Z9 2
U1 0
U2 1
SN 1062-9769
EI 1878-4259
UT WOS:000467537000001
ER
PT J
AU Rafay, Abdul
Farid, Saqib
TI Islamic banking system: a credit channel of monetary policy - evidence
from an emerging economy
SO ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA
VL 32
IS 1
BP 742
EP 754
DI 10.1080/1331677X.2019.1579662
PD APR 16 2019
PY 2019
AB Since its inception, Islamic banking in Pakistan has shown remarkable
growth and development. Most recent statistics reveal that industry has
captured around 13% of the total banking market in Pakistan. This
outstanding growth of the industry highlights the crucial role of
Islamic banks for monetary policy considerations. This study aimed to
evaluate the role of Islamic banks in the monetary transmission process
in Pakistan. The study examined the role of two most crucial balance
sheet items of Islamic banks in the monetary transmission process: (1)
Islamic deposits and (2) Islamic financing. The paper employed time
series techniques such as the J.J. co-integration test, Vector Auto
Regression, Variance Decomposition Analysis and Impulse Response
Function to investigate the role of Islamic banks in the monetary
transmission process. The study sample covered the time period
2007-2017. The results revealed the significant role of Islamic banks in
transmitting monetary decisions to the real economy. Moreover, the
evidence demonstrated the active bank lending channel of Islamic banking
in Pakistan. The findings also corroborated the functional role of
Islamic banks along with their conventional counterparts for effective
formulation of monetary policy in Pakistan.
RI Rafay, Abdul/AAA-4184-2020; FARID, SAQIB/
OI FARID, SAQIB/0000-0002-7008-0785
ZB 0
ZR 0
ZA 0
Z8 0
ZS 0
TC 2
Z9 2
U1 1
U2 6
SN 1331-677X
EI 1848-9664
UT WOS:000464825300001
ER
PT J
AU Hernandez, Jose Arreola
Al-Yahyaee, Khamis Hamed
Hammoudeh, Shawkat
Mensi, Walid
TI Tail dependence risk exposure and diversification potential of Islamic
and conventional banks
SO APPLIED ECONOMICS
VL 51
IS 44
BP 4856
EP 4869
DI 10.1080/00036846.2019.1602716
EA APR 2019
PD SEP 20 2019
PY 2019
AB This paper undertakes a rolling window comparative analysis of risks for
portfolios consisting of GCC Islamic and conventional bank indices. We
draw our empirical results by employing canonical, drawable and regular
vine copula models, as well as by implementing a portfolio optimization
method with a conditional Value-at-Risk constraint. We find evidence of
higher riskiness in the group of Islamic banks relative to the group of
conventional banks across each of the financial rolling window scenarios
under consideration. Specifically, a greater negative (nonlinear) tail
asymmetric dependence is observed in the pairs of Islamic banks'
relationships. The results also show that the optimal portfolio model
supports a clear preference towards the group of conventional banks in
regard to risk minimization and diversification benefits.
RI mensi, walid/R-6139-2016
ZS 0
Z8 0
ZR 0
ZB 0
TC 0
ZA 0
Z9 0
U1 2
U2 4
SN 0003-6846
EI 1466-4283
UT WOS:000466665500001
ER
PT J
AU Elamer, Ahmed A.
Ntim, Collins G.
Abdou, Hussein A.
Zalata, Alaa Mansour
Elmagrhi, Mohamed
TI The impact of multi-layer governance on bank risk disclosure in emerging
markets: the case of Middle East and North Africa
SO ACCOUNTING FORUM
VL 43
IS 2
BP 246
EP 281
DI 10.1080/01559982.2019.1576577
PD APR 3 2019
PY 2019
AB This study examines the impact of multi-layer governance mechanisms on
the level of bank risk disclosure. Using a large dataset from 14 Middle
East and North Africa (MENA) countries over a period of 8 years, our
findings are three-fold. First, our results suggest that the presence of
a Sharia supervisory board is positively associated with the level of
risk disclosure. Second and at the bank-level, we find that ownership
structures have a positive effect on the level of risk disclosure. At
the country-level, our evidence suggests that control of corruption has
a positive effect on the level of bank risk disclosure. Our study is,
therefore, a major departure from much of the existing accounting
literature that offers new crucial insights that show that firms'
disclosure choices are not mainly shaped by firm-level (internal)
governance arrangements, but also country-level (external) governance
and religious factors. Our findings have important implications for
corporate boards, investors, regulatory authorities, standards-setters
and governments relating to the development, implementation and
enforcement of corporate and national governance standards.
RI Ntim, Collins/M-8212-2016; Elamer, Ahmed A./I-8836-2017; Abdou, Hussein/C-2456-
2018; Elmagrhi, Mohamed Husen/; ZALATA, ALAA/
OI Ntim, Collins/0000-0002-1042-4056; Elamer, Ahmed A./0000-0002-9241-9081;
Abdou, Hussein/0000-0001-5580-1276; Elmagrhi, Mohamed
Husen/0000-0003-3803-8496; ZALATA, ALAA/0000-0003-2018-4313
ZR 0
ZB 0
Z8 0
ZA 0
ZS 0
TC 8
Z9 8
U1 3
U2 8
SN 0155-9982
EI 1467-6303
UT WOS:000477033300003
ER
PT J
AU Jan, Amin
Marimuthu, Maran
Isa, Muhammad Pisol bin Mohd Mat
Shad, Muhammad Kashif
TI Bankruptcy Forecasting and Economic Sustainability Profile of the Market
Leading Islamic Banking Countries
SO INTERNATIONAL JOURNAL OF ASIAN BUSINESS AND INFORMATION MANAGEMENT
VL 10
IS 2
BP 73
EP 90
DI 10.4018/IJABIM.2019040104
PD APR-JUN 2019
PY 2019
AB This study used bankruptcy forecasting as a proxy for measuring economic
sustainability profile of the Islamic banks in the market leading
Islamic banking countries. The countries are Malaysia, Saudi Arabia,
Iran, UAE and Kuwait. A sample of 29 Islamic banks with a post-crisis
period data from 2009-2013 was collected for empirical testing. Results
indicated that Saudi Arabian Islamic banks recorded the most minimal
bankruptcy rate of 29 percent, followed by UAE with 31 percent, Kuwait
with 48 percent, Malaysia with 55 percent and Iran with 68 percent
respectively. The results further indicated that profitability,
liquidity, insolvency, and productivity ratios have a significant
positive impact on bankruptcy profile of the selected Islamic banks.
This study lends credence to multiple stakeholders for taking
appropriate measures regarding the deteriorating economic sustainability
of the Islamic banks in the market leading Islamic banking countries. It
also urges to develop a separate Shariah-based sustainability
measurement framework for the Islamic banks.
RI Jan, Amin/X-7343-2018; Jan, Amin/AAF-6738-2019; shad, kashif/M-3782-2019; Jan,
Amin/
OI shad, kashif/0000-0003-3470-4092; Jan, Amin/0000-0002-5943-4247
TC 3
ZR 0
Z8 0
ZB 0
ZS 0
ZA 0
Z9 3
U1 0
U2 0
SN 1947-9638
EI 1947-9646
UT WOS:000500556900004
ER
PT J
AU Beck, Thorsten
Ongena, Steven
Sendeniz-Yuncu, Ilkay
TI Keep walking? Geographical proximity, religion, and relationship banking
SO JOURNAL OF CORPORATE FINANCE
VL 55
SI SI
BP 49
EP 68
DI 10.1016/j.jcorpfin.2018.07.005
PD APR 2019
PY 2019
AB We investigate the geographical proximity of firms to their relationship
banks. We find that Islamic banks are more remote to their borrowers. We
also find that the probability for a firm to connect to a bank
substantially decreases in distance, but that the choice along bank
characteristics determines how potent distance is in its impact. If the
bank in the vicinity is an Islamic bank, distance plays a more muted
role, especially in cities with a high conservative party vote and
higher trust in religious institutions. Overall, these findings suggest
that the presence of banks with certain characteristics in the vicinity
may determine the within-firm and across-firm configurations of
observable firm-bank connections. (112 words).
OI Ongena, Steven/0000-0002-8381-0062
TC 1
ZS 0
Z8 0
ZR 0
ZA 0
ZB 0
Z9 1
U1 2
U2 10
SN 0929-1199
EI 1872-6313
UT WOS:000464091100004
ER
PT J
AU Bitar, Mohammad
Tarazi, Amine
TI Creditor rights and bank capital decisions: Conventional vs. Islamic
banking
VL 55
SI SI
BP 69
EP 104
DI 10.1016/j.jcorpfin.2018.11.007
PD APR 2019
PY 2019
AB Using a sample of banks operating in 24 countries, we provide robust
evidence that stronger creditor rights are associated with higher
capital adequacy ratios for conventional banks but not for Islamic
banks. Such results suggest that, under stronger creditor protection,
only the managers of conventional banks increase equity, presumably as a
means of signalling better monitoring efforts and of avoiding loss of
control. A possible reason for the finding that Islamic banks do not
generally increase equity is that, under the profit loss sharing (PLS)
principle, depositors share profits and losses with the bank. The role
of creditor protection is hence irrelevant in an Islamic banking
context. However, we show that in predominantly non-Muslim countries
with less competitive markets, Islamic banks show a similar association
between creditor rights and capital ratios as conventional banks.
OI Tarazi, Amine/0000-0001-8385-2994
ZB 0
TC 3
ZA 0
Z8 0
ZS 0
ZR 0
Z9 3
U1 0
U2 8
SN 0929-1199
EI 1872-6313
UT WOS:000464091100005
ER
PT J
AU Safiullah, Md
Shamsuddin, Abul
TI Risk-adjusted efficiency and corporate governance: Evidence from Islamic
VL 55
SI SI
BP 105
EP 140
DI 10.1016/j.jcorpfin.2018.08.009
PD APR 2019
PY 2019
AB Previous studies have compared the efficiency of Islamic banks with
their conventional counterparts using a common efficiency frontier and
ignoring risks, in spite of the two bank groups operating under
different technological, market and institutional conditions. We
overcome this issue by estimating efficiency using the stochastic
meta-frontier model for a large international sample, and show that
compared to conventional banks, Islamic banks are 4 percentage points
more cost efficient, but 17 percentage points less profit efficient on a
risk-adjusted basis. For both bank types, higher bank risk reduces cost
efficiency but increases profit efficiency, implying that risks
contribute more to generating revenues than inflating costs. Having a
stronger Shariah supervisory board is conducive to improving Islamic
banks' profit efficiency. Our findings are robust to accounting for
potential endogeneity in the governance-efficiency relationship.
ZR 0
ZB 0
Z8 0
ZS 0
ZA 0
TC 4
Z9 4
U1 2
U2 16
SN 0929-1199
EI 1872-6313
UT WOS:000464091100006
ER
PT J
AU Mimouni, Karim
Smaoui, Houcem
Temimi, Akram
Al-Azzam, Moh'd
TI The impact of Sukuk on the performance of conventional and Islamic banks
SO PACIFIC-BASIN FINANCE JOURNAL
VL 54
BP 42
EP 54
DI 10.1016/j.pacfin.2019.01.007
PD APR 2019
PY 2019
AB This paper examines the impact of Sukuk market development on banks'
profitability using a dataset of 71 Islamic banks (IBs) and 146
conventional banks (CBs) spanning 13 countries over the 2003-2014
period. Using a dynamic panel model, we find that the overall bank
profitability is negatively impacted by Sukuk market development.
However, when we control for whether the bank is Islamic or
conventional, important findings emerge. The results suggest that Sukuk
development reduces IBs' profitability but has no impact on CBs'
performance. In addition, the evidence shows that these adverse effects
on IBs' profitability are substantially lower after the 2008 global
financial crisis. Accordingly, our findings suggest that IBs were able
to overcome Sukuk competition after the crisis.
ZS 0
Z8 0
TC 3
ZA 0
ZR 0
ZB 0
Z9 3
U1 0
U2 8
SN 0927-538X
EI 1879-0585
UT WOS:000463302300004
ER
PT J
AU Belal, Ataur Rahman
Mazumder, Mohammed Mehadi Masud
Ali, Mohobbot
TI Intellectual capital reporting practices in an Islamic bank: A case
study
SO BUSINESS ETHICS-A EUROPEAN REVIEW
VL 28
IS 2
BP 206
EP 220
DI 10.1111/beer.12211
PD APR 2019
PY 2019
AB Given the nature and importance of Islamic banks in recent times, we can
expect them to have significant intellectual capital anchored in their
Sharia-based knowledge and expertise. However, we know very little or
nothing about how and why intellectual capital-related information is
provided in their corporate reports. We fill this gap in our existing
knowledge of the field with a view to enhance relevant literature. As
far as we know, this article is one of the earliest exploratory attempts
to examine intellectual capital reporting practices of an Islamic bank.
We have undertaken a longitudinal (2001-2015) case study related to the
intellectual capital reporting practices of an Islamic bank. Key results
include significant rise of intellectual capital reporting over time,
dominance of internal capital-related items in intellectual capital
reporting profile and the dynamics of changes in intellectual capital
reporting practices over time. Through an institutional theory lens, we
explain that this is due to the changes in the external institutional
environment and various intra-organisational factors such as strong
ethical culture, unique knowledge base (Sharia), and corporate
governance regime.
OI BELAL, ATAUR/0000-0001-6144-8907; Mazumder, Dr Mohammed Mehadi
Masud/0000-0003-4093-1179
Z8 0
ZB 0
ZS 0
ZA 0
TC 1
ZR 0
Z9 1
U1 2
U2 17
SN 0962-8770
EI 1467-8608
UT WOS:000461085200005
ER
PT J
AU Hassan, M. Kabir
Khan, Ashraf
Paltrinieri, Andrea
TI Liquidity risk, credit risk and stability in Islamic and conventional
banks
SO RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
VL 48
BP 17
EP 31
DI 10.1016/j.ribaf.2018.10.006
PD APR 2019
PY 2019
AB The aim of this paper is to provide a thorough assessment of Islamic
banks' (IBs) liquidity risk compared to conventional banks (CBs). We
firstly investigate the relationship between liquidity and credit risk.
Employing a simultaneous structural equation approach, on a
comprehensive dataset of 52 IBs and CBs, from selected Organization of
Islamic Cooperation Countries for the period of 2007-2015, we find that
credit risk and liquidity risk have negative relationship. We then
investigate the relationship between liquidity risk and stability,
finding a negative relationship just for IBs. We finally show that
Islamic banks are better than conventional in managing risks.
RI Khan, Ashraf/Q-4893-2019; PALTRINIERI, Andrea/; Hassan, M. Kabir/D-5053-2012;
Khan, Ashraf/
OI PALTRINIERI, Andrea/0000-0002-8172-9199; Hassan, M.
Kabir/0000-0001-6274-3545; Khan, Ashraf/0000-0001-9758-3625
ZA 0
ZB 0
ZR 0
ZS 0
TC 9
Z8 0
Z9 9
U1 3
U2 20
SN 0275-5319
EI 1878-3384
UT WOS:000460412400002
ER
PT J
AU Sharifi, Sirus
Haldar, Arunima
Rao, S. V. D. Nageswara
TI The relationship between credit risk management and non-performing
assets of commercial banks in India
SO MANAGERIAL FINANCE
VL 45
IS 3
BP 399
EP 412
DI 10.1108/MF-06-2018-0259
PD MAR 11 2019
PY 2019
AB Purpose - The purpose of this paper is to examine the impact of credit
risk components on the performance of credit risk management and the
growth in non-performing assets (NPAs) of commercial banks in India.
Design/methodology/approach The data are obtained from primary and
secondary sources. The primary data are collected by administering
questionnaire among risk managers of Indian banks. The secondary data on
NPAs of Indian banks are from annual reports and Prowess database
compiled by the Centre for Monitoring Indian Economy. Multiple linear
regression is used to estimate the models for the study.
Findings - The results suggest that the identification of credit risk
significantly affects the credit risk performance. The results are
robust as credit risk identification is negatively related to annual
growth in NPAs or loans. There is evidence in support of a priori
expectation of better credit risk performance of private banks compared
to that of government banks.
Practical implications - The study has implications for Indian banks
suffering from a high level of losses due to bad loans. In addition, it
will have implications for the implementation of new Basel Accord norms
(Basel III) by the Reserve Bank of India. Social implications - The high
and rising level of NPAs will have adverse consequences for credit flow
in the economy in the absence of appropriate intervention by government
and central bank in the form of changes in institutional and regulatory
infrastructure. The problems in banking and financial services sector
will lead to lower industrial and aggregate economic growth, and lower
(or negative) growth in employment.
Originality/value - There is little evidence on credit risk management
practices of Indian banks, and its relationship with credit risk
performance and NPA growth. The need for an effective risk management
system to manage credit risk assumes importance and urgency in the
context of high and rising NPAs of Indian banks, and the consequences
for the Indian economy.
RI Haldar, Arunima/H-9144-2016
OI Haldar, Arunima/0000-0002-8174-2019
Z8 0
TC 0
ZS 0
ZR 0
ZB 0
ZA 0
Z9 0
U1 1
U2 10
SN 0307-4358
EI 1758-7743
UT WOS:000463798500003
ER
PT J
AU Lone, Fayaz Ahmad
Bhat, Ulfat Rashid
TI Does the tag "Islamic" help in customer satisfaction in dual banking
sector?
VL 10
IS 1
BP 138
EP 149
DI 10.1108/JIMA-11-2016-0084
PD MAR 4 2019
PY 2019
AB Purpose The purpose of this paper is to find out the importance of the
tag "Islamic" in the title of banks. This will help to determine the
future strategy of Islamic banks, while expanding to the countries where
Islamic banking is seen as a religious banking and not an as an
alternative approach to the conventional banking.
Design/methodology/approach Adopting convenience sampling, a total of
596 customers of both Islamic and conventional banks were surveyed from
four regions of Saudi Arabia (Makkah, Madinah, Riyadh and Dammam) using
a self-structured questionnaire on a five-point Likert scale. Findings
The results concede that Islamic banks without the tag "Islamic" and
conventional banks have same customer satisfaction. There are some
factors other than the tag "Islamic" which are driving customers towards
Islamic banking. Those factors include physical aspects of the bank,
level of satisfaction with the services, dealing and attendance by the
staff and safety and security of the bank. Besides, the application of
fundamental principles of Islamic banking works as a key motivation for
customer satisfaction with Islamic banking.
Practical implications - Applying the tag "Islamic" is not as important
as implementing the principles of Islamic banking. Islamic banks can
survive and compete well even without using the "Islamic" tag if they
implement the prime principles of Islamic banking and work on improving
the factors highlighted by this study. This study can prove to be
helpful in the expansion of Islamic banking in the countries where
religious banking is not generally preferred by customers.
Originality/value - This is the first study to find out the customer
satisfaction in a dual banking system (comprising of conventional banks
and Islamic banks that do not use the tag " Islamic"), thereby filling
the existing gap in the Islamic banking literature.
ZS 0
ZA 0
ZR 0
TC 5
Z8 0
ZB 0
Z9 5
U1 0
U2 3
SN 1759-0833
EI 1759-0841
UT WOS:000459483600005
ER
PT J
AU Belwal, Rakesh
Al Maqbali, Ahmed
TI A study of customers' perception of Islamic banking in Oman
VL 10
IS 1
BP 150
EP 167
DI 10.1108/JIMA-02-2016-0008
PD MAR 4 2019
PY 2019
AB Purpose The concept of Islamic banking (IB) as a discipline and the
introduction of the full-fledged Islamic banks and Islamic windows are
relatively newer developments in the banking sector in Oman. This paper
aims to assess customers' perceptions of the Islamic banks and IB
windows in Oman. Design/methodology/approach Following the interpretive
paradigm and an exploratory research design, data collected through
personal interviews with a group of 60 respondents in two of the
prominent cities in Oman were analysed qualitatively. Findings The study
found that customers in Oman had mixed feelings about the Islamic Banks.
While some of them were not sure if the banks follow the Islamic
principles, a majority of them had not opened an account with the
Islamic banks or Islamic windows. The study revealed some
vulnerabilities in the areas of their operations, marketing practices,
staff knowledge of products and customer-dealings, as well as customers'
understanding of Islamic banks, their principles and practices.
Practical implications - As the advent of IB is relatively new to Oman,
the insights gained by this study will have wider implications for the
growth of IB locally. The outcomes of this study would appraise the
officials and regulators of Islamic banks and Islamic windows with
customers' perception of IB. The elimination of the identified
weaknesses would help them to improve the knowledge, quality and the
marketing and promotion of products and services while competing with
the conventional banks.
Originality/value - This study is a pioneering effort to know the status
of IB and customers' motivations in Oman towards IB.
ZR 0
ZA 0
ZS 0
Z8 0
TC 2
ZB 0
Z9 2
U1 2
U2 8
SN 1759-0833
EI 1759-0841
UT WOS:000459483600006
ER
PT J
AU Fauzi, Abu Amar
Suryani, Tatik
TI Measuring the effects of service quality by using CARTER model towards
customer satisfaction, trust and loyalty in Indonesian Islamic banking
VL 10
IS 1
BP 269
EP 289
DI 10.1108/JIMA-04-2017-0048
PD MAR 4 2019
PY 2019
AB Purpose There are two primary objectives of the research. Firstly, the
study aims to explore the service quality dimension of Indonesian
Islamic banking using a CARTER model. Secondly, the study aims to
examine the relationship of service quality towards customer
satisfaction, trust and loyalty in Indonesian Islamic banking.
Design/methodology/approach The conceptual framework of the study will
be examined using the PLS-SEM approach. Then, it will be examined using
the 392 collected data from Indonesian Islamic banking customer in
Surabaya. Findings Reliability becomes a key driver of customer
satisfaction towards Indonesian Islamic banking. Then, customer loyalty
will improve more significant if the Indonesian Islamic bank can firstly
improve its customers trust.
Research limitations/implications - The research results are
questionable to represents Indonesia in general because all the sample
of the research is Islamic banking customers in Surabaya, East Java
Province.
Practical implications - Updating with the newest technology in
delivering integrated products or services will lead Indonesian Islamic
banking satisfying its customer more. Then, Indonesia Islamic banking
should develop the capability of human resources related to banking
skills and understanding of Islamic principles to increase customer
trust.
Originality/value - This research is essential in complementing the
previous research regarding the level of contribution of compliance in
Indonesia Islamic banking. Then, the research discusses how compliance
becomes an essential part of service quality that could increase the
market share of Indonesian Islamic banking by enhancing the level of
customer trust.
RI , Abu Amar Fauzi/L-3683-2018; Suryani, Tatik/AAF-7616-2019; Suryani, Tatik/
OI , Abu Amar Fauzi/0000-0003-0693-6814; Suryani, Tatik/0000-0002-7472-9617
ZB 0
ZA 0
TC 6
ZR 0
Z8 0
ZS 0
Z9 6
U1 2
U2 17
SN 1759-0833
EI 1759-0841
UT WOS:000459483600012
ER
PT J
AU Alsartawi, Abdalmuttaleb Musleh
TI Board independence, frequency of meetings and performance
VL 10
IS 1
BP 290
EP 303
DI 10.1108/JIMA-01-2018-0017
PD MAR 4 2019
PY 2019
AB Purpose This study aims to investigate the relationship between board
structure and performance from an Islamic point of view.
Design/methodology/approach Consequently, the researcher developed a
multiple linear regression model to investigate the nature of this
relationship, whereby return on assets (ROA) was used to measure the
performance of listed Islamic Banks in Gulf Cooperation Council,
covering the period between 2013 and 2016. Findings The results
indicated a negative relationship between board structure and the
performance of Islamic banks.
Research limitations/implications - Because the current study only used
accounting-based performance indicator (ROA), the researcher suggests
expanding the framework of this study through the addition of
market-based performance indicators such as Tobin's Q.
Practical implications - Therefore, the researcher recommends that
regulators of Islamic banks in the GCC need to develop a set of strict
restrictions for the selection of independent members of the board and
to minimize the meetings of the board to reduce the cost of preparing
information and the information asymmetry, thus improving performance.
Originality/value - This study provides guidelines regarding the
appropriate number of independent directors and board meetings that will
result in reduced monitoring costs and improved profits.
RI ALSARTAWI, ABDALMUTTALEB MUSLEH/AAR-4934-2020
OI ALSARTAWI, ABDALMUTTALEB MUSLEH/0000-0001-9755-5106
ZB 0
ZS 0
ZR 0
TC 2
ZA 0
Z8 0
Z9 2
U1 1
U2 8
SN 1759-0833
EI 1759-0841
UT WOS:000459483600013
ER
PT J
AU Raza, Syed Ali
Shah, Nida
Ali, Muhammad
TI Acceptance of mobile banking in Islamic banks: evidence from modified
UTAUT model
VL 10
IS 1
BP 357
EP 376
DI 10.1108/JIMA-04-2017-0038
PD MAR 4 2019
PY 2019
AB Purpose The purpose of this study is to examine the factors which affect
mobile banking (M-banking) acceptance in Islamic banks of Pakistan by
using the modified uni?ed theory of acceptance and use of technology
(UTAUT) model. The performance expectancy, facilitating conditions,
social influence, effort expectancy, perceived value, habit and hedonic
motivation are taken as independent variables. Similarly, the intention
to adopt M-banking is taken as the mediator, and actual usage is used as
the dependent variable. Design/methodology/approach The data are
collected by using the survey method, and the five-point Likert scale is
used for this purpose. The statistical techniques applied to the dataset
were confirmatory factor analysis and partial least square structure
equation modeling. Findings The empirical evidence shows that all the
variables except for social influence have a significant positive effect
on the intention which results in actual usage.
Practical implications - This study will help the Islamic banks in
boosting the M-banking growth and decision-makers in crafting those
strategies that increase the M-banking acceptance.
Originality/value - This paper makes a unique contribution to the
literature with reference to Pakistan, being a pioneering attempt to
investigate the factors which affect M-banking acceptance in Islamic
banks of Pakistan by using the modified UTAUT model.
RI Ali, Muhammad/AAL-3747-2020; Raza, Syed Ali/I-3879-2016; Ali, Dr. Muhammad/
OI Raza, Syed Ali/0000-0002-2455-6922; Ali, Dr.
Muhammad/0000-0003-2929-8202
TC 6
ZB 0
ZA 0
ZS 0
Z8 0
ZR 0
Z9 6
U1 2
U2 18
SN 1759-0833
EI 1759-0841
UT WOS:000459483600017
ER
PT J
AU Afzal, Adnan
Khan, Ahmad Sohail
Mahmood, Shahid
Shabbir, Rizwan
TI Shari'h Awareness and Customer Perception on PAKSERV: The drivers of
Future Behavioral Intentions in Islamic Banking
SO PACIFIC BUSINESS REVIEW INTERNATIONAL
VL 11
IS 9
BP 133
EP 142
PD MAR 2019
PY 2019
AB Nowadays, Islamic banks face generous challenges to attract a large
client-base for gaining higher revenues but these activities are
pointless until and unless a genuine customer get value-addition
services. In Pakistan, awareness about banking products/services may
affect customer satisfaction level because business society need such a
monetary foundation that generate behavioral loyalty. Service
quality,Shari'h awareness & customer satisfaction is a cultural
phenomenon, it must be grounded in a local cultural context.To
investigate these relationships, 200 Islamic bank accounts holders are
selected for fully-structured questionnaire responses and hierarchical
linear regressionis executed. The results indicate that satisfaction
fully mediates customer perception on PAKSERV and future behavioral
intentions. However, satisfaction present a partial mediation in Shari'h
awareness and future behavioral intention. Thus, clients of Islamic
banks focus on PAKSERV (tangibility and assurance) of services cape that
lead satisfaction and enhance behavioral intentions. The managers should
focus on Islamic norms for designing reliability, tangibility, and
assurance because customer want product information and knowledge about
Shari'h laws.
ZS 0
TC 0
Z8 0
ZB 0
ZA 0
ZR 0
Z9 0
U1 1
U2 1
SN 0974-438X
UT WOS:000488981800011
ER
PT J
Salim, Kinan
Abojeib, Moutaz
Yeap, Lau Wee
TI Structural changes, competition and bank stability in Malaysia's dual
banking system
SO ECONOMIC SYSTEMS
VL 43
IS 1
BP 111
EP 129
DI 10.1016/j.ecosys.2018.09.001
PD MAR 2019
PY 2019
AB This paper assesses Malaysia's competition landscape and its risk
implications subsequent to conventional banking consolidation and
Islamic banking penetration in the aftermath of the 1997/1998 Asian
financial crisis. Employing a panel sample of conventional and Islamic
commercial banks, it arrives at the following conclusions. First, the
consolidation exercise, which has led to a significant reduction in the
number of domestic commercial banks, has not stifled banking
competition. Second, the paper provides empirical support for the
competition-stability relationship, particularly for the conventional
banking sector. Islamic banking sector risk appears to be neutral to
market competition or market power, although there is limited evidence
that it increases with overall market concentration. Finally, the
analysis uncovers the risk-increasing effect of the Islamic banking
market structure on the conventional banking sector. By contrast,
conventional banking market concentration tends to reduce the credit
risk of Islamic banks.
RI Lau, Wee-Yeap/B-2772-2010; Ibrahim, Mansor/AAU-6887-2020; Salim, Kinan/;
Ibrahim, Mansor/
OI Lau, Wee-Yeap/0000-0002-3447-9895; Salim, Kinan/0000-0003-1871-3300;
Ibrahim, Mansor/0000-0003-0413-0075
ZR 0
ZS 0
TC 3
Z8 0
ZA 0
ZB 0
Z9 3
U1 2
U2 9
SN 0939-3625
EI 1878-5433
UT WOS:000466623700008
ER
PT J
AU Hanafi, Hanira
Kasim, Nor Hasniah
Diyana, Syairah
TI Islamic Mortgage Products: How Aware are Malaysians?
VL 27
IS 1
BP 311
EP 325
PD MAR 2019
PY 2019
AB Despite its rapid growth and expansion rates, Islamic banks are striving
to compete with rivalling conventional banks that have longer history
and stronger foothold in local industry. Therefore, the importance of
determining the level of awareness and understanding of Islamic banking
products are undeniable as Islamic banks offer products and services for
Muslims and non-Muslims both. This paper examines the level of awareness
and understanding of Malaysian citizens towards Islamic mortgage
products, with respect to demographic factor. This study has employed
the convenience sampling technique. Data collection had been conducted
in four Malaysian states representing the entire peninsular Malaysia,
which includes Kiang Valley, Pahang (Kuantan), Kedah (Alor Setar) and
Johor (Johor Bharu). Questionnaires numbering 809 had been deemed as
valid and complete, and had subsequently been subjected to chi-square,
t-test and ANOVA tests for data analysis purposes. The results have
shown that there is no significant relationship between gender and the
awareness of Islamic mortgage products. However, there are significant
differences between different groups of age, gender, occupation,
religious affiliation and income level in the context of understanding
these products.
Z8 0
ZA 0
ZB 0
ZR 0
TC 0
ZS 0
Z9 0
U1 0
U2 0
SN 0128-7702
EI 2231-8534
UT WOS:000463947200020
ER
PT J
AU Risfandy, Tastaftiyan
Trinarningsih, Wahyu
Harmadi, Harmadi
Trinugroho, Irwan
TI ISLAMIC BANKS' MARKET POWER, STATE-OWNED BANKS, AND RAMADAN: EVIDENCE
FROM INDONESIA
SO SINGAPORE ECONOMIC REVIEW
VL 64
IS 2
BP 423
EP 440
DI 10.1142/S0217590817500229
PD MAR 2019
PY 2019
AB We use a monthly dataset to analyze whether Islamic banks have greater
market power compared with their conventional counterparts. Using a
sample of Indonesian banks, we find that Islamic banks possess greater
market power than conventional banks. This condition does not hold,
however, when we compare state-owned Islamic and conventional banks. We
also find some specific determinants of Islamic banks' market power: the
Ramadan holy month (positive impact), the proportion of profit-and-loss
sharing in their financing (negative impact), and the presence of a
Sharia board (positive impact). Interestingly, Ramadan benefits not only
Islamic banks but also conventional banks. Our findings support prior
literature emphasizing the role of religiosity in Islamic banks'
behavior.
OI Risfandy, Tastaftiyan/0000-0002-5544-726X; Trinugroho,
Irwan/0000-0003-4911-7982
ZS 0
Z8 0
TC 1
ZR 0
ZB 0
ZA 0
Z9 1
U1 0
U2 4
SN 0217-5908
EI 1793-6837
UT WOS:000464071100010
ER
PT J
AU Hamdi, Besma
Abdouli, Mohamed
Ferhi, Afifa
Aloui, Mouna
Hammami, Sami
TI The Stability of Islamic and Conventional Banks in the MENA Region
Countries During the 2007-2012 Financial Crisis
SO JOURNAL OF THE KNOWLEDGE ECONOMY
VL 10
IS 1
BP 365
EP 379
DI 10.1007/s13132-017-0456-2
PD MAR 2019
PY 2019
AB The objective of this study is to determine the stability of Islamic and
conventional banks of 13 countries during the current subprime and the
eurozone crisis. In this study, we used a sample of 69 Islamic and 88
classic banks over the 2003/2012 period. The method of the ordinary
least squares is applied to examine the stability of both financial
sectors. Our results show that the stability of Islamic banks is a
little higher than that of conventional banks.
OI besma, hamdi/0000-0003-1995-0228
ZR 0
ZB 0
ZA 0
TC 1
ZS 0
Z8 0
Z9 1
U1 0
U2 3
SN 1868-7865
EI 1868-7873
UT WOS:000463092700020
ER
PT J
AU Albaity, Mohamed
Mallek, Ray Saadaoui
Noman, Abu Hanifa Md.
TI Competition and bank stability in the MENA region: The moderating effect
of Islamic versus conventional banks
SO EMERGING MARKETS REVIEW
VL 38
BP 310
EP 325
DI 10.1016/j.ememar.2019.01.003
PD MAR 2019
PY 2019
AB This paper investigates the impact of competition on bank stability
using data from 276 banks across eighteen MENA countries between
2006-2015. We controlled for financial inclusion, productivity, and
macroeconomic instability in addition to several different control
variables, including bank size, efficiency, diversification and
leverage. The two-step system GMM suggested that banks facing little
competition tended to take less insolvency and credit risks and enjoy
more profitability. Furthermore, we found that the competition-fragility
effect is more prominent for Islamic banks than conventional ones in
MENA countries. This study contains some significant policy implications
for regulators looking to improve bank stability.
OI Saadaoui Mallek, Ray/0000-0003-0019-7010
TC 9
ZB 0
Z8 0
ZR 0
ZS 0
ZA 0
Z9 9
U1 1
U2 7
SN 1566-0141
EI 1873-6173
UT WOS:000463302500017
ER
PT J
AU Yunanda, Rochania Ayu
Tareq, Mohammad Ali
Mahdzir, Akbariah Binti
Rahman, Faried Kurnia
TI NATIONAL CULTURE AND TRANSPARENCY: EVIDENCE FROM ISLAMIC BANKS
SO RISUS-JOURNAL ON INNOVATION AND SUSTAINABILITY
VL 10
IS 1
BP 101
EP 109
DI 10.24212/2179-3565.2019v10i1p101-109
PD MAR-MAY 2019
PY 2019
AB The purpose of this paper is to investigate the effects of predominant
cultural values on banking disclosure. On one hand, Islamic banks have
practiced Islamic principles which are universal for all countries.
Islamic banks are expected to provide transparent information especially
in terms of social and Shariah(Islamic) compliant information as Islamic
banks claim themselves to have social objectives as the prime
consideration. Islamic banks also have Shariah supervisory body to
ensure that the banking activities and business operations are in line
with Islamic requirements. On the other hand, Hofstede's cultural
dimensions and Gray's hypotheses have rendered remarkable contributions
in financial and accounting practices among different nations. Examining
45 Islamic banks in 11 Moslem majority countries, this paper focuses on
four particular cultural dimensions namely individualism/collectivism,
masculinity/femininity, uncertainty avoidance, and power distance and
whether these dimensions have an impact on transparency. This study
found that two out of four national cultures still have significant
effect on the transparency level in Moslem majority countries.
RI Tareq, Mohammad Ali/D-5524-2016
OI Tareq, Mohammad Ali/0000-0001-5521-8814
ZS 0
TC 0
ZB 0
ZR 0
ZA 0
Z8 0
Z9 0
U1 0
U2 7
SN 2179-3565
UT WOS:000461021300009
ER
PT J
AU Alam, Nafis
Zainuddin, Sara Sophia Binti
Rizvi, Syed Aun R.
TI Ramifications of varying banking regulations on performance of Islamic
Banks
VL 19
IS 1
BP 49
EP 64
DI 10.1016/j.bir.2018.05.005
PD MAR 2019
PY 2019
AB Recent financial crises have highlighted the importance of banking
regulations to hedge against the high risk accredited to imbalances in
banks' balance sheets. Nonetheless, banking regulations may have adverse
effects. On the one hand, they serve as prudential measures that
alleviate the effects of crises on the stability of the banking system
while on the other hand; they may increase the cost of intermediation
and reduce banks' profitability. Implementation of non-suitable
regulations such as Islamic banks adopting conventional banks
regulations could also impair banks' performance. This paper analyses
the linkages between bank regulatory and supervisory structures
associated with Basel III's pillars has any significant impact on
Islamic banks' performance in Asia and Gulf Cooperation Council (GCC)
using two-step Generalized Methods of Moments (GMM) technique. Findings
suggest that regulatory variables are positively significant with
Islamic banks' performance in Asian region but not in the GCC. Copyright
(C) 2018, Borsa Istanbul Anonim Sirketi. Production and hosting by
Elsevier B.V.
RI Rizvi, Syed Aun R/AAI-5807-2020; Alam, Nafis/D-5071-2014; Rizvi, Syed Aun R./B-
1215-2017; Haroon, Omair/O-9174-2019
OI Alam, Nafis/0000-0002-7096-3692; Rizvi, Syed Aun R./0000-0002-6976-299X;
Haroon, Omair/0000-0002-6976-299X
TC 2
ZR 0
ZA 0
ZS 0
ZB 0
Z8 0
Z9 2
U1 0
U2 6
SN 2214-8450
EI 2214-8469
UT WOS:000460576300005
ER
PT J
AU Zulkhibri, Muhamed
TI Macroprudential policy and tools in a dual banking system: Insights from
the literature
VL 19
IS 1
BP 65
EP 76
DI 10.1016/j.bir.2018.04.001
PD MAR 2019
PY 2019
AB The recent global financial meltdown highlights the need to promote
financial stability through better regulation of financial institutions.
The contentious debate strongly emphasizes, in particular,
macroprudential tools, their implementation, and their effectiveness.
This paper provides a critical review of theoretical and empirical
research on the literature on Islamic finance that investigates
macroprudential policy and its impact-specifically, the theoretical and
empirical literature on the impact of macroprudential policy as it
relates to financial stability and risk-taking in the Islamic and
conventional financial systems. The findings suggest that only limited
empirical research and analytical tools are available on macroprudential
policy in the Islamic financial system because it is still in its
infancy and far from able to create an analytical framework. Theoretical
studies of macroprudential policy in Islamic finance have mixed results,
and empirical research on it is not conclusive. Copyright (C) 2018,
Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V.
RI Zulkhibri, Muhamed/E-5974-2019
OI Zulkhibri, Muhamed/0000-0003-4136-1411
ZB 0
ZR 0
Z8 0
ZA 0
ZS 0
TC 0
Z9 0
U1 0
U2 1
SN 2214-8450
EI 2214-8469
UT WOS:000460576300006
ER
PT J
AU Al Rahahleh, Naseem
Bhatti, M. Ishaq
Misman, Faridah Najuna
TI Developments in Risk Management in Islamic Finance: A Review
SO JOURNAL OF RISK AND FINANCIAL MANAGEMENT
VL 12
IS 1
AR 37
DI 10.3390/jrfm12010037
PD FEB 20 2019
PY 2019
AB The purpose of this study is to review recent developments pertaining to
risk management in Islamic banking and finance literature. The study
explores the fundamental features of risks associated with Islamic banks
(IBs) as compared to those associated with conventional banks (CBs) in
order to determine the extent to which IBs engage in effective risk
mitigation. The study includes a consideration of the major studies in
which the fundamental features of Islamic banks and finance (IBF) and
the main characteristics of risk management in IBs are analyzed in
comparison with those of CBs. Specifically, these two kinds of banks are
compared in relation to the types of risks faced, the characteristics of
those risks, and the nature and extent of exposure to those risks. A
tabular methodology approach is used in concert with a comparative
literature review approach for the analysis. The results show that there
is weak support for Shariah-based product development due to the lack of
risk mitigation expertise in IBs. The conclusion presented is that in
comparison with CBs, IBs are more risk-sensitive due to the nature of
their products, contract structure, legal costing, governance practices,
and liquidity infrastructure. Furthermore, the determinants of the
credit risk of Islamic banks in Malaysia (MIBs) are examined. Overall,
bank capital and financing expansion have a significant negative impact
on the credit risk level of IBs in Malaysia.
RI MISMAN, FARIDAH NAJUNA/; Al Rahahleh, Naseem/B-5955-2015
OI MISMAN, FARIDAH NAJUNA/0000-0003-2497-9113; Al Rahahleh,
Naseem/0000-0002-8167-7253
Z8 0
ZS 0
ZA 0
ZR 0
ZB 0
TC 5
Z9 5
U1 1
U2 2
SN 1911-8066
EI 1911-8074
UT WOS:000464316600001
ER
PT J
AU Grira, Jocelyn
Hassan, M. Kabir
Labidi, Chiraz
Soumare, Issouf
TI Equity Pricing in Islamic Banks: International Evidence
VL 55
IS 3
BP 613
EP 633
DI 10.1080/1540496X.2018.1451323
PD FEB 19 2019
PY 2019
AB Using a large sample of publicly listed banks, we assess the ex-ante
cost of equity of Islamic banks and compare it with the ex-ante cost of
equity of conventional banks. We show that the Islamic banks have, on an
average, higher equity financing costs than the conventional banks. The
difference in the cost of equity between the two banking systems is
economically significant and varies greatly across countries. Moreover,
we find that institutional quality improves the cost of equity for both
Islamic and conventional banks, with a more pronounced effect for the
former. Our findings are robust to alternative assumptions and model
specifications, disproportionate analyst coverage pertaining to firm
size, and other firm- and country-specific factors.
RI labidi, chiraz/K-8869-2012; Labidi, Chiraz/
OI Labidi, Chiraz/0000-0002-6165-7781
Z8 0
TC 4
ZB 0
ZA 0
ZS 0
ZR 0
Z9 4
U1 0
U2 19
SN 1540-496X
EI 1558-0938
UT WOS:000450848300009
ER
PT J
AU Louhichi, Awatef
Louati, Salma
Boujelbene, Younes
TI Market-power, stability and risk-taking: an analysis surrounding the
riba-free banking
SO REVIEW OF ACCOUNTING AND FINANCE
VL 18
IS 1
BP 2
EP 24
DI 10.1108/RAF-07-2016-0114
PD FEB 11 2019
PY 2019
AB Purpose Analysis of the trade-off between competition and financial
stability has been at the center of academic and policy debate for over
two decades and especially since the 2007-2008 global financial crises.
This study aims to provide particular attention to the Islamic banking
system which principally involves with the riba-free instruments as
compared to the conventional interest-based system. The results show
that an increase in the concentration in the conventional banking sector
can lead to the deterioration of stability through the increased prices.
For Islamic banks, an increase of the market power can positively affect
the banking stability. Design/methodology/approach Two complementary
approaches, namely, one-step generalized method of moment (GMM) system
analysis and panel vector autoregressive (PVAR) framework, were applied.
Findings The results show the same effect of Islamic and conventional
banks' market power on banking soundness; yet, a different effect is
displayed with non-performing loans (NPLs). In particular, the
"competition-fragility" assumption for both banking industries is
supported when considering z-score as the dependent variable. Including
NPLs, this postulation is still approved for conventional banks;
however, the "competition-stability" postulation is supported for
Islamic banks. Originality/value The existent literature was scarcely
interested in exploring the concept of competitivity in the context of
Islamic banking sector as compared to the conventional one by applying
two complementary approaches, namely, GMM and PVAR. This later allows to
test the effect and the feedback effect of the competition and stability
concepts.
RI Louhichi, Awatef/N-5103-2019
OI Louhichi, Awatef/0000-0002-7254-6905
ZB 0
Z8 0
ZS 0
TC 0
ZR 0
ZA 0
Z9 0
U1 0
U2 4
SN 1475-7702
EI 1758-7700
UT WOS:000461059400001
ER
PT J
AU Riahi, Youssef Mohamed
TI How to explain the liquidity risk by the dynamics of discretionary loan
loss provisions and non-performing loans? The impact of the global
crisis
VL 45
IS 2
SI SI
BP 244
EP 262
DI 10.1108/MF-12-2017-0520
PD FEB 11 2019
PY 2019
AB Purpose The purpose of this paper is to investigate the impact of
discretionary loan loss provisions (DLLPs) and non-performing loans
(NPLs) on the liquidity risk of both Islamic banks (IBs) and
conventional banks (CBs) before and after the global crisis that hit
nations belonging to the Gulf Cooperation Council (GCC).
Design/methodology/approach This empirical study uses balanced panel
data on 16 IBs and 58 CBs operating in the six Gulf Cooperation states
covering 2000-2014. The data were obtained from the Bankscope database
and the banks' annual reports. Findings The results indicate that NPLs
affect liquidity risk differently across the banks - specifically, there
is a significant difference in the funding and managing of liquidity
between the two bank types. The authors find that the influence of DLLPs
does not vary across the banks in the overall analysis and before the
crisis. This finding provides insights into the unique nature of banking
risks in dual banking systems. The authors also find that after the
crisis, the discretionary LLPs affected liquidity risk differently
across the banks.
Practical implications - This study has several practical implications.
First, the findings suggest that the Islamic Financial Services Board
and other IBs regulators should reassess several regulations, principles
and products in order to reduce their credit and liquidity risks.
Second, the study emphasizes the need for banks to perform a careful
assessment of the effects of their LLP policies. Finally, the findings
are also relevant to bankers, as they provide empirical evidence on the
effect of loan growth on bank liquidity, suggesting that bankers should
improve their loan management.
Originality/value - First, this is the first study to examine
discretionary LLPs, NPLs and liquidity risk in IBs; it is also the first
comparative study between Islamic and CBs. Second, the study provides
evidence on how the global crisis impacted the banking sector and
identifies some of the main determinants of liquidity risk for both
Islamic and CBs operating in GCC countries.
ZA 0
TC 2
ZS 0
Z8 0
ZB 0
ZR 0
Z9 2
U1 5
U2 9
SN 0307-4358
EI 1758-7743
UT WOS:000458918800005
ER
PT J
AU Liem, Maria Christina
TI Quiet life hypothesis reborn: is "holdinglisation" relevant?
VL 45
IS 2
SI SI
BP 278
EP 293
DI 10.1108/MF-08-2017-0279
PD FEB 11 2019
PY 2019
AB Purpose Quiet life hypothesis (QLH) states that banks with a higher
market power will generate high profitability quietly, even though it
could cause inefficiency. In the long term, it could turn a high
profitability into a lower future profitability. This paper identifies
QLH-reborn through the holdinglisation strategy of the Indonesian
Government to include all state-owned banks into one holding, hence
increasing the market power of Indonesian state-owned banks within
ASEAN. Optimum profitability and optimum efficiency are the objectives
of the "holdinglisation" idea. Therefore, the purpose of this paper is
to analyse the relevance of holdinglisation within the Indonesian
banking industry. Design/methodology/approach This paper focusses on
analysing the efficiency and soundness of four state-owned conventional
banks and four state-owned Islamic banks in Indonesia during 2011-2015.
Subsequently, this paper analyses the impact of bank effectiveness index
and soundness rank on return on average asset (ROAA) and ROAE through
the data panel of general least square regression using STATA. Findings
This paper shows that all state-owned commercial banks in Indonesia
during 2011-2015 are efficient and sound. Furthermore, this paper finds
that market power (market share for deposit and market share for loans)
has an insignificant impact on bank efficiency (BE) index, bank
soundness rating, ROAA and EM. Meanwhile, BE index and BS rating have a
significant impact on ROAA. Therefore, this paper concludes that
holdinglisation regulation as QLH-reborn is irrelevant for Indonesian
state-owned banks at this moment.
Research limitations/implications - This paper has a crucial limitation.
Holdinglisation as QLH-reborn is irrelevant under the condition that all
state-owned commercial banks in Indonesia are efficient and sound.
Moreover, this paper contributes another actual empirical study of QLH.
Practical implications - This paper represents a scientific
argumentation towards a holdinglisation strategy of state-owned
commercial banks in Indonesia. Therefore, this paper could be a
scientific reference for the Indonesian Government to improve Indonesian
state-owned commercial banks competitiveness in ASEAN.
Originality/value - This paper is urgently needed for the Indonesian
banking industry because the Indonesian Government should consider the
drawbacks of holdinglisation as QLH reborn to the Indonesian banking
industry, such as inefficiency and the risks of financial failure.
Moreover, if the bank experiences financial failure, it could have a
detrimental and lasting effect on the country's macroeconomic condition.
ZR 0
ZA 0
ZB 0
Z8 0
ZS 0
TC 1
Z9 1
U1 0
U2 0
SN 0307-4358
EI 1758-7743
UT WOS:000458918800007
ER
PT J
AU Abou-El-Sood, Heba
TI Corporate governance and risk taking: the role of board gender diversity
SO PACIFIC ACCOUNTING REVIEW
VL 31
IS 1
BP 19
EP 42
DI 10.1108/PAR-03-2017-0021
PD FEB 4 2019
PY 2019
AB Purpose This paper aims to investigate the association between board
gender diversity and bank risk taking in an emerging market context.
Design/methodology/approach The association between female board
directorship and bank risk taking is examined, while controlling for
board characteristics, managerial, concentrated, family and government
ownership. Two-stage regression with instrumental variables is used for
a sample of banks listed in Gulf Cooperation Council (GCC) countries
during 2002-2014. Findings Results show that banks with more female
board directors invest in less risky positions; the association is
attenuated when the regulatory capital is larger, providing protection
against risky investments, and female directors tend to invest less in
risky asset positions in Islamic banks relative to conventional banks.
Practical implications - The relevance of the findings stems from the
recent initiatives undertaken by the Basel Committee to address
deficient corporate governance structures that lead to bank breakdowns
and the diversified economy of the fast-growing GCC market, relying on
banking services in the aftermath of the oil price drop.
Originality/value - This paper provides novel evidence on the influence
of board gender diversity on bank risk taking in an emerging market
context. This paper fills a gap in prior research by examining
bankspecific regulatory capital adequacy and Islamic banking aspects.
ZB 0
Z8 0
ZS 0
ZR 0
ZA 0
TC 0
Z9 0
U1 2
U2 15
SN 0114-0582
EI 2041-5494
UT WOS:000461490500002
ER
PT J
AU AlKhouri, Ritab
Arouri, Houda
TI The effect of diversification on risk and return in banking sector
Evidence from the Gulf Cooperation Council countries
SO INTERNATIONAL JOURNAL OF MANAGERIAL FINANCE
VL 15
IS 1
BP 100
EP 128
DI 10.1108/IJMF-01-2018-0024
PD FEB 4 2019
PY 2019
AB Purpose The purpose of this paper is to investigate the effect of
revenue diversification, non-interest income and asset diversification
on the performance and stability of the Gulf Cooperation Council (GCC)
conventional and Islamic banking systems. Design/methodology/approach
The authors implement a panel of 69 conventional and Islamic banks
listed in six GCC markets over the period of 2003-2015, using the System
Generalized Method of Moments methodology. Findings Non-interest income
diversification has a negative impact on GCC banks' performance, while
asset-based diversification affects banks performance positively.
However, Investors tend to penalize the value of the banks' assets,
which are highly diversified. Government intervention, lack of
competition, legal protection and high control of Central banks on GCC
banks' have positive impact on performance. Contrary to the results on
conventional banks, asset diversification adds value to Islamic banks.
Overall, both banks' revenue and non-interest diversification have
negative impact on GCC banks' stability, while asset diversification
improves Islamic banks' stability. Research limitations/implications -
The analysis is limited to a sample of banks, which are listed in the
GCC stock exchanges. The lack of data on private and foreign banks
operating in the region made the analysis and, consequently, the results
specific to shareholding companies. Also, the authors' measures of bank
stability might not be appropriate to use for Islamic banks, given their
banking models implemented. Practical implications - Research results
provide important implications for regulators, bank managers and policy
makers, as to the expected ways to support economic diversification
through bank diversification strategies. Originality/value - Unlike
related studies, the authors' sample of homogeneous banks has a market
structure that is different from the samples in the literature covering
either developed countries or heterogeneous samples from both developed
and developing countries. Furthermore, using an efficient econometric
methodology, the authors deal with two types of banks: conventional
banks and Islamic banks. The research determines which type of bank is
more able to benefit from different types of diversification. Unlike
previous research, this research explores the sensitivity of the results
both to the regulatory environment of the GCC market and to general
market conditions.
OI alkhouri, ritab/0000-0002-0095-7270
Z8 0
ZA 0
ZS 0
ZB 0
ZR 0
TC 4
Z9 4
U1 2
U2 5
SN 1743-9132
EI 1758-6569
UT WOS:000460641100006
ER
PT J
AU Baber, Hasnan
TI E-SERVQUAL and Its Impact on the Performance of Islamic Banks in
Malaysia from the Customer's Perspective
VL 6
IS 1
BP 169
EP 175
DI 10.13106/jafeb.2019.vol6.no1.169
PD FEB 2019
PY 2019
AB Service quality has been a point of discussion from the decades as it is
important for customer satisfaction, loyalty and retention. Various
models have been proposed to measure the quality in the service sector.
Models are modified in accordance with context and geography to assess
the quality of service better. This study aims to investigate the impact
of the modified e-SERVQUAL model on the customer perception about the
existing relation and potential scope of doing business with a bank
which in-turn will decide the performance of the bank. Statistical data
was analyzed through various tests like reliability analysis,
correlation and regression analysis using SPSS 25.0. The primary data of
e-SQ and performance was gathered from 721 internet banking users using
32 item questionnaire, representing 72% response rates, of four selected
Islamic banks of Malaysia. E-SERQUAL was modified by adding Shariah
Compliance information about banks and products for Islamic banking
customers. The finding specified that efficient & reliable services,
fulfillment, security/trust, and Shariah compliance information have a
significant association with the performance of Islamic banks. The
research is original and its implications will be helpful for Islamic
banks across the world to enhance the online experience of customers,
which will help them to retain the customers in the rapid changing
virtual environment.
RI Baber, Hasnan/AAL-8115-2020; Baber, Hasnan/
OI Baber, Hasnan/0000-0002-8951-3501
ZB 0
ZA 0
ZR 0
TC 0
Z8 0
ZS 0
Z9 0
U1 2
U2 7
SN 2288-4637
EI 2288-4645
UT WOS:000462333200015
ER
PT J
AU Benlagha, Noureddine
Mseddi, Slim
TI Return and volatility spillovers in the presence of structural breaks:
evidence from GCC Islamic and conventional banks
SO JOURNAL OF ASSET MANAGEMENT
VL 20
IS 1
BP 72
EP 90
DI 10.1057/s41260-018-00107-z
PD FEB 2019
PY 2019
AB The dynamics of return and volatility spillover indices were
investigated to reveal the strength and direction of transmission that
occurred during a financial crisis. The focus of this study was
especially placed on the 2007 US subprime mortgage crisis, the global
financial crisis, the European sovereign debt crisis, and the dramatic
collapse of oil prices since 2014. The paper uses the Diebold and Yilmaz
(Economic Journal 119(534):158-171, 2009, International Journal of
Forecasting 28(1):57-66, 2012) spillover index behavior. Assuming one
structural break, return and volatility linkages for Islamic banks in
the GCC were stronger than for conventional banks. When multiple breaks
were allowed, the spillover index was found to be highly sensitive to
various economic events. Overall, the findings of this study provide new
insights into the behavior of the Islamic and conventional banks stock
returns and volatility spillovers, which may improve investment
decisions and the trading strategies portfolio of investors.
RI benlagha, Noureddine/AAL-1414-2020
ZR 0
TC 0
ZS 0
ZB 0
Z8 0
ZA 0
Z9 0
U1 0
U2 3
SN 1470-8272
EI 1479-179X
UT WOS:000460613200006
ER
PT J
AU Zaaba, Nurul Iffah Binti M. A.
Hassan, Rusni
TI Why Islamic Banks Are Reluctant to Offer Musharakah Mutanaqisah for Home
Financing: The Case of Maybank Islamic and Affin Islamic Bank
SO TURKISH JOURNAL OF ISLAMIC ECONOMICS-TUJISE
VL 6
IS 1
BP 51
EP 65
DI 10.26414/A044
PD FEB 2019
PY 2019
AB This paper focuses on the challenges faced by the Malaysian Islamic
Banks in implementing Musharakah Mutanaqisah (MM) Home Financing. Even
though the study is specifically on the Malaysian Islamic banks, but the
issues and recommendations addressed in this study are also pertinent to
other Islamic banks across the world since they are also offering it.
Drawing upon in-depth semi-structured interviews with the senior
officers in two leading Islamic banks in Malaysia, one is the bank which
terminated its MM Home Financing products however the other one
continues to offer it. Knowing the contradicting perspectives of both
banks gives insight of the real challenges faced by them in offering MM
for home financing which are advance rental and the system's
incapability to capture the unique nature of MM, and at the same time to
know the motivation of offering it i.e. product diversification arid
comprehensive risk mitigation. This paper concludes by making
recommendations that may be adopted by Islamic banks and the regulators
to facilitate the promotion of MM Home Financing. Notably, this paper
oilers empirical findings which are different from the previous
literature.
RI Hassan, Rusni/S-8001-2019
ZS 0
TC 1
Z8 0
ZB 0
ZA 0
ZR 0
Z9 1
U1 0
U2 1
SN 2587-2303
EI 2587-232X
UT WOS:000460151100003
ER
PT J
AU Dinc, Yusuf
TI Are Islamic Banks The Alternative to Commercial Banks?
VL 6
IS 1
BP 67
EP 85
DI 10.26414/A046
PD FEB 2019
PY 2019
AB Islamic banks are financial intermediaries with the claim of being an
alternative to commercial banks. Recently a considerable literature has
been produced around the theme of whether or not the alternative
presented in theory has been reflected in practice. However, these
studies are exploratory and interpretative in nature. The quantitative
researches presented thus by far provide indirect evidence for the
central theoretical issue. To date, very little attention has been paid
to the role of the relationship between interest rates and profit-share
accruals. These studies have also suffered from shortcomings with
regards to the methods applied. The primary aim of this paper is to
provide empirical and theoretical evidence to the claim of Islamic banks
to be alternative to commercial banks. It does so by investigating the
relationship between profit share accruals and deposit rates by
employing wavelet coherence method for the first time. This study uses
longitudinal monthly data for the 2000 to 2018 period, particularly from
Turkey, and provides an exciting opportunity to advance our knowledge
about the structure of Islamic banking with focusing specifically on
fund supply. The results have revealed that Islamic banks are an
alternative to fund suppliers in short-term. In addition long-term
maturities had shown a strong alternative characteristic in the pre-2006
period; however, they were unable to preserve it in the post-2006 period
after the effectiveness of Banking Act No. 5411. Findings also show
bidirectional causalities to be found in different periods. The findings
have important implications for the market players and policy makers.
OI Dinc, Yusuf/0000-0002-5321-2723
ZS 0
ZB 0
TC 0
ZR 0
ZA 0
Z8 0
Z9 0
U1 0
U2 3
SN 2587-2303
EI 2587-232X
UT WOS:000460151100004
ER
PT J
AU Zahid, Syeda Nitasha
Khan, Imran
TI Islamic Corporate Governance: The Significance and Functioning of
Shari'ah Supervisory Board in Islamic Banking
VL 6
IS 1
BP 87
EP 108
DI 10.26414/A048
PD FEB 2019
PY 2019
AB The stability and resilience that Islamic banking (IBs) industry has
shown during the current global crisis is based on the principles of
Islamic economic laws that rest on equity, participation, and business
ethics. The literature on Islamic corporate governance (ICG) is growing
quite rapidly and the industry has emerged as an alter native to its
conventional counterpart. This paper critically reviews the existing
literature on ICC with a particular focus on the significance and
functions of Shari'ah supervisory board (SSB), which differentiate IBs
from CBs. This review describes ICG framework, elaborates and summarizes
SSB functions, compares lBs with CBs and assesses the impact of SSB on
IB's performance. The key findings show that majority of the literature
on SSB describes advising and monitoring as the two main functions of a
Shari'ah board and past literature supports positive association between
Shari'ah governance and the performance of lBs. This work might be
helpful for scholars and practitioners approaching this field to study
the role and functioning of SSB.
RI Khan, Imran/AAQ-5637-2020
TC 0
ZA 0
ZS 0
ZB 0
Z8 0
ZR 0
Z9 0
U1 0
U2 5
SN 2587-2303
EI 2587-232X
UT WOS:000460151100005
ER
PT J
AU Chaffai, Mohamed
Hassan, M. Kabir
TI Technology Gap and Managerial Efficiency: A Comparison between Islamic
and Conventional Banks in MENA
SO JOURNAL OF PRODUCTIVITY ANALYSIS
VL 51
IS 1
BP 39
EP 53
DI 10.1007/s11123-019-00544-x
PD FEB 2019
PY 2019
AB In this paper, we compare the technology gap and managerial efficiency
between Islamic banks and conventional banks in 15 MENA countries. Using
unbalanced panel data that covers the period 2002-2014, we estimate a
stochastic meta cost frontier and find evidence of important technology
heterogeneity in the region's banking systems. It appears that the
inefficiency caused by non-optimal use of the most advanced banking
technology is much more important than managerial inefficiency. The
technology gap is higher in Islamic banks and foreign banks than
conventional domestic banks. We also investigate the determinants of
these cost inefficiencies. Our results show that online banking is an
important driver that can reduce the technology gap across banks and
improve managerial efficiency, while size proves to have a negative
impact on technology gap. Bank concentration has a positive impact on
managerial efficiency restricted to Islamic banks.
RI Hassan, M. Kabir/D-5053-2012
OI Hassan, M. Kabir/0000-0001-6274-3545
ZB 0
ZA 0
TC 1
ZS 0
ZR 0
Z8 0
Z9 1
U1 2
U2 7
SN 0895-562X
EI 1573-0441
UT WOS:000459805200003
ER
PT J
AU Jan, Amin
Marimuthu, Maran
Shad, Muhammad Kashif
Ur-Rehman, Haseeb
Zahid, Muhammad
Jan, Ahmad Ali
TI Bankruptcy profile of the Islamic and conventional banks in Malaysia: a
post-crisis period analysis
SO ECONOMIC CHANGE AND RESTRUCTURING
VL 52
IS 1
BP 67
EP 87
DI 10.1007/s10644-017-9220-7
PD FEB 2019
PY 2019
AB This study identified that accounting for endogeneity in bankruptcy
forecasting models have been widely over-sighted. This study used
Altman's bankruptcy forecasting model to examine bankruptcy rates of the
Islamic and conventional banks in Malaysia. Data for this study were
collected from the post-crisis period 2009-2013. The results showed that
the Islamic banks in Malaysia were more bankrupt as compared to the
conventional banks. Hence, the claim of Islamic banks is in the stark
contrast to the phenomena of being more shock-resilient to the financial
crisis due to their Shariah compliance. Furthermore, the results of
multiple regression analysis indicated that profitability possesses the
highest explanatory power in reducing bankruptcy. However, the
statistical tests Wu-Hausman and Durbin-Score identified profitability
as an endogenous variable in Altman's model, which this study addressed
with an instrumental variable. Thus, this study draws a conclusion that
consideration of endogeneity in bankruptcy forecasting is essential, or
else the results could be misleading. The results of the study lend
credence to the researchers, policy-makers, and practitioners for
accurate bankruptcy forecasting.
RI Zahid, Muhammad/T-4114-2019; Jan, Amin/AAF-6738-2019; Jan, Amin/X-7343-2018;
shad, kashif/M-3782-2019; Jan, Amin/; Ur Rehman, Dr Haseeb/
OI shad, kashif/0000-0003-3470-4092; Jan, Amin/0000-0002-5943-4247; Ur
Rehman, Dr Haseeb/0000-0002-5452-2977
TC 3
ZA 0
Z8 0
ZB 0
ZR 0
ZS 0
Z9 3
U1 1
U2 9
SN 1573-9414
EI 1574-0277
UT WOS:000456422100004
ER
PT J
AU Ali, Muhammad
Puah, Chin Hong
TI The internal determinants of bank profitability and stability An insight
from banking sector of Pakistan
SO MANAGEMENT RESEARCH REVIEW
VL 42
IS 1
BP 49
EP 67
DI 10.1108/MRR-04-2017-0103
PD JAN 21 2019
PY 2019
AB Purpose The purpose of this study is to examine the internal
determinants of bank profitability and stability in Pakistan banking
sector. Because of specific research objectives, this study excludes the
external factors of profitability and stability to find the role of bank
internal determinants in achieving high performance.
Design/methodology/approach A panel regression analysis is built on a
balanced panel data using 24 commercial banks over the sample period of
2007-2015. The authors performed a separate analysis of bank
profitability and stability. Both models used a comprehensive set of
bank internal determinants. Findings The results that were obtained from
profitability model indicated that bank size, credit risk, funding risk
and stability have statistically significant impacts on profitability,
while liquidity risk showed the statistically insignificant impact on
profitability. Regression findings from stability model reveal that bank
size, liquidity risk, funding risk and profitability have statistically
significant impacts on stability, while credit risk had an insignificant
effect on stability. However, the effect of the financial crisis is
uniform and showed statistically insignificant impact in both models.
Practical implications Overall, the authors' findings bring some new but
useful insights to the banking literature. Some recommendations may be
functional for the sustainable performance of banks. Originality/value
In view of study results, the authors provide interesting insights into
the practices and characteristics of banks in Pakistan. This study also
highlights significant bank internal determinants to improve
understanding in the existing literature.
RI Ali, Muhammad/AAL-3747-2020; Puah, Chin-Hong/O-9658-2018; Ali, Dr. Muhammad/
OI Ali, Dr. Muhammad/0000-0003-2929-8202
ZB 1
Z8 0
ZA 0
ZS 0
ZR 0
TC 1
Z9 1
U1 3
U2 15
SN 2040-8269
EI 2040-8277
UT WOS:000455911200003
ER
PT J
AU Bukair, Abdullah Awadh Abdullah
TI Factors influencing Islamic banks' capital structure in developing
economies
SO JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
VL 10
IS 1
BP 2
EP 20
DI 10.1108/JIABR-02-2014-0008
PD JAN 7 2019
PY 2019
AB Purpose This paper aims to investigate the influence of company-specific
attributes on capital structure decisions of Islamic banks (IBs) in Gulf
Cooperation council (GCC) countries during the period 2009-2011.
Design/methodology/approach To improve the econometric estimates'
efficiency, the paper uses the generalized least square (GLS) regression
model to increase the levels of freedom and reduce collinearity.
Findings The empirical results indicate that bank size, liquidity and
corporate age are positively associated with the leverage ratio of GCC
IBs, supporting the trade-off theory. Inconsistent with theoretical
predictions, it is found that the profitability, tangibility and growth
have positive insignificant relationship with the level of leverage,
suggesting these determinants are not important in capital structure
decisions. Furthermore, gross domestic product (GDP) and non-debt tax
shield have negative effects on the leverage ratio and significant for
GDP.
Research limitations/implications - Overall, the evidence provided in
the study highlights the significance of company-specific
characteristics in determining and affecting the capital structure
decisions of IBs in GCC countries. It is useful to use these variables
in the analysis of IBs' capital structure in the GCC region before the
financial crisis in 2007. One limitation for this study is that the
sample is restricted to only the Islamic banking sector. Future research
could include all Islamic financial institutions (IFIs) operating within
the Gulf region. Second, the study only concentrates on GCC countries to
the neglect of other countries. Finally, the study controls for the
country level only and does not account for firm factors. Future
research could consider all these limitations. Another possible avenue
is by examining other variables, such as corporate governance
mechanisms.
Originality/value - Despite that most previous studies investigated the
determinants of the capital structure of financial conventional
industries, research on Islamic banking is almost non-existent.
Moreover, the extant literature on Islamic finance has been
theoretically explored, and the empirical research regarding capital
structure is still in the infancy stage. Accordingly, it is evident that
based on the Islamic trade-off perspective, theoretical hypotheses and
empirical findings provide a novel addition to the capital structure
theory for IFIs.
ZB 0
ZR 0
ZS 0
Z8 0
TC 0
ZA 0
Z9 0
U1 1
U2 10
SN 1759-0817
EI 1759-0825
UT WOS:000456337800001
ER
PT J
AU Pramono, Sigid Eko
Rossieta, Hilda
Soedarmono, Wahyoe
TI Income smoothing behavior and the procyclical effect of loan loss
provisions in Islamic banks Global evidence
VL 10
IS 1
BP 21
EP 34
DI 10.1108/JIABR-09-2014-0032
PD JAN 7 2019
PY 2019
AB Purpose This study aims to test whether loan loss provisions in Islamic
banks is procyclical by explicitly examining the link between
non-discretionary provisions and loan growth. In the next stage, this
paper tests whether the link between non-discretionary provisions and
loan growth is conditional on bank capitalization and lending. This is
to identify whether bank-specific factors affect the procyclicality of
non-discretionary provisions and whether such procyclicality can be
explained by income smoothing in banks with different capitalization and
loan profiles. Design/methodology/approach This study is conducted in
four stages. The first stage identifies the determinants of loan loss
provisions. The second stage investigates whether income smoothing is
affected by capitalization and lending activities. In the third stage,
the link between non-discretionary provisions and loan growth is
examined. In the fourth stage, this paper tests whether the link between
non-discretionary provisions and loan growth is affected by bank
capitalization and lending. A two-way panel-fixed effect model is used.
Findings Non-discretionary provisions are procyclical, particularly for
banks with lower capitalization and lending activities, because such
banks do not conduct income smoothing. Specifically, banks with lower
capitalization experience a decline in loan growth when
non-discretionary provisions to cover credit risk increase.
Research limitations/implications - The dataset used in this study
follows Soedarmono et al. (2017) and does not enable to differentiate
types of financing products in Islamic banks that may exacerbate or
mitigate the procyclicality of non-discretionary provisions.
Originality/value - This paper extends prior literature on the
procyclicality of loan loss provisions by specifically investigating the
influence of non-discretionary provisions on loan growth in Islamic
banks and whether such relationship depends on the role of income
smoothing undertaken by banks with different levels of capitalization
and lending. This paper builds on the work of Soedarmono et al. (2017)
in which they do not explicitly examine the relationship between loan
loss provisions and loan growth.
OI Soedarmono, Wahyoe/0000-0002-5658-8929
ZS 0
ZR 0
TC 0
Z8 0
ZB 0
ZA 0
Z9 0
U1 0
U2 5
SN 1759-0817
EI 1759-0825
UT WOS:000456337800002
ER
PT J
AU Shawtari, Fekri Ali
Ariff, Mohamed
Razak, Shaikh Hamzah Abdul
TI Efficiency and bank margins: a comparative analysis of Islamic and
conventional banks in Yemen
VL 10
IS 1
BP 50
EP 72
DI 10.1108/JIABR-07-2015-0033
PD JAN 7 2019
PY 2019
AB Purpose The purpose of this paper is to examine the determinants of bank
margins in the Yemeni banking sector for Islamic and conventional banks.
The first objective is to investigate whether there is a significant
difference between the margins of conventional and Islamic banks. The
second objective is to examine whether efficiency represents an
influential factor in determining bank margins for Islamic and
conventional banks controlling for other micro and macro variables.
Design/methodology/approach Using a data set of banks in Yemen for the
post-liberalisation period from 1996 to 2011, the study utilises panel
data with unbalanced observations for 16 banks, of which four are
Islamic banks and the remainder conventional banks. Parametric and
non-parametric techniques are complemented by dummy variable regression
using random effects. Panel fixed effects regression was also undertaken
as a robustness check. Findings The paper finds that the overall bank
margin in Yemen has steadily decreased during the observation period
with the exception of the year 2011. The parametric and non-parametric
results show that the bank margins are significantly higher for
conventional banks than for Islamic banks. The results provide evidence
that bank margins are related to neither types of efficiency, but are
affected by capitalisation, size, the opportunity cost of the reserve
and liquidity, although the impact is shaped differently for Islamic and
conventional banks.
Practical implications - The paper provides a basis for regulators and
bankers for assessing the viability of the banking sector and proposes
policies to restructure the industry to enhance its performance.
Originality/value - This paper adds value to the literature for the
Yemeni banking sector and extends the previous research on the
determinants of bank margins by focusing on the impact of efficiency on
bank margins. Also, it compares the Islamic banks with different types
of conventional banks in Yemen in their margins trend.
RI shawtari, Fekri Ali/J-3458-2019
OI shawtari, Fekri Ali/0000-0003-0194-9464
ZS 0
Z8 0
TC 1
ZA 0
ZR 0
ZB 0
Z9 1
U1 0
U2 2
SN 1759-0817
EI 1759-0825
UT WOS:000456337800004
ER
PT J
AU Aribi, Zakaria Ali
Arun, Thankom
Gao, Simon
TI Accountability in Islamic financial institution The role of the Shari'ah
supervisory board reports
VL 10
IS 1
BP 98
EP 114
DI 10.1108/JIABR-10-2015-0049
PD JAN 7 2019
PY 2019
AB Purpose The purpose of this paper is to explore whether any discrepancy
exists between the disclosed in SSB reports of Islamic banks and the
disclosure index which was based on stakeholders' expectation.
Design/methodology/approach This study uses contents analysis as the
research method to explore Sharia'ah audit reporting practices of
Islamic Banks. Findings The study finds that the level of disclosures
overall by IFIs in the sample is rather low compared to the stakeholder
expectations.
Practical implications - This paper has important implication for policy
makers as it contribute to the debate on that uniform disclosure
standards across the globe need to be implemented to ensure a uniform
level of disclosure by Islamic banks.
Originality/value - This study is amongst the few studies that examine
and explore the nature and extent of Shari'ah Supervisory Board in
Islamic banks.
Z8 0
TC 0
ZR 0
ZS 0
ZA 0
ZB 0
Z9 0
U1 1
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000456337800006
ER
PT J
AU Nosheen
Rashid, Abdul
TI Business orientation, efficiency, and credit quality across business
cycle: Islamic versus conventional banking. Are there any lessons for
Europe and Baltic States?
SO BALTIC JOURNAL OF ECONOMICS
VL 19
IS 1
BP 105
EP 135
DI 10.1080/1406099X.2018.1560947
PD JAN 2 2019
PY 2019
AB This paper empirically investigates the difference between Islamic and
conventional banks in terms of business dynamics, cost structure, credit
quality, and stability. It also examines the difference in the response
of two types of banks during peak and trough phases of the business
cycle. The analysis is carried out for a sample of 280 banks in 20
countries over the 1995-2014 period. The results reveal that Islamic
banks are more involved in fee-based business, are less cost-efficient,
have higher credit quality, and have higher capitalization than
conventional banks. We also find that Islamic banks outperformed
conventional banks with regard to their credit quality and stability
indicators during the trough phase of the business cycle. The improved
performance seems to be due to the differences in the provisioning
strategies of the two types of banks, the non-aggressive lending profile
of Islamic banks, and investment in real assets. Finally, based on the
empirical findings, the paper also highlights potential lessons that
conventional banks in Baltic States, which were severely hit by the
2007-2008 global financial crisis, can draw from Islamic banking
principles.
RI Rashid, Abdul/AAL-3095-2020
ZA 0
ZR 0
ZS 0
ZB 0
TC 3
Z8 0
Z9 3
U1 1
U2 1
SN 1406-099X
EI 2334-4385
UT WOS:000455355500001
ER
PT J
AU Hudaefi, Fahmi Ali
Noordin, Kamaruzaman
TI Harmonizing and constructing an integrated maqasid al-Shari ah index for
measuring the performance of Islamic banks
SO ISRA INTERNATIONAL JOURNAL OF ISLAMIC FINANCE
VL 11
IS 2
BP 282
EP 302
DI 10.1108/IJIF-01-2018-0003
PD 2019
PY 2019
AB Purpose - This paper aims to develop a performance measure for Islamic
banks (IBs) by harmonizing related studies. Furthermore, this work uses
the developed yardstick to analyze the performance of a sample of 11 IBs
from across different countries.
Design/methodology/approach - This paper uses the mix- mode method. The
qualitative approach is engaged first to construct the IBs performance
yardstick. Following this, the quantitative approach is applied through
the use of the performance yardstick to measure the sample's
performance.
Findings - This study develops a maqasid-based performance yardstick
adapted from previous works. The developed model in this study is called
an integrated maqasid al-Shari ah-based performance measure (IMSPM). By
using this performance measure, the present paper finds that the sample
performed highest on the objective of nafs (self) over the three-year
period. In addition, this study identifies the information which best
indicates the sample's performance during the analysis.
Research limitations/implications - This paper uses the sample's annual
reports. The analysis is thus limited to informational disclosure.
Practical implications - Islamic banking and financial institutions may
use the IMSPM to communicate a measurable report on their promotion of
the maqasid al-Shari ah (objectives of Islamic law).
Social implications - The evidence from 11 IBs is indicative of their
efforts to realize maqasid al-Shari ah in the banking industry. This
point may best challenge the practice of stigmatizing IBs for not being
in line with the Shari ah (Islamic law) or of imitating conventional
banks.
Originality/value - The novelty of this study lies in two points. First,
this study harmonizes previous works to integrate financial and
religious measures in a single yardstick. Second, by using the developed
standard, this study offers a fresh insight into the global IBs'
performance, represented by 11 IBs worldwide.
RI Hudaefi, Fahmi Ali/AAI-7135-2020
OI Hudaefi, Fahmi Ali/0000-0002-1557-837X
ZR 0
TC 0
ZA 0
ZS 0
Z8 0
ZB 0
Z9 0
U1 2
U2 2
SN 0128-1976
EI 2289-4365
UT WOS:000512778500008
ER
PT J
AU Alsartawi, Abdalmuttaleb Musleh
TI Performance of Islamic banks Do the frequency of Shari' ah supervisory
board meetings and independence matter?
VL 11
IS 2
BP 303
EP 321
DI 10.1108/IJIF-05-2018-0054
PD 2019
PY 2019
AB Purpose This paper aims to investigate the relationship between the
composition of Shari' ah supervisory boards (independence and frequency
of meetings) and the performance of Islamic banks in the Gulf
Cooperation Council (GCC) countries. Design/methodology/approach The
study developed a multiple linear regression model, and data. were
collected from the annual reports of 48 standalone Islamic banks listed
in the GCC countries covering the period between 2013 and 2017. Findings
The results showed a statistically significant and negative relationship
between the composition of the Shari' ah supervisory boards and the
performance of Islamic banks. Research limitations/implications As the
current study used only one indicator, that is Return on Assets to
measure performance, it is recommended to expand the framework of this
study, through the addition of market-based performance indicators such
as Tobin's Q. Practical implications This study recommends the GCC
countries to follow a more proactive Shari` ah governance model to
strengthen their frameworks from both regulatory and non-regulatory
aspects. Originality/value The study contributes to the Shari' ah
governance and Islamic banking literature relating to the GCC countries
as previous studies gave no attention to the composition of Shari' ah
supervisory boards.
RI MUSLEH ALSARTAWI, ABDALMUTTALEB/F-4955-2015
OI MUSLEH ALSARTAWI, ABDALMUTTALEB/0000-0001-9755-5106
ZS 0
ZR 0
TC 1
ZB 0
Z8 0
ZA 0
Z9 1
U1 0
U2 0
SN 0128-1976
EI 2289-4365
UT WOS:000512778500009
ER
PT J
AU Zainudin, Nik Nurul Hidayah Nik
Shahida, S.
Mohamad, Ahmad Azam Sulaiman
TI Do bankruptcy profiles of Islamic banks differ across organizational
structure? evidence from Malaysia
SO ECONOMIC JOURNAL OF EMERGING MARKETS
VL 11
IS 2
BP 195
EP 212
DI 10.20885/ejem.vol11.iss2.art7
PD 2019
PY 2019
AB Malaysian Islamic banks operate in different organizational structures,
namely domestic, locally foreign incorporated, and development financial
institutions, which might influence their stability. This research
evaluates the bankruptcy profiles of 19 selected Malaysian Islamic banks
from 2010 to 2017 and analyses the insolvency risk associated with the
three different organizational structures. Using an Altman's Z-Score
Model (2000), a stability test was conducted. Findings/Originality: the
paper finds that, on average, the development financial institutions
were the most stable banks, followed by foreign Islamic banks. It also
finds that bigger domestic Islamic banks were situated in the safe zone
as they had high Z-score values. Furthermore, the asset quality ratio
contributed to higher Z-score values. Appropriate asset-liability
management, therefore, helps ensure the stability of Islamic banks in
Malaysia. An effective macroprudential supervisory regime must also be
in place to increase the resilience of the financial system.
ZB 0
TC 0
ZA 0
ZS 0
Z8 0
ZR 0
Z9 0
U1 0
U2 0
SN 2086-3128
EI 2502-180X
UT WOS:000512294300007
ER
PT J
AU Mutawali
Rodoni, Ahmad
bin Said, Muhammad
TI Prevention Effectiveness of Non-Performing Financing in the Indonesian
Islamic Bank
SO ETIKONOMI
VL 18
IS 2
BP 259
EP 274
DI 10.15408/etk.v18i2.11262
PD 2019
PY 2019
AB Islamic banking still has a high ratio of non-performing financing. This
study analyzes the causes of non-performing financing, along with the
prevention effectiveness and resolution strategies performed by Islamic
banks in dealing with this problem. Interviews conducted on nine
informants, with questionnaires distributed to 30 respondents. The
results show that the prevention effectiveness performed by Islamic
banks consists of legal aspects, qualified human resources, and criteria
assessment used to finance proposals, and improve risk management.
Furthermore, internal factors such as default, information asymmetry,
and financial stress were attributes of non-performing financing, which
is externally influenced by inflation, GDP decline, natural disasters,
interest rates, and political criminality.
ZB 0
TC 0
ZS 0
ZA 0
Z8 0
ZR 0
Z9 0
U1 0
U2 0
SN 1412-8969
EI 2461-0771
UT WOS:000512297500009
ER
PT J
AU Setyaningsih, Rini
Setiawan, Doddy
TI Recent Development of Islamic Corporate Social Responsibility
SO ETIKONOMI
VL 18
IS 2
BP 287
EP 302
DI 10.15408/etk.v18i2.10807
PD 2019
PY 2019
AB This study aims to review the development of research related to Islamic
corporate social responsibility in well-known international journals
such as the past ten years. The research review based on 42 articles.
The 40 articles in international journals, and two articles in
nationally accredited journals from 2009 until 2018. The analysis
technique used in this study is charting the field method. This study
classifies sample articles based on topics, variables, and research
methods. The results of the review indicate that the majority of
researchers discuss topics other than antecedents, and the consequences
are 29 articles, of which 7 of them specifically discuss the measurement
of Islamic corporate social responsibility. The antecedent variable
dominated by company size and SSB size that calculates for each of 3
articles and the most discussed consequence variable is the financial
performance of 3 articles, while the most dominant method used by
researchers is an analytical method that counts 18 articles.
RI Setiawan, Doddy/M-4041-2019
OI Setiawan, Doddy/0000-0003-0394-0738
ZB 0
ZA 0
ZR 0
ZS 0
TC 0
Z8 0
Z9 0
U1 0
U2 0
SN 1412-8969
EI 2461-0771
UT WOS:000512297500011
ER
PT J
AU Kadhim, L. J.
Al-sahrawardee, H. M. S. M.
Karoom, C. B. M.
TI THE ROLE OF STRESS TESTING SCENARIOS IN REDUCING THE BANKS- RISKS: AN
APPLIED STUDY
SO POLISH JOURNAL OF MANAGEMENT STUDIES
VL 20
IS 2
BP 279
EP 289
DI 10.17512/pjms.2019.20.2.23
PD 2019
PY 2019
AB The present research aims at drawing or forming a group of scenarios
that a bank might be exposed to know the unexpected probable risks and
then draw methodologies for facing and stopping or demolishing them. The
present research has tackled one of the important parts in the system of
banking- risks management which is represented by "stress testing" whose
urgent need has arisen as a result of the global financial crisis and
the negative effects accompanying it. Basel Treaty has focused on
obliging banks to periodically make stress testing to ensure their being
safe and the existence of sufficient capital for facing the shocks of
unexpected risks. Obviously, this is also applicable to the traditional
and Islamic banks as well. As far as the local environment is concerned,
the environment of Iraq in particular and the regional area in general
are characterized by political and economic instability, a matter that
may expose banks to unexpected probable risks. The results shows that
the apply stress testing presented by Basel's committee to some of The
Iraqi banks. Stress testing have been useless because all the resultant
or verified revenues have been the result of the bank- practicing minor
activities that are related to banking-process returns (remittances
commission).
Z8 0
ZA 0
TC 0
ZB 0
ZS 0
ZR 0
Z9 0
U1 0
U2 0
SN 2081-7452
UT WOS:000510862400023
ER
PT J
AU Rosman, Romzie
Haron, Razali
Othman, Nurul Balqis Mohamed
TI THE IMPACT OF ZAKAT CONTRIBUTION ON THE FINANCIAL PERFORMANCE OF ISLAMIC
BANKS IN MALAYSIA
SO AL-SHAJARAH
SI 2
BP 1
EP 21
PD 2019
PY 2019
AB Islamic banks in Malaysia are beginning to response to calls for
financial services that are responsible in providing social development
impacts to the nation. Malaysia's value-based intermediation strategy,
initiated by the Bank Negara Malaysia is expected to move the Islamic
finance industry to the next level of sustainable and long term economic
development. Islamic banks are expected to not only focus on profit but
also on contribution to societies through Islamic social finance. The
traditional methods of Islamic social finance especially on the
contribution of zakat, waqf and sadaqah have been used to provide for
the basic means of livelihood for the poor. Not only that, this shows
that Islamic banks do not only concern on making profits but making
contribution to the societies by involving in Islamic social finance
through corporate social responsibility. Specifically, this study
examines the impact of corporate social responsibilities particularly on
the application of Islamic social finance which is zakat contribution by
Islamic banks on their financial performances namely return on assets,
return on equity and operating profit. This study focuses on Islamic
banks in Malaysia from 2011 to 2018. The financial information is
extracted from Fitch Connect and annual reports of the respective
Islamic banks which include 15 Islamic banks in Malaysia. The panel
regression method was adopted to explain the three models and examine
the impact of Islamic social finance on the financial performances of
Islamic banks. The findings show that zakat contribution has positive
significant impact on Islamic banks' financial performance namely
operating profit. Hence, the findings of this study offer policy
implications by providing empirical evidence on the importance of
Islamic social finance on the financial performance of Islamic banks.
Z8 0
ZA 0
TC 0
ZR 0
ZB 0
ZS 0
Z9 0
U1 2
U2 2
SN 1394-6870
UT WOS:000505851900001
ER
PT J
AU Mahadi, Nur Farhah
Zain, Nor Razinah Mohd
Ali, Engku Rabiah Adawiah Engku
TI LEADING TOWARDS IMPACTFUL ISLAMIC SOCIAL FINANCE: MALAYSIAN EXPERIENCE
WITH THE VALUE-BASED INTERMEDIATION APPROACH
SO AL-SHAJARAH
SI 2
BP 69
EP 87
PD 2019
PY 2019
AB With the introduction of Sustainable Development Goals or SDGs in 2015,
the notion of sustainability and impactful services give an inspiration
to the dual financial services industries in Malaysia. The approaches
that are taken by both of Islamic financial services industry (IFSI) and
its counterpart conventional financial services industry (CFSI) are
almost similar. However, a distinguished approach is introduced by the
Central Bank of Malaysia towards IFSI. While Shari'ah provides holistic
objectives in comparison to SDGs, the approach of value-based
intermediation (VBI) opens a new pragmatic dimension for IFSI in
providing impactful and beneficial services to the public at large. The
end results of VBI are placed to reach the holistic objectives of
Shari'ah and in achieving complete sustainability of IFSI. This paper
investigates the approach of VBI and its proposed implementation from
Shari'ah perspective. Depending on qualitative investigation, this paper
also explores the practices of Islamic banks in applying VBI through
Islamic social finance and its impacts. It is found that VBI facilitates
Islamic banks to provide impactful services to their customers and other
innovative strategies based on Islamic social finance.
ZS 0
ZA 0
ZR 0
TC 0
Z8 0
ZB 0
Z9 0
U1 0
U2 0
SN 1394-6870
UT WOS:000505851900004
ER
PT J
AU Ben Amar, Amine
TI The Effectiveness of Monetary Policy Transmission in a Dual Banking
System: Further Insights from TVP-VAR Model
SO ECONOMICS BULLETIN
VL 39
IS 4
BP 2317
EP 2332
PD 2019
PY 2019
AB Using a time-varying VAR model with drifting parameters and stochastic
volatilities, this paper attempts to empirically investigate the
monetary policy transmission in Saudi Arabia, as well as the role of
Islamic banks in this transmission and the interactions between Islamic
and conventional banks over a period of approximately 25 years. The
findings provide empirical evidence of the dependence of Islamic banking
activity on oil revenues, and suggest that, in practice, there are few
differences between the Islamic banks' modus operandi and the methods
used by conventional banks. However, the results do not provide clear
evidence that Islamic banks are more stabilizing than conventional
banks, even though the sensitivity of the non-oil economic activity to
Islamic bank financing seems to be relatively less volatile than its
sensitivity to conventional bank credits.
ZS 0
TC 0
ZR 0
ZB 0
Z8 0
ZA 0
Z9 0
U1 1
U2 1
SN 1545-2921
UT WOS:000504895700006
ER
PT J
AU Abdul-Rahman, Aisyah
Abdul-Majid, Mariani
Fatihah, K. J. Nurul
TI EQUITY-BASED FINANCING AND LIQUIDITY RISK: INSIGHTS FROM MALAYSIA AND
INDONESIA
SO INTERNATIONAL JOURNAL OF ECONOMICS MANAGEMENT AND ACCOUNTING
VL 27
IS 2
BP 291
EP 313
PD 2019
PY 2019
AB This study examines the effect of equity-based financing (EBF) on
Islamic bank liquidity risk (LR) in Malaysia and Indonesia. The EBF-LR
relationship is compared using the traditional and BASEL III liquidity
measures. The results provide little evidence that EBF increases banks'
LR using the Net Stable Funding Ratio (NSFR). The higher the EBF, the
higher the required stable funding; hence, lower NSFR sequentially raise
the LR, supporting the maturity transformation hypothesis. EBF may
increase exposure to LR if Islamic banks often use short-term deposits
to fund long-term financing. However, EBF does not have a significant
influence on the traditional LR measure, suggesting the pass-through
mechanism exists, implying that investment account holders absorb the
losses in cases of default. This study offers empirical evidence of the
pass-through mechanism of profit loss-sharing in Islamic banks using the
traditional measure besides supporting the maturity transformation
hypothesis using the BASEL III liquidity risk measure.
RI Abdul-Majid, Mariani/AAE-3801-2020
OI Abdul-Majid, Mariani/0000-0002-4730-332X
TC 1
ZA 0
ZS 0
ZB 0
Z8 0
ZR 0
Z9 1
U1 0
U2 0
SN 1394-7680
UT WOS:000505064000003
ER
PT J
AU Sulphey, M. M.
Naushad, M.
TI THE POSITION OF INTELLECTUAL CAPITAL AMONG SAUDI BANKS
SO MARKETING AND MANAGEMENT OF INNOVATIONS
IS 4
BP 11
EP 21
DI 10.21272/mmi.2019.4-01
PD 2019
PY 2019
AB All intangible assets and various human-centred and the intellectual
property rights (IPR) of organizations are considered as Intellectual
Capital (IC). It includes all nonmonetary and nonphysical resources that
are fully or partially controlled by the organization and contribute to
the organization's value creation. Since conventional factors of
production are increasingly being replaced by intellectual assets, IC is
now being increasingly recognized as the most valuable resource, which
can provide the required impetus to take on the competition. Through
appropriate management of IC, it is possible to enhance the earning
capability, sustain the value and help the achievement of organizational
goals. Organisations that manage IC would acquire the required
competitive advantage and superior business performance in the current
volatile and uncertain market. This study was conducted to investigate
the position of IC of Saudi banks. Empirical evidence exists to suggest
that efficient utilization of IC can contribute towards the success of
the banking industry. Objectives of the study included finding the value
of IC of the Saudi banking industry and examine the performance of
Islamic banks. Two regression models were used to achieve the objectives
of the study. The models examined the relationships between Return on
equity (ROE) and Return on total assets (ROA) and the aggregate measure
of IC. It also examined the different components like Human capital
efficiency (HCE), the Capital employed efficiency (CEE), and Structural
capital efficiency (SCE). The present study has thus helped in
presenting some interesting findings of the IC of Saudi banks. It was
observed that Saudi banks are fairly efficient and has generated the
required value from the component of Human capital (HC) than other
capital elements. Drastic improvement was evident during recent years,
reflecting the cues about the stability evident globally in the
industry. Overall it can be concluded that Saudi banks, especially the
Shariah-compliant ones, are efficient in generating value from its IC. A
comparison between Saudi banks, as well as Islamic banks and those in
other countries where banking operations are not done as per Shari'ah
rules, is suggested as it is sure to bring in interesting results.
RI /N-2455-2019
TC 1
ZS 0
ZB 0
ZR 0
ZA 0
Z8 0
Z9 1
U1 0
U2 0
SN 2218-4511
UT WOS:000504921700001
ER
PT J
AU Abu Bakar, Noor Mahinar Binti
Yasin, Norhashimah Binti Mohd
TI Demystifying the Contractual Duty of Care of Islamic Banks in Malaysia
SO INTELLECTUAL DISCOURSE
VL 27
SI 1
BP 695
EP 718
PD 2019
PY 2019
AB The general relationship between a bank and customer is contractual in
nature. For conventional banks, the banker-customer relationship is
based on the debtor-creditor relationship with the bank earning a profit
from a spread made between interest charged on the borrower of funds and
interest paid to the depositors. In Islamic banking, due to the
different contractual transactions of Islamic banking operation, it is
based on a multi-contractual relationships. However, bank consumers
perceive that banks enhance their profits by treating consumers unfairly
and failing to take responsibility when things go wrong. This study
examines the duty of care of conventional and Islamic banks towards bank
consumers. It also focuses on the Islamic banks' duty of care from the
perspective of maqasid al-Shari'ah, to those who use their services.
Adopting the doctrinal analysis method, this study analyses and compares
the duty of care of both conventional and Islamic banks. Findings of
this study include that misconduct by banking industries remains rife
and that unfair treatment of customers are frequent. As for Islamic
banks, the maqasid al-Shari'ah based duty of care is found missing in
their Islamic banking operation. This study suggests that the duty of
care for both banks should be reformed to improve bank consumers'
experience. For Islamic banks, an improved standard is useful in
performing their duties based on Islamic values.
TC 0
ZA 0
Z8 0
ZB 0
ZS 0
ZR 0
Z9 0
U1 0
U2 0
SN 0128-4878
EI 2289-5639
UT WOS:000504677600002
ER
PT J
AU Mansoor, Muhammad
Ellahi, Nazima
Malik, Qaiser Ali
TI CORPORATE GOVERNANCE AND CREDIT RATING: EVIDENCE OF SHARIAH GOVERNANCE
FROM PAKISTAN ISLAMIC BANKS
SO INTERNATIONAL TRANSACTION JOURNAL OF ENGINEERING MANAGEMENT & APPLIED
SCIENCES & TECHNOLOGIES
VL 10
IS 18
AR 10A18G
DI 10.14456/ITJEMAST.2019.251
PD 2019
PY 2019
AB Shariah Governance in Islamic banks is the most essential
characteristics which differentiates Islamic banking from conventional
banking. The study objective is to confirm that not only corporate
governance attributes but Shariah board attributes also affect credit
rating in Islamic banks. The study collects the data for the period
2013-2017 of Pakistan Islamic banks and develops the three different
models. This study used Long term credit rating scale used by
Ashbaugh-Skaife, Collins, and LaFond (2006). The study used ordered
logit Model which results shows long term credit rating is associated
with governance attributes and Shariah board attributes. The study
concluded that Credit rating agencies in Pakistan i.e. PACRA and JC-VIS
and other International Credit rating must give weightage to Shariah
governance attributes in the evaluation of credit rating procedure.
Disciplinary: Multidisciplinary (Business Administration, Statistics,
Financial Sciences). (c) 2019 INT TRANS J ENG MANAG SCI TECH.
ZR 0
ZA 0
TC 0
Z8 0
ZB 0
ZS 0
Z9 0
U1 1
U2 1
SN 2228-9860
EI 1906-9642
UT WOS:000504672000007
ER
PT J
AU Rinaldi, Rachmat
Prasetyo, Muhammad Budi
TI Market Structure and Bank Stability: Comparison between Conventional and
Islamic Banks in Indonesia
VL 27
SI 2
BP 153
EP 166
PD 2019
PY 2019
AB The purpose of this study is to examine the effect of bank competition
on banking industry stability in sharia and conventional banks in
Indonesia from 2011 to 2015. Panzar Rosse H-statistic model was used to
measure the level of bank competition and the Z-score as a measure of
banking stability. The results of this study indicate that both bank
competition and stability had a positive relationship. The Islamic and
conventional banking industry in Indonesia support the competition
stability theory, which states that a competitive industry encourages
bank stability because of low adverse selection and moral hazard. The
results of this study also show that conventional banks had greater
stability consistently than Islamic banks for all bank groups.
OI Prasetyo, Muhammad Budi/0000-0002-6801-0577
ZB 0
ZR 0
ZS 0
Z8 0
TC 0
ZA 0
Z9 0
U1 1
U2 1
SN 0128-7702
EI 2231-8534
UT WOS:000503233000011
ER
PT J
AU Warninda, Titi Dewi
Rokhim, Rofikoh
Ekaputra, Irwan Adi
TI Islamic Bank Profit-Loss Sharing Financing and Earnings Volatility
VL 27
SI 2
BP 229
EP 239
PD 2019
PY 2019
AB Profit-loss sharing (PLS) financing comprises Musharakah and Mudarabah
ought to be the main form of Islamic banks' financing. However, based on
Southeast Asia, South Asia, and the Middle East Islamic banks' data,
this research shows that the proportion of PLS financing is still
deficient compared to debt financing. Moreover, it shows that only
Musharakah financing displays a significant linear and nonlinear
(inverse U-shape) association with Islamic bank earnings volatility. The
empirical estimates suggest that earnings volatility is maximized when
the proportions of Musharakah financing is about 31%. Increasing this
type of financing beyond 31% may lower earnings volatility.
TC 0
ZA 0
ZB 0
ZS 0
ZR 0
Z8 0
Z9 0
U1 1
U2 1
SN 0128-7702
EI 2231-8534
UT WOS:000503233000016
ER
PT J
AU Adeinat, Iman
Al Rahahleh, Naseem
Bhatti, M. Ishaq
TI Customer satisfaction with Ijarah financing The mediating role of
clarity and accuracy for services offered
SO QUALITATIVE RESEARCH IN FINANCIAL MARKETS
VL 11
IS 2
BP 227
EP 243
DI 10.1108/QRFM-03-2018-0029
PD 2019
PY 2019
AB Purpose - The purpose of this study is to assess customers' perceptions
of Islamic banks (IBs) of customers who have used or intend to use
Ijarah service to purchase a car. The study further examines the
mediating role of clarity and accuracy (CAA) of service offered between
customer perceptions and customer satisfaction. This paper focuses on
connecting in quantitative terms customers' perceptions of IB services
to customer satisfaction by providing the first evidence of this
relationship in the context of car Ijarah financing.
Design/methodology/approach - In this paper, a model is proposed to
assess customers' perceptions of the Ijarah service used by IBs to
finance car purchases. The model connects customers' perceptions to
customer satisfaction with this Shariah-compliant service. The data are
drawn from 300 randomly selected customers living in five major cities
in Pakistan, and factor analysis and structural equation modeling are
used to understand the patterns of correlation/covariance among a set of
variables and to evaluate customers' perceptions of Ijarah financing for
car purchases.
Findings - The results of the study show a significant positive
relationship between customers' perceptions and customer satisfaction.
In particular, the CAA of the services provided is a significant
predictor of customer satisfaction. This paper finds that CAA is a
partial mediator between customers' perceptions and customer
satisfaction.
Research limitations/implications - As this study is based on only one
country and one simple car Ijarah financing product, the results cannot
be generalized to the entire industry. Therefore, deeper research is
needed in which data from other countries are used and a range of models
and approaches are applied to secure knowledge about the multinational
and multifactor variations of Ijarah financing.
Practical implications - In terms of their implications for IBs, the
study results provide a basis for the banks to more effectively cater to
their customers by improving the services offered in line with
customers' expectations and thereby increasing profitability. This
investigation is much needed in academia and industry because the market
share for Ijarah financing is growing and competition between IB
products and conventional banking products is increasing.
Originality/value - This study presents the first endeavor to use
exploratory factor analysis, confirmatory factor analysis and structural
equation modeling to assess customer satisfaction in Ijarah financing
using Pakistani banking clients' data. This approach is also applicable
to various IB financial products and Shariah contracts.
TC 0
ZR 0
Z8 0
ZB 0
ZA 0
ZS 0
Z9 0
U1 2
U2 2
SN 1755-4179
UT WOS:000501350500004
ER
PT J
AU San-Jose, Leire
Cuesta, Jon
TI Are Islamic banks different? The application of the Radical Affinity
Index
SO INTERNATIONAL JOURNAL OF ISLAMIC AND MIDDLE EASTERN FINANCE AND
MANAGEMENT
VL 12
IS 1
BP 2
EP 29
DI 10.1108/IMEFM-07-2017-0192
PD 2019
PY 2019
AB Purpose - The purpose of this paper is to extend the literature on
Islamic banking by examining their ethical dimension using transparency,
placement of assets, guarantees and participation from Radical Affinity
Index.
Design/methodology/approach - To this end, a sample of 20 Islamic banks
from 13 countries (Bahrain, Saudi Arabia, Malaysia, Pakistan, Kuwait,
Tanzania, Great Britain, Oman, Iraq, Egypt, Bangladesh and Qatar) was
used.
Findings - The results are robust to ethical effects. The evidence
suggests that among Islamic banks, at least some of them could improve
their ethical requirements of the Sharia; they obtained lower scores
than ethical banks in terms of RAI variables (transparency, placement of
assets, guarantees and participation).
Research limitations/implications - It is used a random sample rather
than population with the limitations that entails. The variables in the
index are based on ethical perspective; then, the index is applied in
Islamic banking but with the ethical view limitation.
Practical implications - The Islamic banks have the option to increase
their transparency including further information regarding the
beneficiaries of the benevolent funds; moreover, it would offer a
clearer view about their ethical and social commitment towards society.
Originality/value - Additionally, this paper broadens the scope of the
literature by analysing the determinants of Islamic banking around
ethical dimensions of financial entities.
RI SAN-JOSE, LEIRE/D-9125-2011
OI SAN-JOSE, LEIRE/0000-0003-2760-3285
ZA 0
ZB 0
TC 1
Z8 0
ZS 0
ZR 0
Z9 1
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000500939200001
ER
PT J
AU Selim, Mohammad
TI The effectiveness of Qard-al-Hasan (interest free loan) as a tool of
monetary policy
MANAGEMENT
VL 12
IS 1
BP 130
EP 151
DI 10.1108/IMEFM-07-2017-0187
PD 2019
PY 2019
AB Purpose - This paper aims to investigate the macroeconomic effects of
Qard-al-Hasan (QH) as a tool of monetary policy (MP) and its
effectiveness in achieving full employment and price stability in the
economy.
Design/methodology/approach - QH-based MP and its effects on major
macroeconomic variables are examined on theoretical ground by using the
standard aggregate output and aggregate expenditure model within the
framework of Islamic economic principles.
Findings - QH-based MP positively influences real sectors of the economy
and increases output, and the economy returns to full employment. QH
provides the lowest possible borrowing costs across the economy and thus
triggers rightward shift in aggregate supply curve and thus increases
output and lowers price level. In addition, increase in output
eliminates excess demand or shortages and thus maintains price
stability. Furthermore, QH-based MP also increases exportable surplus
and exports, decreases imports as well as increases inflow of funds and
foreign currency reserves with the Central Bank and thus makes MP more
effective.
Research limitations/implications - QH-based MP is usually expansionary
MP, and as such, it can be argued that there is a probability that
QH-based MP may lead to higher inflation rate. However, in this study,
it has been shown with real world data in Table II, that 23 countries in
Group 1 have pursued zero or negative interest rate policy and their
experiences mitigate such probability.
Originality/value - This is, perhaps, the first paper that presents a
complete model of QH as a tool of MP with fully explained transmission
mechanism. This is new contribution in the literature of Islamic finance
where theoretical model on QH is systematically developed and applied as
an effective tool of MP in attaining full employment and price
stability. This model of QH-based MP can unfold a new horizon of
uninterrupted economic growth, full employment and price stability by
increasing output and employment, as well as by eliminating excess
demand or shortages.
ZS 0
ZR 0
ZA 0
Z8 0
ZB 0
TC 1
Z9 1
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000500939200007
ER
PT J
AU Ben Mimoun, Mohamed
TI Islamic banking and real performances in a dual banking system Evidence
from Saudi Arabia
MANAGEMENT
VL 12
IS 3
BP 426
EP 447
DI 10.1108/IMEFM-07-2018-0223
PD 2019
PY 2019
AB Purpose - There is a rich debate on the nature of Islamic banking
(IB)-growth nexus and the direction of causality governing this nexus.
This study aims to focus on this issue in the case of Saudi Arabia, the
largest country-holder of Islamic Banks (IBs)' assets worldwide. It
assesses empirically the nature of dynamic interactions between IBs'
financing and the real performances in the non-oil private sector
(investment and GDP) in the context of a dual banking system where IBs
operate alongside their conventional counterparts.
Design/methodology/approach - This study employs the Bounds test in the
context of reparametrized autoregression distribution lags (ARDL) models
to analyse both long-run and short-run dynamics governing Islamic and
conventional banks' (CBs) financings on one hand and real investment and
GDP in the private sector on the other hand over the 2007q1-2016q4
period. It also uses the Toda and Yamamoto ( 1995) augmented
Granger-causality test to assess the direction of causality governing
these dynamics.
Findings - The more important results are: there is a stable and
significant long-run relationship between IBs' financing and real
performances in the private sector. This nexus is governed by the
"feed-back hypothesis", implying the validity of both the
"supply-leading" and the "demand-following" hypotheses. In a dual
banking system context, IBs exert two effects on the financing of their
conventional counterparts: a negative "crowding-out" effect and a
positive and "stimulating" effect which transmits through the
"competition" channel. Finally, in the long-run, steady-state, real GDP
is dissociated from CBs' financing.
Originality/value - This paper highlights an issue that has not received
the needed attention in the case of Saudi Arabia. It has also found
novel results with important policy implications.
OI BEN MIMOUN, MOHAMED/0000-0001-5146-4057
ZB 0
ZR 0
Z8 0
TC 0
ZA 0
ZS 0
Z9 0
U1 0
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000500940800007
ER
PT J
AU Ghassan, Hassan Belkacem
Guendouz, Abdelkrim Ahmed
TI Panel modeling of z-score: evidence from Islamic and conventional Saudi
banks
MANAGEMENT
VL 12
IS 3
BP 448
EP 468
DI 10.1108/IMEFM-04-2018-0122
PD 2019
PY 2019
AB Purpose - This paper aims to measure the stability extent of the banking
sector in Saudi Arabia, including Islamic and conventional banks (CBs),
using quarterly data.
Design/methodology/approach - The paper uses seemingly unrelated
regressions to estimate the determinants of the z-score.
Findings - The panel data model shows that Islamic banks (IBs) reduce
the financial stability index relatively; meanwhile, they contribute
efficiently to enhance the financial stability through the
diversification of their assets. The Saudi banking sector exhibits
strong concentration affecting the financial stability negatively.
Research limitations/implications - The paper's topic can be extended to
cover the recent period.
Practical implications - The limited presence of IBs in the Saudi
banking sector jeopardizes any effort to improve the financial
stability.
Social implications - By attracting more clients, IBs would contribute
more to the financial stability in the Saudi economy. Also, the monetary
authority has to expand the share of IBs in the financial system at
least 50-50 compared to CBs.
Originality/value - The z-score is mostly analyzed with yearly data; in
this paper we use quarterly data to describe at infra-annual frequency
the variability of the z-score index. Also, we consider in detail the
statistical properties of the banks' data.
RI Guendouz, Abdelkrim/M-3961-2016
OI Guendouz, Abdelkrim/0000-0003-2264-1303
Z8 0
ZS 0
ZB 0
TC 2
ZR 0
ZA 0
Z9 2
U1 1
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000500940800008
ER
PT J
AU AlAbbad, Amal
Hassan, M. Kabir
Saba, Irum
TI Can Shariah board characteristics influence risk-taking behavior of
Islamic banks?
MANAGEMENT
VL 12
IS 4
BP 469
EP 488
DI 10.1108/IMEFM-11-2018-0403
PD 2019
PY 2019
AB Purpose - The purpose of this paper is to study whether the
characteristics of the Shariah Supervisory Board (SSB) can influence the
risk-taking behaviors of Islamic banks.
Design/methodology/approach - The data on governance were collected from
70 Islamic banks' annual reports across 18 countries for the period from
2000 to 2011 to investigate the relationship between SSB's
characteristics including size, busyness and foreign board and the
Islamic banks' risk activities.
Findings - The size of SSB and the proportion of busy board in SSB
positively and significantly influence Islamic banks' asset return and
insolvency risks. Foreign members are more effective in monitoring
banks' Shariah compliance. Further analysis provides some evidence that
most of the findings on the associations between the SSB structure and
bank risk are derived from countries in the Gulf Cooperation Council
where Shariah governance is ruled internally at the bank level.
Practical implications - There is a need for better Shariah board
characteristics in place that complement with other governance
mechanisms to well comprehend the main purpose of Islamic banks.
Originality/value - SSB board busyness and foreign characteristics
appear to influence the risk-taking behaviors of Islamic banks.
ZA 0
ZS 0
ZB 0
TC 1
Z8 0
ZR 0
Z9 1
U1 1
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000500941200001
ER
PT J
AU Maryam, Sayeda Zeenat
Mehmood, Mian Saqib
Khaliq, Chaudhry Abdul
TI Factors influencing the community behavioral intention for adoption of
Islamic banking Evidence from Pakistan
MANAGEMENT
VL 12
IS 4
BP 586
EP 600
DI 10.1108/IMEFM-07-2017-0179
PD 2019
PY 2019
AB Purpose - Islamic banking (IB) is growing rapidly not only in Islamic
countries but also in all over the world. The purpose of this paper is
to stumble on the features that have an impact on Islamic banking
adoption (IBA) in case of Pakistan.
Design/methodology/approach - The identification of the factors that
affect IBA has made by extending the theory of reasoned action (TRA).
However, the conceptual model for this study includes knowledge (K),
business support (BS), government support (GS), reputation (Rep),
religious obligation (RO), cost-benefit (CB) and social influence (SI)
as the independent variables. To test the conceptual framework data were
collected through a survey by distributing the 400 questionnaires among
users- and non-users of Islamic banks. Multiple regression analysis was
applied to test the hypothesis of this study.
Findings - The findings of the study suggest that Rep, CB, RO and SI has
a highly significant and positive influence on IBA. On the other hand,
K, GS and BS have insignificant influence on IBA. The bottom line of
this study suggests that more the ROs will be adopted by Islamic banks,
more will be the tendency to adopt it by a bank customer in case of
Pakistan.
Research limitations/implications - The generalizability of the findings
of this research is limited to IB.
Practical implications - Findings of the study present worthy insight
especially for the practitioners to develop significant strategies to
bridge the gap between industry and academia in case of IB.
Originality/value - This study is an extension of TRA.
ZS 0
TC 2
ZR 0
ZB 0
Z8 0
ZA 0
Z9 2
U1 1
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000500941200008
ER
PT J
AU Ishak, Muhammad Shahrul Ifwat
TI Malaysian banking: is the current practice of ibra' (rebate) reflecting
its true meaning?
VL 11
IS 1
BP 22
EP 30
DI 10.1108/QRFM-08-2018-0096
PD 2019
PY 2019
AB Purpose - This paper aims to investigate the current regulation of ibra'
(rebate) set by the Central Bank for the Islamic banks in Malaysia and
how far its original concept has been compromised to make it adaptable
to the modern financial system.
Design/methodology/approach - This study, with regard to practising
ibra' in Islamic banking in Malaysia, is qualitative in nature, using
semi-structured interviews carried out with two types of informant:
members of either the National Shari'ah Advisory Council (NSAC) or the
Internal Shari'ah Committee (SC). All data are analysed based on the
content analysis method.
Findings - The findings reveal that while stipulating an ibra' clause
makes practising ibra' stray from its original concept, it has
successfully tackled the current problem. However, the long-term
consequences should be a concern, particularly Islamic banking products,
which have been significantly influenced by the conventional system,
including interest rates and the debt structure, neither of which should
be identified with Islamic banking.
Research limitations/implications - This study is limited because it
focusses on the practice of ibra' in Malaysian Islamic banking.
Moreover, data are collected from nine interviewees from NSAC and SC
from different Islamic banks. Thus, the results cannot be generalised to
other countries.
Originality/value - This paper provides a fresh discussion of ibra' from
the perspective of regulators and the experience of practitioners in
Malaysia, particularly in respect of aspects of Shari'ah and current
actual practice.
ZR 0
Z8 0
TC 0
ZA 0
ZS 0
ZB 0
Z9 0
U1 0
U2 0
SN 1755-4179
UT WOS:000501349200002
ER
PT J
AU Aziz, Rosli Abdul
Abdul-Rahman, Aisyah
Markom, Ruzian
TI Best Practices for Internal Shariah Governance Framework: Lessons from
Malaysian Islamic Banks
SO ASIAN JOURNAL OF ACCOUNTING AND GOVERNANCE
VL 12
DI 10.17576/AJAG-2019-12-04
PD 2019
PY 2019
AB Comprehensive compliance to Shariah principles ensure confidence among
stakeholders and strong credentials for the banking institutions. The
Shariah Governance Framework (SGF) was introduced by the BNM in 2010 to
safeguard Islamic financial institutions' Shariah compliancy.
Non-compliancy to SGF will pose risks to the banks and cause instability
in the financial industry. This study explores the implementation of the
internal SGF in selected Islamic banks. Document reviews and interviews
were conducted to analyse the SGF documentations and practices. The
banks" practices are compared to the Guidelines on the Governance of
Shariah Committee (GGSC) 2005 and the SGF 2010. Roles of major Shariah
committees were reviewed with regard to the banks' internal SGF
compliancy to the SGF 2010. The findings indicate that the Islamic banks
are generally compliant to the SGF 2010 provisions. The banks
implementation of major Shariah organs has facilitated regulators in
monitoring and mitigating Shariah non-compliancy events or risks. The
most challenging issue faced by the Shariah audit team is limited
resources in terms of on-the job work experience or Shariah knowledge.
Thus, it is essential for Islamic banks to enhance their internal SGF
within the scope of the SGF 2010 and collaborate with training agencies
or higher education-related parties in addressing shortage of skilled
manpower.
ZA 0
Z8 0
ZB 0
ZS 0
TC 0
ZR 0
Z9 0
U1 2
U2 2
SN 2180-3838
UT WOS:000500693800006
ER
PT J
AU Nastiti, Nur Dyah
Kasri, Rahmatina Awaliah
TI The role of banking regulation in the development of Islamic banking
financing in Indonesia
MANAGEMENT
VL 12
IS 5
SI SI
BP 643
EP 662
DI 10.1108/IMEFM-10-2018-0365
PD 2019
PY 2019
AB Purpose - The 2015 global economic crisis has triggered the issuance of
several banking regulations in Indonesia, including those related to
temporary stimulus for Islamic banks and branchless banking (fintech).
However, few studies attempt to evaluate the effectiveness of such
regulations. Thus, this study aims to determine the role and assess the
effectiveness of such banking regulations.
Design/methodology/approach - The data used cover all 12 Islamic
commercial banks in Indonesia during the stimulus period of Q3.2015 to
Q2.2017. The variables included were banks' fundamental factors (Islamic
financing, capital adequacy ratio, investment, non-performing financing,
return on asset, efficiency, financing deposit ratio and fintech) and
macroeconomic variables (inflation, exchange rate and money supply). The
model was analyzed by using multiple linear regressions with generalized
least square estimation technique.
Findings - The main finding suggests that the stimulus regulation indeed
played a positive role in the acceleration of Islamic bank financing.
However, the fintech-related regulation was not yet effective to achieve
the goal, at least in the short term. Furthermore, the study found that
return of assets, operational efficiency, financing deposit ratio and
money supply also influenced Islamic financing.
Practical implications - For policymakers, the effectiveness of the
temporary stimulus in accelerating Islamic banking financing and
preventing the possible negative impacts of the external crisis provides
indications that the regulator could conduct similar policy in the
future. More generally, the findings are also expected to enrich Islamic
banking literature.
Originality/value - This is possibly one of the few studies to
investigate the role and effectiveness of banking regulations on Islamic
banking financing in Indonesia.
ZA 0
ZS 0
Z8 0
ZR 0
TC 0
ZB 0
Z9 0
U1 5
U2 6
SN 1753-8394
EI 1753-8408
UT WOS:000500941700002
ER
PT J
AU Anouze, Abdel Latef M.
Bou-Hamad, Imad
TI Data envelopment analysis and data mining to efficiency estimation and
evaluation
MANAGEMENT
VL 12
IS 2
BP 169
EP 190
DI 10.1108/IMEFM-11-2017-0302
PD 2019
PY 2019
AB Purpose - This paper aims to assess the application of seven statistical
and data mining techniques to second-stage data envelopment analysis
(DEA) for bank performance.
Design/methodology/approach - Different statistical and data mining
techniques are used to second-stage DEA for bank performance as a part
of an attempt to produce a powerful model for bank performance with
effective predictive ability. The projected data mining tools are
classification and regression trees (CART), conditional inference trees
(CIT), random forest based on CART and CIT, bagging, artificial neural
networks and their statistical counterpart, logistic regression.
Findings - The results showed that random forests and bagging outperform
other methods in terms of predictive power.
Originality/value - This is the first study to assess the impact of
environmental factors on banking performance inMiddle East and North
Africa countries.
RI Anouze, Abdel Latef Majed/F-9779-2017
OI Anouze, Abdel Latef Majed/0000-0002-6989-8897
TC 3
ZA 0
ZB 0
ZS 0
ZR 0
Z8 0
Z9 3
U1 3
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000500939600002
ER
PT J
AU Buallay, Amina
TI Corporate governance, Sharia'ah governance and performance A
cross-country comparison in MENA region
MANAGEMENT
VL 12
IS 2
BP 216
EP 235
DI 10.1108/IMEFM-07-2017-0172
PD 2019
PY 2019
AB Purpose - The performance and effectiveness of governance principles
continue to be a matter of concern (Mollah and Zaman, 2015). Focusing on
differences between conventional and Islamic banks, this study aims to
examine the relationship between governance and bank's operational
(return on assets [ROA]), financial (return on equity [ROE]) and market
performance (Tobin's q [TQ]).
Design/methodology/approach - This study examined 127 banks within the
Mena countries for the 10 years 2007 through 2016, for a total of 1270
observations. The study's independent variable is corporate governance
principles; the dependent variables are ROA, ROE and TQ. Also, the study
uses bank- and country-specific control variables to help measure the
relationship between governance and bank performance.
Findings - The findings deduced from the empirical results demonstrate
that Sharia'ah governance significantly influenced ROA and ROE. However,
corporate governance significantly influenced TQ. Furthermore, the
results indicated that there were differences between Sharia'ah
governance and corporate governance with regard to operational,
financial and market performance.
Originality/value - The study provides insights into the differences in
the relationship between Sharia'ah governance, corporate governance and
the improvement of performance, which might be used by both banks to
re-adopt the governance practices in enhancing the operational,
financial and market performance.
Z8 0
ZA 0
ZR 0
ZS 0
TC 1
ZB 0
Z9 1
U1 1
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000500939600004
ER
PT J
AU Berguiga, Imene
Adair, Philippe
TI The performance of Islamic banks in the MENA region: Are specific risks
a minor attribute?
SO REGION ET DEVELOPPEMENT
IS 49
BP 5
EP 23
PD 2019
PY 2019
AB Islamic banks face specific risks related to Sharia-compliant contracts.
We provide an exhaustive literature review addressing the methodological
issues of the measurement of performance and document the main stylised
facts regarding the performance of Islamic banks (IBs) in the MENA
region. We investigate 53 IBs in 11 MENA countries throughout 2007-2014,
first using cross-sectional analysis as of year 2013. A panel data model
with instrumental variables estimates the impact of risks upon the
returns on assets and equity of Islamic banks. Four salient results
emerge: Sharia compliance exerts an ambiguous effect upon performance;
Islamic specificity is a minor attribute according to the insignificant
share of profit and loss sharing (PLS) contracts in total assets; there
is no relationship between Sharia compliance and specific risk; loan
loss provisions do not restrict to specific risks (PLS), hedging all
risks.
Z8 0
ZR 0
ZA 0
ZB 0
ZS 0
TC 0
Z9 0
U1 0
U2 1
SN 1267-5059
EI 2117-0843
UT WOS:000500172500001
ER
PT B
AU Bhatti, Ayesha
Azmat, Saad
BA Bhatti, A
Azmat, S
TI Can Islamic banks have their own benchmark?
SO RETHINKING ISLAMIC FINANCE: MARKETS, REGULATIONS AND ISLAMIC LAW
SE Islamic Business and Finance Series
BP 53
EP 63
PD 2019
PY 2019
TC 0
ZA 0
ZS 0
ZB 0
Z8 0
ZR 0
Z9 0
U1 0
U2 0
BN 978-1-315-60608-8; 978-1-472-47767-5
UT WOS:000487847200011
ER
PT B
AU Bhatti, Ayesha
Azmat, Saad
BA Bhatti, A
Azmat, S
TI Charity in Islamic banks A distinguishing feature?
SO RETHINKING ISLAMIC FINANCE: MARKETS, REGULATIONS AND ISLAMIC LAW
SE Islamic Business and Finance Series
BP 73
EP 80
PD 2019
PY 2019
Z8 0
TC 0
ZB 0
ZA 0
ZR 0
ZS 0
Z9 0
U1 0
U2 0
BN 978-1-315-60608-8; 978-1-472-47767-5
UT WOS:000487847200013
ER
PT J
AU Arora, Sangeeta
Kaur, Harpreet
TI Exploring the bank selection criteria in India: scale development and
validation
SO INTERNATIONAL JOURNAL OF BANK MARKETING
VL 37
IS 3
BP 666
EP 690
DI 10.1108/IJBM-09-2017-0199
PD 2019
PY 2019
AB Purpose - The purpose of this paper is to develop, measure and
empirically validate a scale that captures the full dimensionality of
selection attributes considered by customers when choosing a bank.
Design/methodology/approach - Focus group interviews were conducted and
a well-structured questionnaire was designed. The validity of this scale
was tested in accordance with the psychometric scale development
procedure.
Findings - Contrary to some assertions in past literature, the results
suggested service delivery and cost/price as among the most important
determinants of the bank selection decisions of consumers.
Practical implications - The practical implications drawn from this
study involve the seven constructs which could be adopted by the bank
managers, advertising executives and marketing experts in providing good
quality services resulting in overall higher levels of customer
satisfaction. These decision makers can apply the constructs from the
study to identify factors most appealing to both potential and existing
customers and build up effective marketing strategies to attract new
customers and retain existing ones.
Originality/value - This research paper signifies the leading studies
for advancing a validated tool to measure the customers' selection
decisions for banks. As a result, this valid and reliable scale would
bring standardization to research conducted in the field of bank
selection attributes.
OI kaur, Harpreet/0000-0003-3043-9770
TC 0
Z8 0
ZR 0
ZA 0
ZB 0
ZS 0
Z9 0
U1 2
U2 2
SN 0265-2323
EI 1758-5937
UT WOS:000488527300001
ER
PT J
AU Wu, Hung-Che
Cheng, Ching-Chan
Hussein, Ananda Sabil
TI What drives experiential loyalty towards the banks? The case of Islamic
banks in Indonesia
VL 37
IS 2
BP 595
EP 620
DI 10.1108/IJBM-04-2018-0101
PD 2019
PY 2019
AB Purpose - The purpose of this paper is to explore the structural
relationship between experiential loyalty and its seven drivers -
interaction quality, physical environment quality, outcome quality,
affective quality, experiential quality, experiential trust and
experiential satisfaction in the context of Islamic banks.
Design/methodology/approach - The data used in this study were based on
a convenience sample of 474 respondents from Jakarta, Bogor and Depok in
Indonesia.
Findings - Interaction quality, physical environment quality and outcome
quality positively influence experiential quality, which in turn, leads
to experiential trust. Also, experiential trust has a positive influence
on experiential satisfaction. Both experiential trust and experiential
satisfaction are determinants of experiential loyalty.
Practical implications - The results will assist Islamic bank management
in developing and implementing market-orientated service strategies to
increase interaction quality, physical environment quality, outcome
quality, affective quality experiential quality, experiential trust and
experiential satisfaction in order to increase experiential loyalty.
Originality/value - This paper provides data that result in a better
understanding of the relationships among interaction quality, physical
environment quality, outcome quality, affective quality, experiential
quality, experiential trust, experiential satisfaction and experiential
loyalty in the context of Islamic banks.
OI Hussein, Ananda Sabil/0000-0002-4030-1073
TC 6
ZB 0
ZA 0
ZR 0
Z8 0
ZS 0
Z9 6
U1 1
U2 2
SN 0265-2323
EI 1758-5937
UT WOS:000488526800011
ER
PT J
AU Al-Hadrami, Abdullah
Hidayat, Sutan Emir
TI Corporate Social Responsibility of Islamic and Conventional Banks:
Evidence in Bahrain
SO ETIKONOMI
VL 18
IS 1
BP 47
EP 62
DI 10.15408/etk.v18i1.10395
PD 2019
PY 2019
AB Several researchers found a positive relationship between the company's
performance and corporate social responsibility (CSR) activities. The
current study aims to explore the clients' awareness and perception of
CSR in Islamic and conventional banks across Bahrain. The study surveyed
305 clients that 175 from the Islamic banks, and 130 from the
conventional banks. The results indicated that the clients of Islamic
banks are more aware of their banks CSR activities than the clients of
conventional banks. The result shows that Islamic banks clients have a
more positive perception of their banks' CSR than those of the
conventional banks. Additionally the results indicated that there are
statistically significant differences in the clients' awareness and
perception of banks' CSR activities when the client's group according to
age, income, education, and bank type.
TC 0
ZS 0
Z8 0
ZA 0
ZB 0
ZR 0
Z9 0
U1 0
U2 0
SN 1412-8969
EI 2461-0771
UT WOS:000487309000004
ER
PT J
AU Rehan, Muhammad Haroon
Qureshi, Qamar Afaq
TI IMPACTS OF CORPORATE SOCIAL RESPONSIBILITY (ECONOMIC, SOCIAL &
ENVIRONMENTAL) ON CUSTOMERS LOYALTY IN ISLAMIC BANKS
SO INTERNATIONAL TRANSACTION JOURNAL OF ENGINEERING MANAGEMENT & APPLIED
SCIENCES & TECHNOLOGIES
VL 10
IS 10
AR 10A10L
DI 10.14456/ITJEMAST.2019.133
PD 2019
PY 2019
AB This study aimed at exploring the corporate social responsibility (CSR)
through different dimensions like economic, social and environmental in
connection with customers' loyalty in the context of Islamic Banks. The
CSR and customers' loyalty are considered as the dynamic gears towards
the constructive image and success of the organizations. Thus, this
research aims to contribute the existing literature by examining the
impact of CSR on consumer loyalty in context of banking sector (Islamic
Banks) in Khyber Pakhtunkhwa, Pakistan. To explore these real world
issues, primary data was collected from the workforces hailing from
Islamic Banks and their customers through dyad questionnaire. The first
hand data (primary) was analyzed by using diverse statistical tools to
reach the conclusion by pursuing research hypotheses, emerged from
theoretical framework. Thus, results from study can help Islamic banks
of Pakistan in better indulgence to CSR advantages in process of
strategic planning and development. (C) 2019 INT TRANS J ENG MANAG SCI
TECH.
TC 0
Z8 0
ZR 0
ZB 0
ZS 0
ZA 0
Z9 0
U1 0
U2 1
SN 2228-9860
EI 1906-9642
UT WOS:000484353000002
ER
PT J
AU Sahyouni, Ahmad
Wang, Man
TI Liquidity creation and bank performance: evidence from MENA
VL 11
IS 1
BP 27
EP 45
DI 10.1108/IJIF-01-2018-0009
PD 2019
PY 2019
AB Purpose - Islamic banks have significantly different balance sheets from
their conventional counterparts, leading to different implications in
relation to liquidity creation compared to conventional banks. This
work, first, investigates the liquidity creation of conventional and
Islamic banks in Middle Eastern and North African (MENA) countries
between 2011 and 2016. It then tests the relationship between liquidity
creation and performance of these banks.
Design/methodology/approach - It uses the data of 491 commercial banks
across 18 MENA countries between 2011 and 2016. The analysis is based on
panel data techniques.
Findings - The banks created US$18.596 trillion of liquidity, about
28.4% of total assets. Conventional banks created more liquidity
compared with Islamic banks. Nevertheless, Islamic banks created more
liquidity per asset compared with conventional banks. The regression
analysis revealed a significant and negative correlation between
liquidity creation and performance of the banks using return on average
equity (ROAE) measure. However, no significant relationship is observed
between liquidity creation and return on average assets (ROAA) of MENA
banks. Moreover, there is no difference between Islamic and conventional
banks in the relation between liquidity creation and bank performance.
Research limitations/implications - The data are limited to the period
2011-2016; the period of this study was selected based on yearly data
availability from the data source. Accounting measures were used to
study the effect of liquidity creation on bank profitability, and the
market-based measures were excluded, as there is no uniform sources in
these countries that can be used to collect market-based data.
Practical implications - Bank managers must reach a trade-off between
the advantages and disadvantages of liquidity creation, as well as
consider the negative relationship between liquidity creation and bank
performance when making their decisions.
Originality/value - First, to the best of the authors' knowledge, this
work is the first to analyse the relationship between the liquidity
creation and performance of conventional and Islamic banks in MENA.
Second, this study uses a sample of Islamic and conventional banks in
MENA that have detailed information on the Orbis Bank Focus dataset,
which is the most comprehensive database of commercial banks in the MENA
region.
RI Sahyouni, Ahmad/AAU-5723-2020
ZS 0
TC 1
ZR 0
Z8 0
ZB 0
ZA 0
Z9 1
U1 1
U2 1
SN 0128-1976
EI 2289-4365
UT WOS:000484174700003
ER
PT J
AU Dolgun, Muhammed Habib
Mirakhor, Abbas
Ng, Adam
TI A proposal designed for calibrating the liquidity coverage ratio for
Islamic banks
VL 11
IS 1
BP 82
EP 97
DI 10.1108/IJIF-03-2018-0033
PD 2019
PY 2019
AB Purpose - This paper aims to critically investigate the liquidity risk
management of Islamic banks and develop an alternative regulatory
framework appropriate for liquidity management of these banks.
Design/methodology/approach - The specific risk profile of an Islamic
bank requires developing a new and more efficient regulatory framework,
which relies on risk- sharing and symmetric information among parties.
The paper makes a differentiation between small local banks and
internationally active Islamic banks and proposes to apply liquidity
requirements only for internationally active Islamic banks.
Findings - A new proposal for the liquidity coverage ratio (LCR) of
Islamic banks is developed in this paper towards mitigating risks and
concurrently protecting the interests of investment account holders.
Minimum and maximum thresholds are proposed for each liquid asset in
this new LCR framework. An alternative liquidity approach is discussed
to complement the proposal and several policy options are suggested.
Originality/value - As participation banks are exposed to market
liquidity and market risks, more high-quality liquid instruments within
a risk-sharing regulatory framework may provide the inner adjustment
process through which any mismatch regarding maturity, risk, value or
linkage with the real economy is corrected systematically. It offers
policy implications for regulators, supervisors and international
organizations.
OI Dolgun, Muhammed Habib/0000-0003-0077-3356
ZS 0
Z8 0
ZA 0
ZR 0
TC 1
ZB 0
Z9 1
U1 1
U2 1
SN 0128-1976
EI 2289-4365
UT WOS:000484174700006
ER
PT J
AU Ishak, Muhammad Shahrul Ifwat
TI The principle of maslahah and its application in Islamic banking
operations in Malaysia
VL 11
IS 1
BP 137
EP 146
DI 10.1108/IJIF-01-2018-0017
PD 2019
PY 2019
AB Purpose - This paper aims to investigate the extent to which maslahah
(public interest) is taken into consideration in Islamic banking
operations in Malaysia, particularly in bay' al-'inah (sale and
buyback), ta'wid (compensation) and ibra' (rebate).
Design/methodology/approach - This study applies deductive and inductive
methods to analyze the application of maslahah in Islamic financial
transactions. Three issues in Malaysia are selected as a case study,
allowing bay' al-'inah, standardizing the rate of ta'wid and stipulating
the ibra' clause in financial agreements. As this study is qualitative
in nature, all data are analyzed based on the content analysis method.
Findings - Both the maslahah of Islamic banks and their customers were
found to be considered by the Central Bank of Malaysia in the
implementation of contracts and principles of Islamic banking. The first
maslahah represents the viability of Islamic banks, while the second
maslahah promotes fairness and transparency between Islamic banks and
their customers.
Research limitations/implications - This study only focuses on the
contracts and principles of Islamic banking operations in Malaysia with
regard to three selected issues.
Practical implications - This paper clarifies the practical application
of maslahah in the Islamic banking industry, particularly with regard to
implementing its contracts and principles.
Originality/value - This paper analyzes the argument of maslahah on the
issues of bay' al-'inah , ta'wid and ibra' in Malaysia, which are
considered among scholars to be debatable issues. While many discussions
focus on the legal aspect of Shari'ah on those issues, this study
emphasizes how the application of maslahah aims to solve the current
problems and harmonize between Shari'ah and reality.
TC 1
Z8 0
ZR 0
ZB 0
ZA 0
ZS 0
Z9 1
U1 2
U2 2
SN 0128-1976
EI 2289-4365
UT WOS:000484174700010
ER
PT J
AU Suzuki, Yasushi
Uddin, S. M. Sohrab
Sigit, Pramono
TI Do Islamic banks need to earn extra profits? A comparative analysis on
banking sector rent in Bangladesh and Indonesia
VL 10
IS 3
BP 369
EP 381
DI 10.1108/JIABR-01-2017-0003
PD 2019
PY 2019
AB Purpose - This paper aims to draw upon existing debate over "financial
sector rent" (bank rent) to analyze the current pattern of financing of
Bangladeshi and Indonesian Islamic banks during the period of 2011 and
2015.
Design/methodology/approach - The empirical evidence through a
comparative approach of analyzing the performance of Islamic banks with
that of conventional banks in respective countries - two of the largest
countries where majority of the population are Muslims - is drawn to
demonstrate the objective.
Findings - While Islamic banks in Bangladesh are primarily concentrating
on the murabaha (mark-up contract) mode of financing, some transactions
under musharaka (partnership/equity-based contract) are observed in the
Indonesian Islamic banking sector. This anomaly in Indonesia can be
explained by the nature of their musharaka financing which is not of the
purely "participatory" financing type. As a result, we can observe the
quasi-murabaha syndrome in Indonesian Islamic banking sector. The
concentration of asset-based financing including consumers' financing
(hire purchase) in the credit portfolio gives Islamic banks relatively
higher Islamic bank rent opportunity for protecting their "franchise
value" as Shari. ah-compliant (Islamic law-compliant) lenders. However,
Indonesian Islamic banks share a still infant Islamic banking market,
and enjoy less rent opportunity under a severe competition with
conventional banks.
Research limitations/implications - The bank rent approach suggests that
the syndrome observed both in Bangladesh and Indonesia can be ironically
justifiable. Moreover, the mode of profit-and-loss sharing provides, in
practice, an idea of the difficulty in managing the participatory
financing embedded with high credit risk. Under this scenario, it is
necessary for Islamic scholars and the regulatory authority to design an
appropriate financial architecture, enabling Islamic banks to avail the
benefit from a wider variety of Shari'ah-based Islamic financing.
Originality/value - This paper expands the newly emerged concept of
"Islamic bank rent" to make sense of the murabaha syndrome in Bangladesh
and the quasi-murabaha syndrome in Indonesia. This approach also
contributes to clarifying the unique risk and cost to be compensated
with the spreads that Islamic banks are expected to earn.
OI Suzuki, Yasushi/0000-0002-3939-6917
ZA 0
ZS 0
ZB 0
Z8 0
TC 1
ZR 0
Z9 1
U1 0
U2 1
SN 1759-0817
EI 1759-0825
UT WOS:000481476800002
ER
PT J
AU Hussien, Mohammed Ebrahim
Alam, Md Mahmudul
Murad, Md Wahid
Abu Wahid
TI The performance of Islamic banks during the 2008 global financial crisis
Evidence from the Gulf Cooperation Council countries
VL 10
IS 3
BP 407
EP 420
DI 10.1108/JIABR-01-2017-0011
PD 2019
PY 2019
AB Purpose - The purpose of this study is to analyze the profitability
performance of Islamic banks (IBs) of the Gulf Cooperation Council (GCC)
region during 2008 global financial crisis.
Design/methodology/approach - Bank-specific data are taken from the Bank
Scope database and macroeconomic data are collected from International
Financial Statistics. Using a panel data series of 30 banks for the
period of 2005 to 2011, the study shows the evidence of structural break
for the crisis year as well as the factors that impact the profitability
of IBs.
Findings - The performance of GCC IBs was significantly influenced
during the crisis period by capital adequacy, credit risk, financial
risk, operational efficiency, liquidity, bank size, gross domestic
product, growth rate of money supply, bank sector development and
inflation rate. The study also finds that there is a structural change
before and after the global financial crisis.
Originality/value - This is an original study that shows that the Shari.
ah-compliant banks have performed better during the crisis and are not
affected based on their internal performance records; rather, they have
been affected indirectly from the macro shock owing to the overall
economic crisis.
RI Alam, Md. Mahmudul/B-5889-2014; Murad, Md/D-3081-2015
OI Alam, Md. Mahmudul/0000-0002-7360-1259; Murad, Md/0000-0002-2486-2081
Z8 0
ZS 0
TC 1
ZB 0
ZA 0
ZR 0
Z9 1
U1 0
U2 3
SN 1759-0817
EI 1759-0825
UT WOS:000481476800005
ER
PT J
AU Broni, Mohammed Yaw
Hosen, Mosharrof
Masih, Mansur
TI Does a country's external debt level affect its Islamic banking sector
development? Evidence from Malaysia based on Quantile regression and
Markov regime-switching
SO QUANTITATIVE FINANCE AND ECONOMICS
VL 3
IS 2
BP 366
EP 389
DI 10.3934/QFE.2019.2.366
PD 2019
PY 2019
AB The development of Islamic banking has attracted global attention,
particularly since the sub-prime crisis (2007-2008). Despite the
establishment of institutions and regulatory framework in countries that
are at the forefront of promoting Islamic banking, some stakeholders
seem to suggest that Islamic banking development is in stagnation. This
may be due to the fact that such initiatives have often ignored the
macroeconomic environment in which Islamic banks operate. One such
environment, is the external debt level of a country in which Islamic
banks operate. This paper makes an initial attempt to investigate
firstly, the impact of external debt on Islamic banking development, and
secondly, to find out whether the relationship between external debt and
Islamic banking development is linear or non-linear. Analysing ten
years' monthly data using VECM, Quantile Regression and Markov
regime-switching techniques, the findings tend to suggest that, (a)
there is a positive relationship between the external debt levels and
Islamic banking development and, (b) However, the relationship seems to
be non-linear. Under stable economic conditions, external debt has a
higher impact on Islamic banking development compared to those of
economic downturns, crises, and increased financial uncertainties.
RI Hosen, Mosharrof/Z-4000-2019
OI Hosen, Mosharrof/0000-0002-9301-4318
TC 2
ZB 0
Z8 0
ZR 0
ZA 0
ZS 0
Z9 2
U1 0
U2 0
SN 2573-0134
UT WOS:000473356000008
ER
PT J
AU Qureshi, Muhammad Hussain
Abbas, Kausar
TI PERFORMANCE ANALYSIS OF ISLAMIC AND TRADITIONAL BANKS OF PAKISTAN
VL 27
IS 1
BP 83
EP 104
PD 2019
PY 2019
AB This paper investigates the consequence of some CAMEL ratios, bank size,
type of bank and governance structure on the financial performance of
Banks. It also performs a relative analysis of Islamic and traditional
banks of Pakistan. The comparative performance analysis is based on
descriptive statistics and regression analysis. Fifteen traditional and
two pure Islamic banks are selected for the analysis. The study period
is from 2010-2017. Operational efficiency, asset quality, liquidity,
capital adequacy, size, and profitability ratios along with governance
structure are applied to identify the operational and financial
performance of Islamic and traditional banks of Pakistan. The paper
provides strong evidence that all variables such as CAMEL ratios, bank
type and bank size except governance structure are highly significant in
assessing bank performance. The findings reveal significant implications
for policymakers in assessing Islamic and traditional bank performance
in Pakistan, and ascertaining the direction of a future banking system
in Pakistan. Findings of the study also underpin the awareness and
confidence in Islamic banks of Pakistan. Furthermore, to the best of our
knowledge, no comprehensive research in Pakistan has examined the
performance of Islamic and traditional banks with variables under study
on the current data set.
TC 0
Z8 0
ZB 0
ZA 0
ZS 0
ZR 0
Z9 0
U1 0
U2 0
SN 1394-7680
UT WOS:000473293100003
ER
PT J
AU Meyappan, Baskaran
Yusof, Rosylin Mohd
Mazlan, Ahmad Rizal
TI MOVING TOWARD NON-INTEREST INCOME FOR BANKING SUSTAINABILITY: A CASE
STUDY ON DETERMINANTS OF NON INTEREST INCOME OF CIMB BANK AND RHB BANK
VL 27
IS 1
BP 105
EP 122
PD 2019
PY 2019
AB This study seeks to analyse the determinants of non-interest income for
CIMB Bank and RHB Bank in Malaysia. A comparative analysis between CIMB
Bank and RHB Bank was conducted covering the years 2004 till 2015.This
research is important to increase the banks' non-interest income revenue
or encourage banks to diversify into non-interest income whenever their
interest income is threatened. By employing time series analysis
techniques such as Vector Error Correction Model (VECM), Johansen
Co-Integration Analysis and Forecast Error Variance Decomposition (FEVD)
Analysis to identify the relationship among variables in the short run
and long run, this study finds that each bank has its unique
determinants of non-interest income. Both in the long run and short run
the determinants of non-interest income differ between CIMB Bank and RHB
Bank. These findings further suggest the potential of non-interest
income as a revenue source for banks (both conventional and Islamic).
For conventional banks, non-interest income will not make the banks
worse off and for Islamic banks, eschewing interest will also make them
as competitive as their conventional counterparts. These findings can be
useful for the banks to identify the significant variables to increase
their non-interest income or revenue.
RI Mazlan, Ahmad Rizal/AAR-7292-2020
ZB 0
ZA 0
TC 0
Z8 0
ZR 0
ZS 0
Z9 0
U1 0
U2 0
SN 1394-7680
UT WOS:000473293100004
ER
PT J
AU Noor, Noor Fadhzana Mohd
Mohamed, Juliza
TI PROFIT EQUALISATION RESERVE AND INCOME SMOOTHING PRACTICES IN MALAYSIAN
ISLAMIC BANKS: ROBUST STATISTICAL ANALYSIS
SO ASIAN ACADEMY OF MANAGEMENT JOURNAL
VL 24
BP 79
EP 92
DI 10.21315/aamj2019.24.s1.6
SU 1
PD 2019
PY 2019
AB The objective of this study is to ascertain the use of profit
equalisation reserve (PER) to mitigate displaced commercial risk (DCR).
This study proposes that the use of PER will be linked to smoothing
practices, i.e., the earnings management (EM), capital management (CM),
profit distribution management (PDM), and investment structures (IS).
Using Pool and Panel OLS models, the results show that there are
significant relationships between PER and CM, PDM, and long-term
investment structure (LTIS). Thus, the results suggest the use of PER by
banks with bigger capital to cushion for future DCR, to smooth profit
pay-outs as well as its use to manage the possible DCR in LTIS. The
results of this study however have failed to reject PER's use in EM by
the banks.
ZA 0
ZS 0
Z8 0
ZR 0
ZB 0
TC 0
Z9 0
U1 0
U2 2
SN 1394-2603
EI 1985-8280
UT WOS:000473192400007
ER
PT J
AU Altaf, Mohsin
Mokhtar, Sany Sanuri Mohd
Abd Ghani, Noor Hasmini
TI Employee Brand Equity: Mediating Role of Brand Role Clarity and Employee
Brand Commitment
VL 27
SI T1
BP 165
EP 175
PD 2019
PY 2019
AB The objective of the study is to investigate the mediating role of
employee brand commitment and brand role clarity in the relationship
between openness and employee brand equity in Islamic banking. Survey
method was used to collect the data form 278 employees working in
Islamic banking. In sampling procedure, the stratified random sampling
and simple random sampling were used in collecting the data from the
respondents. PROCESS Macros was used to check the relationships
specially mediating role of employee brand commitment and brand role
clarity in the relationships. Findings of the study demonstrate that
employee brand commitment mediates the relationship of openness and
employee brand equity while brand role clarity has no mediating role in
the relationship of openness and employee brand equity. The relationship
between variables has been tested before but the mediating role of
employee brand commitment and employee role clarity in the relationship
has not been tested before.
ZS 0
ZB 0
Z8 0
TC 0
ZR 0
Z9 0
U1 0
U2 0
SN 0128-7702
EI 2231-8534
UT WOS:000473156600012
ER
PT J
AU Aldeehani, Talla M.
TI Dividend policy as a multi-purpose mechanism; the case of conventional
and Islamic banks before and after the 2008 crisis
SO BUSINESS AND ECONOMIC HORIZONS
VL 15
IS 1
BP 37
EP 59
DI 10.15208/beh.2019.3
PD 2019
PY 2019
AB Dividend policy and its association to firm value is still a concern for
researchers. Empirical research provided evidence that it is relevant in
various forms including signaling, pecking order, and agency. The aim of
this study is to investigate the dividend policy of Islamic banks versus
conventional banks in response to a major financial crisis. By studying
the mixed banking industry of the Gulf Cooperation Council countries,
known for negligible taxation systems, we provide evidence that
conventional and Islamic banks use dividend payouts as a multi-purpose
mechanism. At times of economic prosperity, conventional banks use them
as signaling and pecking-order instruments, while it is used as an
agency problem protection instrument during downturns. For Islamic
banks, however, dividend policy is a pecking order mechanism before and
after the crisis. Discussions on theoretical and empirical implications
are provided.
ZA 0
ZB 0
ZS 0
Z8 0
ZR 0
TC 0
Z9 0
U1 0
U2 1
SN 1804-1205
EI 1804-5006
UT WOS:000471030800003
ER
PT J
AU Archer, Simon
Karim, Rifaat Ahmed Abdel
TI When benchmark rates change: the case of Islamic banks
SO JOURNAL OF FINANCIAL REGULATION AND COMPLIANCE
VL 27
IS 2
BP 197
EP 214
DI 10.1108/JFRC-11-2017-0104
PD 2019
PY 2019
AB Purpose This paper aims to examine the issue that arises in the context
of benchmark rate (or interest rate) changes made for reasons of
monetary policy in a jurisdiction with a significant presence of Islamic
banks. Changes, especially increases, in the prevailing interest rate
made by central banks raise issues of asset-liability management for
banks, which typically have longer maturities on the asset side than on
the liabilities side, resulting in exposure to interest rate risk for
conventional banks, and what is known as rate of return (RoR) risk for
Islamic banks, which for reasons of compliance with Islamic religious
law (Shari'ah) do not use interest in their operations. Islamic banks
use various financial instruments which reflect the cost of funds by
means of contracts of sale on credit or of leasing or forms of
partnership, which allow them to earn returns on their funds and to pay
returns to customers who deposit funds with them.
Design/methodology/approach The methodology of this study consisted of a
descriptive analysis of the relevant characteristics of Islamic banks
and their economic and regulatory environments, illustrated by a case
study approach applied to two jurisdictions, namely, Sudan and Malaysia.
Findings In jurisdictions where Islamic banks represent a significant
share of the market for financial services, if the contracts used in
Islamic financing allow for periodic adjustments of the profit rate or
lease rental, this could result in a significant impediment to the full
implementation of monetary policy and hence to the maintenance of
financial stability.
Originality/value This study is (to the best of authors' knowledge) the
first thorough analysis in the literature of the issues arising from the
exposure of Islamic banks to RoR risk and has clear implications for
regulatory and central bank policy.
ZB 0
ZA 0
ZS 0
ZR 0
TC 0
Z8 0
Z9 0
U1 2
U2 5
SN 1358-1988
EI 1740-0279
UT WOS:000471053600005
ER
PT J
AU Lee, Siew Peng
Isa, Mansor
TI Conventional and Islamic banks deposit rates as inflation hedges: the
case of Malaysia
SO JOURNAL OF ECONOMIC AND ADMINISTRATIVE SCIENCES
VL 35
IS 2
BP 128
EP 139
DI 10.1108/JEAS-03-2018-0037
PD 2019
PY 2019
AB Purpose The purpose of this paper is to examine the extent to which
conventional and Islamic bank fixed deposit rates can protect depositors
against inflation in the Malaysia context.
Design/methodology/approach Nominal interest rates are represented by
commercial bank fixed deposit and investment bank fixed deposit rates.
The authors use monthly data over the period 2000-2016. The authors
apply the autoregressive distributed lag bounds testing methodology to
test the existence of long-run relationship between nominal rates and
inflation, and the error-correction model to test for the short-run
dynamics.
Findings The results show that the nominal interest rate and inflation
are cointegrated for all the data series. The evidence indicates that
all the fixed deposit rates, for both conventional and Islamic banks are
effective inflation hedges in the long-run thereby supporting the Fisher
hypothesis. There is no difference in the inflation hedging ability
between conventional bank rates and Islamic bank rates. However, the
authors find no evidence of the short-run relationship between interest
rates and inflation for either bank.
Practical implications Bank regulators should be concerned on the
similarities in behaviour towards inflation between conventional and
Islamic rates, given that the deposit rates for both banks are
supposedly set based on different premises. Bank customers, they should
deposit their money for the long horizon in order to protect themselves
against inflation. Depositors worrying about inflation should be
indifferent between conventional or Islamic as both banks provide
similar inflation hedging characteristics.
Originality/value The novelty of this study is in using the bank fixed
deposit rates to study the Fisher effect in an emerging market and in
comparing the conventional and Islamic bank rates in terms of their
inflation hedging ability.
OI Lee, siew peng/0000-0001-8402-6301
Z8 0
ZA 0
ZB 0
TC 0
ZR 0
ZS 0
Z9 0
U1 0
U2 5
SN 1026-4116
EI 2054-6246
UT WOS:000469843600005
ER
PT J
AU Noordin, Nazrul Hazizi
Kassim, Salina
TI Does Shariah committee composition influence Shariah governance
disclosure?: Evidence from Malaysian Islamic banks
VL 10
IS 2
BP 158
EP 184
DI 10.1108/JIABR-04-2016-0047
PD 2019
PY 2019
AB Purpose The purpose of this paper is to investigate the empirical
linkage between the composition of Shariah Committee and the extent of
Shariah governance disclosure in 16 licensed Islamic banks in Malaysia.
Design/methodology/approach This paper adopted a multiple regression
analysis to test the association between the composition of Shariah
Committee and the extent of Shariah governance disclosure. A disclosure
index was developed to measure the extent of Shariah governance
disclosure made by the Islamic banks. Whereas to measure the extent of
Shariah governance disclosure, this study used content analysis as a
method of coding qualitative information in the annual reports.
Findings Using 2009 data, the study found a significant association
between different compositions of the Shariah Committee in the Malaysian
Islamic banks and their Shariah governance disclosure level before the
introduction of the Shariah Governance Framework (SGF). However, because
of less variation in the composition of Shariah Committee after the
introduction of SGF 2010, a weak linkage was found between the
composition of Shariah Committee and the extent of Shariah disclosure of
Malaysian Islamic banks in 2013.
Research limitations/implications Findings of this study offer several
implications for further improvements of the Malaysian Islamic banking
sector in particular, and other Islamic banks globally. As better
composition of Shariah Committee in terms of its size, academic
background and other relevant expertise would result in effective
monitoring system leading to better practices of Shariah disclosure,
this finding highlights the relevance and important role of the Shariah
Committee in improving voluntary Shariah disclosure level of the Islamic
banks. This finding suggests that ample focus has to be channelled in
strengthening the composition of Shariah Committee in crafting future
development of SGF in Malaysia. It is also suggested that Islamic banks
need to give priority in providing more education and training in
various areas of expertise to their Shariah Committee members that would
result in greater confidence of investors, stakeholders and the society
on the information disclosed by the banks.
Originality/value The novelty of this paper lies in highlighting the
importance of different composition of Shariah Committee in determining
the extent of voluntary disclosure made on Shariah matters by the
Islamic banks.
ZA 0
Z8 0
ZB 0
ZS 0
TC 1
ZR 0
Z9 1
U1 3
U2 7
SN 1759-0817
EI 1759-0825
UT WOS:000468942300001
ER
PT J
AU Farooqi, Muhammad Fuad
O'Brien, John
TI A comparison of the impact of the Basel standards upon Islamic and
conventional bank risks in the Gulf state region
VL 10
IS 2
BP 216
EP 235
DI 10.1108/JIABR-10-2016-0125
PD 2019
PY 2019
AB Purpose This paper aims to provide a comparative study of the Islamic
versus conventional banking sector risk by using market data generated
from the sample of publicly listed Islamic and conventional banks in the
Gulf Cooperation Council (GCC) region.
Design/methodology/approach The authors introduce a market-based measure
of bank stress and test this indicator against the Tier 1 Capital Ratio
using Granger causality tests.
Findings The authors find that the market-based measure is a leading
indicator of banking stress when compared to the accounting-based Tier 1
ratio and thus is relevant to the Basel regulation's Pillar 3.
Research limitations/implications This paper only looks at Islamic vs
conventional banks in the Gulf region, and the authors would like to
extend this analysis to a broader range of financial institutions,
especially in the European and North American markets.
Social implications Developing a measure that signals bank stress ahead
of typically used measures can help regulators, bank management and
investors identify oncoming problems and issues before these become too
big to manage.
Originality/value The results from this analysis provides insight into
the offsetting impact from two drivers (beta and book-to-market ratio)
of the cost of equity capital for the conventional vs Islamic banking
sectors.
ZR 0
ZA 0
TC 0
Z8 0
ZB 0
ZS 0
Z9 0
U1 0
U2 2
SN 1759-0817
EI 1759-0825
UT WOS:000468942300003
ER
PT J
AU Ahmed, Rizwan Raheem
Vveinhardt, Jolita
Streimikiene, Dalia
Pilinkiene, Vaida
TI Application of the Theory of Planned Behaviour Model for Examining
Customers' Intentions towards Islamic Hire Purchase Financing
SO INZINERINE EKONOMIKA-ENGINEERING ECONOMICS
VL 30
IS 2
BP 236
EP 245
DI 10.5755/j01.ee.30.2.21589
PD 2019
PY 2019
AB The paper deals with the issues relevant to behavioural economics
studies, demonstrating psychological and behavioural aspects of Muslim
banking customers across the world. The aim of the research is to
investigate the factors that are significant to customers using the
Islamic hire purchase (auto financing) in Pakistan. The novelty of this
study is to develop a modified model based on the Theory of Planned
Behaviour (TPB) and apply it to bridge this gap as well as to identify
the determinants. The TPB model was applied to examine the intention of
customers buying automobiles through Islamic hire purchase financing.
This study involves 730 respondents who are customers of Islamic hire
purchase (IHP) from major Islamic banks of Pakistan. The results of the
study demonstrated that the basic items of the TPB instrument, for
instance, subjective norms, attitude, and perceived behavioural control,
significantly influenced customers' intention to use Islamic hire
purchase financing. At the same time, researchers assimilated three
factors such as religious belief, pricing of Islamic banking products,
and knowledge of Islamic banking products as moderating variables. The
results verified their moderation and exhibited a significant link
between items of the Theory of Planned Behaviour model and intention to
use the Islamic hire purchase.
RI Vveinhardt, Jolita/AAB-6754-2020; Ahmed, Rizwan Raheem/B-9632-2016;
Streimikiene, Dalia/AAD-7762-2020
OI Vveinhardt, Jolita/0000-0001-6231-9402; Ahmed, Rizwan
Raheem/0000-0001-5844-5502;
ZA 0
ZS 0
ZB 0
TC 3
Z8 0
ZR 0
Z9 3
U1 0
U2 3
SN 1392-2785
EI 2029-5839
UT WOS:000466162700011
ER
PT J
AU Lee, Chi-Chuan
Lee, Chien-Chiang
TI Oil price shocks and Chinese banking performance: Do country risks
matter?
SO ENERGY ECONOMICS
VL 77
SI SI
BP 46
EP 53
DI 10.1016/j.eneco.2018.01.010
PD JAN 2019
PY 2019
AB This paper contributes to the existing literature by investigating the
impacts of oil prices on bank performance through a broad array of CAMEL
(Capital adequacy, Asset quality, Management, Earnings, and Liquidity)
indicators in China over the period 2000-2014. To gain further insights
into this issue, we also discuss whether the correlations change with
different dimensions of country risk, i.e., economic, financial, and
political, which extant studies ignored. The results reveal that oil
prices have a significant impact on banking performance, as their
increase triggers a reduction in banking performance in terms of
capitalization, management efficiency, earning power, and liquidity.
However, these adverse effects are mitigated by country stability,
especially economic stability and political stability. These results are
important for policy makers who should be cautious when formulating a
strategy for macroeconomic stability. From the managerial perspective,
bank managers should consider establishing early warning and response
mechanisms on the back of oil price shocks in order to operate under
better performance. (C) 2018 Elsevier B.V. All rights reserved.
CT 2nd Energy Finance Conference
CY 2017
CL Zhejiang Univ, Hangzhou, PEOPLES R CHINA
HO Zhejiang Univ
RI Lee, Chi-Chuan/AAD-2211-2020
OI Lee, Chi-Chuan/0000-0003-0644-1168
TC 13
Z8 0
ZB 0
ZA 0
ZS 0
ZR 0
Z9 13
U1 1
U2 7
SN 0140-9883
EI 1873-6181
UT WOS:000464087100006
ER
PT J
AU Kamarudin, Fakarudin
Sufian, Fadzlan
Nassir, Annuar Md
Anwar, Nazratul Aina Mohamad
Hussain, Hafezali Iqbal
TI Bank Efficiency in Malaysia a DEA Approach
SO JOURNAL OF CENTRAL BANKING THEORY AND PRACTICE
VL 8
IS 1
BP 133
EP 162
DI 10.2478/jcbtp-2019-0007
PD JAN 2019
PY 2019
AB The purpose of the present paper is to examine the revenue efficiency of
the Malaysian Islamic banking sector. The study also seeks to
investigate the potential internal (bank specific) and external
(macroeconomic) determinants that influence the revenue efficiency of
Malaysian domestic Islamic banks. We employ the whole gamut of domestic
and foreign Islamic banks operating in the Malaysian Islamic banking
sector during the period of 2006 - 2015. The level of revenue efficiency
is computed by using the Data Envelopment Analysis (DEA) method.
Furthermore, we employ a panel regression analysis framework based on
the Ordinary Least Square (OLS) method to examine the potential
determinants of revenue efficiency. The results indicate that the level
of revenue efficiency of Malaysian domestic Islamic banks is lower
compared to their foreign Islamic bank counterparts. We find that bank
market power, liquidity, and management quality significantly influence
the improvement in revenue efficiency of the Malaysian domestic Islamic
banks during the period under study. This study provides for the first
time empirical evidence that covering all three efficiency concepts,
namely cost, revenue, and profit efficiency is completely missing from
the literature. By calculating these efficiency concepts, we can observe
the efficiency levels of the domestic and foreign Islamic banks. In
addition, by comparing both cost and profit efficiency, we can identify
the influence of the revenue efficiency on the banks' profitability.
RI Kamarudin, Fakarudin/AAL-8942-2020; Hussain, Hafezali Iqbal/U-1483-2019; mohamad
anwar, nazratul aina/
OI Hussain, Hafezali Iqbal/0000-0002-9381-7743; mohamad anwar, nazratul
aina/0000-0003-2327-1201
ZR 0
ZB 0
Z8 0
ZA 0
ZS 0
TC 4
Z9 4
U1 0
U2 2
SN 1800-9581
EI 2336-9205
UT WOS:000456201000007
ER
PT J
AU Kanas, Angelos
Al-Tamimi, Hussein A. Hassan
Albaity, Mohamed
Mallek, Ray Saadaoui
TI Bank competition, stability, and intervention quality
VL 24
IS 1
BP 568
EP 587
DI 10.1002/ijfe.1680
PD JAN 2019
PY 2019
AB We use a flexible semi-parametric estimation approach and a sample of
7,227 U.S., U.K., and Canadian banks for 2009-2015 to provide evidence
that banking stability is non-linearly determined by competition. We
show that stability is not monotonic against competition, and may
increase and decrease at high competition, has a mixed behaviour at
medium competition, and increases at low competition. This non-monotonic
stability behaviour at different competition levels is attributed to the
intervention quality, which is found to be an important determinant of
the competition-stability relation. It is non-linearly related to and
being revised at different competition levels. As intervention is a
policy variable, its level can be adjusted to reduce the competition
effects on stability. We illustrate that for the U.S. banking sector,
the intervention quality has to hedge these competition effects.
Regulators should treat intervention quality as a "hedging instrument"
against the destabilizing competition effects.
OI Saadaoui Mallek, Ray/0000-0003-0019-7010; Albaity,
Mohamed/0000-0002-0805-8392
ZA 0
ZB 0
ZS 0
TC 1
Z8 0
ZR 0
Z9 1
U1 0
U2 2
SN 1076-9307
EI 1099-1158
UT WOS:000455484400036
ER
PT J
AU Erfani, G. Rod
Vasigh, Bijan
TI The Impact of the Global Financial Crisis on Profitability of the
Banking Industry: A Comparative Analysis
SO ECONOMIES
VL 6
IS 4
AR 66
DI 10.3390/economies6040066
PD DEC 2018
PY 2018
AB In this paper, the effects of the recent global financial crisis on
efficiency and profitability of financial institutions were analyzed. In
a comparative study, the impacts of the global financial crisis on the
performance of Islamic and commercial banks were examined. The
fundamental difference between Islamic and conventional banking is that
Islamic banking is founded upon the ethical principles of Islamic
tradition and law (Sharia). By utilizing a sample of eight Islamic banks
and eleven commercial banks, the impact of the global financial crisis
on efficiency and profitability of the banking sector was evaluated.
This study covered the period from 2006 to 2013. The results of this
research were obtained from the Altman Z-score model, ratio analysis,
the data envelopment analysis (DEA) method, and the seemingly unrelated
regression (SUR) model. The results show that during the study period,
Islamic banks (IBs) managed to maintain their efficiency while most
commercial banks (CBs) suffered a loss in their efficiency. Furthermore,
this study found that the financial crisis did not have a significant
impact on the profitability of Islamic banks.
ZS 0
Z8 0
ZR 0
ZA 0
TC 3
ZB 0
Z9 3
U1 0
U2 3
SN 2227-7099
UT WOS:000455065500015
ER
PT J
AU Naqvi, Bushra
Rizvi, S. K. A.
Ugaili, Hina Ahmed
Chaudhry, S. M.
TI What enables Islamic banks to contribute in global financial
reintermediation?
VL 52
SI SI
BP 5
EP 25
DI 10.1016/j.pacfin.2017.12.001
PD DEC 2018
PY 2018
AB Conventional banks which once were competing with non-banking financial
institutions and capital markets today face the new challenge of being
reintermediated by Islamic banks. Earlier academic research has been
debating over disintermediation and reintermediation of conventional
banks, but consistently failed to address reintermediation through
Islamic banks as a possibility. This study, however, fills the void by
addressing the novel possibility of re intermediation "within" the
banking sector and is the first attempt to analyze and compare Islamic
and conventional banks from the perspective of reintermediated financial
markets.
After identifying the reintermediation trends led by Islamic banks we
investigate several bank specific financial and non-financial
characteristics that might have enabled Islamic banks to emerge as an
important player in reintermediated financial markets. By keeping our
focus on slightly modified version of CAMELS framework where 'S'
represents "Service Quality" we find that along with better
capitalization (C) and improved liquidity (L), better service quality
(S) is another distinguished feature of Islamic banks that might be
linked with their high degree of intermediation.
OI Chaudhry, Sajid/0000-0001-8769-8920
ZB 0
TC 1
ZA 0
ZR 0
ZS 0
Z8 0
Z9 1
U1 0
U2 1
SN 0927-538X
EI 1879-0585
UT WOS:000454468300002
ER
PT J
Sulaiman, Ahmad Azam
Said, Noor Latifah Hanim Mohd
TI Does financing structure affects bank liquidity risk?
VL 52
SI SI
BP 26
EP 39
DI 10.1016/j.pacfin.2017.04.004
PD DEC 2018
PY 2018
AB This paper investigates whether FS affects bank liquidity risk. Using
the Malaysian banking data sets, we compare the FS-liquidity risk
relationships between the Islamic and conventional banking institutions.
FSs are measured by real estate financing, financing concentration,
short-term FS stability, and finally medium-term FS stability.
Meanwhile, for liquidity risk measures, we adopt the BASEL III approach
such as liquidity coverage ratio (LCR) and the net stable funding ratio
(NSFR) in quantifying short- and long-term liquidity risk, respectively.
The unbalanced static panel regressions of 27 conventional and 17
Islamic banks from 1994 to 2014 were analyzed to evaluate the
relationships. Our results illustrate that increasing number of real
estate financing and short-term FS stability of the Islamic banks may
increase both their short- and long-term liquidity risks. On the other
hand, even though real estate financing does not affect liquidity risks
of the conventional banks, increasing short-term FS stability and
financing specialization may increase their long-term liquidity risk. As
the liquidity risk behavior, to some extent, differs between the two
banking systems, we recommend the regulatory bodies and market players
to develop a separate liquidity risk management framework for
conventional and Islamic banking institutions.
RI sulaiman@mohamad, ahmad azam/B-8148-2010; Abdul-Rahman, Aisyah/H-7345-2016
OI sulaiman@mohamad, ahmad azam/0000-0002-5822-749X; Abdul-Rahman,
Aisyah/0000-0001-8347-2705
Z8 0
ZS 0
TC 4
ZR 0
ZA 0
ZB 0
Z9 4
U1 3
U2 19
SN 0927-538X
EI 1879-0585
UT WOS:000454468300003
ER
PT J
AU Chen, Naiwei
Liang, Hsin-Yu
Yu, Min-Teh
TI Asset diversification and bank performance: Evidence from three Asian
countries with a dual banking system
VL 52
SI SI
BP 40
EP 53
DI 10.1016/j.pacfin.2018.02.007
PD DEC 2018
PY 2018
AB This study examines the effect of asset diversification on bank
performance in three Asian countries with a dual banking system from
2006 to 2012. We find that diversification generally has a negative
effect on the performance of conventional banks, but a minimal effect on
that of Islamic banks. Considering bank size, diversification positively
affects the profitability of large Islamic and conventional banks, and
such a positive effect is more pronounced among Islamic banks.
OI YU, Min-Teh/0000-0003-4686-1327; , Hsin-Yu/0000-0001-8988-6490
ZS 0
ZA 0
ZR 0
Z8 0
ZB 0
TC 5
Z9 5
U1 2
U2 13
SN 0927-538X
EI 1879-0585
UT WOS:000454468300004
ER
PT J
AU Leon, Florian
Weill, Laurent
TI Islamic banking development and access to credit
VL 52
SI SI
BP 54
EP 69
DI 10.1016/j.pacfin.2017.04.010
PD DEC 2018
PY 2018
AB The recent expansion of Islamic banks raises questions on its economic
implications. The aim of this paper is to investigate the impact of
Islamic banking development on access to credit. We combine data from a
unique hand-collected database that covers Islamic banks with firm-level
data covering developing and emerging countries over the period of 2006
to 2009. We find that Islamic banking development has overall no impact
on credit constraints, while banking development and conventional
banking development alleviate obstacles to financing. However Islamic
banking development exerts a positive impact on access to credit when
conventional banking development is low. Hence we support the view that
Islamic banking does not overall alleviate obstacles to financing, but
it can act as substitute to conventional banking.
OI LEON, Florian/0000-0002-6969-7278
TC 1
ZR 0
ZB 0
ZS 0
ZA 0
Z8 0
Z9 1
U1 0
U2 5
SN 0927-538X
EI 1879-0585
UT WOS:000454468300005
ER
PT J
AU Narayan, Paresh Kumar
Sharma, Susan Sunila
Thuraisamy, Kannan Sivananthan
Westerlund, Joakim
TI Some preliminary evidence of price discovery in Islamic banks
VL 52
SI SI
BP 107
EP 122
DI 10.1016/j.pacfin.2017.12.007
PD DEC 2018
PY 2018
AB In this paper using time-series data for a large number of Islamic bank
stocks belonging to eight Islamic countries we test for evidence of
price discovery. We find that in each of the eight countries there
appears a bank that dominates the price discovery process. We then
utilize this information on price discovery to form a portfolio of price
discovery dominating bank stocks and compare its performance with
portfolios of banks characterized by country and volatility. We show
that buying a portfolio of price discovery dominant banks and selling
most of the country-specific and volatility portfolios allow an investor
to maximise profits or minimise loss. Our results are (a) robust to
non-Islamic banks and to a larger sample of combined Islamic and
non-Islamic banks, and (b) suggest that economic significance of price
discovery is stronger for non-Islamic banks.
RI narayan, paresh/AAE-8777-2019; Sharma, Susan Sunila/Z-2053-2019; Thuraisamy,
Kannan/
OI Thuraisamy, Kannan/0000-0001-5164-5456
ZS 0
ZR 0
Z8 0
TC 6
ZB 0
ZA 0
Z9 6
U1 0
U2 0
SN 0927-538X
EI 1879-0585
UT WOS:000454468300008
ER
PT J
AU Trinugroho, Irwan
Risfandy, Tastaftiyan
Ariefianto, Mochammad Doddy
TI Competition, diversification, and bank margins: Evidence from Indonesian
Islamic rural banks
VL 18
IS 4
BP 349
EP 358
DI 10.1016/j.bir.2018.07.006
PD DEC 2018
PY 2018
AB This paper examines the determinants of bank margins in Indonesian
Islamic rural banks. We find that bank margins are affected mainly by
competition and diversification. In this less competitive market,
Islamic rural banks are able to set high margins. Islamic rural banks
are also tend set high margins when they do not diversify their revenue,
referring to the cross-subsidization strategy. We also find that the
impact of competition and diversification on bank margins are more
pronounced in the banks with lower bank's loan contract diversification
and also banks with a higher proportion of profit-and-loss sharing (PLS)
lending. However, those impacts diminish when Islamic banks are located
in provinces with above-average numbers of Muslims and located outside
Java. Our empirical results therefore also suggest that regional
differences matter for bank margins. Copyright (C) 2018, Borsa Istanbul
Anonim Sirketi. Production and hosting by Elsevier B.V.
RI Trinugroho, Irwan/O-6374-2019; Ariefianto, Doddy/; Trinugroho, Irwan/; Risfandy,
Tastaftiyan/
OI Ariefianto, Doddy/0000-0002-5282-9406; Trinugroho,
Irwan/0000-0003-4911-7982; Risfandy, Tastaftiyan/0000-0002-5544-726X
ZB 0
ZS 0
Z8 0
ZA 0
ZR 0
TC 4
Z9 4
U1 0
U2 0
SN 2214-8450
EI 2214-8469
UT WOS:000452917300008
ER
PT J
AU Ghosh, Saibal
TI Bad luck, Bad policy or Bad banking ? Understanding the financial
management behavior of MENA banks
SO JOURNAL OF MULTINATIONAL FINANCIAL MANAGEMENT
VL 47-48
BP 110
EP 128
DI 10.1016/j.mulfin.2018.10.001
PD DEC 2018
PY 2018
AB The importance of management behaviour for MENA country banks has gained
significant importance, especially in the wake of the financial crisis.
To address this issue, we exploit bank-level data across MENA countries
for an extended time period and examine the different facets of
management behaviur. The analysis provides evidence in favor of bad luck
hypothesis that is equally applicable to both conventional and Islamic
banks. Relatedly, we also find that the moral hazard hypothesis and the
gamble for resurrection hypothesis to be relevant, although the relative
importance of the management behavior differs across bank ownership.
Further disaggregation by country categorizations shows that this
behavior varies between oil exporters and oil importers as also between
countries with explicit and implicit deposit insurance. (C) 2018
Elsevier B.V. All rights reserved.
TC 1
ZR 0
Z8 0
ZB 0
ZA 0
ZS 0
Z9 1
U1 0
U2 3
SN 1042-444X
EI 1873-1309
UT WOS:000451674000008
ER
PT J
AU Neifar, Souhir
Jarboui, Anis
TI Corporate governance and operational risk voluntary disclosure: Evidence
from Islamic banks
VL 46
BP 43
EP 54
DI 10.1016/j.ribaf.2017.09.006
PD DEC 2018
PY 2018
AB The objective of the present paper is to explore the impact of the
mechanisms of corporate governance on the informational content of
Operational Risk (OR) voluntary disclosure. The content analysis method
was used to collect data on the OR disclosure from annual reports of 34
Islamic banks scattered in various countries and over a period ranging
from 2008 to 2014. Using correlation and multiple regression analyses,
our results show that the information disclosed on OR, especially that
of quality, is considered as value-relevant for investors as they have
additional information content in risk assessment of banks. Empirical
results reveal the significant impact of independent directors on the OR
voluntary disclosure reported information. Conversely, the concentration
of the chairman and chief executive officer responsibilities on the same
person reduces it. The crucial presence of monitoring bodies,
particularly, the Shariah Supervisory Board and the external auditor
type affect significantly the OR information that listed Islamic banks
disclosure voluntarily in their annual reports.
Z8 0
ZB 0
ZR 0
TC 9
ZA 0
ZS 0
Z9 9
U1 2
U2 41
SN 0275-5319
EI 1878-3384
UT WOS:000445029500004
ER
PT J
AU Haridan, Nurfarahin M.
Hassan, Ahmad F. S.
Karbhari, Yusuf
TI Governance, religious assurance and Islamic banks: Do Shariah boards
effectively serve?
SO JOURNAL OF MANAGEMENT & GOVERNANCE
VL 22
IS 4
BP 1015
EP 1043
DI 10.1007/s10997-018-9418-8
PD DEC 2018
PY 2018
AB This study examines the quality of governance and religious assurance
provided by Shariah boards (SBs) when undertaking the crucial compliance
review required in fulfilling the expected ethical and social legitimacy
of Islamic banks. To better understand the complex behavioural
processes, we explore the governance role of SBs and assess issues
related to competence, effectiveness and independence in the light of
the newly adopted 2011 Malaysian Shariah Governance Framework (SGF). A
series of semi-structured interviews were undertaken with key
individuals in two well-established fully-fledged Malaysian Islamic
banks. Our findings reveal that the newly implemented SGF has generally
brought about some of the benefits hoped for by its regulatory
architects. We find the quality of religious assurance to have been
enhanced due to the emphasis placed on religious audit giving rise to
improved credibility. However, we report the compliance review process
to be inadequately undertaken with SBs still excessively reliant on
internal officers implying possible independence compromise. We
highlight concerns relating to (1) the general level of competency of
individual SB members; (2) lack of technical banking and finance
knowledge; and (3) SB members generally fulfilling a ceremonial role
rather than undertaking vigilant monitoring. Our findings lead us to
question the full impact of the new 2011 SGF and query the value and
effectiveness of SBs. We make the call for the establishment of external
religious auditors to render compliance assurance which could provide
the much-needed impetus to improve governance and increase market and
stakeholder confidence.
OI Sheikh Hassan, Ahmad Fahmi/0000-0002-5240-8054
Z8 0
TC 3
ZB 0
ZR 0
ZA 0
ZS 0
Z9 3
U1 0
U2 5
SN 1385-3457
EI 1572-963X
UT WOS:000451049700009
ER
PT J
AU Apaydin, Fulya
TI Regulating Islamic banks in authoritarian settings: Malaysia and the
United Arab Emirates in comparative perspective
SO REGULATION & GOVERNANCE
VL 12
IS 4
BP 466
EP 485
DI 10.1111/rego.12201
PD DEC 2018
PY 2018
AB Until recently, most empirical support for theories on regulatory
governance has been derived from democratizing and democratic settings.
The assumption behind the selection of these cases relies on an
understanding that non-democratic systems will not nurture independent
and autonomous regulatory practices. This paper closely examines this
claim by problematizing variations in the regulation of the Islamic
banking and finance industry based on recent findings from Malaysia and
the United Arab Emirates. Combining historical data with field
interviews, the findings reveal that historical legacies and regime
institutions that frame political competition play a more nuanced role
in the contemporary governance of market exchanges in non-democratic
settings. In particular, the type of political competition in
authoritarian regimes influences the resulting configuration of
regulatory institutions that govern Islamic banking and finance, which
accommodate varying degrees of autonomy.
OI Apaydin, Fulya/0000-0001-7208-5857
TC 1
ZB 0
Z8 0
ZR 0
ZS 0
ZA 0
Z9 1
U1 0
U2 1
SN 1748-5983
EI 1748-5991
UT WOS:000450139500003
ER
PT J
AU Saif-Alyousfi, Abdulazeez Y. H.
Saha, Asish
Md-Rus, Rohani
TI Impact of oil and gas prices shocks on banks' deposits in an oil and
gas-rich economy Evidence from Qatar
VL 13
IS 5
BP 875
EP 901
DI 10.1108/IJoEM-07-2017-0266
PD NOV 29 2018
PY 2018
AB Purpose The purpose of this paper is to investigate and compare the
impact of oil and gas prices changes on bank deposits at the aggregate
as well as at the level of commercial and Islamic banks in Qatar over
the period 2000-2016. Design/methodology/approach Using the BankScope
Database as well as bank-level balance sheet and financial statements
data, the authors use one-step system GMM dynamic model to examine and
compare the association between oil and gas prices changes with bank
deposits in Qatar. The authors also test hypotheses of direct and
indirect impacts of oil and gas prices changes on bank deposits.
Findings The results indicate that oil and gas prices changes have a
direct impact on deposits of banks at the aggregate level in Qatar.
However, the authors find that oil and gas price changes significantly
affect deposits of Qatari commercial banks directly prompting enhanced
lending by banks and the consequent business activities in the economy,
while their impact on the deposits of Qatari Islamic banks is indirect,
i.e. the impact is permeated through the macroeconomic and institutional
characteristics of the country that are reinforced by the growing
expectations and commercial sentiment of the country. The authors find
that significant association between oil price changes and deposit
growth during the global financial crisis 2008 has been distorted.
However, the authors find that there was a sharp rise in the deposits of
Islamic banks during the period of global financial crisis. Practical
implications The results of this study necessitate policy measures that
can counter the effects of changes in oil and gas prices on the
effectiveness of bank deposits. Originality/value It is widely
recognized that oil and gas prices and the level of production are of
great importance to the economic development of oil and gas exporting
countries. So far, however, no econometric study has been reported in
the literature which analyses and compares the impact of oil and gas
prices changes on bank deposits of commercial and Islamic banks and also
at the aggregate level in any of the oil-exporting economies. Thus, this
study provides the first empirical evidence on distinct direct and
indirect channels through which oil and gas prices changes may affect
bank deposits.
RI Saif-Alyousfi, Abdulazeez Y.H./AAO-6507-2020
ZB 0
ZS 0
ZA 0
Z8 0
ZR 0
TC 3
Z9 3
U1 0
U2 3
SN 1746-8809
EI 1746-8817
UT WOS:000457690500008
ER
PT J
AU El-Halaby, Sherif
Hussainey, Khaled
Abou-El-Sood, Heba
TI The non-economic consequences of disclosure in Islamic banks
VL 13
IS 6
BP 1948
EP 1968
DI 10.1108/IJoEM-12-2017-0572
PD NOV 29 2018
PY 2018
AB Purpose The purpose of this paper is to examine the effect of sharia,
social and financial disclosure on stakeholders' loyalty towards Islamic
banks (IBs). The paper also aims to examine the extent to which trust
and satisfaction mediate this effect. Design/methodology/approach It
uses data collected from 600 respondents to survey questionnaires
disseminated to stakeholders from 15 countries dealing with IBs.
Structural equation modelling is adopted with a partial least square
approach. Findings The results indicate that there is a significant
impact of disclosure on stakeholders' trust, satisfaction, and loyalty.
The results also indicate that there is a partial mediating effect of
trust and satisfaction in the relationship between disclosure and
loyalty. This paper is one of the first studies examining the effect of
disclosure on stakeholders' loyalty. The authors provide novel findings,
which have theoretical and practical implications for disclosure in IBs
and their relationship with stakeholders. Originality/value The analysis
offers a novel contribution to the Islamic banking literature by
offering the first evidence on the impact of disclosure on stakeholders'
trust, satisfaction, and loyalty.
OI El-Halaby, Sherif/0000-0003-4716-4208
ZB 0
TC 3
ZS 0
ZA 0
ZR 0
Z8 0
Z9 3
U1 0
U2 1
SN 1746-8809
EI 1746-8817
UT WOS:000457689300026
ER
PT J
AU Al-Homaidi, Eissa A.
Tabash, Mosab, I
Farhan, Najib H. S.
Alnnaqtari, Faozi A.
TI Bank-specific and macro-economic determinants of profitability of Indian
commercial banks: A panel data approach
SO COGENT ECONOMICS & FINANCE
VL 6
IS 1
AR 1548072
DI 10.1080/23322039.2018.1548072
PD NOV 15 2018
PY 2018
AB This study aims at finding out the determinants of Indian commercial
banks profitability. Profitability of Indian banks is measured by three
important variables namely, Return on Assets (ROA), Return on Equity
(ROE) and Net Interest Margin (NIM). The study also uses a set of
independent variables such as bank-specific factors which include bank
size, assets quality, capital adequacy, liquidity, operating efficiency,
deposits, leverage, assets management and the number of branches.
Pooled, fixed and random effects models and Generalized Method of
Moments (GMM) are built on panel data of 10years for more than 60
commercial banks of India.The study also takes into account Gross
Domestic Product (GDP), inflation rate, interest rate and exchange rate
as macroeconomic determinants. The results of the study show that all
bank-specific factors, except the number of branches, exhibited
significant impacts on profitability as measured by NIM. The findings
also show that all macroeconomic determinants used in the study are
found to be significant with negative impacts on Indian commercial banks
profitability. Furthermore, the results show that bank size, number of
branches, assets management ratio and leverage ratio are highly
significant variables of profitability in the context of Indian
commercial banks as measured by ROA. The results give a better insight
into the Indian banking sector and the determinants of its profitability
RI Al-Homaidi, Eissa A./AAI-9631-2020; Almaqtari, Faozi A./X-8307-2019; Al-Homaidi,
Eissa A./AAL-8890-2020; Tabash, Dr. Mosab/
OI Al-Homaidi, Eissa A./0000-0002-6230-8276; Almaqtari, Faozi
A./0000-0002-5625-3643; Tabash, Dr. Mosab/0000-0003-3688-7224
Z8 0
ZS 0
TC 3
ZA 0
ZB 0
ZR 0
Z9 3
U1 1
U2 5
SN 2332-2039
UT WOS:000451540400001
ER
PT J
AU Aziz, Shahab
Afaq, Zahra
TI Adoption of Islamic banking in Pakistan an empirical investigation
SO COGENT BUSINESS & MANAGEMENT
VL 5
IS 1
AR 1548050
DI 10.1080/23311975.2018.1548050
PD NOV 14 2018
PY 2018
AB The purpose of this paper is to investigate the factors affecting
individuals' intentions to adopt Islamic banking. Most of the previous
studies have used theory of reasoned action and theory of planned
behaviour; however, decomposed theory of planned behaviour, which is
proven robust and superior, has been used in very few studies. The
present study gauges this gap and proposes a comprehensive model for
adoption of Islamic banking. The study also incorporated antecedents of
attitude, subjective norms and perceived behavioural control to enhance
understanding of factors relevant to the adoption of Islamic banking. A
sample of 186 bank customers has been selected for data collection.
Variance-based partial least-squares structural equation modelling was
employed for data analysis. Results show that attitude and subjective
norms have significant positive relationship with intention to adopt
Islamic banking. The result depicts that attitude is determined by
awareness, uncertainty, relative advantage and compatibility. Subjective
norm is determined by normative beliefs. Perceived behavioural control
is determined by self-efficacy and resource facilitation condition. The
findings of the study are important for Islamic banks to revamp their
marketing strategies. Marketing managers should try to develop positive
attitude through creating awareness and benefits of Islamic banking
services. Positive word of mouth is also an important aspect which can
be created through enhancing the service delivery to the existing
customers.
RI aziz, shahab/Y-5048-2019
OI aziz, shahab/0000-0003-1275-3061
Z8 0
ZS 0
ZA 0
ZR 0
TC 0
ZB 0
Z9 0
U1 1
U2 4
SN 2331-1975
UT WOS:000451167800001
ER
PT J
AU Haris, Muhammad
Yao, HongXing
Tariq, Gulzara
Javaid, Hafiz Mustansar
Malik, Ali
TI The Impact of Intellectual Capital and Employee Size on Bank
Profitability: A Comparative Study of Islamic and Conventional Banks in
Pakistan
SO PACIFIC BUSINESS REVIEW INTERNATIONAL
VL 11
IS 5
BP 66
EP 82
PD NOV 2018
PY 2018
AB This study compares the magnitude of the impact of the value-added
intellectual coefficient (VAIC) and large employee size on the
profitability of Islamic and conventional banks in Pakistan. To examine
the impact of intellectual capital (IC) on profitability, the graphical
method and t-test are used. The robust results of this study suggest
that value-added intellectual coefficient (VAIC) has the higher positive
impact on the profitability of conventional banks than Islamic banks,
while human capital efficiency (a component of VAIC) has the higher
positive impact on the profitability of Islamic banks than conventional
banks. This study has found lower profitability for conventional and
Islamic banks having large employee size. The t-test comparison
indicates that conventional banks have the higher mean profitability and
value-added intellectual coefficient than Islamic banks. Overall, the
findings of the study suggest that investment in human capital has
potential to engender higher value forthe sustained growth of banks.
RI Javaid, Hafiz Mustansar/AAE-8234-2020; Haris, Muhammad/P-4984-2019; Haris,
Muhammad/S-1086-2017
OI Haris, Muhammad/0000-0003-0440-8794; Haris, Muhammad/0000-0003-0440-8794
ZA 0
ZS 0
Z8 0
ZB 0
ZR 0
TC 2
Z9 2
U1 0
U2 1
SN 0974-438X
UT WOS:000464554500007
ER
PT J
AU Abuzayed, Bana
Al-Fayoumi, Nedal
Molyneux, Phil
TI Diversification and bank stability in the GCC
VL 57
BP 17
EP 43
DI 10.1016/j.intfin.2018.04.005
PD NOV 2018
PY 2018
AB This study examines bank diversification strategies and links to
financial sector stability. Using a sample of listed and unlisted banks
operating in the Gulf Cooperation Council (GCC) countries over 2001 to
2014 we investigate the diversification features of conventional and
Islamic banks. Our main finding overall is that income or asset
diversification does not enhance bank stability. However, there is
evidence of a non-linear relationship between non-interest
(non-financing) income and stability indicating that banks are able to
reduce risk at higher levels of diversification. Conventional banks
appear to be more adversely impacted on the risk side than Islamic
banks. We also find that factors such as improved institutional quality,
macroeconomic conditions, and other bank-specific factors motivate
greater stability. (C) 2018 Elsevier B.V. All rights reserved.
OI Molyneux, Philip/0000-0001-6210-7418
Z8 0
ZA 0
ZS 0
TC 7
ZB 0
ZR 0
Z9 7
U1 1
U2 2
SN 1042-4431
UT WOS:000452323900002
ER
PT J
AU Lassoued, Mongi
TI Comparative study on credit risk in Islamic banking institutions: The
case of Malaysia
VL 70
BP 267
EP 278
DI 10.1016/j.qref.2018.05.009
PD NOV 2018
PY 2018
AB The study of credit risk is a great interest and the debate over the
relative credit risk of Islamic banks remains open. The study aims at
addressing this key question: Do Islamic banks (IBs) have higher credit
risk than conventional banks (CBs) in Malaysia? Accordingly, some papers
tried to answer this question but they were performed using
cross-country data. The cross-country data should have been treated more
cautiously since every country has its own developmental backgrounds and
regional resulting in different characteristics of banking industry.
Moreover, different financial systems that give support or limit the
operation of Islamic banks will also make more difficult to compare the
data of each country. For that reason, it is suggested to take suitable
control for heterogeneity across countries to obtain consistently good
conclusions about the credit risk. Different from the cross-country
works, this study will focus on the country-level data of Malaysia. A
panel data model was applied and it was used the generalized least
squares (GLS) model and a yearly bank level data to evaluate the credit
risk of 22 conventional banks and 17 Islamic banks in Malaysia. In
addition, the study period, which lasted from 2005 to 2015, seems to be
representative since it encompasses the period of the sub-prime crisis.
This project is an extension of the study begun by Cihak and Hesse
(2008) that used cross-country bank data such Malaysia. The results are
particularly interesting and do not confirm the results generated by
these researchers. The main contribution that this work will hopefully
make is to show the reasons which account for the Islamic banks' higher
degree of credit risk, and particularly to provide additional insights
and complement the existing cross-country studies on Islamic bank
stability. (C) 2018 Board of Trustees of the University of Illinois.
ZR 0
ZB 0
ZS 0
Z8 0
TC 3
ZA 0
Z9 3
U1 3
U2 8
SN 1062-9769
EI 1878-4259
UT WOS:000452539600021
ER
PT J
AU Alatassi, Bchr
Letza, Steve
TI Best practice in bank corporate governance: The case of Islamic banks
SO ECONOMICS AND BUSINESS REVIEW
VL 4
IS 4
BP 115
EP 133
DI 10.18559/ebr.2018.4.7
PD NOV 2018
PY 2018
AB Islamic banks are growing rapidly with annual growth rates of 17.6%
between 2009 to 2013 and 19.7% from 2014 to date. This level of growth
is projected to continue into the future. Islamic banks now operate in
more than 75 countries with a value of approximately $920 trillion of
bank assets. Islamic banks are increasingly being seen as good long-term
value propositions and are serving both Muslim and non-Muslim customers
across international markets. Despite the rapid growth in Islamic
finance, the underpinning corporate governance rules and regulations are
at an embryonic stage of development with little attention having been
paid to them. The purpose of this paper is to help fill that gap by
exploring a conceptual model of corporate governance for Islamic banks
based on both Islamic finance principles while fused with elements of
corporate governance standards from Western theories and codes,
primarily the UK, and thereby ensure that good governance is in place in
Islamic banks. The paper links the predominant corporate governance
theories of Principal/Agent, Stakeholder and Stewardship with practice
based corporate governance codes and explores the potential of applying
stewardship theory to Islamic banks. Islamic principles emphasis is on
real assets rather than debt as is the case in Western Banks and as a
consequence this paper offers the conclusion that the more prudent
approach to banking used by Islamic banks could be used as a model for
Western banks and thereby deliver a more sustainable future and maintain
confidence in banks and substitute for the need for taxpayer support,
such as the guaranteed deposit scheme, which acts as a backstop under
the Western approach.
ZS 0
ZR 0
Z8 0
TC 0
ZB 0
ZA 0
Z9 0
U1 1
U2 1
SN 2392-1641
EI 2450-0097
UT WOS:000451177800007
ER
PT J
AU Othman, Norfaizah
TI Determinants of Banking Crises in ASEAN Countries
SO JOURNAL OF INTERNATIONAL COMMERCE ECONOMICS AND POLICY
VL 9
IS 3
AR 1850009
DI 10.1142/S1793993318500096
PD OCT 2018
PY 2018
AB This paper attempts to estimate the determinants of crises on Islamic
banking system during financial crises using early warning system (EWS)
with particular focus on the element of profit-loss sharing. Profit-loss
sharing has significant impact in reducing crisis probability
experienced by the Islamic banking system. This suggests that
profit-loss sharing may be considered as one of the risk mitigation
techniques for bank to remain resilient during the crises. The results
further show that full-fledged Islamic banks have higher chances of
experiencing crises relative to the Islamic subsidiaries banks. In
addition, economic freedom and overvaluation in the currency are more
likely exposed to banks to the crises.
RI Othman, Norfaizah/AAS-9055-2020; Abdul-Majid, Mariani/AAE-3801-2020
ZA 0
Z8 0
ZR 0
ZB 0
TC 0
ZS 0
Z9 0
U1 0
U2 2
SN 1793-9933
EI 1793-9941
UT WOS:000457110900003
ER
PT J
AU Caporale, Guglielmo Maria
Helmi, Mohamad Husam
TI Islamic banking, credit, and economic growth: Some empirical evidence
VL 23
IS 4
BP 456
EP 477
DI 10.1002/ijfe.1632
PD OCT 2018
PY 2018
AB This paper examines the effects of Islamic banking on the causal
linkages between credit and gross domestic product (GDP) by comparing
two sets of seven emerging countries, the first without Islamic banks
and the second with a dual banking system including both Islamic and
conventional banks. Unlike previous studies, it checks the robustness of
the results by applying both time series and panel methods; moreover, it
tests for both long- and short-run causality. In brief, the findings
highlight significant differences between the two sets of countries
reflecting the distinctive features of Islamic banks. Specifically, the
time series analysis provides evidence of long-run causality running
from credit to GDP in countries with Islamic banks. This is confirmed by
the panel causality tests, although in this case short-run causality in
countries without Islamic banks is also found.
OI Caporale, Guglielmo Maria/0000-0002-0144-4135
ZA 0
ZB 0
TC 2
ZS 0
Z8 0
ZR 0
Z9 2
U1 0
U2 6
SN 1076-9307
EI 1099-1158
UT WOS:000447140900008
ER
PT J
AU Hamza, Hichem
Saadaoui, Zied
TI Monetary transmission through the debt financing channel of Islamic
banks: Does PSIA play a role?
VL 45
BP 557
EP 570
DI 10.1016/j.ribaf.2017.09.004
PD OCT 2018
PY 2018
AB This paper examines the monetary transmission mechanism through Islamic
banks' debt financing channel. Its purpose is to test if this channel
effectively works and to verify whether the reaction of Islamic banks to
interest rates depends on their specific characteristics. The research
main focus is on the possible mitigating effect that profit sharing
investment accounts (PSIA) could exert on the debt financing channel,
since that this source of funding, specific to Islamic banks, is
expected to be more stable than deposit accounts for conventional banks.
The study uses a quite representative sample composed of 50 Islamic
banks and the estimation of a dynamic panel model observed between 2005
and 2014 using the system GMM estimator. Empirical findings confirm the
presence of a debt financing channel of monetary policy since that
interest rates variation affects Islamic bank financing. PSIA growth,
capitalization, assets liquidity and size are among major determinants
of Islamic banks' debt assets supply. Besides, using several robustness
tests, we show that, in addition to asset liquidity and bank size,
growth rate of PSIA significantly mitigate the negative effect of
interest rates on debt financing growth, which highlights the importance
of this specific category of deposits in monetary transmission
especially for countries where Islamic and conventional banking systems
coexist.
Z8 0
ZR 0
ZB 0
ZS 0
TC 5
ZA 0
Z9 5
U1 0
U2 10
SN 0275-5319
EI 1878-3384
UT WOS:000432864600045
ER
PT J
AU Mahdi, Ines Ben Salah
Abbes, Mouna Boujelbene
TI Behavioral explanation for risk taking in Islamic and conventional banks
VL 45
BP 577
EP 587
DI 10.1016/j.ribaf.2017.07.111
PD OCT 2018
PY 2018
AB The objective of this paper is to provide a behavioral explanation for
risk taking in Islamic and conventional banks. Within the prospect
theory framework; we consider the bias of loss aversion and mental
accounting to explain the risk behavior in Islamic and conventional
banks in the MENA region. We use the Fishburn's (1977) risk measure and
the Kendall's t to test the prospect theory predictions. Several
measures of performance and risk are used as target level. The results
for the two types of banks are too similar and provided evidence for
Fishburn's (1977) risk measure and Tversky and Kahneman's (1992)
cumulative prospect theory. Banks above the target level tend to show
risk aversion behavior, while the banks listed below tend to be
risk-oriented. This finding provides evidence for the loss aversion bias
and mental accounting.
ZB 0
TC 0
ZR 0
Z8 0
ZS 0
ZA 0
Z9 0
U1 0
U2 6
SN 0275-5319
EI 1878-3384
UT WOS:000432864600047
ER
PT J
TI Relationship between capital, risk and liquidity: a comparative study
between Islamic and conventional banks in MENA region
VL 45
BP 588
EP 596
DI 10.1016/j.ribaf.2017.07.113
PD OCT 2018
PY 2018
AB The aim of this paper is to investigate the determinants and the joint
relationship between capital, risk and liquidity of conventional and
Islamic banks. Particularly, we focus on the impact of financial and
political instabilities on the risk-taking behavior of conventional and
Islamic banks. Using the simultaneous equation model with partial
adjustment, we find a positive bidirectional relationship between
capital and risk of Islamic banks. Moreover, results highlight the risky
aspect of this category of banks mainly caused by the type of contracts
put in practice, obeying Sharia principles, such as Moudharaba and
Moucharaka contracts. Also, changes in liquidity affect positively risk
within Islamic and conventional banks, suggesting that both types of
banks, by accumulating liquid assets; tend to have relatively riskier
portfolios. Moreover, we find a significant impact of the Global
financial crisis on the capital, risk and liquidity of conventional and
Islamic banks.
ZB 0
TC 7
ZR 0
Z8 0
ZS 0
ZA 0
Z9 7
U1 1
U2 14
SN 0275-5319
EI 1878-3384
UT WOS:000432864600048
ER
PT J
AU Fakhrunnas, Faaza
Dari, Wulan
Mifrahi, Mustika Noor
TI Macroeconomic effect and risk-taking behavior in a dual banking system
VL 10
IS 2
BP 165
EP 176
PD OCT 2018
PY 2018
AB This study aims to analyze the relationship between macroeconomic
factors and risk-taking behavior in a dual banking system. Adopting a
panel cointegration approach, this research posits macroeconomic factors
as exogenous variables and risk-taking behavior as endogenous variables.
With having 468 quarterly-observations consisting of 18 banks in
Indonesia during 2010-Q4 to 2017-Q1, it finds that the risk-taking
behavior of the banks has a long-term relationship with macroeconomic
factors. Moreover, conventional bank has long-term relationship to
macroeconomic nonetheless it results inversely to Islamic bank. In terms
of bank-specified characteristics, bank size and equity to asset ratio
are substantial factors for the banks' risk mitigation.
ZB 0
TC 1
ZA 0
ZR 0
ZS 0
Z8 0
Z9 1
U1 0
U2 1
SN 2086-3128
EI 2502-180X
UT WOS:000447314400005
ER
PT J
AU Roumieh, Ahmad
Garg, Lalit
Gupta, Vipul
Singh, Gurparkash
TI E-Marketing Strategies for Islamic Banking: A Case Based Study
SO JOURNAL OF GLOBAL INFORMATION MANAGEMENT
VL 26
IS 4
SI SI
BP 67
EP 91
DI 10.4018/JGIM.2018100105
PD OCT-DEC 2018
PY 2018
AB This article describes how e-marketing is increasingly gaining interest
within Islamic businesses. It is important to consider the extent to
which it fits comfortably within principle notions of Islam and Sharia
law. An Islamic business should ensure that its e-marketing strategy
must be devoid of any contentious or exaggerated claims and there must
be no excessive risk. As marketing practices include accentuating the
benefits and features of products and services, and downplaying the
negative attributes which potentially could lead to a consumer making an
informed decision based on this unbalanced presentation. Arguably, this
presents a form of risk that may be at odds with the fundamental tenets
of Islam. This article presents a case-study of a large bank in Kuwait
to identify how e-Marketing can be implemented more effectively to
attract new customers and retain the existing ones by critically
evaluating the viability of e-marketing strategies for promoting Islamic
banking. A set of recommendations are also provided to support all
Islamic Banks in the development of an e-marketing strategy.
CT International Conference on Computers and Management (ICCM)
CY DEC 28-29, 2016
CL Kota, INDIA
SP Rajasthan Tech Univ
RI Singh, Gurparkash/F-5442-2019; Garg, Lalit/AAE-6453-2019
OI Garg, Lalit/0000-0002-3868-0481
TC 0
ZR 0
ZB 0
Z8 0
ZS 0
ZA 0
Z9 0
U1 0
U2 19
SN 1062-7375
EI 1533-7995
UT WOS:000439306500006
ER
PT J
AU Upton, Elizabeth J.
TI Chartering Fintech: The OCC's Newest Nonbank Proposal
SO GEORGE WASHINGTON LAW REVIEW
VL 86
IS 5
BP 1392
EP 1437
PD SEP 2018
PY 2018
AB The Office of the Comptroller of the Currency is responsible for
ensuring federally chartered banks' safety and soundness, compliance
with federal banking laws, and compliance with federal laws regarding
fair access to financial services and fair treatment of customers. The
states have historically over-seen and regulated nonbank companies,
including nonbank financial services providers like money transmitters,
mortgage lenders, consumer lenders, and debt collectors. Applicable
regulations include state safety and soundness requirements and both
state and federal consumer protection and anti-money laundering laws. In
2016, the OCC announced its intention to create a new national bank
charter for nonbank companies, thus pulling chartered nonbank fintech
companies into the national bank regulatory system. This will
potentially preempt and replace the licensing, regulation, and
supervision responsibilities of state authorities while allowing
circumvention of other regulatory safeguards. Moreover, this power grab
by the OCC is beyond its authority as delegated by Congress. In addition
to questions of the legality of the charters and whether state or
federal regulators are better situated to regulate such institutions,
the proposed charters raise significant concerns regarding the
separation of commerce and banking that has been a hallmark of the U.S.
financial regulatory system since the founding of the country.
ZS 0
TC 0
Z8 0
ZR 0
ZA 0
ZB 0
Z9 0
U1 2
U2 11
SN 0016-8076
UT WOS:000446477200007
ER
PT J
AU Boukhatem, Jamel
Ben Moussa, Fatma
TI The effect of Islamic banks on GDP growth: Some evidence from selected
MENA countries
VL 18
IS 3
BP 231
EP 247
DI 10.1016/j.bir.2017.11.004
PD SEP 2018
PY 2018
AB The purpose of this paper is twofold. First, it seeks to establish a
consistent theoretical framework for the relationship between Islamic
finance and economic growth. Second, it attempts to assess empirically
the effect that Islamic banking loans had on the economic growth of 13
countries in the MENA region during the 2000-2014 period. We found
strong evidence to suggest that financial system development stimulated
economic growth in the selected MENA countries over the studied period.
Furthermore, we found that while Islamic financial development can boost
economic growth, this positive effect is hindered by underdeveloped
institutional frameworks. In addition, net-oil-exporting MENA countries
do not appear to benefit from large oil-fueled deposits that are likely
to increase the scale of loans. The findings suggest that governments
should consider implementing proactive and favorable economic and
institutional policies that are geared toward Islamic finance. Copyright
(C) 2017, Borsa Istanbul Anonim Sirketi. Production and hosting by
Elsevier B.V.
TC 7
ZA 0
ZR 0
ZB 0
ZS 0
Z8 0
Z9 7
U1 0
U2 6
SN 2214-8450
EI 2214-8469
UT WOS:000445126000006
ER
PT J
AU Platonova, Elena
Asutay, Mehmet
Dixon, Rob
Mohammad, Sabri
TI The Impact of Corporate Social Responsibility Disclosure on Financial
Performance: Evidence from the GCC Islamic Banking Sector
SO JOURNAL OF BUSINESS ETHICS
VL 151
IS 2
BP 451
EP 471
DI 10.1007/s10551-016-3229-0
PD AUG 2018
PY 2018
AB This paper examines the relationship between corporate social
responsibility (CSR) and financial performance for Islamic banks in the
Gulf Cooperation Council (GCC) region over the period 2000-2014 by
generating CSR-related data through disclosure analysis of the annual
reports of the sampled banks. The findings of this study indicate that
there is a significant positive relationship between CSR disclosure and
the financial performance of Islamic banks in the GCC countries. The
results also show a positive relationship between CSR disclosure and the
future financial performance of GCC Islamic banks, potentially
indicating that current CSR activities carried out by Islamic banks in
the GCC could have a long-term impact on their financial performance.
Furthermore, despite demonstrating a significant positive relationship
between the composite measure of the CSR disclosure index and financial
performance, the findings show no statistically significant relationship
between the individual dimensions of the CSR disclosure index and the
current financial performance measure except for 'mission and vision'
and 'products and services'. Similarly, the empirical results detect a
positive significant association only between 'mission and vision'
dimension and future financial performance of the examined banks.
OI Asutay, Mehmet/0000-0003-4939-6053
ZA 0
ZR 0
ZS 1
TC 50
Z8 0
ZB 2
Z9 51
U1 11
U2 70
SN 0167-4544
EI 1573-0697
UT WOS:000440992000010
ER
PT J
AU L'Huillier, Barbara
Rizwan, Muhammad Suhail
Ashraf, Dawood
TI Net Stable Funding Requirement under Basel III: Loan Portfolio Growth
Matters
SO ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES
VL 47
IS 4
BP 477
EP 500
DI 10.1111/ajfs.12221
PD AUG 2018
PY 2018
AB This paper evaluates the perceived stability-enhancing role of the net
stable funding ratio (NSFR) requirement under Basel III and its impact
on the balance sheets of banks. Using data from 647 banks located in 47
countries from 2003 to 2013, we find that the NSFR would have played a
financial stability-enhancing role if it had been implemented during the
sample period. However, the NSFR requirement would also have had a loan
portfolio shrinkage affect and increases the possibility of sub-optimal
loan portfolio selection. Our results suggest that there are costs and
benefits to implementing the NSFR requirement.
RI Ashraf, Dawood/E-9305-2019
OI Ashraf, Dawood/0000-0003-1097-6974
ZA 0
Z8 0
ZR 0
ZB 0
ZS 0
TC 2
Z9 2
U1 0
U2 11
SN 2041-9945
EI 2041-6156
UT WOS:000443677900001
ER
PT J
AU Malim, Nurhafiza Abdul Kader
Normalini, M. K.
TI Factors Influencing the Margins of Islamic Banks
SO GLOBAL BUSINESS REVIEW
VL 19
IS 4
BP 1026
EP 1036
DI 10.1177/0972150918772970
PD AUG 2018
PY 2018
AB This article investigates the factors influencing the margins of Islamic
banks in 15 countries for the period 2007-2013. The article also
analyses the effect of the global financial crisis (2007-2009) on the
Islamic banks' margins. Despite the rapid growth of Islamic banking, the
margins of Islamic banks remain higher than conventional banks. The
margins reflect the costs of financial intermediation, as higher margins
may discourage clients from using bank services. The findings reveal
that the margins of Islamic banks are affected mainly by capital
adequacy, overhead costs, liquidity risk, bank size and institutional
development. Interestingly, the crisis has a positive impact on Islamic
banks' margins. These findings will be useful for the design of policies
in narrowing the margins.
OI md kassim, normalini/0000-0002-5685-7340
Z8 0
ZB 0
ZR 0
ZS 0
TC 0
ZA 0
Z9 0
U1 1
U2 3
SN 0972-1509
EI 0973-0664
UT WOS:000438570900014
ER
PT J
AU Rehman, Asma Abdul
Benamraoui, Abdelhafid
Dad, Aasim Munir
TI A comparative study of Islamic and conventional banks' risk management
practices: empirical evidence from Pakistan
SO JOURNAL OF BANKING REGULATION
VL 19
IS 3
BP 222
EP 235
DI 10.1057/s41261-017-0046-z
PD JUL 2018
PY 2018
AB While conventional bank risk management practices are well documented in
the literature, there is limited research devoted at comparing the risk
management practices of Islamic and conventional banks and how the
recent financial crisis affected the approach taken in each banking
model to manage the risks. In this paper, we use self-administered
questionnaire to collect data from 150 bank senior managers and risk
specialists from Pakistani conventional and Islamic banks to identify
the main contributing factors to their risk management practices after
the 2007-2008 financial crisis. The study results reveal that risk
identification, risk assessment and analysis, credit risk analysis and
risk governance are the most efficient and influential variables in
explaining the risk management practices of Islamic banks, while
understanding risk management, credit risk analysis and risk governance
are the most significant and contributing variables in the risk
management practices of conventional banks. Differences are also
observed between Islamic and conventional banks in their liquidity risk
analysis and risk governance. The results presented in this study are
likely to benefit bank managers, investors, regulators and policymakers
as they will serve them as guide when developing, reformulating and
overseeing the bank(s) existing risk management practices.
ZB 0
TC 2
ZR 0
ZS 0
ZA 0
Z8 0
Z9 2
U1 1
U2 5
SN 1745-6452
EI 1750-2071
UT WOS:000455390800003
ER
PT J
AU Solarin, Sakiru Adebola
Hammoudeh, Shawkat
Shahbaz, Muhammad
TI Influence of economic factors on disaggregated Islamic banking deposits:
Evidence with structural breaks in Malaysia
VL 55
BP 13
EP 28
DI 10.1016/j.intfin.2018.02.007
PD JUL 2018
PY 2018
AB This paper contributes to the existing empirical literature on savings
and Islamic banking systems by comprehensively examining the
determinants of Islamic banking deposits in Malaysia. Initially, we
examine the factors affecting the deposits in Islamic banking by types,
which include investment deposits, demand deposits, savings deposits,
ringgit Tawarruq deposits, dollar Tawarruq deposits and negotiable
instrument deposits. Additionally, we investigate the determinants of
deposits in Islamic banking by holders including household deposits,
business deposits, financial institution deposits, federal government
deposits, state government deposits and statutory agency deposits. We
also examine the factors affecting the total deposits in the Islamic
banking system. After confirming that the variables are stationary in
the first difference through the use of the residual augmented least
squares (RALS) procedure of Meng et al. (2014), we use the
break-augmented co-integration methods of Johansen et al. (2000) and
Giles and Godwin (2012) to check the co-integrating relationships and
generate the long run coefficients of the variables. The results show
that industrial production index, real interest rates on fixed and
savings deposits have positive impacts on several components of Islamic
banking deposits and the total deposits of Islamic banks, while real
interest rates on deposits in commercial banks have a negative impact.
However, the roles of both the Shariah index and the real exchange rate
are mixed. (C) 2018 Elsevier B.V. All rights reserved.
RI Shahbaz, Muhammad/AAD-9038-2019
ZA 0
ZS 0
ZR 0
TC 3
ZB 0
Z8 0
Z9 3
U1 0
U2 3
SN 1042-4431
UT WOS:000441925500002
ER
PT J
AU Hasan, Hafnida
Maamor, Selamah
Abdullah, Hussin
TI EVALUATING THE EFFECT OF ISLAMIC FINANCING TO FINANCIAL DEVELOPMENT:
EVIDENCE FROM OIC COUNTRIES
SO INTERNATIONAL JOURNAL OF MANAGEMENT STUDIES
VL 25
IS 2
BP 71
EP 89
PD JUL 2018
PY 2018
AB The development of Islamic finance is governed by Islamic laws
(Shariah). The main principles that regulate all forms of transactions
in Islamic banking activities include the prohibition of interest or
usury (riba), the use of excessive risk (gharar), and gambling (maysir).
The Islamic finance industry has become a prominent sector and is one of
the fastest growing components of financial developments over the last
decade in the global financial system. The availability of large numbers
of Islamic finance products will increase significantly as there have
been a growing demand throughout the world, especially in OIC
participating countries. Hence, the objective of this study is to
identify the important factors that enhances financial development in
the selected OIC countries (Malaysia, Indonesia, Jordan, Kuwait, Saudi
Arabia, Sudan and Yemen). Three indicators of financial development were
used; Islamic finance, broad money and liquid liabilities. The data used
in this study is the panel data from the year 1990 to 2012 which were
obtained from the International Monetary Fund, Islamic Banks and
Financial Institutions Information (IBIS), and World Bank databases.
This study employed pooled OLS, fixed and random effect model. The
results indicate that there are significant relationships between
Islamic finance and financial development. Specifically, this study
found that liquid liabilities and Islamic finance are two factors that
have significantly influenced financial development in the OIC
countries. Furthermore, the findings suggest that the OIC governments
are required to develop policies that would integrate Islamic finance
into their financial system. These policies should be centred around
regulatory framework and supervisory role to utilize Islamic finance for
greater economic growth.
ZS 0
ZR 0
ZA 0
TC 0
ZB 0
Z8 0
Z9 0
U1 0
U2 0
SN 0127-8983
EI 2180-2467
UT WOS:000509903900004
ER
PT J
AU Alqahtani, Faisal
Mayes, David G.
TI Financial stability of Islamic banking and the global financial crisis:
Evidence from the Gulf Cooperation Council
SO ECONOMIC SYSTEMS
VL 42
IS 2
BP 346
EP 360
DI 10.1016/j.ecosys.2017.09.001
PD JUN 2018
PY 2018
AB Using a sample of 76 banks from the Gulf Cooperation Council region, we
use accounting-as well as market-based measures of financial stability
to examine whether Islamic banks outperformed conventional banks in the
time of financial shocks during the period 2000-2013. We find that the
difference between the two banking types was initially not significant
during the GFC. However, when the financial shock spread to the real
economy during the later phases of the crisis, Islamic banks suffered a
significantly higher level of financial instability than conventional
banks. This result holds true for large banks but not for small Islamic
banks. Small Islamic banks demonstrated a relatively better handling of
the economic downturn than large Islamic banks, supporting the argument
that Islamic banks are more stable when they operate at a small scale
but lose this stability when they increase their scale of operations.
Hence, while Islamic banks may have escaped the consequences of highly
volatile financial instruments, they were not spared from a major shock
in the real economic sectors.
ZR 0
TC 18
ZB 0
ZS 0
Z8 0
ZA 0
Z9 18
U1 0
U2 5
SN 0939-3625
EI 1878-5433
UT WOS:000437385500012
ER
PT J
AU Nawaz, Tasawar
TI Lifting the Lid on Financial Inclusion: Evidence from Emerging Economies
SO INTERNATIONAL JOURNAL OF FINANCIAL STUDIES
VL 6
IS 2
AR 59
DI 10.3390/ijfs6020059
PD JUN 2018
PY 2018
AB Financial inclusion has become a subject of growing interest for
academics, professionals, and policy-makers in recent times. Researchers
stress the importance of financial inclusion and highlight the
significant role of financial institutions, such as banks, in promoting
financial inclusion. Therefore, it is imperative to analyse the role and
commitment of banks in promoting financial inclusion, especially those
financial institutions (i.e., Islamic banks) which came into existence
to promote socio-economic justice through redistribution of wealth in
society. The study is built on the argument that Islamic banking
business model is based on intangible sources i.e., Shari'ah law and
such sources are exploited to create value i.e., stability,
profitability and financial inclusion. The empirical analysis support
the hypothesis that Islamic banks utilize various tangible and
non-tangible resources to promote financial inclusion. Hence, Islamic
banks are serving as the ultimate source of financial inclusion in the
society.
ZS 0
ZR 0
Z8 0
ZA 0
TC 1
ZB 0
Z9 1
U1 0
U2 8
SN 2227-7072
UT WOS:000436496800026
ER
PT J
AU Almansour, Abdullah
Ongena, Steven
TI Bank loan announcements and religious investors: Empirical evidence from
Saudi Arabia
SO JOURNAL OF EMPIRICAL FINANCE
VL 47
BP 78
EP 89
DI 10.1016/j.jempfin.2018.02.002
PD JUN 2018
PY 2018
AB We study how investors in a conservative Muslim society react to
announcements of bank loans depending on their compliance with Shari'a
law. We hand-collect 173 announcements of bank loans granted to listed
corporations in Saudi Arabia, assess their issuance and estimate the
reaction of the borrowing firms' stocks. We find that loans that are not
Shari'a compliant are larger and are granted to larger firms.
Controlling for firm and loan characteristics commonly present in other
loan announcement studies, we further document that equity market
investors react negatively to non-compliant loan announcements with the
two-day cumulative abnormal return preceding the announcement up to 1.8
percentage points lower for the smaller non-compliant loans. (C) 2018
ZS 0
ZB 0
TC 0
Z8 0
ZR 0
ZA 0
Z9 0
U1 0
U2 0
SN 0927-5398
EI 1879-1727
UT WOS:000437080200005
ER
PT J
Rizvi, Syed Aun R.
TI Bank lending, deposits and risk-taking in times of crisis: A panel
analysis of Islamic and conventional banks
VL 35
BP 31
EP 47
DI 10.1016/j.ememar.2017.12.003
PD JUN 2018
PY 2018
AB In this study, we conduct a panel analysis of Islamic and conventional
banks to ascertain whether Islamic banks are able to sustain financing
supply and whether its growth is higher than conventional bank lending
growth in times of stress. For concreteness, we also assess whether the
sustained financing supply of Islamic banks is justified by a
concomitant increase in Islamic deposit growth and is not linked to
excessive risk taking. Utilizing a panel sample of 25 Islamic banks and
114 conventional banks from 10 dual-banking countries, we observe
sustained financing supply by Islamic banks but significant reduction in
the lending growth by conventional banks during the crisis period. The
results further suggest that the financing growth of Islamic banks is
higher than the lending growth of conventional banks during the crisis
period. However, we find no clear evidence that the deposit growth of
Islamic banks behaves differently during the period. Finally, there is
no indication to suggest that Islamic banks exhibit excessive risk
taking in times of stress. Our results contribute to the evidence
supporting the contributive role of the Islamic banking system to
financial and economic stability. (C) 2017 Elsevier B.V. All rights
reserved.
RI Rizvi, Syed Aun R./B-1215-2017; Rizvi, Syed Aun R/AAI-5807-2020; Ibrahim,
Mansor/AAU-6887-2020; Haroon, Omair/O-9174-2019; Ibrahim, Mansor/
OI Rizvi, Syed Aun R./0000-0002-6976-299X; Haroon,
Omair/0000-0002-6976-299X; Ibrahim, Mansor/0000-0003-0413-0075
ZA 1
ZB 0
ZR 0
ZS 0
Z8 0
TC 12
Z9 13
U1 2
U2 9
SN 1566-0141
EI 1873-6173
UT WOS:000436903100003
ER
PT J
AU Bitar, Mohammad
Hassan, M. Kabir
Hippler, William J.
TI The determinants of Islamic bank capital decisions
VL 35
BP 48
EP 68
DI 10.1016/j.ememar.2017.12.002
PD JUN 2018
PY 2018
AB We report new evidence on the bank and institutional determinants of
Islamic bank capital ratios in 28 countries between 1999 and 2013.
Overall, we find that smaller, more profitable, and highly liquid
Islamic banks are more highly capitalized. Additionally, improvements in
the economic and financial environments and market discipline within a
country correspond with higher Islamic bank capitalization. The results
shed light on the impact that Sharia'a law restrictions have on Islamic
banking capitalization. Our findings are most robust to banks that
choose to hold capital well in excess of that required by regulators,
consistent with traditional capital structure theory. Our results
highlight the role that stable economic and political systems play in
improving bank capitalization and reducing financial sector risk. By
reducing political instability and corruption, improving legal systems,
and encouraging access to capital markets, policymakers may incentivize
managers to make financing decisions that increase the capitalization of
the Islamic banking industry in developing countries. (C) 2017 Elsevier
OI Hassan, M. Kabir/0000-0001-6274-3545
ZS 0
ZB 0
Z8 0
ZR 0
ZA 0
TC 5
Z9 5
U1 0
U2 6
SN 1566-0141
EI 1873-6173
UT WOS:000436903100004
ER
PT J
AU Azad, A. S. M. S.
Azmat, Saad
Chazi, Abdelaziz
Ahsan, Amirul
TI Can Islamic banks have their own benchmark?
VL 35
BP 120
EP 136
DI 10.1016/j.ememar.2018.02.002
PD JUN 2018
PY 2018
AB This paper attempts to answer whether Islamic banks can have their own
benchmark rate. In so doing, the paper investigates the nature of the
relationship Islamic interbank benchmark rate (IIBR) and its comparable
conventional counterpart, London interbank offer rate (LIBOR). The
dynamics of the two series are investigated to examine the stability of
the spread between IIBR and LIBOR, referred to as 'Islamic premium' or
'piety premium'. The findings suggest that there are both long-term and
short-term dynamic relationships between the two rates providing
significant evidence of their convergence and co-movement. Our results
also show that the existence of the IIBR-LIBOR spread is a reflection of
the cost of funding and profit potential of the participating IIBR
rate-setters. We find that, in addition to the determinants of the
credit spreads, fundamental news of the panel banks are dominant factors
driving the 'piety premium'. We argue that the Islamic banking industry
is operating in a global context, where it is highly improbable that its
rates can decouple from the global benchmarks. Given that Islamic
banking products and their risk return profile are similar to
conventional products, arbitrage activities force Islamic rates to
converge with the global benchmark rates. (C) 2018 Elsevier B.V. All
rights reserved.
OI Chazi, Abdelaziz/0000-0002-8865-269X
ZR 0
ZS 0
ZA 0
Z8 0
TC 4
ZB 0
Z9 4
U1 1
U2 2
SN 1566-0141
EI 1873-6173
UT WOS:000436903100008
ER
PT J
AU Aysan, Ahmet F.
Ozturk, Huseyin
TI Does Islamic banking offer a natural hedge for business cycles? Evidence
from a dual banking system
SO JOURNAL OF FINANCIAL STABILITY
VL 36
BP 22
EP 38
DI 10.1016/j.jfs.2018.02.005
PD JUN 2018
PY 2018
AB We examine the lending patterns in the Turkish Islamic banking over
business cycles. We find that, similar to conventional banks, Islamic
banks in Turkey exhibit procyclical lending pattern. We also find that
Islamic bank lending does not show significant difference from
conventional bank lending. The results conflict with some of the
findings that indicate Islamic banks as natural stabilizers in the
banking systems. We emphasize that regulatory amendments of the last
decade that are effective on Islamic banks could induce these banks to
lend procyclically. To test the validity of this conjecture, we
empirically examine how the state of competition in the Turkish banking
system affects bank lending across business cycles by disentangling the
effects separately for Islamic and conventional banks. The results
suggest that the degree of competition spur bank lending procyclicality
at the same magnitude, confirming the convergence between Islamic and
conventional banks in their lending patterns. We also discuss several
other issues in Islamic banking which may lead to the procyclicality of
lending. (C) 2018 Elsevier B.V. All rights reserved.
TC 1
ZS 0
Z8 0
ZA 0
ZB 0
ZR 0
Z9 1
U1 0
U2 11
SN 1572-3089
EI 1878-0962
UT WOS:000434490200003
ER
PT J
AU Farag, Hisham
Mallin, Chris
Ow-Yong, Kean
TI Corporate governance in Islamic banks: New insights for dual board
structure and agency relationships
VL 54
BP 59
EP 77
DI 10.1016/j.intfin.2017.08.002
PD MAY 2018
PY 2018
AB We investigate the influence of the dual board structure on the
financial performance of Islamic banks. The paper also investigates the
unique agency relationships using a sample of 90 Islamic banks across 13
countries over the period 2006-2014. We find that the larger the
Shari'ah Supervisory Board (SSB) the better the financial performance
and this result reinforces the fundamental role of the SSB to certify
permissible financial instruments and products. We also find evidence of
the scope of operation hypothesis with respect to both the board of
directors and the SSB as Islamic banks are characterised by a higher
degree of complex operations. Interestingly, we find that a larger SSB
size may result in lower agency costs and that the greater the size of
the unrestricted contracts, the higher the agency costs. This implies
that unrestricted profit-sharing contracts are one of the main sources
of the unique agency relationships in Islamic banks. The paper has a
number of policy implications for regulators including the design of
governance mechanisms in Islamic banks and the dynamics of unrestricted
contracts. (C) 2017 Elsevier B.V. All rights reserved.
Z8 0
ZR 0
ZA 0
ZS 0
ZB 0
TC 13
Z9 13
U1 0
U2 7
SN 1042-4431
UT WOS:000438145100005
ER
PT J
AU Ghosh, Saibal
TI Governance reforms and performance of MENA banks: Are disclosures
effective?
SO GLOBAL FINANCE JOURNAL
VL 36
BP 78
EP 95
DI 10.1016/j.gfj.2018.01.002
PD MAY 2018
PY 2018
AB Relatively little research has addressed the impact of corporate
governance reforms and associated disclosure norms on the performance of
MENA country banks. We combine the staggered timing of corporate
governance reforms related to disclosures across MENA countries with
bank-level data for the period 2000-2012 to examine this impact. The
analysis suggests that certain categories of disclosures-specifically,
disclosures of board independence and foreseeable risk-significantly
affect bank performance and stability. The key channels through which
this influence works are lower interest costs, better access to finance,
and improved regulatory standards. The results also suggest that reforms
related to disclosure exert a differential effect on the performance and
stability of Islamic banks.
RI Ghosh, Saibal/M-2476-2019
ZR 0
Z8 0
ZA 0
ZS 0
ZB 0
TC 4
Z9 4
U1 0
U2 8
SN 1044-0283
EI 1873-5665
UT WOS:000430875800006
ER
PT J
AU Kaffash, Sepideh
Matin, Reza Kazemi
Tajik, Mohammad
TI A directional semi-oriented radial DEA measure: an application on
financial stability and the efficiency of banks
SO ANNALS OF OPERATIONS RESEARCH
VL 264
IS 1-2
BP 213
EP 234
DI 10.1007/s10479-017-2719-5
PD MAY 2018
PY 2018
AB Data envelopment analysis (DEA) is a widely used non-parametric
technique for measuring the relative efficiencies of decision-making
units with multiple inputs and multiple outputs. The main caveat of
traditional DEA models is that they are applicable to positive inputs
and outputs, while negative data are commonly present in most real
applications. To accommodate variables that can take both negative and
positive values, Emrouznejad et al. (Eur J Oper Res 200(1):297-304,
2010a) introduced the Semi-Oriented Radial Measure (SORM) model, which
was later modified by Kazemi Matin et al. (Measurement 54:152-158,
2014). The present study proposes a new version of the modified SORM
model, using directional distance function and choosing a relevant
direction to efficiently deal with variables with both positive and
negative values. Our Directional SORM (DSORM) model is superior to its
predecessors from both computational and target settings perspectives
while it allows for the dual formulation of linear programming. To
illustrate our proposed model, we employ two widely used selections of
inputs and outputs to estimate the efficiency scores for a sample of
banks operating in Persian Gulf Council Countries (GCC) over the period
of 2002-2011. The estimated efficiency scores are then used to study the
impact of financial system stability on technical efficiency of
individual banks.
RI Matin, Reza Kazemi/Y-8237-2019
OI Matin, Reza Kazemi/0000-0002-0282-1801
Z8 0
ZB 0
ZA 0
TC 1
ZR 0
ZS 0
Z9 1
U1 2
U2 31
SN 0254-5330
EI 1572-9338
UT WOS:000429206500008
ER
PT J
AU Othman, Jaizah
Asutay, Mehmet
TI Integrated early warning prediction model for Islamic banks: the
Malaysian case
SO JOURNAL OF BANKING REGULATION
VL 19
IS 2
BP 118
EP 130
DI 10.1057/s41261-017-0040-5
PD APR 2018
PY 2018
AB It is increasingly becoming important to predict the performance of
Islamic banks in order to anticipate a problem before it materializes
and negatively affects banks' performance and financial standing.
Benefiting from the earlier research on the subject, this study aims to
develop a preliminary integrated early warning model for Islamic banks
in Malaysia to assess their financial standing by using quarterly data
for the 2005-2010 period. Factor analysis and three parametric models
(discriminant analysis, logic analysis, and probit analysis) are used in
this study. Out of 29 variables used in the early stage of study, only
13 were selected as predictor variables in this study. Results show
that, overall, classification accuracy is relatively high in the first
few quarters before the benchmark quarter (2010 Q3) for all the
estimated models. Correct classification rates are high during the first
few quarters and decrease subsequently. Based on these results,
therefore, it is obvious that the first few quarters before the
benchmark quarter are the most important for making a correct
prediction. These results show the predictive ability of the integrated
model to differentiate healthy and non-healthy Islamic banks, thus
reducing the expected cost of bank failure.
RI Othman, Jaizah/AAE-3148-2020; Asutay, Mehmet/
OI Othman, Jaizah/0000-0001-8106-4484; Asutay, Mehmet/0000-0003-4939-6053
ZA 0
ZS 0
TC 0
ZB 0
ZR 0
Z8 0
Z9 0
U1 1
U2 1
SN 1745-6452
EI 1750-2071
UT WOS:000455389700003
ER
PT J
AU Wong, Chin-Yoong
Eng, Yoke-Kee
TI Is optimal Islamic financial contract stabilizing? The perspective of a
New Keynesian model with the financial accelerator
VL 71
BP 121
EP 133
DI 10.1016/j.econmod.2017.12.007
PD APR 2018
PY 2018
AB This paper aims to inspect the stabilization aspects of Islamic
financial contracts by drawing on a New Keynesian macroeconomic model
with the financial accelerator. The model allows for shared
responsibilities on both the assets and liabilities sides of the Islamic
banks that resemble, in principle, the two-tiered Mudarabah financing on
the asset side and profit-sharing investment accounts on the liability
side. The implied optimal Islamic financial contract argues that payoff
distribution between entrepreneur and bank is contingent on the
macroeconomic environment via the entrepreneur's leverage, whereas that
between bank and investors is endogenous to bank's capital and leverage.
Compared to the conventional debt contract with a predetermined return,
we find that an Islamic financial contract amplifies shocks as much as
conventional financial contracts do, if not to a greater extent. The
impacts on entrepreneurs' and banks' leverage, however, depend largely
on the source of the shock and are opposite to those observed under
conventional debt contract. Whereas favorable aggregate supply and
monetary shocks increase the overall leverage, shocks favorably hitting
preference and marginal efficiency of investment reduce the leverage.
The underlying mechanism is the shock-shifting ex post payoff
distribution between creditors and debtors that shapes the cost of the
external finance and, thus, leverage.
ZS 0
ZB 0
ZR 0
TC 0
Z8 0
ZA 0
Z9 0
U1 0
U2 1
SN 0264-9993
EI 1873-6122
UT WOS:000435748300011
ER
PT J
AU Sghaier, Asma
Ben Jabeur, Sami
Bannour, Boutheina
TI Using partial least square discriminant analysis to distinguish between
Islamic and conventional banks in the MENA region
SO REVIEW OF FINANCIAL ECONOMICS
VL 36
IS 2
BP 133
EP 148
DI 10.1002/rfe.1018
PD APR 2018
PY 2018
AB The deterioration of bank profitability poses a threat not only to the
interests of consumers and internal staff members but also affects
investors who may equally suffer from significant financial losses. It
is important to establish an effective system which assists investors in
their investment choices. In prior literature, traditional models have
been developed, but achieved short-term performances such as logistic
regression and discriminant analysis. This paper applies a partial least
squares discriminant analysis (PLS-DA) to distinguish between
conventional and Islamic banks in the Middle East and North Africa
(MENA) region based on the financial information for the period
2005-2011. This method can successfully identify the non-linearity and
correlations between financial indicators. The results demonstrate
superior performance of the proposed method. On one hand, our model can
select all financial ratios to distinguish between banks and at the same
time identify the most important variables in the distinction process.
On the other hand, the proposed model has high levels in terms of
accuracy and stability.
RI sghaier, asma/W-6309-2019; Jabeur, Sami Ben/S-8482-2019
OI sghaier, asma/0000-0002-8651-6459;
ZA 0
ZB 0
TC 0
Z8 0
ZR 0
ZS 0
Z9 0
U1 3
U2 8
SN 1058-3300
EI 1873-5924
UT WOS:000430186100004
ER
PT J
AU Yanikkaya, Halit
Gumus, Nihat
Pabuccu, Yasar Ugur
TI How profitability differs between conventional and Islamic banks: A
dynamic panel data approach
VL 48
BP 99
EP 111
DI 10.1016/j.pacfin.2018.01.006
PD APR 2018
PY 2018
AB This paper analyzes and compares the dynamics for the profitability of
conventional banks and Islamic banks in the Organization of Islamic
Cooperation countries and the United Kingdom between 2007 and 2013 using
a sample of 74 Islamic and 354 conventional commercial banks. "Net
interest margin" and "return on asset" are employed as variables
representing the profitability and several new explanatory variables are
introduced such as, the usage of self-service banking channels,
penetration of financial services, crude oil/agriculture price indexes
and asset ratio of non-Murabahah assets of Islamic Banking. Dynamic
panel data estimates indicate that almost all explanatory variables of
profitability for conventional and Islamic banks are different implying
that profitability of Islamic banks relies on the different dynamics
than that of conventional ones. Both profitability measures are not
persistent over time and neither of them has significant relationship
with the country specific macroeconomic variables. Estimation results
imply the importance of new product and alternative channel development
in enhancing the profitability of Islamic banks. Moreover, our analysis
shows that the usage of products which promotes more risk sharing as
compared to the products based on Murabahah structure can contribute to
the performance of Islamic banks.
OI YANIKKAYA, Halit/0000-0003-1542-0174
TC 14
Z8 0
ZR 0
ZB 0
ZA 0
ZS 0
Z9 14
U1 2
U2 19
SN 0927-538X
EI 1879-0585
UT WOS:000429760000007
ER
PT J
AU Elnahass, Marwa
Izzeldin, Marwan
Steele, Gerald
TI Capital and Earnings Management: Evidence from Alternative Banking
Business Models
SO INTERNATIONAL JOURNAL OF ACCOUNTING
VL 53
IS 1
BP 20
EP 32
DI 10.1016/j.intacc.2018.02.002
PD MAR 2018
PY 2018
AB This paper examines whether institutional characteristics distinguishing
Islamic from conventional banks lead to distinctive capital and earnings
management behavior through the use of loan loss provisions. In our
sample countries, the two banking sectors operate under different
regulatory frameworks: conventional banks currently apply the "incurred"
loan loss model until 2018 whereas Islamic banks mandatorily adopt an
"expected" loan loss model. Our results provide significant evidence of
capital and earnings management practices via loan loss provisions in
conventional banks. This finding is more prominent for large and
loss-generating banks. By contrast, Islamic banks tend not to use loan
loss provisions in either capital or earnings management, irrespective
of the bank's size, earnings profile, or the structure of their loan
loss model. This difference may be attributed to the constrained
business model of Islamic banking, strict governance, and ethical
orientation.
OI Elnahass, Marwa/0000-0002-8809-4165
ZS 0
ZA 0
ZR 0
Z8 0
TC 2
ZB 0
Z9 2
U1 1
U2 11
SN 1094-4060
EI 2213-3933
UT WOS:000429775400002
ER
PT J
AU Aysan, Ahmet F.
Disli, Mustafa
Duygun, Meryem
Ozturk, Huseyin
TI Religiosity versus rationality: Depositor behavior in Islamic and
conventional banks
SO JOURNAL OF COMPARATIVE ECONOMICS
VL 46
IS 1
BP 1
EP 19
DI 10.1016/j.jce.2017.03.001
PD MAR 2018
PY 2018
AB This study investigates the behavioral aspects of Islamic bank
depositors in a dual banking system. By categorizing depositors into
groups based on the amount of their deposited funds, we estimate the
responses of these groups to interest rate changes. We take the findings
of conventional banks as a comparative baseline and investigate the
extent to which the changes in different Islamic depositor groups differ
from conventional depositor groups. The findings show that depositors in
both Islamic and conventional banks respond to interest rate changes.
The analysis indicates that Islamic bank depositors are more responsive
when their deposit sizes are larger. When Islamic bank depositors'
opportunity costs rise due to a rise in the interest rate, they do not
hesitate to withdraw deposits. The relation between interest rate
changes and deposits is more robust in Islamic banks than in
conventional banks. Central Bank of the Republic of Turkey, Turkey;
Ghent University, Belgium; Nottingham University, England, United
Kingdom. (C) 2017 Association for Comparative Economic Studies.
OI Disli, Mustafa/0000-0003-0584-0060
ZS 0
Z8 0
ZB 0
TC 4
ZA 0
ZR 0
Z9 4
U1 1
U2 17
SN 0147-5967
EI 1095-7227
UT WOS:000427339200001
ER
PT J
AU Aysan, Ahmet F.
Disli, Mustafa
Ozturk, Huseyin
TI Bank lending channel in a dual banking system: Why are Islamic banks so
responsive?
SO WORLD ECONOMY
VL 41
IS 3
BP 674
EP 698
DI 10.1111/twec.12507
PD MAR 2018
PY 2018
AB We examine the interest rate sensitivity of both deposits and credits at
Islamic and conventional banks in Turkey. We find that the bank lending
channel is especially operative for Islamic banks. Impulse responses for
conventional and Islamic banks reveal that Islamic bank depositors'
sensitivity to policy rate changes is substantially larger than that of
conventional bank depositors. Next to heavily dependence on deposit
funding, we consider that inertia in Islamic bank deposit rates impedes
these banks to keep those depositors who consider the opportunity cost
of monetary policy rates is unbearable. On the lending side, we obtain
similar results, implying that tight monetary policy leads to a larger
contraction in Islamic bank credits. This finding is a reflection of the
favourable attitude of Islamic banks towards small and medium-sized
enterprise (SME) financing. When similar relationships are analysed for
currency and inflation shocks, we again find larger responses for
Islamic banks showing the cyclical nature of SME credits.
OI Disli, Mustafa/0000-0003-0584-0060
TC 5
Z8 0
ZS 0
ZR 0
ZB 0
ZA 0
Z9 5
U1 1
U2 31
SN 0378-5920
EI 1467-9701
UT WOS:000427021300002
ER
PT J
AU Safiullah, Md
Shamsuddin, Abul
TI Risk in Islamic banking and corporate governance
VL 47
BP 129
EP 149
DI 10.1016/j.pacfin.2017.12.008
PD FEB 2018
PY 2018
AB We examine the differences in risk between Islamic and conventional
banks with specific attention to the role of Shariah supervisory board
(SSB) composition on risk in Islamic banks. Using a sample of banks from
28 countries, we find that Islamic banks have a higher liquidity risk,
lower credit risk, lower insolvency risk, but encounter similar
operational risk in comparison with conventional banks. Operational and
insolvency risks in Islamic banks decline with an increase in SSB size
and SSB members' academic qualifications, but increase with an increase
in the number of reputed Shariah scholars on the SSB. The SSB attributes
do not have significant influence on liquidity and credit risks. The
findings are robust to alternative risk measures, and the use of a
system GMM estimator.
RI Safiullah/AAN-7553-2020
OI Safiullah/0000-0001-8342-9889
ZR 0
ZB 0
TC 16
ZS 0
ZA 0
Z8 0
Z9 16
U1 1
U2 22
SN 0927-538X
EI 1879-0585
UT WOS:000426407700008
ER
PT J
AU Rizwan, Muhammad Suhail
Moinuddin, Muhammad
L'Huillier, Barbara
Ashraf, Dawood
TI Does a one-size-fits-all approach to financial regulations alleviate
default risk? The case of dual banking systems
SO JOURNAL OF REGULATORY ECONOMICS
VL 53
IS 1
BP 37
EP 74
DI 10.1007/s11149-017-9340-z
PD FEB 2018
PY 2018
AB Financial regulations are developed to curb financial and economic
fragility costs without undermining the economic contributions of banks
to economic development. To understand the impact financial regulations
have on reducing the financial fragility of banks we use the
probability-of-default of banks as a proxy for bank failure. After
analyzing data collected from 15 countries with a dual banking system
for the period 2000-2015, we find convincing evidence that not all
financial regulations have risk-reducing benefits for banks and the
impact of financial regulations on default risk is not the same for
conventional banks (CBs) and Islamic banks (IBs). The empirical evidence
suggests that regulations that lessen overall default risk have a
greater impact on IBs while those increasing default risk have a greater
impact on CBs. Based on our findings we recommend that regulators should
consider the different natures of CBs and IBs and tailor financial
regulations to suit these operationally distinct financial
intermediaries.
OI Ashraf, Dawood/0000-0003-1097-6974
ZB 0
Z8 0
TC 0
ZA 0
ZS 0
ZR 0
Z9 0
U1 0
U2 12
SN 0922-680X
EI 1573-0468
UT WOS:000426895300003
ER
PT J
AU Hassan, M. Kabir
Aliyu, Sirajo
TI A contemporary survey of islamic banking literature
VL 34
BP 12
EP 43
DI 10.1016/j.jfs.2017.11.006
PD FEB 2018
PY 2018
AB This article reviews empirical studies on Islamic banking and
concentrates on their main findings while highlighting future research
directions. The earlier literature on Islamic banking built a foundation
using normative judgment, descriptive analysis, theoretical development,
and appraisal of country experiences. The paper discusses scholars'
concerns that have led to a paradigm shift in the system and highlight
practitioners' disquiet about recent practices. Subsequent research
focuses on empirical investigations without extensive analytical and
theoretical exploration in the area. Recent studies focus on the
financial crisis, solvency, maqasid, disclosure and financial inclusion,
and regulations. Even with the spillover effect on the Islamic banks
after the crisis, a few pieces of evidence show that the system performs
below its conventional counterpart. The paper discusses issues that are
relevant to Islamic banking and identifies other avenues for future
research. (C) 2017 Elsevier B.V. All rights reserved.
RI Aliyu, Sirajo/N-8154-2019
OI Aliyu, Sirajo/0000-0002-2090-3886
ZB 0
ZA 0
ZR 0
ZS 0
TC 30
Z8 0
Z9 30
U1 4
U2 14
SN 1572-3089
EI 1878-0962
UT WOS:000425714100002
ER
PT J
AU Ahdizia, Khulifa
Masyita, Dian
Sutisna
TI Business Valuation of Islamic Banks in the Merger Plan to Become
Indonesia's State-Owned Bank
SO ETIKONOMI
VL 17
IS 2
BP 223
EP 236
DI 10.15408/etk.v17i2.7238
PD 2018
PY 2018
AB Indonesia needs a sizeable Islamic bank to confront the ASEAN Economic
Community (MEA) in 2020, so it can compete with existing Islamic banks
in ASEAN. Then there was a plan to merge several Islamic banks into
Government's Islamic banks. This study aims to analyze from the business
valuation point of view about the Islamic bank's merger plan in
Indonesia and to calculate the value of synergy if the bank merged.
Company valuation used DCF-FCFE method and PBV. Islamic banks those were
simulated merged are BSM, BRIS, and BNIS. Based on the study there is a
synergy when the three banks merged. So, the merger plan of Islamic bank
is feasible.
Z8 0
ZB 0
ZA 0
TC 1
ZR 0
ZS 0
Z9 1
U1 0
U2 0
SN 1412-8969
EI 2461-0771
UT WOS:000462826600005
ER
PT J
AU Sakti, Muhammad Rizky Prima
Mohamad, Azhar
TI Efficiency, stability and asset quality of Islamic vis-a-vis
conventional banks Evidence from Indonesia
VL 9
IS 3
BP 378
EP 400
DI 10.1108/JIABR-07-2015-0031
PD 2018
PY 2018
AB Purpose - This paper aims to examine how Indonesian Islamic banks differ
from conventional banks in terms of their business model, asset quality,
stability and efficiency.
Design/methodology/approach - Based on data from 2008 to 2012, the
authors use t-test, z-score and data envelopment analysis (DEA) to
assess the business model, as well as the asset quality, stability and
efficiency of both the Islamic and conventional banks.
Findings - The results indicate that there are significant differences
between the two - Islamic banks appear to not follow the conventional
business model. Secondly, Islamic banks seem to have better asset
quality and to be more stable than their conventional counterparts.
Originality/value - Finally, the DEA results also indicate that Islamic
banks are relatively more efficient than conventional banks, as shown by
their higher overall efficiency, as well as technical efficiency.
RI Sakti, Muhammad Rizky Prima/C-7532-2016; Mohamad, Azhar/D-8591-2017
OI Sakti, Muhammad Rizky Prima/0000-0001-8717-1838; Mohamad,
Azhar/0000-0002-1075-598X
TC 0
ZR 0
ZS 0
ZA 0
Z8 0
ZB 0
Z9 0
U1 4
U2 6
SN 1759-0817
EI 1759-0825
UT WOS:000432185300006
ER
PT J
AU Ireland, John J.
TI Just how loyal are Islamic banking customers?
VL 36
IS 3
BP 410
EP 422
DI 10.1108/IJBM-09-2016-0138
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to determine the rate difference
required to persuade Islamic banking customers to switch to conventional
banks.
Design/methodology/approach - A choice-based conjoint analysis survey
was administered to 300 UAE Islamic banking customers. Customer
utilities for Islamic and conventional banks, products and prices were
developed to test hypotheses while a market simulation estimated the
impact of rate changes on choice shares.
Findings - Overall, Muslim customers of Islamic banks strongly preferred
Islamic banks and products. However, 43 percent were willing to switch
to conventional banks to obtain better rates. Indeed, the share choosing
conventional banks rose from 25 percent when rates were the same to 68
percent when conventional products offered 2 percent better rates.
Research limitations/implications - This research requires replication
and extension in appropriate contexts such as Malaysia and Indonesia.
Moreover, the existence of price sensitivity tiers implies underlying
benefit segments that should be studied.
Practical implications - As so many Islamic banking customers would
switch to conventional banks for better rates, it seems that
conventional banks compete with Islamic banks for most clients. Islamic
banks should price accordingly.
Originality/value - This is the first study to quantify the loyalty of
Islamic banking customers in terms of price and, consequently, the first
to demonstrate the existence of price sensitivity tiers. It is also the
first in this field to apply conjoint analysis and market modeling.
ZR 0
Z8 0
ZA 0
TC 3
ZS 0
ZB 0
Z9 3
U1 0
U2 5
SN 0265-2323
EI 1758-5937
UT WOS:000456882700001
ER
PT J
AU Saif-Alyousfi, Abdulazeez Y. H.
Saha, Asish
Md-Rus, Rohani
TI Impact of oil and gas price shocks on the non-performing loans of banks
in an oil and gas-rich economy Evidence from Qatar
VL 36
IS 3
BP 529
EP 556
DI 10.1108/IJBM-05-2017-0087
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to examine and compare the impact
of oil and gas prices shocks on the non-performing loans (NPLs) of banks
at the aggregate as well as at the level of commercial and Islamic banks
in Qatar over the period 2000-2016.
Design/methodology/approach - Using the West Texas Intermediate
Database, BankScope Database, World Bank's World Development Indicators
Database, and International Monetary Fund Database, the authors use a
one-step system generalized method of moments dynamic model to examine
and compare the association between oil and gas prices shocks with NPLs
in Qatari banks. The authors also test the hypotheses of direct and
indirect impacts of oil price shocks and gas price shocks on bank NPLs.
Findings - The results indicate that oil price shocks and gas price
shocks do not have directly affect NPLs of Qatari banks at the aggregate
level, while they have indirect effects that are channeled through the
country-specific macroeconomic and institutional factors. The authors
find that oil and gas prices shocks affect NPLs of Qatari Islamic banks
directly through extended oil and gas-related cash flows, while their
impact on the NPLs of Qatari commercial banks is indirect. In other
words, Islamic banks in Qatar greatly benefits from increased cash flow
caused by the rise in the oil and gas prices, which make their NPLs,
much lower than that in commercial banks. Better capital cushion, better
managerial efficiency, better risk management, and liquidity management
systems should be used by the Islamic banks in Qatar to expand their
customer base. The authors also find that positive fiscal stance of the
government reduces the NPLs in both commercial and Islamic banks.
Practical implications - The results of this study necessitate policy
measures that can counter the effects of changes in oil and gas prices
on the growth of bank NPLs.
Originality/value - It is widely recognized that oil and gas prices and
the level of production are of great importance to the economic
development of oil and gas-exporting countries. So far, however, no
econometric study has been reported in the literature which analyses and
compares the impact of oil and gas prices shocks on the NPLs of
commercial and Islamic banks and also at the aggregate level in any of
the oil economies. Thus, this study provides the first empirical
evidence on distinct direct and indirect channels through which oil and
gas prices shocks may affect bank NPLs.
RI Saif-Alyousfi, Abdulazeez Y.H./AAO-6507-2020
ZS 0
TC 8
ZA 0
ZR 0
Z8 0
ZB 0
Z9 8
U1 0
U2 2
SN 0265-2323
EI 1758-5937
UT WOS:000456882700007
ER
PT J
AU Baber, Hasnan
TI How crisis-proof is Islamic finance? A comparative study of Islamic
finance and conventional finance during and post financial crisis
VL 10
IS 4
BP 415
EP 426
DI 10.1108/QRFM-12-2017-0123
PD 2018
PY 2018
AB Purpose - This paper aims to explore Islamic finance's resilience in
times of financial crisis and considers Islamic finance's viability as
an alternative to the current financial system.
Design/methodology/approach - Established on a review of theoretical
aspects underlying the notion of Islamic finance being proficient of
reducing the harshness of financial crises and a latent solution to
financial volatility, this paper assesses actual performance of Islamic
and conventional banks during and in the repercussion of the current
financial crisis. Interviews were also conducted with managers of
Islamic banks.
Findings - The paper concludes that performance of Islamic banks during
the global financial crisis is found to be supportive of their argued
resilience and consistency. However, the latest financial crisis has
brought to light a number of theoretical and realistic issues that
challenge Islamic finance and its absorbing capacity against financial
crises.
Originality/value - The paper is an original work which suggests about
moderating risks and proposing various ways in which the Islamic finance
can be made more stable and resilient.
RI Baber, Hasnan/AAL-8115-2020; Baber, Hasnan/
OI Baber, Hasnan/0000-0002-8951-3501
ZB 0
ZR 0
ZA 0
TC 2
Z8 0
ZS 0
Z9 2
U1 0
U2 1
SN 1755-4179
UT WOS:000456885200005
ER
PT J
AU Redzuan, Nur Harena
Kassim, Salina
Abdullah, Adam
TI RENTAL YIELD AS AN ALTERNATIVE TO INTEREST RATE IN PRICING MUSYARAKAH
MUTANAQISAH HOME FINANCING - THE CASE FOR MALAYSIA
SO AL-SHAJARAH
SI 3
BP 69
EP 88
PD 2018
PY 2018
AB The current practice of the Islamic banks in Malaysia is relying on the
market interest rate as the reference benchmark pricing for musyarakah
mutanaqisah home financing. It has been a subject of intense debate
among scholars, researchers, industry players, and policymakers. While
it is not prohibited, Muslim scholars have highly discouraged this
practice as it could lead to a possible convergence between the
practices of the Islamic banks and the conventional counterparts.
Therefore, this study proposes rental yield an alternative reference
benchmark pricing mechanism for musyarakah mutanaqisah home financing.
The aim of the study is to assess whether rental yield is reflective of
the real economic conditions. In achieving its objective, the study
tests the relationships between rental yield with the macroeconomic and
housing market variables. The study focuses on Malaysia and uses
annually data frequency covering the period from 1988 to 2015 using
Autoregressive Distributed Lag (ARDL) cointegration test. The study
provides evidence that the proposed rental yield has long-run and
short-run relationships with macroeconomic and housing market variables.
The analysis shows that a short period required for the model to
converge to the long-run equilibrium. The findings of this study would
provide important insights on the viability of rental yield as an
alternative to interest rate in pricing musyarakah mutanaqisah home
financing.
RI Abdullah, Adam/R-6267-2019; kassim, salina/
OI kassim, salina/0000-0002-7514-8750
ZR 0
ZS 0
ZB 0
Z8 0
TC 0
Z9 0
U1 0
U2 0
SN 1394-6870
UT WOS:000456491000003
ER
PT J
AU Khan, Muhammad Nauman
Bin Amin, Md Fouad
Khokhar, Imran
ul Hassan, Mehboob
Ahmad, Khaliq
TI EFFICIENCY MEASUREMENT OF ISLAMIC AND CONVENTIONAL BANKS IN SAUDI
ARABIA: AN EMPIRICAL AND COMPARATIVE ANALYSIS
SO AL-SHAJARAH
SI 3
BP 111
EP 134
PD 2018
PY 2018
AB Saudi Arabia, beside Malaysia and many other Muslim countries, is one of
those countries where Islamic and conventional banking operate in
parallel. Over the last decade, the country's banking industry is
growing at rapid pace that accounts for the largest share in GCC. The
present study measures and compares the performance of Saudi
conventional and Islamic banking industry and identifies the areas where
the strategic measures are required to improve the banking performance.
It applies non parametric Data Envelopment Analysis (DEA) for the data
from 2008-2016 of Saudi banking industry and provides comprehensive
empirical results at individual bank vis-a-vis industry levels. The
empirical results demonstrate a mix trend among the banks in achieving
technical, pure technical and scale efficiency. It is observed that with
the common pledge to expanding market share and performance, both
conventional and Islamic banks have been successful in improving their
levels of efficiency. At individual bank level, Al-Rajhi is the only
bank that has achieved the highest score in terms of technical, pure
technical and scale efficiency, while in the conventional banking group,
both Saudi Hollandi and National Commercial banks are found on the top
position. Despite the growth of incomes and deposits of entire banking
industry in Saudi Arabia, this study particularly recommends for the
Islamic banks to redirect their short term and long-term marketing
strategies and to focus on improving their management skills at the
branch level.
OI Ahmad, Khaliq/0000-0001-8129-5178
ZR 0
ZS 0
ZA 0
TC 0
ZB 0
Z8 0
Z9 0
U1 0
U2 1
SN 1394-6870
UT WOS:000456491000005
ER
PT J
AU Abduh, Muhamad
TI ASSESSING THE PERFORMANCE OF ISLAMIC BANKING IN BRUNEI DARUSSALAM:
EVIDENCE FROM 2011-2016
SO AL-SHAJARAH
SI 3
BP 171
EP 189
PD 2018
PY 2018
AB Despite being among the earliest country offering Islamic banking to its
people, academics know little about the performance of the industry in
Brunei Darussalam. This study is aimed at fulfilling the gap by
examining the performance of Islamic banking in Brunei Darussalam after
25 years of its establishment. However, due to limited availability and
nonuniformity of the data presentation, the analysis is focused upon the
period of 2011 to 2016. The data are collected from secondary sources
such as banks' annual reports and central bank's quarterly reports for
the period examined. The bank idiosyncratic factors i.e. size, capital
ratio, credit risk, liquidity risk, service diversification, and bank
stability are the cynosure of the analysis. Descriptive statistics,
Herfindahl-Hirschman Index and z-score analysis are utilized as the tool
of analysis. To make it more interesting, the performance comparison is
done between Islamic bank and the banking industry. The result shows
that evaluated idiosyncratic factors are indicating a better performance
of Islamic banking as compared to its conventional counterpart and the
overall banking industry in the country.
RI Abduh, Muhamad/C-3497-2012
OI Abduh, Muhamad/0000-0002-1918-6525
ZS 0
ZB 0
ZR 0
ZA 0
Z8 0
TC 1
Z9 1
U1 1
U2 2
SN 1394-6870
UT WOS:000456491000008
ER
PT J
AU Al-Shibli, Farouq Saber
TI Litigation or Arbitration for Resolving Islamic Banking Disputes
SO ARAB LAW QUARTERLY
VL 32
IS 4
BP 413
EP 438
DI 10.1163/15730255-12324040
PD 2018
PY 2018
AB When investors decide to deal with Islamic banks, one of their main
concerns is to ensure their businesses are protected in the case of
disputes arising. For this reason, developing a good legal framework for
resolving disputes is crucial to strengthen the position of Islamic
banks in the global financial market. However, the unique nature of
Islamic financial products and transactions requires that the disputes
arising from this sector should not be dealt with by means of
conventional laws and courts (litigation). It can be said that current
practice, where Islamic banking and finance disputes are resolved by
litigation with lopsided judgments is counterproductive to the practice
of Islamic banking and finance. This article therefore explores the
problems associated with resolving Islamic banking disputes through
litigation and proposes arbitration as an alternative method for
establishing a legal framework for dispute resolution in countries where
Islamic banking is implemented.
ZB 0
ZR 0
ZA 0
Z8 0
TC 0
ZS 0
Z9 0
U1 0
U2 1
SN 0268-0556
EI 1573-0255
UT WOS:000456026900005
ER
PT J
AU Tabrani, Mirza
Amin, Muslim
Nizam, Ahmad
TI Trust, commitment, customer intimacy and customer loyalty in Islamic
banking relationships
VL 36
IS 5
BP 823
EP 848
DI 10.1108/IJBM-03-2017-0054
PD 2018
PY 2018
AB Purpose-The purpose of this paper is to investigate the role of trust in
enhancing customer loyalty, and to test the mediation role of commitment
and customer intimacy in the relationship between trust and customer
loyalty.
Design/methodology/approach-A total of 500 questionnaires were
distributed and 200 were returned (40 percent response rate), and a
structural equation modeling technique was used to test the hypotheses.
Findings-The results of this study show that trust has a significant
relationship with commitment and customer intimacy but no significant
relationship was found with customer loyalty. Commitment and customer
intimacy have a significant relationship with customer loyalty. The
mediation analysis reveals that commitment and customer intimacy play a
mediation role in the relationship between trust and customer loyalty.
Practical implications-This study indicates that commitment and customer
intimacy affect customer loyalty. The role of commitment and customer
intimacy as a mediator between trust and customer loyalty indicates that
customers are committed to continuing and maintaining the relationships
with Islamic banks.
Originality/value-This study provides empirical evidence on
interrelationships between trust, commitment, customer intimacy and
customer loyalty in banking relationships.
RI Amin, Muslim/M-6011-2018; Amin, Muslim/
OI Amin, Muslim/0000-0003-0818-5663
Z8 0
TC 15
ZS 0
ZR 0
ZB 0
ZA 0
Z9 15
U1 3
U2 10
SN 0265-2323
EI 1758-5937
UT WOS:000456883300002
ER
PT J
AU Moghavvemi, Sedigheh
Lee, Su Teng
Lee, Siew Peng
TI Perceived overall service quality and customer satisfaction A
comparative analysis between local and foreign banks in Malaysia
VL 36
IS 5
BP 908
EP 930
DI 10.1108/IJBM-06-2017-0114
PD 2018
PY 2018
AB Purpose-Foreign and local banks in Malaysia are competing in terms of
skilled staff, innovative products and services, rendering quality
services and customer satisfaction. The purpose of this paper is to
examine the overall service quality and customer satisfaction of both
foreign and local banks.
Design/methodology/approach-The data used to test the hypothesis were
collected from 748 foreign and local bank customers in Malaysia. The
research model was analysed using a structural equation modelling
technique.
Findings-Results show that knowledge and staff competencies, as well as
convenience of the bank is more significant for local bank customers
while bank image and internet banking are important components for
foreign bank customers. The results also reveal that foreign bank
customers have higher satisfaction as compared to local bank customers.
Research limitations/implications-No analysis is undertaken of any
difference in the service quality dimensions between banks of different
size. Further research on banking services could usefully test services
quality dimensions across banks of different sizes.
Practical implications-The findings serve as a valuable reference for
local banks understand service quality challenges they may face from
foreign banks in this competitive industry. Findings suggest that, to
provide high-quality services, financial institutions need to heighten
customer satisfaction differentiation strategies.
Originality/value-The outcomes of this study enhance the knowledge on
the performance of both local and foreign banks in Malaysia as well as
customer satisfaction, which are invaluable to all bank managers and
industry players in improving their services.
RI Lee, Su Teng/AAF-9314-2020; /L-3286-2015; Moghavvemi, Sedigheh/AAU-1969-2020
OI /0000-0002-9681-6535;
ZS 0
ZA 0
ZB 0
TC 3
Z8 0
ZR 0
Z9 3
U1 1
U2 4
SN 0265-2323
EI 1758-5937
UT WOS:000456883300006
ER
PT J
AU Iqbal, Mehree
Nisha, Nabila
Rashid, Mamunur
TI Bank selection criteria and satisfaction of retail customers of Islamic
banks in Bangladesh
VL 36
IS 5
BP 931
EP 946
DI 10.1108/IJBM-01-2017-0007
PD 2018
PY 2018
AB Purpose-The purpose of this paper is to argue that "being Islamic" is
already embedded in the decision frame of the Muslim consumers when
choosing their Islamic banks, and hence, the bank selection criteria of
these Muslim consumers will be dominated by non-faith-based factors.
Design/methodology/approach-This study took the context of retail
consumers of Islamic banks of Bangladesh-the fourth largest Muslim
populated country in the world, having great potential of developing an
Islamic ecosystem. The study employed survey method using structured
questionnaire on 311 respondents from 35 branches of six Islamic banks
in Dhaka-the capital city of Bangladesh. Exploratory factor analysis,
followed by multivariate regression analysis, was conducted to identify
the determinants of satisfaction among Muslim retail bank customers.
Findings-The study forwards three important findings. First, faith-based
bank selection criterion (i. e. Islam) is not a stand-alone factor
anymore; rather, the items of this factor are embedded into other
non-faith-based factors. Second, among the non-faith-based factors,
commitment of the bank, competence and compassion of the bank employees
have topped the list of bank selection criteria. Third, competence,
commitment and corporate image of the bank had relatively more influence
on satisfaction when compared to compassion and convenience.
Practical implications-Since Shari'ah compliance is already embedded in
Islamic banking system, Islamic bankers should now focus on strategic
targeting of their customers based on non-faith-based operational
determinants.
Originality/value-This study presents that non-faith-based selection
criteria are more influential in Islamic bank selection decision.
RI Rashid, Mamunur/R-3106-2019; Iqbal, Mehree/
OI Rashid, Mamunur/0000-0002-6688-5740; Iqbal, Mehree/0000-0002-6199-8818
ZB 0
ZA 0
TC 3
Z8 0
ZS 0
ZR 0
Z9 3
U1 2
U2 5
SN 0265-2323
EI 1758-5937
UT WOS:000456883300007
ER
PT J
AU Akram, Hassan
Rahman, Khalil Ur
TI Credit risk management A comparative study of Islamic banks and
conventional banks in Pakistan
VL 10
IS 2
BP 185
EP 205
DI 10.1108/IJIF-09-2017-0030
PD 2018
PY 2018
AB Purpose - This study aims to examine and compare the credit risk
management (CRM) scenario of Islamic banks (IBs) and conventional banks
(CBs) in Pakistan, keeping in view the phenomenal growth of Islamic
banking and its future implications.
Design/methodology/approach - A sample of five CBs and four IBs was
chosen out of the whole banking industry for the study. Secondary data
obtained from the banks' annual financial reports for 13 years, starting
from 2004 to 2016, were analyzed. Multiple regression, correlation and
descriptive analysis were used in the examination of the data.
Findings - The results show that loan quality (LQ) has a positive and
significant impact on CRM for both IBs and CBs. Asset quality (AQ), on
the other hand, has a negative impact on CRM in the case of IBs, but has
a significantly positive relation with CRM in the case of CBs. The
impact of 16 ratios measuring LQ and AQ have also been individually
checked on CRM, by making use of a regression model using a dummy
variable of financial crises for robust comparison among CBs and IBs.
The model proved significant, and CRM performance of IBs was observed to
be better than that of CBs. Moreover, the mean average value of
financial ratios used as a measuring tool for these variables shows that
the CRM performance of IBs operating in Pakistan was better than that of
CBs over the period of the study.
Practical implications - The research findings are expected to
facilitate bankers, investors, academics and policy makers to build a
better understanding of CRM practices as adopted by CBs and IBs. The
findings would be useful in formulating policy measures for the progress
of the banking industry in Pakistan.
Originality/value - This research is unique in terms of its approach
toward analyzing and comparing CRM performance of CBs and IBs. Such work
has not been carried out before in the Pakistani banking industry.
OI Rahman, Khalil ur/0000-0003-3773-0317
Z8 0
ZB 0
ZA 0
ZR 0
ZS 0
TC 0
Z9 0
U1 0
U2 1
SN 0128-1976
EI 2289-4365
UT WOS:000456478900005
ER
PT J
AU Jouti, Ahmed Tahiri
TI Islamic finance: financial inclusion or migration?
VL 10
IS 2
BP 277
EP 288
DI 10.1108/IJIF-07-2018-0074
PD 2018
PY 2018
AB Purpose - This paper aims to define a methodology to assess the impact
of introducing Islamic finance on financial inclusion.
Design/methodology/approach - The paper is based on a literature review
to understand the link between Islamic finance and financial inclusion.
The second part of the paper presents a conceptual framework to assess
the impact of introducing Islamic finance on financial inclusion in a
defined context based on the profiling of people interested in Islamic
finance.
Findings - The paper brings an insight on the impact of introducing
Islamic finance. Indeed, it could cause a financial migration to Islamic
banks that can take many forms and depends on many factors that call for
deep analysis.
Research limitations/implications - The paper would help financial
authorities and financial institutions to measure the impact of
introducing Islamic finance on their businesses and the stability of the
whole system.
Practical implications - Islamic finance can not only enhance financial
inclusion but also create financial migration. The two implications can
vary from one context to another.
Social implications - Islamic finance can contribute in the effort of
including "self-excluded" people with religious concerns as well as
people without access to financial services.
Originality/value - This paper promotes the idea that Islamic finance is
not exclusively a way to enhance financial inclusion.
Z8 0
TC 2
ZS 0
ZB 0
ZR 0
ZA 0
Z9 2
U1 0
U2 2
SN 0128-1976
EI 2289-4365
UT WOS:000456478900011
ER
PT J
AU Ahmed, Muhammad
Jan, Muhammad Tahir
Hassan, Arif
TI BRAND PERSONALITY FROM AN ISLAMIC PERSPECTIVE: A CONCEPTUAL ANALYSIS OF
AAKER'S MODEL
SO AL-SHAJARAH
VL 23
IS 2
BP 363
EP 393
PD 2018
PY 2018
AB Current challenges reflect intense competition in the market and low
switching cost of customers. For any brand to be appealing and
ultimately profitable, it necessitates differentiation in comparison
with other brands. Marketers engage in various differentiation
techniques such as Aaker's brand personality model. Aaker's model
contains five dimensions (sincerity, excitement, competence,
sophistication, and ruggedness) along with 42 underlying aspects. Brand
personality helps in developing customer-brand relationship, brand
image, and brand commitment. Extensive research has been done based on
the above model yet several scholars have criticised it based on issues
such as generalizability across countries and cultures. Religion being
an important part of culture has also been ignored in the brand
personality domain. This research proposes an Islamic brand personality
model, which not only looks into the dimensions, but also examines the
underlying aspects based on the Qur'an, hadith and the scholarly work of
both traditional and modern Muslim scholars. This paper found that the
Islamic brand personality model contains two new dimensions, namely
trustworthiness and justice in addition to the existing dimensions. This
model can benefit any Islamic brand (Islamic bank, Islamic Insurance
company etc.) to differentiate itself from others, especially from
conventional brands in order to develop a potentially larger Muslim
consumer market.
ZS 0
ZR 0
ZB 0
Z8 0
TC 0
Z9 0
U1 0
U2 1
SN 1394-6870
UT WOS:000455970700005
ER
PT J
AU Tabash, Mosab, I
TI An empirical investigation between liquidity and key financial ratios of
Islamic banks of United Arab Emirates (UAE)
VL 14
IS 3
BP 713
EP 724
DI 10.15208/beh.2018.50
PD 2018
PY 2018
AB This paper empirically analyzes the impact of liquidity risk on key
financial performance aspects of Islamic banks in the UAE. To document
the association between liquidity risk and other performance ratios,
time series data are taken for full-fledged Islamic banks working in the
UAE from 2000 to 2014. Liquidity ratios and capital adequacy ratios,
profitability ratios, and tangibility ratios are determined. Correlation
and regression analyses are used to test the study hypotheses using
SPSS. The findings indicate that capital adequacy and tangibility ratios
are the main factors to determine liquidity risk of UAE Islamic banks.
Furthermore, the results showed that the size of Islamic banks' assets
and capital adequacy had a positive and significant association with
liquidity risk. Policymakers and Islamic finance experts should devote
more attention to enhancing the base of Islamic finance assets to manage
liquidity issues.
ZR 0
TC 1
ZB 0
Z8 0
ZA 0
ZS 0
Z9 1
U1 0
U2 2
SN 1804-1205
EI 1804-5006
UT WOS:000454589300019
ER
PT J
AU Samad, Abdus
TI Is there any causality between Islamic banks' return on depositors and
conventional banks' deposit interest? Evidence of causality from
Bahrain's financial market
VL 14
IS 4
BP 894
EP 912
DI 10.15208/beh.2018.61
PD 2018
PY 2018
AB Unlike conventional banks' interest payment on deposits, Islamic banks
do not pay interest to depositors. What they pay to depositors is called
the rate of return to depositors. Does the rate of return of Islamic
banks on deposits follow conventional banks' interest rates? This paper
empirically investigates the relationship of causality and the causal
direction between conventional banks' interest rate and Islamic banks'
return applying VEC model. The results of the VAR Granger
Causality/Block Exogeneity Wald Tests fail to reject the null hypothesis
of bidirectional causality between Islamic banks' rate of return and
conventional banks' interest. The pairwise Granger causality also
confirms the same results. This suggests that Islamic banks' rate of
return and the conventional banks' interest rate are not independent of
each other rather they follow each other in the Bahrain financial
market.
TC 1
ZS 0
ZA 0
ZR 0
Z8 0
ZB 0
Z9 1
U1 0
U2 2
SN 1804-1205
EI 1804-5006
UT WOS:000454591300010
ER
PT S
AU Bui Huy Khoi
Ngo Van Tuan
BE Anh, LH
Dong, LS
Kreinovich, V
Thach, NN
TI Using SmartPLS 3.0 to Analyse Internet Service Quality in Vietnam
SO ECONOMETRICS FOR FINANCIAL APPLICATIONS
SE Studies in Computational Intelligence
VL 760
BP 430
EP 439
DI 10.1007/978-3-319-73150-6_34
PD 2018
PY 2018
AB The aim of this research is to explore relationship both customer
satisfaction and loyalty of internet users in Vietnam to stay with their
current provider among existing Internet Service Providers (ISP) in the
context of Vietnam telecommunication sector. Survey data was collected
from 200 people in HCM City. The research model is proposed from the
study of customer satisfaction and loyalty of some authors in abroad.
The reliability and validity of the scale were tested by Cronbach's
Alpha, Average Variance Extracted (Pvc) and Composite Reliability (Pc).
The analysis results of structural equation model (SEM) showed that the
customer satisfaction and loyalty have a relationship with each other.
OI Huy Khoi, Bui/0000-0002-4976-7435
Z8 0
ZA 0
TC 4
ZR 0
ZS 0
ZB 0
Z9 4
U1 0
U2 0
SN 1860-949X
EI 1860-9503
BN 978-3-319-73150-6; 978-3-319-73149-0
UT WOS:000450086900035
D2 10.1007/978-3-319-73150-6
ER
PT J
AU Alias, Zuraina
Azmi, Ruzita
Yusof, Rosylin Mohd
TI THE EFFECTS OF MACROECONOMICS DETERMINANTS AND SECURED FINANCING OF
ISLAMIC BANKS ON PERSONAL INSOLVENCY: AN EMPIRICAL INVESTIGATION ON
MALAYSIA
VL 26
IS 2
BP 475
EP 497
PD 2018
PY 2018
AB Recent statistics from the Malaysian Department of Insolvency (MDI), and
reports from the Malaysian Credit Management Counseling Agency (CMCA)
highlight the increasing number of bankrupt borrowers and borrowers
registered under the Debt Management Programme (DMP) organized by AKPK.
Rising indebtedness can unfavorably influence economic monetary
development as it successfully evacuates people from participating or
contributing to the economy. Hence, this research is to investigate the
issues of personal insolvency in Malaysia and to analyze several
macroeconomic determinants, banking variables and Islamic secured
financing that affects personal insolvency. The study attempts to
inaugurate a long-run cointegration relationship between personal
insolvency and independent variables by employing the Auto-Regressive
Distributed Lag (ARDL) bounds testing approach and the Vector
Autoregression (VAR) model. Based on quarterly data covering the period
2007Q1 to 2016Q4, this study documents evidence of a long-run dynamics
with strong bidirectional causality between the house price index and
personal insolvency in Malaysia. Accordingly, policies leading to a more
efficient housing market while reducing the demand and supply gap
affecting house prices will reduce insolvency in Malaysia.
TC 0
ZS 0
ZR 0
ZB 0
Z8 0
Z9 0
U1 0
U2 0
SN 1394-7680
UT WOS:000454532700011
ER
PT J
AU Kaakeh, Abdulkader
Hassan, M. Kabir
van Hemmen Almazor, Stefan F.
TI Attitude of Muslim minority in Spain towards Islamic finance
MANAGEMENT
VL 11
IS 2
SI SI
BP 213
EP 230
DI 10.1108/IMEFM-11-2017-0306
PD 2018
PY 2018
AB Purpose-This paper aims to use a theoretical model based on the theory
of reasoned actions to investigate the effects of attitude, religious
motivation, awareness and service and pricing on the intention to use
Islamic banking among the Muslim minority in Spain. It also aims to
determine the profile of a potential Islamic banking customer among this
minority.
Design/methodology/approach-The research focuses on a survey of Muslims
living in Barcelona, Spain, who know of the existence of Islamic finance
but do not have access to it. The research uses factor analysis and
logit regression to analyse the data.
Findings-The results show that attitude, religious motivation and
awareness are important factors affecting the intention to use Islamic
banking. The study also shows that the potential Islamic banking
customer in Spain is a Muslim (Spanish, Moroccan or Pakistani), male,
and did not reach university degree in his education.
Research limitations/implications-The sample has 154 participants living
in Barcelona, with the rest of Spain being ignored, although results
should apply to all Muslims in Spain. Also, this study does not consider
attitude as a moderator.
Practical implications-The research shows the potential for Islamic
banks in the Spanish market and the possibility of raising awareness
about Islamic banking.
Social implications-Islamic banking in Spain could help the Muslim
minority to participate effectively in financial activities, thus
leveraging their capacity to integrate into the community. The study
also highlights the importance of empowering the women in this minority
and could help society by encouraging off-banking money to flow into the
financial sector.
Originality/value-The research is the first empirical attempt to test
the factors affecting the intention among Muslims in Spain to deal with
Islamic banking. The study also highlights the importance of Islamic
finance forMuslim minorities as a method to support their religious
identity.
RI Kaakeh, Abdulkader/F-2685-2018; Kaakeh, Abdulkader/X-3587-2019
OI Kaakeh, Abdulkader/0000-0002-5949-9585;
ZA 0
ZR 0
ZB 0
Z8 0
TC 3
ZS 0
Z9 3
U1 1
U2 5
SN 1753-8394
EI 1753-8408
UT WOS:000453897000005
ER
PT J
AU Rafay, Abdul
Farid, Saqib
TI Shariah Supervisory Board Report (SSBR) in Islamic banks An experimental
study of investors' perception and behavior
MANAGEMENT
VL 11
IS 2
SI SI
BP 274
EP 296
DI 10.1108/IMEFM-07-2017-0180
PD 2018
PY 2018
AB Purpose-The primary purpose of this study is to determine the impact of
information ordering in Shariah Supervisory Board Report (SSBR) on
investors' behavior and perception about the performance of Islamic bank
in terms of Shariah compliance and other conventional parameters.
Design/methodology/approach-The study used the belief adjustment model
to evaluate the desired effects of ordering positive and negative
information (if any) in SSBR of an Islamic bank. This study extends the
previous literature on information ordering as a pioneer experimental
study in emerging economies.
Findings-Evidence shows that investors and technical users of
performance reports consider SSBR as significant for financial and
investment decisions from the Islamic perspective. The results indicate
that the primacy effect does exist and is statistically significant.
Practical implications-The SSBR provides the management with an
excellent opportunity to communicate and convince the investors about
Shariah compliance features of an Islamic bank. Additionally, it also
highlights the functional use of impression management to manipulate the
investor' behavior and perception.
Originality/value-For the first time, this study specifically
investigates the effect of conscious information ordering in SSBR of
Islamic banks on investors perceptions and behaviors.
RI Rafay, Abdul/AAA-4184-2020; RAFAY, ABDUL/
OI RAFAY, ABDUL/0000-0002-0285-5980
ZA 0
ZB 0
TC 0
ZR 0
Z8 0
ZS 0
Z9 0
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000453897000008
ER
PT J
AU Zainuldin, Mohd Haniff
Lui, Tze Kiat
Yii, Kwang Jing
TI Principal-agent relationship issues in Islamic banks: a view of Islamic
ethical system
MANAGEMENT
VL 11
IS 2
SI SI
BP 297
EP 311
DI 10.1108/IMEFM-08-2017-0212
PD 2018
PY 2018
AB Purpose-This paper aims to discuss and explore the unique agency issues
in Islamic banks which give rise to different agency conflicts exist in
Islamic banks as compared to conventional banks. In addition, this paper
critically examines agency theory in Islamic banking perspective by
incorporating Islamic ethical considerations in the principal-agent
setting.
Design/methodology/approach-This is a conceptual paper, and the
discussions revolve around the review of literature of which important
sources have been cited in a way that demonstrates a reasonable
understanding of the topic. It attempts to create a discourse around the
inclusion of Islamic ethical system in understanding the governance
structure of Islamic banks.
Findings-This paper concludes that Islamic ethical system embedded in
the Islamic banks business activities shapes Islamic banks into
organisations that place higher ethical considerations than conventional
banks. Therefore, Islamic banks are likely to have less severe agency
problems relative to their conventional counterparts.
Research limitations/implications-Because of the chosen research
approach, the research results may lack generalisability. Therefore,
researchers are encouraged to test the proposed propositions further.
Practical implications-As the discourse generated by the paper, it can
ultimately enhance the understanding of Islamic governance structure in
the perspective of agency issues.
Social implications-As the discourse generated by the paper, it can
ultimately enhance the understanding of Islamic governance structure in
the perspective of agency issues.
Originality/value-The paper attempts to bring to attention the important
aspect of principal-agent relationship within the Islamic banking
structures and explain the role of incorporating Islamic ethical system
in enhancing the understanding of the principal-agent relationship.
RI Zainuldin, Mohd Haniff/AAH-6578-2019; Lui, Tze Kiat/
OI Zainuldin, Mohd Haniff/0000-0003-1676-7516; Lui, Tze
Kiat/0000-0001-7238-4822
ZB 0
Z8 0
ZS 0
TC 3
ZR 0
ZA 0
Z9 3
U1 1
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000453897000009
ER
PT J
AU Ajili, Hana
Bouri, Abdelfettah
TI Corporate governance quality of Islamic banks: measurement and effect on
financial performance
MANAGEMENT
VL 11
IS 3
BP 470
EP 487
DI 10.1108/IMEFM-05-2017-0131
PD 2018
PY 2018
AB Purpose - This paper aims to assess the measurement of the Corporate
Governance (CC) quality of Islamic Banks (IBs) and its effect on
financial performance.
Design/methodology/approach - In the applied part of this study, a
sample of 44 IBs operating in Bahrain, Kuwait, Qatar, Oman, the United
Arab Emirates and the Kingdom of Saudi Arabia were investigated
according to information provided by the national central hank websites
of the Gulf Cooperation Council (GCC) countries. To measure the
governance quality, CC-index was constructed based on three sub indices
which are the Board of Directors (BOD), the Audit Committees (AC) and
the Shariah Supervisory Board (SSB) indices.
Findings - Findings revealed that CO quality of IBs in GCC. countries
adhere to 74 per cent of the attributes addressed in the CG-index. The
results also showed that IBs in GCC countries valued the effectiveness
of SSB much more than the conventional CG mechanisms. Using multiple
regression models, findings suggested no statistically significant
relation between CG quality and financial performance which would imply
that good CC; had an insignificant association with high performance in
GCC IBs.
Originality/value - The current paper may serve to assist IBs
stakeholders to better understand the CG practices of IBs. In addition,
the observed insignificant relation between the quality of CG practices
and performance should sensitize the IBs regulators in the GCC countries
to the necessity of improving the existing CC requirements.
TC 7
ZS 0
ZA 0
Z8 0
ZR 0
ZB 0
Z9 7
U1 1
U2 10
SN 1753-8394
EI 1753-8408
UT WOS:000453897500008
ER
PT J
AU Pirgaip, Burak
Hepsen, Ali
TI Loan-to-value policy: evidence from Turkish dual banking system
MANAGEMENT
VL 11
IS 4
BP 631
EP 649
DI 10.1108/IMEFM-08-2017-0208
PD 2018
PY 2018
AB Purpose-This paper aims to answer how effective the loan-to-value (LTV)
regulation has been since 2011 for conventional and Islamic
(participation) banks in Turkey in terms of curbing mortgage loan growth
and delinquency[1].
Design/methodology/approach-The authors first use unit root tests and
tests of difference in loan and property price data in pre-LTV and
post-LTV period. Second, the authors follow Chow test and ordinary least
squares regression analyses to test for a structural break when
sensitivity of mortgage loan and delinquency growth changes to property
price changes considered.
Findings-The authors find that two periods are statistically different,
while the significance level is lower for Islamic banks. Moreover, loan
growth has become less responsive to property price increases;
delinquency sensitivity to property price changes has significantly
increased in the post-LTV period for conventional banks, while this is
not the case for Islamic (participation) banks.
Originality/value-This paper not only increases empirical evidence
regarding the effectiveness of LTV ratio policy but also fills the gap
in the literature by providing a comparison between conventional banks
and Islamic (participation) banks.
RI PIRGAIP, BURAK/AAT-5561-2020; /AAD-1710-2020
OI PIRGAIP, BURAK/0000-0001-8870-8502;
ZA 0
TC 1
ZB 0
ZS 0
Z8 0
ZR 0
Z9 1
U1 0
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000453898100007
ER
PT J
AU Laela, Sugiyarti Fatma
Rossieta, Hilda
Wijanto, Setyo Hari
Ismal, Rifki
TI Management accounting-strategy coalignment in Islamic banking
MANAGEMENT
VL 11
IS 4
BP 667
EP 694
DI 10.1108/IMEFM-04-2017-0088
PD 2018
PY 2018
AB Purpose-This paper aims to examine the effect of management
accounting-strategy coalignment on the maqasid Shariah-based performance
of Islamic banks in Indonesia. The study also examines the role of the
corporate life cycle of Islamic banks in influencing the relationship
between management accountingstrategy coalignment and performance.
Design/methodology/approach-Management accounting practices, management
control systems, strategy and maqasid Shariah-based performance are
measured using questionnaires which were distributed to 97 directors and
heads of Islamic banks. The model of this study is analyzed using
structural equation model.
Findings-This study finds that the coalignment between low cost-oriented
strategy, strategic management accounting practices and mechanistic
management control system has positive impact on improving maqasid
Shariah-based performance. However, this study is unable to verify that
corporate life cycle strengthens the positive relationship between
management accounting-strategy coalignment and performance.
Research limitations/implications-Limited indicators of management
accounting practices in this study illustrate less comprehensive
management accounting practices. Further studies may add other relevant
management accounting as described by the International Federation of
Accounting Committee to provide a more comprehensive management
accounting practices.
Practical implications-This study provides recommendations to the
management of Islamic banks to design management accounting practices
andmanagement control systems that fit to their strategic orientation.
Originality/value-This paper fulfils limited empirical studies on
management accounting practices and strategy in Islamic banking
industry.
ZA 0
ZB 0
ZR 0
TC 2
ZS 0
Z8 0
Z9 2
U1 1
U2 5
SN 1753-8394
EI 1753-8408
UT WOS:000453898100009
ER
PT J
AU Broni, Mohammed Yaw
Hosen, Mosharrof
Saiti, Buerhan
TI THE CAUSALITY BETWEEN STOCK MARKET AND BANKING SECTOR: EVIDENCE FROM
DUAL BANKING SYSTEM
SO INTERNATIONAL JOURNAL OF BUSINESS AND SOCIETY
VL 19
IS 3
BP 596
EP 615
PD 2018
PY 2018
AB The Stock market and Banking sectors have frequently been lumped
together as one, and named the financial sector, even though they appear
to be different in nature and in functions. Based on this assumption
only a few studies have been undertaken to determine causality between
them. Without knowing the accurate lead-lag relationship between these
two important fniancial sectors, policy-makers would prescribe for them
similar treatments. This could hurt either of these sectors. Both
theoretical and empirical studies have not been able to resolve the
controversy surrounding the direction of causality between the stock
market and banking sector development. Therefore, the objective of this
paper is to determine which financial sector leads, the stock market or
banking sector. Using standard time series econometric method, monthly
data covering a period of about 22 years were analyzed. The results
indicate that stock market Granger-causes banking sector development,
with GDP, sandwiched between them. Policy-makers who are desirous of
developing the banking sector may do so through influencing (hitting)
the stock market or economic growth. However, to develop the stock
market, the main option available is to try and influence interest or
exchange rates.
RI Hosen, Mosharrof/Z-4000-2019; SAITI, BUERHAN/C-8168-2017
OI Hosen, Mosharrof/0000-0002-9301-4318; SAITI, BUERHAN/0000-0002-9984-489X
ZR 0
ZS 0
ZB 0
ZA 0
Z8 0
TC 0
Z9 0
U1 0
U2 1
SN 1511-6670
UT WOS:000452211000004
ER
PT J
AU Amin, Hanudin
Hamid, Mohamad Rizal Abdul
TI PATRONAGE FACTORS OF TAWARRUQ HOME FINANCING IN MALAYSIA
VL 19
IS 3
BP 660
EP 677
PD 2018
PY 2018
AB Recently, Islamic banking sector has undergone rapid changes in the
development of new financial innovations for Shariah compliance and
competitiveness purposes. Tawarruq home financing is one of the
innovations added to the existing list of Islamic home financing
products, which provides a source of competitive advantage to gain a
greater customers' acceptance. In many cases, bank customers can
determine the success of the product through acceptance and thus
improving its growth through an improved demand, enabling the banks to
sustain in the mortgage market. Hence, understanding customers' need is
now becoming more important for Islamic banks than ever before, not only
due to the changing landscape of Islamic home financing products but
also because of the changing preference of prospective customers. In
response to this concern, this study is aimed at explaining the
patronage factors of tawarruq home financing in Malaysia. Evidently,
product attractiveness, quality of maqasid compliance, financial
recommendation, attitude and perceived behavioural control are jointly
related to the willingness to choose tawarruq home financing. Attitude
is also a significant mediating variable. The findings provide Islamic
bankers with a better understanding of what attributes customers look
into when choosing tawarruq home financing. Limitations and future
research are provided.
RI Amin, Hanudin/I-1176-2017
OI Amin, Hanudin/0000-0003-3645-287X
ZS 0
ZB 0
TC 0
ZA 0
Z8 0
ZR 0
Z9 0
U1 0
U2 1
SN 1511-6670
UT WOS:000452211000007
ER
PT J
AU Dahir, Ahmed Mohamed
Mahat, Fauziah Binti
Bin Ali, Noor Azman
TI Funding liquidity risk and bank risk-taking in BRICS countries An
application of system GMM approach
VL 13
IS 1
BP 231
EP 248
DI 10.1108/IJoEM-03-2017-0086
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to examine the effects of funding
liquidity risk and liquidity risk on the bank risk-taking.
Design/methodology/approach - This study employs a system generalized
method of moments (GMM) estimation technique and a sample of 57 banks
operating in BRICS countries over the period from 2006 to 2015.
Findings - The results reveal that liquidity risk has a significant and
negative effect on the bank risk-taking, indicating that a decrease in
liquidity risk contributes to higher bank risk-taking. The study also
reveals that funding liquidity risk has the substantial impact on bank
risk-taking, suggesting lower funding liquidity risk results in higher
bank risk-taking. These results are consistent with prior assumptions.
Research limitations/implications - The implications of this study
highlight the fact that liquidity risk is a risk factor which drives the
potential bank default, of which banks tend to take more risks when
higher funding liquidity exists.
Practical implications - This study offers a number of valuable
implications for the policy makers as well as practitioners. The policy
makers should take into account better liquidity risk management
framework aimed at preventing banks from taking excessive risks. Bank
executives must pay more attention on how banks could hold more liquid
securities and cash. Less risk-taking reduces higher borrowing costs
undermining earnings through imposing taxes on corporate.
Originality/value - This work uncovered that liquidity risk per se is an
important and previously unidentified risk factor, specifically its
effects on bank risk-taking and contributes to the view in support of
holding more liquid securities than the past.
RI Rahman, Mohammad Mizanur/AAN-7539-2020
OI Rahman, Mohammad Mizanur/0000-0002-7414-8281
ZR 0
ZB 0
ZS 0
TC 3
ZA 0
Z8 0
Z9 3
U1 0
U2 12
SN 1746-8809
EI 1746-8817
UT WOS:000424640000012
ER
PT J
AU Shome, Anamitra
Jabeen, Fauzia
Rajaguru, Rajesh
TI What drives consumer choice of Islamic banking services in the United
Arab Emirates?
MANAGEMENT
VL 11
IS 1
BP 79
EP 95
DI 10.1108/IMEFM-03-2017-0066
PD 2018
PY 2018
AB Purpose Islamic banking (IB) has witnessed remarkable growth in the past
decade. The purpose of this study is to explore some factors that are
influencing the choice of Islamic banking and finance (IBF) products and
services in the United Arab Emirates (UAE), a predominantly Muslim
country.
Design/methodology/approach Students enrolled at a university located in
a major emirate in the UAE were asked to respond to a survey on factors
underlying their decision to open an account at an Islamic bank.
Responses were analyzed using descriptive statistics, analysis of
variance and regression analysis.
Findings Results indicate that the decision to open an account with an
Islamic bank is influenced by consumer expectations regarding the
conformity of the bank's operations with Islamic principles, as well as
consumers' Arab language skills. Variables such as consumers'
nationality, gender, education and familiarity with IB do not have a
significant influence on the decision to open an account at an Islamic
bank.
Research limitations/implications The study focuses on university
students from a certain Emirate only, which somewhat limits the
generalizability of the research results. Nevertheless, the findings of
this study may potentially provide some practical insights for further
improving and promoting IB, with special reference to the UAE youth
market segment.
Originality/value The research is original in nature, particularly as
there have not been many instances where the choice of potential
consumers (university students) regarding IB and finance services has
been explored within the IB sector in a predominantly Muslim nation such
as the UAE, an emerging Gulf economy. Consequently, the research
findings have important implications for Islamic banks operating in a
predominantly Islamic environment.
RI Rajaguru, Rajesh/; Jabeen, Fauzia/B-2327-2012
OI Rajaguru, Rajesh/0000-0001-8262-368X; Jabeen, Fauzia/0000-0002-3505-5955
ZA 0
ZS 0
Z8 0
TC 8
ZB 0
ZR 0
Z9 8
U1 3
U2 12
SN 1753-8394
EI 1753-8408
UT WOS:000428476300005
ER
PT J
AU Setiawan, Budi
Panduwangi, Morita
Sumintono, Bambang
TI A Rasch analysis of the community's preference for different attributes
of Islamic banks in Indonesia
SO INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS
VL 45
IS 12
BP 1647
EP 1662
DI 10.1108/IJSE-07-2017-0294
PD 2018
PY 2018
AB Purpose The purpose of this paper is to investigate the degree to which
the different attributes of Islamic banks in Indonesia are preferred by
the community.
Design/methodology/approach This paper uses a quantitative approach by
applying Rasch analysis to measure the relative importance of 18
attributes of Islamic banks to the community. The data were collected by
questionnaires, which were distributed online and completed by 345
respondents. In addition to the Rasch model, the preference of
attributes was measured by a statistical inference test, using SPSS
software, which employs binary logic regression related to the agreement
between the performance of attributes and expectations.
Findings The instrument used in this study showed good reliability, and
its validity fits the expected model. The results show that the
assurance of financial security, friendliness and the application of
Islamic principles in their operations are the most important attributes
to be considered when people choose an Islamic bank. The degree of
importance placed by the community on the various attributes of Islamic
banks will have an effect upon the actual and perceived quality of those
attributes. An increase in the community's preference for a particular
attribute will eventually be followed by an increased agreement between
the actual performance of that attribute and the community's
expectation.
Research limitations/implications The varied profiles of individual
respondents were not explored fully: this research relies solely on
quantitative analysis. So, there is no empirical information to inform
the Islamic banks as to which segments of the community should be the
focus of their promotional activities.
Originality/value The use of Rasch analysis to measure the community's
preference for various attributes of Islamic banks has not been done
previously.
RI Setiawan, Budi/A-6647-2017; Sumintono, Bambang/AAE-6612-2019; Setiawan,
Budi/AAC-6092-2019
OI Setiawan, Budi/0000-0002-2675-9176; Sumintono,
Bambang/0000-0002-5490-3665; Setiawan, Budi/0000-0002-2675-9176
ZA 0
TC 0
ZS 0
ZB 0
Z8 0
ZR 0
Z9 0
U1 1
U2 4
SN 0306-8293
EI 1758-6712
UT WOS:000447558800005
ER
PT J
AU Halteh, Khaled
Kumar, Kuldeep
Gepp, Adrian
TI Financial distress prediction of Islamic banks using tree-based
stochastic techniques
VL 44
IS 6
SI SI
BP 759
EP 773
DI 10.1108/MF-12-2016-0372
PD 2018
PY 2018
AB Purpose - Financial distress is a socially and economically important
problem that affects companies the world over. Having the power to
better understand - and hence aid businesses from failing, has the
potential to save not only the company, but also potentially prevent
economies from sustained downturn. Although Islamic banks constitute a
fraction of total banking assets, their importance have been
substantially increasing, as their asset growth rate has surpassed that
of conventional banks in recent years. The paper aims to discuss these
issues.
Design/methodology/approach - This paper uses a data set comprising 101
international publicly listed Islamic banks to work on advancing
financial distress prediction (FDP) by utilising cutting-edge stochastic
models, namely decision trees, stochastic gradient boosting and random
forests. The most important variables pertaining to forecasting
corporate failure are determined from an initial set of 18 variables.
Findings - The results indicate that the Working Capital/Total Assets
ratio is the most crucial variable relating to forecasting financial
distress using both the traditional Altman Z-Score and the Altman
Z-Score for Service Firms methods. However, using the Standardised
Profits method, the Return on Revenue ratio was found to be the most
important variable. This provides empirical evidence to support the
recommendations made by Basel Accords for assessing a bank's capital
risks, specifically in relation to the application to Islamic banking.
Originality/value - These findings provide a valuable addition to the
limited literature surrounding Islamic banking in general, and FDP
pertaining to Islamic banking in particular, by showcasing the most
pertinent variables in forecasting financial distress so that
appropriate proactive actions can be taken.
OI Kumar, Kuldeep/0000-0003-1597-0950; Gepp, Adrian/0000-0003-1666-5501
ZR 0
TC 3
ZA 0
ZS 0
ZB 0
Z8 0
Z9 3
U1 0
U2 6
SN 0307-4358
EI 1758-7743
UT WOS:000435958300008
ER
PT B
AU Boubakri, Narjess
Grira, Jocelyn
BE Boubaker, S
Cumming, D
Nguyen, DK
TI Models of corporate socially responsible banks: financial cooperatives,
Islamic banks, and microfinance institutions
SO RESEARCH HANDBOOK OF INVESTING IN THE TRIPLE BOTTOM LINE: FINANCE,
SOCIETY AND THE ENVIRONMENT
BP 355
EP 372
PD 2018
PY 2018
ZS 0
ZA 0
TC 0
Z8 0
ZR 0
ZB 0
Z9 0
U1 0
U2 1
BN 978-1-78811-000-6; 978-1-78643-999-4
UT WOS:000450555200017
D2 10.4337/9781788110006
ER
PT J
AU Islahi, Abdul Azim
TI History of Islamic Banking and Finance
VL 26
SI SI
BP 403
EP 429
PD 2018
PY 2018
AB This paper aims to investigate the origins and evolution of Islamic
Banking and Finance from the early days of Islam up to the formal
establishment of Islamic banks in the sixties of the last century. It
also sheds light on the banking practices in the later parts of Islamic
history which is an almost unreseatvhed area. It records the existence
of interest free lending societies at the end of the 19th century and
the situation preceding the development of modern Islamic banks in the
second half of the twentieth century. The paper concludes that Islamic
banking was an attempt to practice an aspect of economic life in an
Islamic way and it first emerged in rural and agricultural economies and
nothing to do with the petrodollar or oil boom of the Middle East as
usually put forward.
Z8 0
ZR 0
ZA 0
ZS 0
ZB 0
TC 0
Z9 0
U1 0
U2 0
SN 0128-4878
EI 2289-5639
UT WOS:000450537700007
ER
PT J
AU Ayub, Muhammad
TI Islamic finance crossing the 40-years milestone - the way forward
VL 26
SI SI
BP 463
EP 484
PD 2018
PY 2018
AB Islamic finance has experienced considerable growth worldwide in terms
of deposits and assets of Islamic banks over the last 40 years, but
shows little signs of achieving maturity. Almost all Islamic finance
products currently is use are mere replicas of their conventional
counterparts. This study follows the archival research strategy of
Bryman (1989), and analyses the literature on Islamic finance theory and
products and practices in order to ascertain the reforms needed for the
maturity goal. The paper proposes adoption of a new law regarding money,
different policy approaches. new structures of finance for shifting to
risk-based financing. new models, procedures and some fresh thought in
order to relate banking and finance to the real economy. It recommends a
leading role for Islamic economists for effective reforms in the
monetary and credit system in order to ensure that all financing is
based on goods, services, stocks or securities representing real assets
in line with the Shariàh principles. The suggested policy measures are
expected to lead to social inclusion and harmony in the interests of all
stakeholders in business and finance transactions.
RI Ayub, Muhammad/AAD-6273-2019
ZB 0
ZR 0
ZA 0
ZS 0
TC 1
Z8 0
Z9 1
U1 0
U2 2
SN 0128-4878
EI 2289-5639
UT WOS:000450537700009
ER
PT J
AU Ferhi, Afifa
TI Credit risk and banking stability: a comparative study between Islamic
SO INTERNATIONAL JOURNAL OF LAW AND MANAGEMENT
VL 60
IS 4
BP 1009
EP 1019
DI 10.1108/IJLMA-05-2017-0112
PD 2018
PY 2018
AB Purpose This paper aims to evaluate the credit risk of Islamic and
conventional banks and its relationship with the capital in 14 countries
of the Middle East and North Africa region. To do this, a sample of 58
Islamic banks and 89 conventional banks during the 2005-2015 period was
used.
Design/methodology/approach In fact to measure the difference between
Islamic banks and their conventional counterparts in terms of credit
risk, the generalized method of moments is used.
Findings The results showed that the conventional model has a higher
credit risk than the Islamic one. These results also showed that the
larger an Islamic bank is, the higher its credit risk will be to get
closer to that of conventional banks.
Originality/value This investigation is based on actual data for each
bank available in the Bank-Scope database provided by the Van Dijik
office (2013). It should be noted that almost all the recent empirical
studies interested in the world banking sector essentially use this
database.
Z8 0
ZB 0
ZS 0
ZR 0
TC 1
ZA 0
Z9 1
U1 1
U2 6
SN 1754-243X
EI 1754-2448
UT WOS:000449155300008
ER
PT J
AU Shawtari, Fekri Ali Mohammed
TI Ownership type, bank models, and bank performance: the case of the
Yemeni banking sector
SO INTERNATIONAL JOURNAL OF PRODUCTIVITY AND PERFORMANCE MANAGEMENT
VL 67
IS 8
BP 1271
EP 1289
DI 10.1108/IJPPM-01-2018-0029
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to examine bank performance using
the different performance measures, namely, return on assets, return on
equity and bank margins (MAR).
Design/methodology/approach - Unbalanced panel data were constructed to
test the related hypotheses and provide evidence on the relationship
between ownership types, banking models and performance indicators
adopting the random effects techniques.
Findings - The findings of the paper substantiate that the banking
models are significant performance indicators. However, the results are
contingent on the GDP growth of the country. Moreover, the evidence
indicates that the impact of ownership types is inconclusive in all
measures of performance. However, the GDP is significant when it
interacts with the types of ownership, particularly for foreign and
government banks, although the evidence is mixed and unfavourable for
government banks.
Practical implications - The results of the study provide insights for
bankers and policymakers to enhancement Yemen's banking sector.
Originality/value - This study is considered as the first attempt in
examining the role of banking model and ownership type and their link to
banking model.
ZB 0
TC 1
Z8 0
ZR 0
ZA 0
ZS 0
Z9 1
U1 0
U2 1
SN 1741-0401
EI 1758-6658
UT WOS:000448387700003
ER
PT J
AU Khamis, Fauz Moh'd
AbRashid, Rosemaliza
TI Service quality and customer's satisfaction in Tanzania's Islamic banks:
A case study at People's Bank of Zanzibar (PBZ)
VL 9
IS 4
BP 884
EP 900
DI 10.1108/JIMA-09-2016-0068
PD 2018
PY 2018
AB Purpose This study aims to examine the relationship between service
quality and customers' satisfaction, and the effect of service quality
on customers' satisfaction in Tanzanian Islamic banking.
Design/methodology/approach This study applied six service quality
dimensions of CARTER model, i.e. compliance, assurance, reliability,
tangible, empathy and responsiveness, to measure Tanzania Islamic banks'
service quality. The questionnaire was also used to measure the level of
customers' satisfaction to the Islamic banking services provided. A
total of 384 questionnaires were randomly distributed to the customers
of People's Bank of Zanzibar Islamic banking division, whereby 255
questionnaires were returned and used for analysis. By using SPSS
version 19, descriptive analysis, correlation analysis and regression
analysis have been used to meet the research objectives.
Findings The study findings indicate that customers are satisfied with
the Islamic banking services provided by Tanzania banks. However, it has
been found that customers are attracted by compliance, tangibility and
reliability of the banks. The findings further indicate a significant
relationship between service quality and customers' satisfaction.
Indeed, empathy, compliance and reliability were found to be the only
significant predictors of customers' satisfaction.
Research limitations/implications Further researches should be
considered to involve more banks to generalize the findings. Again, the
study has focused on the influence of service quality on customer
satisfaction; however, there may be other issues that have direct or
indirect influence on customers' satisfaction on Tanzania Islamic
banking. It is, therefore, suggested that future researchers may broaden
their scope and conduct research in these areas.
Practical implications The findings of the study suggest that there is
large number of Muslim and non-Muslims communities who are interested in
Islamic modes of finance and banking. Banks have potential to increase
customers' base by improving the quality of their services. Essentially,
banks must focus on complying with Islamic principles, improving
reliability and empathy, as they statistically influence customers'
satisfaction.
Social implications The study creates awareness about the nature of the
quality of services provided by Islamic banks in Tanzania. Hence, the
study may influence more customers to join Islamic banks for better
services.
Originality/value This study is important for Tanzania Islamic banks
considering that the country has a large number of Muslim communities
and non-Muslims who are interested in Islamic modes of finance and
banking. While most of the other studies on customers' preferences in
Tanzania are based on conventional banking services, this study focuses
on Islamic modes of finance and banking.
ZB 0
ZR 0
ZS 0
Z8 0
ZA 0
TC 4
Z9 4
U1 0
U2 7
SN 1759-0833
EI 1759-0841
UT WOS:000447678700008
ER
PT J
AU Ezeh, Precious Chikezie
Nkamnebe, Anayo D.
TI A conceptual framework for the adoption of Islamic banking in a
pluralistic-secular nation: Nigerian perspective
VL 9
IS 4
BP 951
EP 964
DI 10.1108/JIMA-03-2017-0022
PD 2018
PY 2018
AB Purpose Islamic banking is an emerging product in Nigeria; it has
evolved as a new reality in the Nigerian financial scene since 2011.
Thus, the purpose of this paper is to propose a conceptual framework for
the study of Islamic banking adoption behavior among bank customers in
Nigeria.
Design/methodology/approach This study is a literature and theoretical
review of past studies to develop a comprehensive framework for the
study of Islamic banking adoption behavior in Nigeria.
Findings In this conceptual study, the researcher identified 12
independent variables, namely, relative advantage, compatibility,
complexity, observability, trialability, uncertainty, promotional
efforts, awareness, customer involvement, perceived information quality,
profit/loss sharing and religiosity, as suitable variables for the study
of Islamic bank adoption in Nigeria.
Practical implications As Islamic banking is an innovative and unique
product, which differs from conventional banking, it is hopeful that
upon validating the framework, it will provide useful insight on the
adoption behavior of Islamic bank customers in Nigeria.
Social implications This study will be useful to Islamic banks in
gaining and maintaining their existing customer, and policymakers,
regulators and other relevant stakeholders will be able to strategize in
accordance with their respective assignments toward the development and
growth of the Nigerian financial industry.
Originality/Value Most previous studies concentrated on product
attributes of innovation adoption. But, this current study inculcated
the consumers' attitude and perception toward adoption of Islamic
banking. Thus, the authors then propose several factors that can
influence adoption of Islamic banking in Nigeria.
RI Nkamnebe, Anayo Dominic/B-9938-2012; Ezeh, Precious/K-6405-2019
OI Nkamnebe, Anayo Dominic/0000-0002-7637-8769;
ZA 0
TC 4
ZS 0
ZR 0
Z8 0
ZB 0
Z9 4
U1 0
U2 8
SN 1759-0833
EI 1759-0841
UT WOS:000447678700012
ER
PT J
AU Butt, Irfan
Ahmad, Nisar
Naveed, Amjad
Ahmed, Zeeshan
TI Determinants of low adoption of Islamic banking in Pakistan
VL 9
IS 3
BP 655
EP 672
DI 10.1108/JIMA-01-2017-0002
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to examine the reasons behind low
penetration of Islamic banking in Pakistan. Specifically, the study
investigates the differentiation of Islamic banks (IBs) from
conventional banks, the role of religion in choosing Islamic banking and
the perception of IBs amongst the consumers.
Design/methodology/approach - The study uses a mixed-method approach,
qualitative research along with a survey of users of conventional and
Islamic banking. Factor analysis identified underlying dimensions and
cluster analysis ascertained the differences between users and non-users
of Islamic banking. Inferential statistics were used to test purported
hypotheses.
Findings - The study finds that the users and non-users both perceive
that Islamic banking is not completely interest-free. Furthermore,
consumers presume that IBs are more of eyewash and are not truly
practicing Islamic banking. Moreover, religion is not a major factor
that attracts new users but there are also other important factors in
marketing Islamic banking, such as service quality, convenience, branch
network, etc.
Originality/value - This is one of the sparse studies in the field of
Islamic banking consumer behaviour, which uses focus groups of users and
non-users, and in-depth interviews of experts, to identify the issues
and factors considered relevant and important by the users rather than
relying only on literature review. Furthermore, it also provides a
profile of users versus non-users of Islamic banking which is very
useful for segmentation and targeting of customers.
RI Ahmad, Nisar/Y-1775-2019; Butt, Irfan/AAE-6255-2020; Naveed, Amjad/AAU-2164-
2020; Ahmad, Nisar/
OI Butt, Irfan/0000-0002-9594-5722; Naveed, Amjad/0000-0002-1351-4145;
Ahmad, Nisar/0000-0001-7285-0627
ZA 0
Z8 0
ZB 0
ZR 0
ZS 0
TC 6
Z9 6
U1 0
U2 6
SN 1759-0833
EI 1759-0841
UT WOS:000447319800010
ER
PT J
AU Ghosh, Saibal
TI Capital structure, ownership and crisis: evidence from Middle East and
North African banks
SO ACCOUNTING RESEARCH JOURNAL
VL 31
IS 2
BP 284
EP 300
DI 10.1108/ARJ-09-2015-0121
PD 2018
PY 2018
AB Purpose Although understanding the capital structure of firms has been
quite commonplace in the empirical literature, there is admittedly
limited evidence with regard to the determinants of capital structure
for banks. In this context, using data for the period 2000-2012, this
paper aims to examine the factors affecting the capital structure of
Middle East and North African (MENA) banks.
Design/methodology/approach The data span the period 2000-2012 and
comprise of over 100 banks from 12 MENA countries. Given the
longitudinal nature of the data, the panel uses panel data techniques
and controls for unobserved bank characteristics that might affect
capital structure.
Findings The findings indicate that the factors driving book leverage
are similar to those influencing market leverage. These findings refute
the conventional wisdom that bank capital structure is purely a response
to the regulatory requirements, as otherwise, regulatory concerns would
have driven a wedge between these two leverage measures. Second, the
crisis appears to have exerted a perceptible impact on bank capital.
Third, in terms of ownership, it appears that the crisis-support
measures had a salutary effect on Islamic banks, in turn improving their
growth opportunities.
Research/limitations/implications This is the first study to examine the
determinants of capital structure for MENA banks and how it evolved
during the crisis. By using both book- and market-related measures of
capital structure, the study is able to shed light whether regulatory
concerns are a major driven of bank capital. As the recent financial
crisis indicates, bank failures impose enormous social and economic
costs, which are protracted and significant.
Practical implications From a practical standpoint, the study seeks to
inform the policy debate on the role of regulation in impacting bank
capital, especially in the light of the envisaged Basel III reforms. In
addition, the study suggests that classroom teaching on bank capital
needs to be suitably refined to take on board country-specific
requirements and, in addition, focus on how such behavior evolved during
the crisis.
Originality/value This is the first study to examine the determinants of
capital structure for MENA banks and how it evolved during the crisis.
By using both book- and market-related measures of capital structure,
the study is able to shed light whether regulatory concerns are a major
driven of bank capital. As the recent financial crisis indicates, bank
failures impose enormous social and economic costs, which are protracted
and significant.
ZB 0
ZS 0
ZR 0
ZA 0
Z8 0
TC 0
Z9 0
U1 0
U2 4
SN 1030-9616
EI 1839-5465
UT WOS:000444390400010
ER
PT J
AU Hoque, Mohammad Enamul
Hashim, Nik Mohd Hazrul Nik
Razzaque, Mohammed Abdur
TI Effects of communication and financial concerns on banking
attitude-behaviour relations
SO SERVICE INDUSTRIES JOURNAL
VL 38
IS 13-14
BP 1017
EP 1042
DI 10.1080/02642069.2018.1428954
PD 2018
PY 2018
AB Despite extensive discussion of the concept of Islamic banking, which is
based on the fundamental doctrines of Islamic law (Shariah) and Islamic
economics (prohibition of interest and profit-loss sharing), few studies
have explored the factors that potentially affect behaviour intentions
among customers. This study investigates direct and moderating effects
of communication and financial factors on customer attitudes and
behavioural intentions towards Islamic banking. Data were collected from
the customers of Islamic banks and the Islamic banking divisions of
conventional banks in Malaysia using online surveys. The hypotheses were
tested using hierarchical regression analysis. The results suggest that
relationship marketing, informative advertising, perceived benefits, and
profit-loss sharing are important determinants of behavioural intentions
among both Muslim and non-Muslim customer groups. This study also found
moderating effects for most of the conceptualized moderating variables,
particularly attitude interactions with informative advertising, ease of
online banking, and the principle of profit-loss sharing. There are both
notable similarities and differences in the results for the two customer
groups. The findings imply that different strategies should be used both
to retain existing customers and attract new ones.
RI Hoque, Mohammad Enamul/AAG-8484-2020; Razzaque, Mohammed Abdur/Y-8468-2019
OI Hoque, Mohammad Enamul/0000-0003-3233-8316;
ZA 0
ZB 0
TC 1
Z8 0
ZR 0
ZS 0
Z9 1
U1 3
U2 10
SN 0264-2069
EI 1743-9507
UT WOS:000443916900006
ER
PT J
AU Ozdincer, Begumhan
Yuce, Ayse
TI Stakeholder Returns of Islamic Banks Versus Conventional Banks
VL 54
IS 14
BP 3330
EP 3350
DI 10.1080/1540496X.2017.1393746
PD 2018
PY 2018
AB Sharia principle shaping the Islamic banking model is most determinant
on collection and deployment of funds with its ban on interest. This
study aims to look at the results of funded activities in isolation for
a healthier comparison between Islamic and conventional deposit banks
with respect to their financial stakeholders. The differences are
reflected as lower asset returns and lower returns for depositors of
Islamic banks. These differences sustain throughout normal and crisis
periods. Our findings show that despite differences in asset structures
and returns, Islamic banks retain similar returns for shareholders to
position themselves close to and in competition with their conventional
counterparts.
ZB 0
ZR 0
TC 1
ZS 0
ZA 0
Z8 0
Z9 1
U1 0
U2 5
SN 1540-496X
EI 1558-0938
UT WOS:000443865600010
ER
PT J
AU Gundogdu, Ahmet Suayb
TI THE RISE OF ISLAMIC FINANCE: 2-STEP MURABAHA
SO ASIA-PACIFIC MANAGEMENT ACCOUNTING JOURNAL
VL 13
IS 1
PD 2018
PY 2018
AB The Islamic finance industry should refrain from replicating
conventional tools by complicated scams which hold Arabic names. There
is enough room for product development within the sphere of Islamic
Shari'ah. Today, the Islamic finance industry is still heavily recourse
to commodity Murabaha for liquidity management regardless of prohibition
of the practice by Islamic Fiqh Academia. This mainly results from the
lack of a proper liquidity management alternative for Islamic banks.
Although Sukuk can serve the purpose to some extent, not only commodity
Murabaha but also Sukuk is not expected to underpin the Islamic finance
industry for the future. In this paper, 2-Step Murabaha is proposed as a
strong alternative to the popular but questionable Islamic resource
mobilization/liquidity management tools. It is suggested that the
Islamic finance industry healthily rise on 2-Step Murabaha. The
literature review part of the paper dwells on Islamic finance in the
context of resource mobilization/liquidity management. The disbursement
procedures in full detail are explained for the 2-Step Murabaha
transaction in a case of a Gambian importer and an Egyptian exporter of
yarn. Then, the structure is evaluated to suggest the 2-Step Murabaha to
be embedded in stock exchanges in order to facilitate international
trade while serving the Islamic finance industry for liquidity
management.
RI Gundogdu, Ahmet Suayb/F-9095-2018
OI Gundogdu, Ahmet Suayb/0000-0002-8910-6690
ZR 0
ZS 0
ZB 0
Z8 0
TC 1
ZA 0
Z9 1
U1 0
U2 1
SN 1675-3194
UT WOS:000442320300007
ER
PT J
AU Alhammadi, Salah
Archer, Simon
Padgett, Carol
TI Perspective of corporate governance and ethical issues with profit
sharing investment accounts in Islamic banks
VL 26
IS 3
BP 406
EP 424
DI 10.1108/JFRC-01-2017-0014
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to examine the practices of
Islamic banks in managing the so-called profit sharing investment
accounts (PSIA) which they offer as a Shari'ah-compliant alternative to
interest-bearing deposit accounts using an unrestricted Mudarabah
contract. In particular, the paper aims to examine the risk-return
characteristics of such accounts and to compare these to the returns and
risks of shareholders in the same banks. It is relevant that PSIA
holders (unrestricted investment account holders - UIAH) are exposed to
losses on the assets in which their deposits are invested, while the
bank as asset manager (Mudarib) does not bear these losses and as
Mudarib typically receives more than 50 per cent of the profits earned
on the PSIA. The issue is whether the UIAH are being treated equitably.
The influence of a set of corporate governance variables on this issue
was also analyzed.
Design/methodology/approach - A sample of 28 Islamic banks was selected
from five countries for the period 2002-2013, with data being obtained
from Bankscope and Bloomberg and, where necessary, from the banks'
annual reports. First, the risk-return characteristics of the UIAHs'
rates of return and shareholders' rates of return on equity (ROE) were
compared by calculating for each bank the coefficients of variation (CV)
of the two series of rates of return. Second, a panel data approach was
used to evaluate the effectiveness of corporate governance by examining
the extent to which the size of the difference between the rates of
return for shareholders and for UIAH was associated with a set of
corporate governance variables. Third, a comparison was made between the
risk-return characteristics of UIAH's rates of return and shareholders'
dividend yield rate for a sub-sample of 20 banks for which the
information was available.
Findings - For a significant proportion of the banks (9 out of 28), the
CVs of the PSIA returns were higher than those of the shareholders'
ROEs, which suggested that in these cases the PSIA holders were
receiving inequitable treatment. Likewise, for 7 out of the 20 banks in
the sub-sample, the CVs of the PSIA holders' rates of return were higher
than those of the shareholders' dividend yield rate. In explaining the
size of the differences between the rates of return on PSIA and the
shareholders' ROEs, the variable with the greatest explanatory power was
the return on assets, implying that when this was high the bank took a
maximum Mudarib share of profits. Some other corporate governance
variables had the expected signs, as did a country dummy representing
the maturity of the market for Islamic banking, but there was little
evidence of the effectiveness of corporate governance in protecting the
interests of the UIAH.
Research limitations/implications - A limitation of the research was
that the inefficiency of the stock markets in the relevant countries and
the fact that a few of the banks were not listed made it impossible to
use shareholders' stock market returns. ROE is not a very good proxy, as
it is unclear how much value should be placed on retained earnings.
Dividend yield rates provide a better comparison with UIAH rates of
return, but the data were available for only 20 of the banks.
Nevertheless, the results of the analysis strongly suggest that in a
significant proportion of cases, UIAH are not being treated equitably.
Practical implications - The implication is that the regulation of
Islamic banks needs to be improved to provide better protection to UIAH.
Social implications - Islamic banks operate mainly in emerging markets
where the effectiveness of regulation is limited. The ethical basis of
Islamic finance provides some mitigation of this problem but apparently
fails to do so in a significant proportion of cases. This should be
borne in mind when assertions are made about the ethical basis of
Islamic finance.
Originality/value - There is a dearth of empirical studies of the
practices of Islamic banks and in particular of their treatment of their
customers. This is because of various factors: the relative novelty of
Islamic finance, the paucity of data and the relatively small size of
the body of researchers in the field. This paper aims to contribute to
filling this gap.
RI Alhammadi, Salah/F-2637-2015; Alhammadi, Salah/AAQ-7435-2020
OI Alhammadi, Salah/0000-0001-5422-4454; Alhammadi,
Salah/0000-0001-5422-4454
TC 0
ZB 0
ZR 0
Z8 0
ZS 0
ZA 0
Z9 0
U1 1
U2 4
SN 1358-1988
EI 1740-0279
UT WOS:000441905200005
ER
PT J
AU Malim, Nurhafiza Abdul Kader
Masron, Tajul Ariffin
TI WHAT DRIVES BANK MARGINS DURING AND POST-CRISIS? A COMPARISON BETWEEN
ISLAMIC AND CONVENTIONAL BANKS
SO ASIAN ACADEMY OF MANAGEMENT JOURNAL OF ACCOUNTING AND FINANCE
VL 14
IS 1
BP 107
EP 126
DI 10.21315/aamjaf2018.14.1.5
PD 2018
PY 2018
AB This paper examines the margins of Islamic and conventional banks
particularly in countries where Islamic banking is systemically
important using the Generalized Method of Moments (GMM) estimator
technique. In evaluating the impact of the global financial crisis, we
separately consider the entire period (2006-2013), during crisis period
(2007-2009) and post-crisis period (2010-2013) to gain new insights on
the determinants of margins in a dual banking system. The findings
indicate that the determinants differ across Islamic and conventional
banks during crisis and post-crisis periods. We uncovered evidence
suggesting that size, regulatory quality, inflation and overhead costs
are important determinants of margins of Islamic banks. The results
suggest the significant effects of market concentration, credit risk and
overhead costs on conventional banks' margins. Interestingly, the
results reveal different impacts of the crisis on both types of banking
system.
TC 0
ZR 0
ZA 0
ZB 0
ZS 0
Z8 0
Z9 0
U1 0
U2 2
SN 1823-4992
EI 2180-4192
UT WOS:000441790400005
ER
PT J
AU Isa, Mohd Yaziz Mohd
Choong, Yap Voon
Fie, David Yong Gun
Rashid, Md Zabid Hj Abdul
TI Determinants of loan loss provisions of commercial banks in Malaysia
VL 16
IS 1
BP 24
EP 48
DI 10.1108/JFRA-03-2015-0044
PD 2018
PY 2018
AB Purpose - This paper aims to derive determinants of loan loss provisions
(LLPs) of commercial banks in Malaysia.
Design/methodology/approach - A single-stage panel data analysis
multiple regression model that contains a mixture of quantitative and
qualitative elements is used. The LLPs is a dependent variable or
regressor, and non-performing loan (NPL), interest income, net profit,
loans and advances and gross domestic product (GDP) are the independent
variables or regressor/explanatory variables. The moderating variable is
"credit risk management" (CRM) and the intervening variable is
"relevance and faithful representation".
Findings - This paper suggests in LLPs, NPLs, interest income, loans and
advances, net profit and GDP, as well as the moderating effect of CRM
and the intervening effect of relevance and faithful representation, are
determinants of the LLPs. The moderating variable CRM strengthens the
relationship between the independent variables and the dependent
variable. The intervening variable "relevance and faithful
representation" brings about a more accurate reporting on the levels of
the LLPs.
Practical implications - The acsociation of the factors is investigated
further to detect possible effort of multicollinearity and re arch to
better understand how banks manage their risk as the current
investigation is limited to banks in Malaysia.
Social implications - Loan loss provisioning issues of commercial banks
in Malaysia are challenges for both regulators and the banking industry
owing to the implementation of several new measures, the convergence
with internationally accepted accounting standards and differences in
loan grading and applications of different loan loss provisioning
standards. Because of these challenges, Bank Negara Malaysia (the
Central Bank of Malaysia) has tightened its supervision of commercial
banks to ensure that banks are sufficiently and adequately provisioned.
The banking sector plays a significant role, and it is important that it
is resilient in the face of potential sources of systemic risk. And,
like in other major ASEAN economies, the Malaysian's financial system
remains largely bank-dominated.
Originality/value - This study discovers whether Malaysian banks are
sufficiently provisioned for the regional financial integration under
the ASEAN Capital Markets Forum (ACMF) by the end of 2015, where several
initiates have been initiated, including the harmonization of standards
to encourage greater intra-regional investment flows and transactions
and continued provisions of the much needed funds by the region's
private sectors.
Z8 0
ZR 0
TC 1
ZB 0
ZA 0
ZS 0
Z9 1
U1 0
U2 4
SN 1985-2517
EI 2042-5856
UT WOS:000441732600002
ER
PT J
AU Isa, Mohd Yaziz Mohd
Rashid, Md Zabid Hj Abdul
TI Regulatory capital funds and risk-sharing behavior in distressed
financial conditions An empirical analysis on Islamic banks in Malaysia
VL 16
IS 1
BP 197
EP 216
DI 10.1108/JFRA-06-2015-0066
PD 2018
PY 2018
AB Purpose - This paper aims to investigate the adequacy of regulatory
capital funds through loss provisioning policies because of worsening
credit quality associated with distressed financial conditions. A
financial distress occurs when banks have difficulty in honoring
financial commitments. This paper is expected to unveil how the
provisioning mechanisms can address concerns associated with pro
cyclicality of regulatory capital funds requirements, and how the banks
behave in distressed financial conditions to share risks. The pro
cyclicality of regulatory capital funds is the effect of various
components of the financial system that aggravates the economic cycle
such as during the expansion of the economy when banks are able to
provide more loans and meet regulatory capital requirements with ease,
while during the contraction of the economic cycle, can lead to
deterioration of asset quality, and the resultant need to make loss
provisions and recognize impairment. In turn, the situation puts further
pressures on the capital requirements held by banks and their
risk-sharing behavior. The paper analyzes a sample of Islamic banks in
Malaysia.
Design/methodology/approach - By estimating credit risk-related
information through loss provisioning policies, the paper uses an
unbalanced panel data on all Islamic banks in the Association of Islamic
Banking Institutions Malaysia from 2003 to 2014. The association
consists of full-fledged Islamic banks and several foreign-owned
entities.
Findings - The paper findings support that Islamic banks during observed
period of distressed financial conditions were less discouraged to
increase their regulatory capital funds to share risks. Intuitively,
they were more encouraged to engage in risk-shifting behavior. Also, the
risk-shifting behavior was found to have a significantly high potential
in foreign-owned Islamic banks than in domestic Islamic banks.
Research limitations/implications - Although the study is based on a
sample of Islamic banks in Malaysia, the findings suggest targeted
interventions aimed at discouraging risk shifting or transfer of risks
in an interest-free Islamic financing.
Practical implications - The outcome of this paper has practical
implications for Islamic banks to build a buffer of capital funds to
face downward pressures during heightened financial uncertainties while
serving as protection to depositors. Moreover, this study has practical
implications for shareholders to avail themselves the benefits of high
investment accounts financing. The Islamic banks can continue to play
their role in promoting inclusive growth, reducing inequality and
accelerating poverty reduction.
Social implications - Although the current study is based on a sample of
Islamic banks in Malaysia, the finding suggests that the extent of risk
shifting was significantly more incentivized among the foreign-owned
rather than the domestic Islamic banks. This information can be used to
develop targeted interventions aimed at discouraging risk shifting or
transfer of risks in an interest-free Islamic financing.
Originality/value - This paper is the first that investigates on
adequacy of regulatory capital funds of Islamic banks through low
provisioning policies.
ZB 0
ZA 0
ZR 0
TC 0
ZS 0
Z8 0
Z9 0
U1 1
U2 7
SN 1985-2517
EI 2042-5856
UT WOS:000441732600010
ER
PT J
AU Al-Sulaiti, Jabir
Ousama, A. A.
Hamammi, Helmi
TI The compliance of disclosure with AAOIFI financial accounting standards:
A comparison between Bahrain and Qatar Islamic banks
VL 9
IS 4
BP 549
EP 566
DI 10.1108/JIABR-10-2017-0144
PD 2018
PY 2018
AB Purpose This paper aims to examine the compliance of disclosure with the
financial accounting standards of the Accounting and Auditing
Organisation for Islamic Financial Institutions' (AAOIFI) related to
Islamic financing products by Islamic banks in Bahrain and Qatar.
Design/methodology/approach The study measures compliance using
disclosure indexes. The disclosure indexes include the three financial
accounting standards of Murabaha, Mudaraba and Musharaka. The data are
collected from the annual reports of 24 Islamic banks in Bahrain and
Qatar over a period of 2012-2015.
Findings The paper found that Islamic banks in Bahrain and Qatar comply
with AAOIFI financial accounting standards related to Murabaha, Mudaraba
and Musharaka. However, there was a level of non-compliance in both
countries. In addition, it found that the extent of compliance had
increased over the 2012-2015 period. Also, the Murabaha standard had the
highest mean of compliance. Moreover, the results showed that the
Islamic banks in Qatar tend to have more compliance of overall Murabaha
and Mudaraba disclosures compared to the Islamic banks in Bahrain.
Research limitations/implications The findings are preliminary and
highlight that the issue is of high interest to Islamic banks and
AAOIFI. Hence, it requires a detailed follow-up to form a complete
picture that would assist AAOIFI and regulators gear their policies
toward better quality disclosure by Islamic financial institutions. Even
though the findings are encouraging, future research is recommended to
enforce compliance with the AAOIFI financial accounting standards.
Originality/value This is a pioneer empirical study that focuses on the
level and trend of compliance with AAOIFI financial accounting standards
related to the Islamic financing products of Murabaha, Mudaraba and
Musharaka standards, especially in Qatar. Additionally, it is the first
study comparing between the only two Gulf Cooperation Council (GCC)
countries, i.e. Bahrain and Qatar, that mandatory apply the AAOIFI
standards.
RI Abdulrahman Anam, Ousama/F-7630-2012
OI Abdulrahman Anam, Ousama/0000-0002-1582-8834
ZR 0
ZA 0
ZB 0
Z8 0
TC 2
ZS 0
Z9 2
U1 0
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000441138900005
ER
PT J
AU Grassa, Rihab
TI Deposits structure, ownership concentration and corporate governance
disclosure in GCC Islamic banks: Empirical evidence
VL 9
IS 4
BP 587
EP 606
DI 10.1108/JIABR-10-2014-0034
PD 2018
PY 2018
AB Purpose This paper aims to assess the effects of deposits structure and
ownership structure on the GCC Islamic banks' corporate governance
disclosure (CGD) practices.
Design/methodology/approach The study is based on a sample of 38 Islamic
banks operating in five Gulf Cooperation Council (GCC) countries, and
the authors observed them over the period from 2006 to 2011. The authors
used the transparency and disclosure score, developed by Standard &
Poor's (S&P), to identify the sample's CGD scores.
Findings This paper's findings suggest that the level of CGD is lower
for Islamic banks with higher ownership concentration, for levered
Islamic banks and for Islamic banks with greater concentration of
nonprofit-sharing investment accounts (PSIA) and is higher for Islamic
banks with greater concentrations of PSIA; the Islamic bank size; the
bank age; listed bank and the country transparency index. By
disaggregating the total CGD into the three sub-categories, the authors
are able to specify, also, the components of corporate governance (CG)
impacted by various determinants.
Research limitations/implications This paper is subject to a number of
limitations. First, there is manual scoring of annual reports
(subjectivity). Second, the research focuses exclusively on the GCC
context and excludes the other Middle East, Southeast Asia and Far East
countries, where ownership structure and deposits structure might affect
CGD differently. Third, the governance score, which is used in this
research, is developed by S&P and does not take into account the
characteristics of Islamic banks.
Practical implications The findings of this paper suggest many policy
implications. First, through the optimization of ownership structure,
GCC countries' regulators have to improve the Islamic banking system's
CG mechanisms through the optimization of ownership structure (dispersed
ownership) to promote transparency and disclosure. Second, regulators
and policymakers should revise guidelines with the main purpose of
protecting PSIA' holders (considered to be minor shareholders without
voting power) through promoting disclosure and transparency. Third, the
findings can be useful for many international supervisory bodies, like
the Islamic Financial Services Board (IFSB) and Accounting and Auditing
Organization for Islamic Financial Institutions (AAOIFI), in evaluating
transparency and disclosure standards.
Originality/value This study is expected to be useful for all market
participants, namely, investors, financial analysts, managers, marker
regulators and many international Islamic supervisory bodies, such as
the IFSB and AAOIFI, by providing new requirements on CGD in the GCC
region and in better understanding its determinants for Islamic banks in
this region.
RI grassa, rihab/AAA-7623-2019
ZA 0
ZB 0
Z8 0
ZR 0
ZS 0
TC 0
Z9 0
U1 0
U2 7
SN 1759-0817
EI 1759-0825
UT WOS:000441138900007
ER
PT J
AU Ullah, Md Hafij
Khanam, Ruma
Tasnim, Tabassum
TI Comparative compliance status of AAOIFI and IFSB standards: An empirical
evidence from Islami Bank Bangladesh Limited
VL 9
IS 4
BP 607
EP 628
DI 10.1108/JIABR-11-2014-0040
PD 2018
PY 2018
AB Purpose This paper aims to examine the compliance status of Accounting
and Auditing Organization for Islamic Financial Institutions (AAOIFI)
Financial Accounting Standards-1 and Islamic Financial Services Board
(IFSB) Standard-4 by Islami Bank Bangladesh Limited (IBBL), recognizing
the regulatory influence for complying with AAOIFI and IFSB standards
and identifying the factors influencing the compliance with these
standards.
Design/methodology/approach The present study used content analysis
approach for investigating the compliance status. The study considered
IBBL as the only sample because it is the only Islamic bank in
Bangladesh which is the member of both AAOIFI and IFSB. Hence, this
paper investigated the compliance status of IBBL as a member of AAOIFI
and IFSB. The study examined the annual reports of 2008-2012 as these
were the latest and contemporary reports in 2013 when the study was
conducted. SPSS software version 22.0 was used to analyze the data. A
total of 203 items under 13 categories of AAOIFI standard and 133 items
under 17 categories of IFSB standard were considered. Ordinary least
squares was run to test the hypotheses of the study.
Findings The study found that IBBL on an average complied 46.31 per cent
of AAOIFI and 52.50 per cent of IFSB standards during the period, and
importantly, IBBL did not comply some of the categories of required
disclosures. The study also observed that size, as measured by total
asset and number of branches, has a significant influence on compliance
with IFSB standard, but not AAOIFI. The findings of the study depicted
that IBBL did not reasonably recognize the importance of complying with
AAOIFI and IFSB standards. Poor compliance or non-compliance with AAOIFI
and IFSB accounting and reporting standards by IBBL exposed that the
bank is not efficient in managing Shariàh compliance risks, operational
risks and transparent financial reporting. Therefore, recognition of the
Shariàh standards by the respective IFIs and a regulatory push is vital
for improving the level of compliance with these standards.
Research limitations/implications The study considered IBBL as the only
sample of the study because it is the only Islamic bank in Bangladesh
which holds the membership of both AAOIFI and IFSB. The fiscal years
2008-2012 only were selected to evaluate the compliance status of the
AAOIFI and IFSB standards in preparation and presentation of the
financial statements of IBBL for comparative analysis because IFSB
standard for accounting and disclosure was formulated in 2007; hence,
the study could not evaluate the compliance status before 2008.
Practical implications The study will help IBBL in identifying their
limitations in complying AAOIFI and IFSB standards and also the
regulators in designing the accounting and reporting frameworks in
regulating Islamic banks in Bangladesh. The study would help IBBL in
identifying the reasons for non-compliance, how improvement in
compliance level may help the bank in mitigating Shariàh compliance and
operational risk and how new legal and institutional framework may
improve the level of compliance with those standards.
Social implications The study observed that the AAOIFI and IFSB
standards were set for increasing the level of Shariàh compliance, but
the compliance status showed that different classes of accounting and
reporting were ignored from compliance by IBBL. This study will benefit
the stakeholders in choosing a Shariàh-compliant bank.
Originality/value This is a unique study which considered both AAOIFI
and IFSB accounting and reporting standards in evaluating the reporting
compliance status of an Islamic bank and identified the influence of
reporting compliance on managing Shariàh compliance risks, operational
risks and transparency. This study expects to instigate the Islamic
banks in complying accounting and reporting standards for being
Shariàh-compliant.
TC 2
ZR 0
ZA 0
ZS 0
ZB 0
Z8 0
Z9 2
U1 0
U2 3
SN 1759-0817
EI 1759-0825
UT WOS:000441138900008
ER
PT J
AU Ilmi, Muhammad Bahrul
TI The analysis of the effect of Islamic financing and labor relationship
development toward nonperforming financing in Islamic banks
VL 9
IS 4
BP 648
EP 660
DI 10.1108/JIABR-02-2015-0002
PD 2018
PY 2018
AB Purpose The purpose of this study is to examine the effect of Islamic
financing (IF) and labor relationship development (LRD) toward
nonperforming financing (NPF) in Islamic banks. This research aims to
identify the connection between IF products and the practice of loan
officers building a relationship with loan customers (also known as LRD)
and its influence on NPF.
Design/methodology/approach This study uses a quantitative field
research that emphasizes upon analysis of numerical data which are
processed with statistical methods. Furthermore, the source is secondary
data from financial statements of Islamic banks such as annual reports
or financial disclosures. These sources of data are used to examine NPF
facilities from 2008 to 2012. Moreover, primary data collected via
questionnaire are used to investigate IF and LRD. The banks where the
study was conducted are: Bank Muamalat Indonesia and Bank Danamon
Shari'ah in Surakarta, Indonesia. The population in this study is 15
employees who work as account officers in Bank Muamalat Indonesia and
Bank Danamon Shari'ah. The techniques of data collection in this study
are documentation, questionnaires and literary study. In this study, the
data analysis technique was multiple regression analysis and examination
using SPSS version 21. These methods were used for analyzing the effect
of IF and LRD toward NPF.
Findings IF has a significant effect on NPF. In contrast, the LRD has no
effect on NPF in Islamic banks. In addition, both IF and LRD
simultaneously had an effect on NPF in Islamic banks.
Research limitations/implications This study does not cover all Islamic
banks in Surakarta because of limited data; thus, in future research,
the sample size could be increased by including all Islamic banks in
Surakarta, Indonesia. Furthermore, this study does not take into
consideration the fact that IF includes product financing. For future
studies, the population and samples should be improved and take into
consideration that product financing does exist in Islamic banks;
moreover, future studies could provide other variables which are
appropriate for current studies.
Originality/value The results support the recommendation for Islamic
banks in Surakarta to enhance the capability of employees to develop
their knowledge in IF. Because the performance of a bank does not only
depict financial performance but also nonfinancial performance such as
services, knowledge and employees' performance.
RI Ilmi, Muhammad Bahrul/AAE-3105-2019
OI Ilmi, Muhammad Bahrul/0000-0003-4784-1635
ZA 0
ZS 0
TC 0
ZB 0
Z8 0
ZR 0
Z9 0
U1 0
U2 3
SN 1759-0817
EI 1759-0825
UT WOS:000441138900010
ER
PT J
AU Kokalan, Ozgur
TI The effect of organisational justice on organisational silence: testing
the mediational role of workplace spirituality
SO MIDDLE EAST JOURNAL OF MANAGEMENT
VL 5
IS 3
BP 296
EP 319
DI 10.1504/MEJM.2018.093614
PD 2018
PY 2018
AB Today, organisational injustice causes many organisational problems. One
of these problems is organisational silence. Organisational injustice
negatively affects organisational silence in the workplace. To decrease
this negative effect, an organisation can use many different techniques.
One of these techniques is to establish a 'workplace spirituality'
within the organisation. The main aim of the study is to examine the
mediating roles of spiritual values in the workplace in the relationship
between organisational justice and organisational silence. The sampling
of the study included 472 employees from private participation (Islamic)
banks and conventional public banks. Confirmatory factor analysis and
structural equation methods were used in order to detect the direction
and level of the relationships between the parameters. According to the
mediating analysis findings, workplace spirituality is the full reason
for the relation between organisational justice and organisational
silence in private participation (Islamic) banks and the conventional
public banks.
RI Kokalan, Ozgur/AAA-9298-2019
ZA 0
ZR 0
ZS 0
ZB 0
Z8 0
TC 3
Z9 3
U1 1
U2 12
SN 2050-3636
EI 2050-3644
UT WOS:000441221600005
ER
PT J
AU Shawtari, Fekri Ali
Salem, Milad Abdelnabi
Bakhit, Izzeldin
TI Decomposition of efficiency using DEA window analysis: A comparative
evidence from Islamic and conventional banks
SO BENCHMARKING-AN INTERNATIONAL JOURNAL
VL 25
IS 6
BP 1681
EP 1705
DI 10.1108/BIJ-12-2016-0183
PD 2018
PY 2018
AB Purpose The purpose of this paper is to examine empirically the
efficiency types of Islamic and conventional banks. It seeks to show
whether the efficiency level of conventional and Islamic banks
significantly differs from each other. In addition, it investigates the
influential factors on each type of efficiency.
Design/methodology/approach The paper utilises the data envelopment
analysis in its windows version to estimate the efficiency scores
reflecting the time variance and compares between banking models. The
paper uses pure technical efficiency (TE) and scale efficiency to
achieve the objective of the study. In addition, the panel data
technique is adopted to assess the determinants of the efficiency of the
banks econometrically.
Findings The findings of panel regression initially indicate that the
pure TE is higher for conventional banks compared to Islamic banks.
However, the Islamic banks are more scale efficient than their
conventional counterpart. Macro and micro indicators have different
impacts on the both types of efficiency. However, the unique factors
that show consistent influence on the efficiency types were
loans/finance, non-interest income/finance/liquidity and GDP.
Furthermore, the determinants are shaped differently for Islamic and
conventional banks when the banking model is controlled for.
Originality/value This paper examines the efficiency types using a
unique window analysis approach to examine the types of efficiency with
a longitudinal set of data from 1996 to 2011.
ZB 0
ZR 0
ZA 0
TC 4
ZS 0
Z8 0
Z9 4
U1 1
U2 4
SN 1463-5771
EI 1758-4094
UT WOS:000439695300004
ER
PT J
AU Mashal, Abdulbari
Hajal, Amer
Majoul, Om Kalthoum
Ansary, Mir Riaz
TI Sale with the temporary exclusion of usufruct A critical examination of
its use in financing home purchases
VL 10
IS 1
BP 85
EP 93
DI 10.1108/IJIF-12-2017-0057
PD 2018
PY 2018
AB Purpose - This paper aims to investigate sale with the temporary
exclusion of usufruct, a format debated in classical Islamic
jurisprudence. More specifically, it examines the application of this
sale format in the diminishing partnership arrangement used by American
Finance House LAMA to finance house purchases. It analyzes the Shari ah
issues and assesses the risks involved.
Design/methodology/approach - The research is qualitative, surveying and
critically analyzing classical flak literature and contemporary juristic
resolutions, as well as LARIBA's financing documents. Finally, it
systematically surveys the associated risk factors, first qualitatively,
and then by quantifying them.
Findings - The research concludes that sale with the temporary exclusion
of usufruct is a valid contract in Islamic law. When the usufruct is
priced at market rate, the financing arrangement is genuinely Islamic
and brings added value. Moreover, it is very effective in addressing
risks for Islamic banks, particularly in countries with legal systems
not designed to accommodate Islamic finance.
Originality/value - This study systematically examines all aspects of a
contract that has not received sufficient academic attention, that has
been underutilized by the Islamic finance industry and that is more
fitting for implementation than many of the contracts currently being
used.
ZB 0
Z8 0
ZR 0
TC 0
ZA 0
ZS 0
Z9 0
U1 0
U2 1
SN 0128-1976
EI 2289-4365
UT WOS:000438779400008
ER
PT J
AU Mikail, Sa'id Adekunle
Kasri, Noor Suhaida
Elatrash, Saba Radwan
Adewale, Abideen Adeyemi
TI Framework for financial hardship indebtedness management in abandoned
housing projects in Malaysia
VL 10
IS 1
BP 102
EP 110
DI 10.1108/IJIF-03-2018-0027
PD 2018
PY 2018
AB Purpose - This paper aims to examine the existing practices and
pertinent issues affecting Islamic banks and their customers in
abandoned housing projects (AHPs) to ensure compliance with Shail'ah and
statutory requirements.
Design/methodology/approach - This study employs the qualitative
research method using the inductive approach to analyze both primary and
secondary data and sources. Data collection involved a series of
semi-structured interviews with five volunteering Islamic banks and a
representative of Abandoned Property Owners Association Malaysia
(Victims). Statutory acts, regulatory policies, guidelines, directives
and standards were also analyzed.
Findings - The result indicates developer's default. underlying
contracts, regulatory arbitrage and bureaucracy, attitudinal disposition
of customers and sell-then-build approach as major factors of AHP's
conundrum.
Practical implications - This study has suggested both short- and
long-term solutions based on the principles of justice, public interests
and removal of hardship to resolve and effectively manage financial
hardship indebtedness arising from housing abandonment. Further, part of
the proposed solutions would also reshape housing development policies
and home financing transactions.
Originality/value - The quest for this research demonstrated Islamic
banking industry's initiatives to find lasting solutions to perennial
issues of AHPs.
TC 0
ZB 0
ZA 0
ZS 0
ZR 0
Z8 0
Z9 0
U1 0
U2 0
SN 0128-1976
EI 2289-4365
UT WOS:000438779400010
ER
PT J
AU Koc, Ilker
TI Interest Rate Risk in Interest-free Banks: An Empirical Research on
Turkish Participation Banks
VL 5
IS 1
BP 89
EP 107
DI 10.26414/tujise.2018.5.1.89-107
PD 2018
PY 2018
AB Participation banks, which are globally called Islamic Banks or
interest-free banks, basically receive funds based on profit-loss
sharing principle and make loans via purchasing a commodity or a service
and selling it to customers for a higher price (murabaha method) or
profit-loss sharing investment contracts (mudarabah or musharakah
method). In literature, most of theoretical studies suggest that
interest-free banks' business model is based on profit-lost sharing
principles and therefore unlike conventional banks these institutions
are not exposed to interest rate risk. Conversely some empirical studies
suggest that Islamic banks' profitability is affected by market interest
rates and these institutions are exposed to interest rate risk. In this
study, with reference to Basel Committee's definition of interest rate
risk, effects of market interest rate fluctuation on the profitability
of Turkish Participation Banks has been analyzed with Seemingly
Unrelated Regression method for the period between June 2005 and June
2016. It is found that there is a significant relationship between the
profitability of the participation banks and interest rate changes and
therefore each institution is exposed to the interest rate risk at
different levels.
OI koc, ilker/0000-0003-3674-8128
ZA 0
ZB 0
Z8 0
TC 1
ZR 0
ZS 0
Z9 1
U1 0
U2 3
SN 2587-2303
EI 2587-232X
UT WOS:000439115500005
ER
PT J
AU Dams, Faizah
Yusoff, Haslinda
Naim, Dayang Milianna Abang
Amran, Azlan
Fauzi, Hasan
TI Corporate Social Responsibility Practices of Malaysian Islamic Banks
from the Shariah Perspective: A Focus on the Key Dimensions
SO GLOBAL JOURNAL AL-THAQAFAH
SI SI
BP 41
EP 55
PD JAN 2018
PY 2018
AB This study examines the corporate social responsibility (CSR) disclosure
practices of Islamic banks in a developing economy, i.e., Malaysia.
Specifically, the study focuses on all three full-fledged Islamic
commercial banks over the years 2004-2010 and constructs a CSR
Disclosure Index to score the disclosure level of the banks. The
findings reveal that Bank Islam has a higher disclosure practice than
other banks since 2006. Disclosures on dimensions such as corporate
vision, employment, and product are found to be strong, while
disclosures on environmentally related information tend to be weak.
Generally, the Islamic banks studied indicate that their CSR disclosure
practices have low compliance with the Shariah principles, a clear sign
that there is a need for more dynamic enhancement in the practice. Such
an effort is deemed crucial for the banks to retain their credibility
and reputation as Islamic business organizations.
RI Fauzi/N-2390-2013
OI Fauzi/0000-0003-1275-6166
ZR 0
ZB 0
ZS 0
ZA 0
TC 1
Z8 0
Z9 1
U1 0
U2 4
SN 2232-0474
EI 2232-0482
UT WOS:000438463400003
ER
PT J
AU Ibrahim, Hasmiene Diocolano
Omar, Normah
Hamdan, Hamdino
TI Critical Financial Analysis of Islamic Bank in the Philippines: Case
Study of Amanah Islamic Bank
SI SI
BP 145
EP 156
PD JAN 2018
PY 2018
AB The inspiration to delve into the contemporary status of Islamic banking
and finance in the Philippines has led this study to analyze the
financial condition of Amanah Islamic Bank (AIB) and recommend
improvements in its financial performance. This secondary databased
study utilizes library research and content analysis, particularly using
the capital, asset, management, earnings, and liquidity parameters. AIB
is the rebranded version of Al- Amanah Islamic Investment Bank of the
Philippines. At present, AIB has nine branches and is the only
authorized bank in the Philippines to offer Islamic banking products and
services. Presidential Decree No. 542, which was signed in 1974,
directed the AIB to implement an Islamic model of banking and financing,
particularly following the "no interest principle"and partnership
mechanisms. However, this order was not completely implemented because
"conventional banking"dominated the AIB's operation. This study
contributes to the continuing effort to convert AIB into a full- fledged
Islamic bank and simultaneously contend with the emerging growth of the
banking industry.
OI omar, normah/0000-0001-9393-9057
ZB 0
TC 0
ZA 0
ZS 0
ZR 0
Z8 0
Z9 0
U1 0
U2 1
SN 2232-0474
EI 2232-0482
UT WOS:000438463400010
ER
PT J
AU Sulong, Zunaidah
Noor, Nurul Syazwani Mohd
TI Distribution of Depositors' Return and The Income Smoothing Hypothesis
by Malaysian Islamic Banks
SI SI
BP 171
EP 187
PD JAN 2018
PY 2018
AB The paper aims to examine whether Malaysian Islamic banks carry out
income smoothing with regards to their distribution of depositors'
return. The paper also examines the extent Malaysian Islamic banks
engage earnings and capital management in their distribution of
depositors' return. This empirical study uses balanced panel data from
16 Malaysian Islamic banks, for the period 2008-2012. The regression
model is estimated using random effects specifications. The findings
indicate that the earnings before tax, zakat, and provision have a
positive but insignificant effect on distribution of depositors' return
(DDR) whilst the total capital before provision has a positive and
significant effect on the DDR. These findings suggest that Islamic banks
carry out income smoothing on the distribution of depositors' return via
capital management. Islamic banks also smooth their earnings through
distribution of depositors' return to avoid earnings troughs when
earnings are poor. The findings shows prudence exercise among Malaysian
Islamic banks with the objectives of mitigating displaced commercial
risk (DCR), which involves massive withdrawal and bank runs risks.
RI Sulong, Zunaidah/E-1766-2015
OI Sulong, Zunaidah/0000-0002-4150-3136
ZS 0
ZA 0
ZR 0
Z8 0
TC 0
ZB 0
Z9 0
U1 1
U2 1
SN 2232-0474
EI 2232-0482
UT WOS:000438463400012
ER
PT J
AU Rashid, Khalid
TI INSTITUTIONAL DEVELOPMENT TO FACILITATE MUSHARAKAH AND MUDARABAH MODE OF
FINANCING
VL 26
IS 1
BP 91
EP 108
PD 2018
PY 2018
AB This paper is based on the premise that it is not workable for the banks
in their existing form, whether as conventional banks or as Islamic
banks, to implement the profit and loss sharing mode of financing such
as Musharakah and Mudarabah. The purpose of this paper is to make some
practical suggestions for facilitating and promoting the use of
Musharakah and Mudarabah mode of financing. Rather than focusing on the
Shari àh compliance of existing banking instruments, a detailed
research and development work needs to be carried out to develop
completely a new form of institution outside the realm of the
conventional banking system, which provides more workable and
sustainable systems for implementing an alternate mode of financing
consistent with the Shari` ah objectives. This paper presents a
conceptual framework of the functioning of these institutions and
presents an outline of a sample research and development project to set
up one such institution. The institutional concept and the sample
project presented in this paper will contribute significantly to the
existing literature by providing an alternative approach to address the
scarcity of Musharakah and Mudarabah financing. It is anticipated that
with implementation of the sample project presented in this paper, the
pilot operations of the proposed institution can be started within six
to eight years.
ZB 0
ZA 0
ZR 0
TC 0
ZS 0
Z8 0
Z9 0
U1 0
U2 0
SN 1394-7680
UT WOS:000437506200004
ER
PT J
AU Kairdenov, S. S.
Deya Tortella, Bartolome
TI SOME ASPECTS OF ACTIVITY OF THE ISLAMIC BANKING SYSTEM IN THE MARKET OF
FINANCIAL SERVICES
SO BULLETIN OF THE NATIONAL ACADEMY OF SCIENCES OF THE REPUBLIC OF
KAZAKHSTAN
IS 3
BP 172
EP 179
PD 2018
PY 2018
AB Throughout the last twenty-fifth anniversary the financial and banking
sector of economy, both the certain countries, and the whole regions
periodically experiences the acute crises, which are expressed in the
sudden and sharp growth of number of banks, the investment and insurance
companies finding the insolvency. In recent years possible ways of
replacement of percent attentively were considered by Muslim experts in
economy and banking. Muslim economists have developed economic models of
interest-free economic system and have analyzed consequences of
cancellation of percent on the economic growth, establishment of
resources and distribution of income. They have also proved theoretical
base for the organization of modern banking on an interest-free basis.
The big contribution to practice about interest-free banking was also
made by bank staff. The concept of interest-free banking is not purely
theoretical category anymore. In the last two decades were created
several Islamic banks in the different parts of the world; they work
successfully. Three countries of the Islamic world: Pakistan, Iran
ZR 0
ZB 0
TC 0
Z8 0
ZS 0
Z9 0
U1 0
U2 1
SN 1991-3494
EI 2518-1467
UT WOS:000435934600024
ER
PT J
AU Javaid, Saima
Al-Malkawi, Husam-Aldin Nizar
TI Corporate social responsibility and financial performance in Saudi
Arabia: Evidence from Zakat contribution
VL 44
IS 6
SI SI
BP 648
EP 664
DI 10.1108/MF-12-2016-0366
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to investigate the impact of
corporate social responsibility (CSR) on corporate financial performance
(CFP) using Zakat as a measure for CSR.
Design/methodology/approach - The study examines a sample of 107
non-financial firms listed on the Saudi Arabia stock market over a
ten-year period from 2004 to 2013. The authors use the generalized
method of moments framework developed by Arellano and Bover (1995) and
Blundell and Bond (1998). In addition, for comparison purpose and as a
robustness check, the present study uses other panel data techniques
including fixed effects model, random effects model (and pooled ordinary
least squares.
Findings - The results reveal that there is a strong positive
relationship between CSR (Zakat) and CFP. This suggests that Zakat
contribute positively to both firm's profitability and value and can be
considered as a win-win strategy to maximize returns and improve
performance while considering the society as a whole. The results are
robust to alternative econometric estimation methods.
Practical implications - The companies in Islamic economies can
effectively and efficiently implement the basic Shari'a Law of paying
Zakat, as a successful measure to implement CSR program, thus benefiting
the society by narrowing the gap between the haves and have-nots, that,
in turn, leads the company to achieve successfully its short-term as
well as long-term goals and enhances the value of the firm in the
market. Moreover, corporations are generally encouraged to adopt CSR
because of its perceived benefits to both macro- and micro-performances.
Originality/value - To the best of the author's knowledge, this is the
first empirical study attempting to examine CSR-CFP relationship within
Saudi context employing Zakat as a proxy for CSR. Additionally, the
paper provides support for the stakeholder theory from an Islamic
perspective.
RI /AAD-1816-2020
OI /0000-0001-5372-8394
ZB 0
Z8 0
TC 3
ZA 0
ZR 0
ZS 0
Z9 3
U1 2
U2 6
SN 0307-4358
EI 1758-7743
UT WOS:000435958300002
ER
PT J
TI Risk and inefficiency: Behavioral explanation through overconfidence in
Islamic and conventional banks
VL 44
IS 6
SI SI
BP 688
EP 703
DI 10.1108/MF-04-2017-0130
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to conduct a behavioral analysis,
through overconfidence, in order to understand how this cognitive bias
could affect risk taking and inefficiency in Islamic and conventional
banks operating in the MENA region.
Design/methodology/approach - To achieve the objective, the authors
considered two overconfidence proxies, namely loan growth rate and net
interest margin. Using the generalized method of moments method
regressions for panel data, the authors found that the two
overconfidence proxies have an effect on the risk exposure and
consequently on the efficiency level of Islamic and conventional banks.
Findings - In general, overconfidence bias causes excessive risk taking
and the degradation of the cost efficiency level. Moreover, these
effects emerge with a delay of three to four years and have implications
that are not too different for both types of banks.
Originality/value - The main motivation underlying this research study
is the relatively new field of behavioral finance way in treating the
topic of overconfidence. The particularity of the overconfidence bias
topic is its assumption that financial decisions can be influenced by
cognitive biases, ignoring the fact of a predetermined risk-return
calculation.
ZR 0
ZS 0
Z8 0
ZB 0
ZA 0
TC 0
Z9 0
U1 1
U2 1
SN 0307-4358
EI 1758-7743
UT WOS:000435958300004
ER
PT J
AU Bougatef, Khemaies
Korbi, Fakhri
TI The determinants of intermediation margins in Islamic and conventional
banks
VL 44
IS 6
SI SI
BP 704
EP 721
DI 10.1108/MF-11-2016-0327
PD 2018
PY 2018
AB Purpose - The distinctive feature of Islamic financial intermediation is
its foundation on profit-and-loss sharing which reinforces solidarity
and fraternity between partners. Thus, the bank margin and its
determinants may differ between Islamic and conventional banks (CBs).
The purpose of this paper is to empirically assess the main factors that
explain the bank margin in a panel of Islamic and CBs operating in the
Middle East and North Africa (MENA) region. This study will permit to
identify the common and the specific determinants of the intermediation
margins in dual banking systems.
Design/methodology/approach - The authors use a dynamic panel approach.
The empirical analysis is carried out for a sample of 50 Islamic banks
(IBs) and 126 CBs from 14 MENA countries.
Findings - The results reveal that net profit margins of IBs may be
explained for the most part by risk aversion, inefficiency,
diversification and economic conditions. With regard to CBs, their
margins depend positively on market concentration and risk aversion and
negatively on specialization, diversification, inefficiency and
liquidity.
Practical implications - The significant impact of the degree of
diversification on margins suggests that any policy analysis of the
pricing behavior of banks should rely on its whole output. The high
levels of margins in Islamic and CBs based in the MENA region may
represent an obstacle to these countries to pursue their development
process. Thus, policy makers in these countries should consolidate the
role of capital markets and nonbanking financial institutions to provide
alternative sources of funding and stimulate more competition.
Social implications - The positive relationship between concentration
and net interest margins requires that policy makers should create
competitive conditions if they want to lower the social cost of
financial intermediation. The creation of competitive conditions may be
achieved through encouraging the establishment of new domestic banks or
the penetration of foreign banks.
Originality/value - The present study aims to contribute to the existing
literature on the determinants of bank margins in three ways. First, the
authors identify the factors that most explain bank margins for both
conventional and IBs. The majority of previous studies examine the
determinants of the profitability or the overall performance of banks
and in particular conventional ones. Second, this paper employs two
generalized method of moments (GMM) approaches introduced by Arellano
and Bover (1995) and Arellano and Bond (1991). It differs from Hutapea
and Kasri (2010) who employed the co-integration technique to examine
the long-run relationship between Islamic and CB margins and their
determinants in Indonesia. Third, unlike previous studies focusing on
MENA region that use a small number of countries and a short sample
period, the period of study covers 16 years from 1999 to 2014 and a
large sample of countries (14 countries). This paper differs from Lee
and Isa (2017) who applied the dynamic two-step GMM estimator technique
introduced by Arellano and Bond (1991) to study the determinants of
intermediation margins of Islamic and CBs located in Malaysia.
TC 0
Z8 0
ZR 0
ZS 0
ZA 0
ZB 0
Z9 0
U1 0
U2 8
SN 0307-4358
EI 1758-7743
UT WOS:000435958300005
ER
PT J
AU Chowdhury, Mohammad Ashraful Ferdous
Akbar, Chowdhury Shahed
Shoyeb, Mohammad
TI Nexus between risk sharing vs non-risk sharing financing and economic
growth of Bangladesh: ARDL bound testing and continuous wavelet
transform (CWT) approach
VL 44
IS 6
SI SI
BP 739
EP 758
DI 10.1108/MF-12-2016-0371
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to examine the linkage between
Islamic financing principles and economic growth (EG) by taking into
consideration two Islamic Financing Principles: Risk Sharing and
non-risk sharing separately.
Design/methodology/approach - The data for this study are obtained from
the annual reports of all Islamic banks from Bangladesh using Bank scope
database and annual report for the period 1984-2014. The research uses
an Autoregressive Distributive Lags (ARDL) approach. For robustness,
this study also employs a continuous wavelet transform approach.
Findings - The empirical findings reveal that the risk sharing
instruments are positively related to the EG of the country. On the
other hand, non-risk sharing instruments are negatively related to the
EG of the country.
Research limitations/implications - The dominant use of non-risk
sharing-based financing has undermined the greater possibility of
Islamic banking to contribute more to the EG of the country. Banks and
other financial institutions need to pay greater attention to systemic
risk created by risk transfer and apply risk sharing methods of
financing more vigorously to achieve greater equity, efficient
allocation of resources, stability and growth of the financial system
and welfare of the society as a whole.
Originality/value - This study has advanced the knowledge by examining
the issue of Islamic financing principles and EG. This is probably one
of the first attempts to find the linkage between Islamic financing
principles and EG by taking into consideration two portfolios: risk
sharing and non-risk sharing separately and provide significant insights
for policy makers, market players and academicians.
OI Chowdhury, Mohammad Ashraful Ferdous/0000-0001-8540-1353
Z8 0
TC 1
ZA 0
ZR 0
ZS 0
ZB 0
Z9 1
U1 0
U2 2
SN 0307-4358
EI 1758-7743
UT WOS:000435958300007
ER
PT J
AU Mahmood, Haroon
Gan, Christopher
Cuong Nguyen
TI Maturity transformation risk factors in Islamic banking: Implication of
Basel III liquidity regulations
VL 44
IS 6
SI SI
BP 787
EP 808
DI 10.1108/MF-07-2017-0259
PD 2018
PY 2018
AB Purpose - Maturity transformation risk is one of the leading causes of
the global financial crisis. While endorsing the new Basel III liquidity
reforms, the Islamic Financial Services Board has suggested a modified
NSFR ratio as a structural measure for the maturity transformation
function of Islamic banks, allowing for their unique balance sheet
structure. The purpose of this paper is to analyze various firm-specific
and macroeconomic factors that may significantly affect the maturity
transformation risk of these banks.
Design/methodology/approach - Using an annual data set of 55
full-fledged Islamic banks from 11 different countries over a period
from 2006-2015, this study utilizes a two-step system generalized method
of moments estimation technique on an unbalanced panel data.
Findings - The empirical results reveal bank size, capital, less-risky
liquid assets, risky liquid assets, external funding dependence and
market power as significant bank-specific factors in determining
maturity transformation risk. However, the authors find no evidence for
the effect of bank credit risk on maturity transformation risk in
Islamic banking system.
Originality/value - This is the first study that focuses on the
measurement of maturity transformation risk and its determinants in
Islamic banks in a cross-country context, with regards to new liquidity
regulatory requirements as proposed by Islamic Financial Services Board
(IFSB) in conjunction with Basel III.
Z8 0
ZA 0
ZB 0
TC 1
ZS 0
ZR 0
Z9 1
U1 1
U2 2
SN 0307-4358
EI 1758-7743
UT WOS:000435958300010
ER
PT J
AU Thaker, Mohamed Asmy Bin Mohd Thas
Pitchay, Anwar Bin Allah
TI Public relation activities in Islamic banking industry: An approach of
circuit of culture (COC) model
VL 9
IS 2
BP 283
EP 295
DI 10.1108/JIMA-06-2016-0047
PD 2018
PY 2018
AB Purpose This paper aims to examine the role of religion in influencing
the public relations activity of Islamic banking institutions in
Malaysia by adopting circuit of culture (COC) model as theoretical
framework.
Design/methodology/approach A narrative analysis is used in this study.
This analysis has basically involved the application of symbolic
interactionist tenets to respective websites and relevant documents of
Islamic banks in Malaysia.
Findings The paper has identified six Islamic value orientations
elements, especially respect for religious authority, affinity with the
past, fatalism, communal kinship, attachment to the eternal life and
spirituality and idealism relative to public relations practice among
the Islamic banks in Malaysia. The study finds that the respective banks
are embedded with Islamic values in their communication tools that
reflect public relations activity.
Research limitations/implications The theme of value orientations that
have been generated and used in this study are constantly in flux. There
are some other orientations that might be affecting the cultural value
of public relations activities of Islamic banking in Malaysia.
Furthermore, these value orientations are less effective in identifying
dominating cultural factors that can be amended with situational
flexibility, as the current study focuses on Malaysian context. Future
research is required by incorporating a quantitative means of testing
and measuring the effectiveness of website by using cultural-economic
model for building.
Practical implications The study suggests that public relations
researchers should not ignore the vital relationship between religion
and public relations activity. The findings of this paper provide
Islamic banking institutions to improve and enhance their public
relations activity.
Originality/value This paper offers an additional literature related to
public relations activity by using cultural-economic model. While
previous studies have focused on product, brand matters and organization
behavior to define cultural and public relation, very little research
has been focused on the role of religion in determining public relations
activity and cultural pattern. Indeed, no study has been focused
explicitly on public relations activity of Islamic banks in Malaysia
using COC.
RI Thaker, Hassanudin Mohd Thas/J-8058-2019
ZS 0
ZB 0
TC 2
Z8 0
ZR 0
ZA 0
Z9 2
U1 1
U2 2
SN 1759-0833
EI 1759-0841
UT WOS:000435562700004
ER
PT J
AU Butt, Muhammad Mohsin
de-Run, Ernest Cyril
U-Din, Ammen
Mutum, Dilip
TI Religious symbolism in Islamic financial service advertisements
VL 9
IS 2
BP 384
EP 401
DI 10.1108/JIMA-03-2017-0034
PD 2018
PY 2018
AB Purpose This paper aims to examine the impact of increasing the
intensity of religious cues in financial service advertisements on
target and non-target groups.
Design/methodology/approach To test the proposed hypotheses, a 2
(Religion: Muslims versus Non-Muslims) x 3 (Religious identity primes:
Low versus Medium versus High) factorial design was used. Both target
and non-target groups were randomly exposed to factitious advertisements
of an Islamic bank embedded with low, medium and high intensity of
religious cues.
Findings The results of this study indicate that within target group the
manipulation did result into a more favourable attitudes towards the
advertisement (Aad) and attitudes towards the brand (Ab) for the medium
intensity advertisement; however, for high intensity advertisement, only
Aad was more favourable compared to low intensity advertisement.
Relatively strong evidence was found in case of non-target group
negative reactions in term of Aad, Ab and purchase intention. The direct
comparison between target and non-target groups suggest a general
pattern of more positive response from target group as compared to
non-target group.
Practical implications The findings of this study provide an important
insight into the effectiveness of identity salience messages in
financial service marketing. The study provide empirical evidence that
intensifying the rhetoric beyond a certain point will generate negative
results from both target and non-target respondents.
Originality/value The authors integrated the research on symbolism,
social identity and target and non-target effects to analyse the
attitudinal and behavioural differences between and within target and
non-target groups of financial service advertisements with different
intensity of religious cues.
RI Butt, Muhammad Mohsin/K-1704-2019; Butt, Muhammad Mohsin/AAW-1494-2020; Mutum,
Dilip S./A-9791-2014
OI Butt, Muhammad Mohsin/0000-0002-1894-243X; Mutum, Dilip
S./0000-0002-9857-1164
ZS 0
TC 5
ZB 0
ZR 0
ZA 0
Z8 0
Z9 5
U1 0
U2 3
SN 1759-0833
EI 1759-0841
UT WOS:000435562700011
ER
PT J
AU Haider, Muhammad Jamal
Gao Changchun
Akram, Tayyaba
Hussain, Syed Talib
TI Does gender differences play any role in intention to adopt Islamic
mobile banking in Pakistan?: An empirical study
VL 9
IS 2
BP 439
EP 460
DI 10.1108/JIMA-11-2016-0082
PD 2018
PY 2018
AB Purpose Tremendous growth and worldwide expansion of Islamic banking
industry has gained widespread attention of economist, bankers,
investors and financial experts regardless of economic and political
volatility in global banking industry. To compete with conventional
banking, Islamic banks are setting up themselves with innovative
technologies to gain competitive edge and market share. The
establishment of mobile banking has been proven a technological wonder
by eliminating time and space boundaries, and one can access financial
services anywhere and at any time. For effective market segmentation,
recognizing gender differences in factors affecting the adoption
patterns of m-banking may provide competitive edge. Therefore, this
paper aims to investigate how gender differences impact the intention to
adopt Islamic mobile banking in Pakistan.
Design/methodology/approach The study uses extended technology
acceptance model (TAM) on final 243 participants from Pakistan.
Confirmatory factor analysis (CFA) and structural equation modeling
(SEM) methodology has been applied for data analysis using SPSS 21 and
AMOS 21.
Findings Results have identified two interesting and different models
for males and females in intention to adopt Islamic mobile banking. It
is inferred that males are more task driven and desire for personality,
value and status, so their intention is significantly impacted by
perceived usefulness and perceived self-expressiveness. Whereas, females
have found lack of IT knowledge and trust; therefore, their intention is
significantly impacted by perceived credibility. However, the perceived
financial cost was found of no concern for both males and females and
social norms influenced the adoption, but there existed no significant
gender differences.
Originality/value The contribution of this study to existing literature
is twofold. First, the existing research on mobile banking has mainly
applied TAM on conventional banking overlooking the important ethnic
group, the Muslims, who prefer Islamic banking. Second, the impact of
gender differences is investigated in factors affecting intention to
adopt Islamic mobile banking that has not been studied previously. The
study fills the gap.
OI Akram, Tayyaba/0000-0002-1024-8670; Hussain, Syed
Talib/0000-0001-8574-7282
ZB 0
ZR 0
ZA 0
TC 6
Z8 0
ZS 0
Z9 6
U1 3
U2 9
SN 1759-0833
EI 1759-0841
UT WOS:000435562700014
ER
PT J
AU Muneeza, Aishath
TI Establishment of Islamic capital market in jurisdictions with limited
Islamic financial services: Case study of Maldives
VL 60
IS 2
BP 373
EP 385
DI 10.1108/IJLMA-12-2016-0146
PD 2018
PY 2018
AB Purpose It is said that to establish an Islamic Capital Market, the
first step would be to have a strong Islamic finance industry with
numerous institutions offering Islamic financial services. This way it
is easy to know that the demand for Islamic capital market would be
there and that market will be sophisticated enough to comprehensive the
nature of shariah compliant products. Generally, in most of the
jurisdictions, this is how the Islamic capital market is created. The
purpose of this paper is to understand the establishment of Islamic
capital market in Maldives, small island nation where the establishment
of Islamic capital market happened when at a time there was only one
takaful company and one Islamic bank established.
Design/methodology/approach This paper is a legal exploratory research
that is based on the review of primary and secondary data available on
the subject matter.
Findings It is anticipated that this paper will provide assistance and
inspiration to those jurisdictions that aims to create Islamic capital
market from scratch.
Originality/value It shall be noted that there are no literature
available on this subject about Maldives, and as such, this paper can be
starting point to preserve knowledge in this area.
RI Muneeza, Aishath/AAD-9293-2020; Muneeza, Aishath/
OI Muneeza, Aishath/0000-0002-1107-8511
ZA 0
ZS 0
ZR 0
TC 0
Z8 0
ZB 0
Z9 0
U1 0
U2 7
SN 1754-243X
EI 1754-2448
UT WOS:000433367500012
ER
PT J
AU Grassa, Rihab
Chakroun, Raida
Hussainey, Khaled
TI Corporate governance and Islamic banks' products and services disclosure
SO ACCOUNTING RESEARCH JOURNAL
VL 31
IS 1
SI SI
BP 75
EP 89
DI 10.1108/ARJ-09-2016-0109
PD 2018
PY 2018
AB Purpose The purpose of this paper is to examine the determinants of
Islamic banks (IBs) product and services disclosure (PSD).
Design/methodology/approach A computer-based content analysis is run
upon the annual reports for a sample of 78 IBs operating in 11 countries
from 2004 to 2012 to find the number of product and services statements.
The levels and trends of PSD are identified. A regression analysis to
identify the factors affecting PSD in IBs is also used.
Findings The findings suggest that there has been a significant
improvement of PSD over time. The results show a positive association
between PSD and Shariah board size, board size, chief executive officer
(CEO) tenure, duality in position, blockholders and investment account
holders. However, they show a negative association between PSD and
institutional ownership. In addition, it appears that board independence
does not affect significantly banks' PSD. It is also found that the bank
performance, bank age, leverage, listing, adoption of international
financial reporting standards, adoption of Accounting and Auditing
Organization for Islamic Financial Institutions and country transparency
index have a positive effect on the PSD.
Originality/value This study offers an original contribution to
corporate disclosure literature by being the first to develop and
investigate PSD for a large sample of IBs during a long period of time.
It links P&S with bank corporate governance characteristics. The
findings have many important policy implications. More specifically,
this paper encourages regulators in the studied countries to improve
corporate governance mechanisms in their Islamic banking systems through
the optimization of ownership structure, CEO's characteristics and the
board's characteristics, to promote PSD. Moreover, the findings support
the theoretical predictions of the generalized agency theory. This
study's empirical evidence enhances the understanding of the corporate
social responsibility disclosure environment in general and the PSD
environment in particular for IBs. This study is the first one that
measures PSD in the annual reports for a large cross-countries sample of
IBs during a long period of time. It is also the first one that links
PSD with IBs corporate governance mechanisms.
ZR 0
ZB 0
ZS 0
ZA 1
Z8 0
TC 4
Z9 5
U1 3
U2 10
SN 1030-9616
EI 1839-5465
UT WOS:000432664800006
ER
PT J
AU Lassoued, Mongi
TI Corporate governance and financial stability in Islamic banking
VL 44
IS 5
SI SI
BP 524
EP 539
DI 10.1108/MF-12-2016-0370
PD 2018
PY 2018
AB Purpose The purpose of this paper is to examine the relationship between
corporate governance and financial stability of the Islamic banking
institutions in Malaysia. Indeed, we do not know much about the
relationship between the corporate governance variables and the
financial stability of the Islamic banks (IBs) in Malaysia.
Design/methodology/approach In this case, the level of bank stability is
individually measured using the Z-score indicator. The corporate
governance dimension in this study includes the Shari'ah board size
(SBS) in addition to the size of board members and the proportion of
independent directors in the board. Using a yearly bank-level data of 16
IBs in Malaysia from 2005 to 2015, this paper utilizes the fixed effect,
the GLS random-effect models and the OLS methods to provide empirical
evidences. Moreover, this work aims to focus on the country-level data
of Malaysia's banking sector and introduced the corporate governance
variables in this model.
Findings To the authors' knowledge, this is the first empirical analysis
of country-level data in the Malaysia's banking industry with this
research approach. The study found that the percentage of independent
members in the board of directors has a significant positive impact on
the financial stability of the IBs. However, the SBS and the size of
board are found to have no influence toward financial stability.
Originality/value With this paper, the authors hope to clarify the
relationship between corporate governance and financial stability of the
Islamic banking, and provide additional insights to the emerging
literature of Islamic banking.
ZR 0
ZA 0
ZB 0
TC 1
Z8 0
ZS 0
Z9 1
U1 0
U2 6
SN 0307-4358
EI 1758-7743
UT WOS:000432936300003
ER
PT J
AU Ben Zeineb, Ghada
Mensi, Sami
TI Corporate governance, risk and efficiency: evidence from GCC Islamic
banks
VL 44
IS 5
SI SI
BP 551
EP 569
DI 10.1108/MF-05-2017-0186
PD 2018
PY 2018
AB Purpose The purpose of this paper is to determine the simultaneous
effect of corporate governance (CG) of Gulf Cooperation Council (GCC)
Islamic banks (IBs) on efficiency and risk.
Design/methodology/approach The authors include Shariah supervisory
board (SSB) size, Chief Executive Officer (CEO)-duality and ownership
structure as CG variables. Efficiency and risk are measured using the
data envelopment analysis (DEA)/stochastic frontier analysis (SFA) and
Z-score, respectively. This paper also examines the risk-efficiency
relationship. To test the hypotheses, the authors used seemingly
unrelated regressions on a sample of 56 GCC IBs during the period
2004-2013.
Findings The results indicate that implementing rigorous CG structures
correlate with higher efficiency levels. Particularly, the authors show
that the governance structure of IBs allows them to take higher risks to
achieve a high efficiency level. In addition, results show that bank
efficiency and risk are positively related.
Practical implications This paper gives some insights to policy makers.
It points out detail attention toward the importance of CG in IB that
influences the efficiency level and risk-taking behavior. Thus, IB
should improve governance procedures that can lead to higher efficiency
and survival in a competitive environment and sustain financial crisis.
Moreover, the economic conditions of a country are the main determinant
of an IB's efficiency and risk relationships.
Originality/value The simultaneous effect of the CG of the GCC IBs on
efficiency and risk is examined, taking into consideration different CG
proxies, i.e., SSB size, CEO-duality and ownership structure, and
different efficiency estimation techniques, i.e., SFA and DEA.
ZA 0
ZS 0
TC 0
ZR 0
ZB 0
Z8 0
Z9 0
U1 3
U2 8
SN 0307-4358
EI 1758-7743
UT WOS:000432936300005
ER
PT J
AU Ajili, Hana
Bouri, Abdelfettah
TI Assessing the moderating effect of Shariah Board on the relationship
between financial performance and accounting disclosure
VL 44
IS 5
SI SI
BP 570
EP 589
DI 10.1108/MF-05-2017-0192
PD 2018
PY 2018
AB Purpose Shariah Board (SB) is considered as a typical corporate
governance mechanism for the Islamic banking system. This board takes
the responsibilities of assuring the compliance of transactions and
operations with Islamic rules and principles. The purpose of this paper
is to measure the SB quality and examine its moderating effect on the
relationship between financial performance and accounting disclosure
quality.
Design/methodology/approach This study used a sample of 90 Islamic banks
(IBs) during the period 2010-2014. The accounting disclosure quality and
the SB quality were measured using self-developed indices. The
moderating effect of the SB on the performance/disclosure relationship
was examined using the hierarchical regression analysis.
Findings The main finding of this study is related to the negative
moderating effect of SB quality on the relationship between performance
and disclosure. Accordingly, it can be said that the higher the quality
of the SB is, the lesser the performance affects the disclosure. This
result seems to indicate that at high level of SB quality, even when the
performance decreases, the IBs engage in complying with accounting
disclosure requirements in order to inform the stakeholders on the real
situation of the bank.
Research limitations/implications The finding of this study would be of
great support to stakeholders and policy makers to make more pressure on
IBs to improve the quality of their SB structure and show more
compliance with the governance recommendations. As an extension to this
study, further research can examine other Islamic governance mechanisms,
such as the Internal Shariah Review.
Originality/value To the authors' knowledge, there has been a dearth of
studies dealing with the empirical examination of the moderating impact
of the SB quality on the association between the financial performance
and the disclosure quality. Therefore, this study could be considered a
tentative contribution to the literature by providing some empirical
evidence on the links between these three variables using the moderation
regression analysis.
Z8 0
ZA 0
TC 2
ZB 0
ZS 0
ZR 0
Z9 2
U1 1
U2 10
SN 0307-4358
EI 1758-7743
UT WOS:000432936300006
ER
PT J
AU Mezzi, Najla
TI Efficiency of Islamic banks and role of governance: empirical evidence
VL 44
IS 5
SI SI
BP 590
EP 603
DI 10.1108/MF-05-2017-0171
PD 2018
PY 2018
AB Purpose The purpose of this paper is to study the efficiency level of
Islamic banks, the differences between Islamic banks in the MENA region
and Southeast Asia and the role of the governance in improving
performance.
Design/methodology/approach This paper examines, on the one hand, the
performance of Islamic banks by measuring their efficiency through data
envelopment analysis (DEA) method and, on the other hand, the
determinants of this efficiency emphasizing on the impact of the
governance structure through the panel estimation of Islamic banks based
on the three proxies of cost efficiency, namely, technical efficiency
(TES), pure technique (PTE) and scale efficiency (SES).
Findings The findings indicate that Islamic banks are experiencing an
improvement in their efficiency cost. The technical efficiency of
Islamic banks is largely explained by the scale efficiency where Islamic
banks realize large economies of scale in order to achieve optimal size,
especially in Malaysia and the GCC countries. Pure technical efficiency
is less important than the efficiency of scale and improvement is
necessary regarding the managerial performance. In terms of governance,
the results show that the board of directors through its size and
independence and the presence of a central Sharia board constitute a
robust determinant of the Islamic banks' efficiency. The ownership
structure and the size of the Sharia board do no effect banking
efficiency.
Originality/value The originality of this paper lies mainly on the
examination of the effect of the governance structure on the Islamic
banks' efficiency where studies on this issue for Islamic banks are
almost inexistent. In addition, the size and the diversity of the
Islamic banks' panel constitute the strong point of this study.
Z8 0
ZA 0
ZS 0
TC 0
ZB 0
ZR 0
Z9 0
U1 3
U2 10
SN 0307-4358
EI 1758-7743
UT WOS:000432936300007
ER
PT J
AU Al-Malkawi, Husam-Aldin Nizar
Pillai, Rekha
TI Analyzing financial performance by integrating conventional governance
mechanisms into the GCC Islamic banking framework
VL 44
IS 5
SI SI
BP 604
EP 623
DI 10.1108/MF-05-2017-0200
PD 2018
PY 2018
AB Purpose The purpose of this paper is to integrate conventional corporate
governance (CG) mechanisms into the Islamic banking framework in order
to examine their impact on Islamic banks (IBs) financial performance
(IBFP) within the Gulf Cooperation Council (GCC) context.
Design/methodology/approach The study uses a sample of 22 full-fledged
IBs operating in the GCC countries over an 11-year period from 2005 to
2015. Using panel data approach, the paper develops an empirical model
consists of five CG mechanisms and three control variables. The model
parameters are estimated using feasible generalized least squares
framework.
Findings The results show that five internal CG mechanisms have
statistically significant relationship with IBFP, measured by Q-ratio.
Insider shareholding is found to be positively associated with IBFP,
while institutional and government shareholdings are found to be
negatively related to Q-ratio, the results being consistent with the
agency theory, strategic alignment theory and property rights theory,
respectively. Moreover, the results reveal that large board size and CSR
engagement negatively influence IBFP, once again lending support to
agency theory and trade off theory, respectively. The control variables,
namely, leverage, size and age are also found to have a statistically
significant relationship with IBFP.
Practical implications IBs are urged to ensure transparency in the
provision of innovative products fundamentally in contrast to
conventional banking products as well as cater to the untapped markets
by weaving Islamic values into the existing CG fabric, as a feasible
solution to remain competitive.
Originality/value The paper examines the relationship between internal
CG mechanisms and financial performance of listed and non-listed
full-fledged IBs operating in the GCC countries.
RI /AAD-1816-2020; Pillai, Rekha/
OI /0000-0001-5372-8394; Pillai, Rekha/0000-0002-0086-5472
ZS 0
ZR 0
ZA 0
ZB 0
Z8 0
TC 3
Z9 3
U1 0
U2 7
SN 0307-4358
EI 1758-7743
UT WOS:000432936300008
ER
PT J
AU Siswantoro, Dodik
Rosdiana, Haula
Fathurahman, Heri
TI Reconstructing accountability of the cash waqf (endowment) institution
in Indonesia
VL 44
IS 5
SI SI
BP 624
EP 644
DI 10.1108/MF-05-2017-0188
PD 2018
PY 2018
AB Purpose The purpose of this paper is to reconstruct the accountability
of the cash waqf institution in Indonesia, including the logic which may
refer to the accountability objective.
Design/methodology/approach The paper employs the qualitative method
with a constructivist paradigm. Four different characteristics of cash
waqf institutions in Indonesia serve as the object of this research with
other related respondents, such as the government and Islamic banks.
These multiple case studies may represent the characteristics of cash
waqf institutions.
Findings The result shows that the cash waqf institution in Indonesia
has unique and different logical characteristics, which is neither
unitary nor pluralist.
Originality/value This may be the first research which discusses the
accountability-based logic for cash waqf institutions in Indonesia.
These institutions apply Islamic teaching (Shariah) and must generate
big income for social activities. Conditions in other countries may be
similar since as waqf institutions have common concepts in general.
Z8 0
TC 0
ZB 0
ZA 0
ZS 0
ZR 0
Z9 0
U1 0
U2 2
SN 0307-4358
EI 1758-7743
UT WOS:000432936300009
ER
PT J
AU Aldeehani, Talla M.
TI Efficiency and client satisfaction of Islamic and conventional banks: A
bilateral effect
VL 14
IS 2
BP 282
EP 299
DI 10.15208/beh.2018.22
PD 2018
PY 2018
AB In this paper, we investigate the possible bidirectional causal
relationship between bank efficiency and client satisfaction in the
banking sector of Kuwait. For this purpose, we applied structural
equation model (SEM) methodology. Based on a 5-point Likert scale
questionnaire, data was gathered from Islamic banks (IBs) clients and
conventional banks (CBs) client. We found a significant evidence of a,
relatively, higher client satisfaction for IBs. The findings, also,
provide evidence of a positive and significant bilateral causal
relationship between client satisfaction and bank efficiency. This is a
result that confirms an anticipated theoretical proposition related to
the ultimate goal of firm value maximization. Discussions,
interpretations, implications, and recommendations are provided.
TC 1
Z8 0
ZR 0
ZA 0
ZB 0
ZS 0
Z9 1
U1 0
U2 6
SN 1804-1205
EI 1804-5006
UT WOS:000432291900009
ER
PT J
AU Majeed, Muhammad Tariq
Zainab, Abida
TI Sharia'h practice at Islamic banks in Pakistan
VL 9
IS 3
BP 274
EP 289
DI 10.1108/JIABR-03-2015-0011
PD 2018
PY 2018
AB Purpose - Islamic banks provide an alternative financial system based on
Sharia'h (Islamic law). However, critics argue that operation at Islamic
banks is violating Sharia'h particularly in terms of provision of
interest free services, risk sharing and legal contract. The purpose of
this paper is to empirically evaluate the Sharia'h practice at Islamic
banks in Pakistan by considering some basic principles of Sharia'h.
Design/methodology/approach - Primary data are collected from 63
branches of Islamic banks in Pakistan. Questionnaire is used as an
instrument. The study uses structural equation modeling that includes
confirmatory factor analysis and regression analysis. Data are codified
and analyzed using SPSS and Amos.
Findings - This study finds that Islamic banks are providing interest
free services, ensuring that transactions and contracts offered by
Islamic banks are legal and offering conflict-free environment to
customers. In contrast, estimated results expose that Islamic banks are
not sharing risk and Sharia'h supervisory board is not performing its
role perfectly. Similarly, it is found that organization and
distribution of zakat and qard-ul-hassan are weak at Islamic banks.
Research limitations/implications - Data are collected from Islamabad
federal capital of Pakistan that hold just 5 per cent share of Islamic
banking industry. This small share may not provide true picture of
Islamic banking sector.
Practical implications - To ensure risk sharing, Islamic banking
industry must consider the development of new modes of financing and
innovation of more products based on Sharia'h. State Bank of Pakistan
should ensure separate regulatory framework that enable Islamic banks to
provide qard-ul-hassan, organize and allocate zakat.
Originality/value - This paper discusses the perception of bankers, who
are actually the executors, about Shariah's practices at Islamic banks
in Pakistan. There are not many discussions on this topic that could be
found, and hence this could be considered as a significant contribution
by this paper to the existing literature of Islamic finance.
ZB 0
ZA 0
ZR 0
TC 0
ZS 0
Z8 0
Z9 0
U1 0
U2 5
SN 1759-0817
EI 1759-0825
UT WOS:000432185300001
ER
PT J
AU Orhan, Zeyneb Hafsa
TI Business model of Islamic banks in Turkey
VL 9
IS 3
BP 290
EP 307
DI 10.1108/JIABR-10-2014-0037
PD 2018
PY 2018
AB Purpose - The purpose of this paper is inductively identifying the
business model of Islamic (participation) banks in Turkey via using bank
characteristics, meaning balance sheet ratios.
Design/methodology/approach - The methodology starts from bank
characteristics and ends with identification of bank business model
according to these characteristics under the assumption that there is
one single business model (say Model A) for all Turkish Islamic banks.
What the author aims to find is the properties of this business model.
Regarding the method, seven bank characteristics from liability side and
five characteristics from asset side of bank balance sheets were
established. While representing these characteristics, the author uses
charts and tables. Necessary data are gathered from the Central Bank of
Turkey. Time frame of monthly data is from December 2005 to March 2015.
In total, there are 1356 observations.
Findings - Value proposition of business model of Turkish Islamic banks
depends on participation in collecting funds. In terms of customer
segmentation, there is dominance of private sector. While using the
funds, the main preference is loans, meaning that value proposition
depends on loan products, especially murabahah. Thus, revenue streams
depend on mark-up. Overall, business model of Turkish Islamic banks
seems similar to traditional banking based on intermediation with some
peculiarities. There are also some evidences which can be interpreted as
signs toward decline in this traditional role like decrease in deposits,
increase in funds from financial institutions and decrease in loans.
Practical implications - It can be said that original idea of
participation banks has been followed on the liability side of Turkish
Islamic banks. However, decrease in deposits recently needs detailed
investigation to create convenient policies especially by Islamic banks.
Similar investigation and policy creation is needed also for the
developments of increase in funds from financial institutions and
decrease in loans. Furthermore, as the original idea of participation is
not followed by business model of Turkish Islamic banks, rethinking and
acting is needed in that regard.
Originality/value - Main contributions of this paper are as follows:
first, it fills a gap in the field where studies regarding business
model of Islamic banks are scarce. Second, it fills a gap in literature
of Islamic banking in Turkey where most of the studies are about
development or jurisprudence of Islamic banks. Third, it provides a
decade-long evidence regarding business model of Islamic banks in
Turkey. Fourth, the findings provide an initial step for the
construction of a business model canvas for Turkish Islamic banks.
Fifth, discussion of findings leads to number of important questions
which can pave the way for new research studies.
TC 0
ZS 0
Z8 0
ZA 0
ZR 0
ZB 0
Z9 0
U1 1
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000432185300002
ER
PT J
AU Siswantoro, Dodik
TI Sharia accounting standard for sukuk (Islamic bond) accounting in
Indonesia
VL 9
IS 3
BP 434
EP 447
DI 10.1108/JIABR-11-2013-0040
PD 2018
PY 2018
AB Purpose - This paper aims to analyze the need of Islamic banks for
specific Statement of Financial Accounting Standards (SFAS) No. 110 for
sukuk accounting in Indonesia. In fact, some Islamic banks have already
prepared International Financial Reporting Standards (IFRS), and
accordingly, a suitable standard is needed for this case.
Design/methodology/approach - The research methodology involved
interview with a senior accounting manager of an Islamic bank focusing
on relevant topics in sukuk to sharpen the analysis. Equally important,
research reviewed and compared financial statements on sukuk accounting
among Islamic banks, before and after adoption of sukuk accounting
standard.
Findings - IFRS require market valuation based on interest rate. As
interest rate is unlawful in Islamic teaching, IFRS may not accordingly
be suitable. Therefore, SFAS No. 110 was issued by the Indonesian
Institute of Accountants (Ikatan Akuntan Indonesia). Considering the
fact that this standard did not explicitly adopt the IFRS paradigm,
there have been consequent conflicts in Islamic bank management because
of preference of global recognition to IFRS. Adopting IFRS would be more
compatible with other countries' general accounting standards. In
addition, significant differences are found in sukuk accounting
treatments by Islamic banks before and after the standard adoption.
Research limitations/implications - This research only focuses on such
question of why specific accounting standard for sukuk accounting is
needed by Islamic banks in Indonesia, while only few Indonesian Islamic
banks were initially aware of the issue.
Originality/value - This paper may be the first paper discussing the
response to and need for sukuk accounting in Indonesian Islamic banks.
ZA 0
Z8 0
ZB 0
TC 0
ZS 0
ZR 0
Z9 0
U1 1
U2 5
SN 1759-0817
EI 1759-0825
UT WOS:000432185300009
ER
PT J
AU Ben Amar, Amine
TI An old wine in new shari'a compliant bottles? A time-frequency wavelet
analysis of the efficiency of monetary policy in dual financial systems
SO ECONOMICS BULLETIN
VL 38
IS 1
BP 558
EP +
PD 2018
PY 2018
AB Understanding the interrelationships between Islamic and conventional
banks in dual financial systems is crucial for monetary policy decision
makers. Using the wavelet coherence approach, this paper empirically
investigates the dependency between the LIBOR and an Islamic benchmark
rate, namely the IIBR (Islamic Interbank Benchmark Rate). This approach
allows us to study the dynamics of the relationship between the LIBOR
and the IIBR in the time-frequency space, then, to analyze to which
extent Islamic financial institutions react to interest rate and,
finally, to conclude whether the presence of Islamic banks enhance (or
not) the efficiency of monetary policy. The result suggests not only
that Islamic and conventional banks are alike, in terms of their
business model, but also that Islamic banks react to changes in interest
rates with some delay, which may affect the effectiveness of the
monetary policy transmission mechanism.
Z8 0
TC 3
ZB 0
ZR 0
ZA 0
ZS 0
Z9 3
U1 0
U2 0
SN 1545-2921
UT WOS:000430364800053
ER
PT J
AU Kalifa, Wagdi
Bektas, Eralp
TI The impacts of bank-specific and macroeconomic variables on the capital
adequacy ratio: evidence from Islamic banks
SO APPLIED ECONOMICS LETTERS
VL 25
IS 7
BP 477
EP 481
DI 10.1080/13504851.2017.1340559
PD 2018
PY 2018
AB The study investigates the relationship between the capital adequacy
ratio (CAR) and different bank-specific and macroeconomic variables for
28 Islamic banks. We document that there is a statistically significant
positive relationship between the CAR and the bank-specific and
macroeconomic variables. In particular, bank-specific variables such as
ROA, ROE, leverage, credit risk and size show a strong association with
the CAR, while on the macroeconomic side, inflation, market
capitalization and exchange rate have an impact on the average Islamic
bank in our sample study. Furthermore, we run another model (equity to
assets ratio) as dependent, with similar control variables, and the
results reveal that, except for inflation, all the variables that have a
significant effect on the CAR also influence the equity to assets ratio.
Z8 0
ZA 0
ZR 0
ZS 0
TC 2
ZB 0
Z9 2
U1 0
U2 7
SN 1350-4851
EI 1466-4291
UT WOS:000429627100010
ER
PT J
AU Kunhibava, Sherin
Ling, Sarah Tan Yen
Ruslan, Md Khalil
TI Sustainable Financing and Enhancing the Role of Islamic Banks in
Malaysia
SO ARAB LAW QUARTERLY
VL 32
IS 2
BP 129
EP 157
DI 10.1163/15730255-12322023
PD 2018
PY 2018
AB Although the banking sector does not directly affect the environment, it
can pursue environmentally friendly practices and reduce waste.
Moreover, it can promote environmentally sustainable investments and
encourage businesses to adopt similar practices. Because Islam
encourages preservation and prohibits harm to the earth, Islamic banks
are expected to follow such practices in pursuit of Shari'ah compliance.
In Malaysia, Islamic banks have already embarked on this path, mainly by
practising conservation in operational matters; however, other areas of
sustainable financing have been less enthusiastically pursued. This
study recommends a three-level approach: (1) at the banking level, more
proactive steps should be taken, e.g. greening operations, introducing
environmentally friendly products and services, complying with
environmental regulations, creating awareness and training stakeholders;
(2) at the national level, the Central Bank should introduce appropriate
policies and guidelines; and (3) at an international level, voluntary
principles should be adopted to ensure compliance with global
initiatives.
ZA 0
TC 0
ZB 0
Z8 0
ZR 0
ZS 0
Z9 0
U1 1
U2 7
SN 0268-0556
EI 1573-0255
UT WOS:000429428500002
ER
PT J
AU Kweh, Qian Long
Lu, Wen-Min
Nourani, Mohammad
Zaind, Mohd Hisyam Ghazali Mohd
TI Risk management and dynamic network performance: an illustration using a
dual banking system
VL 50
IS 30
BP 3285
EP 3299
DI 10.1080/00036846.2017.1420889
PD 2018
PY 2018
AB This study applies dynamic network data envelopment analysis to compare
a dual banking system, namely conventional and Islamic banks, with
emphasis on risk measures. Non-oriented, variable return-to-scale
dynamic network slacks-based measure is used to model the banking
performance for the period 2008-2012. Under the consideration of risk
measures, the findings highlight that Islamic banks excel in managerial
efficiency while conventional banks surpass in profitability efficiency.
Furthermore, the regression results find that the number of directors on
the risk management committee has a positive impact on banking
performance. Meanwhile, the high number of independent directors
improves the profitability efficiency but worsens the managerial
efficiency.
RI Nourani, Mohammad/T-1902-2018; Lu, Wen-Min/A-2837-2012; Kweh, Qian Long/E-8072-
2019; Lu, Wen-Min/K-9831-2019
OI Nourani, Mohammad/0000-0002-1637-8126; Lu, Wen-Min/0000-0003-2410-8502;
Kweh, Qian Long/0000-0003-0877-9509; Lu, Wen-Min/0000-0003-2410-8502
ZS 0
Z8 0
TC 3
ZB 0
ZA 0
ZR 0
Z9 3
U1 6
U2 15
SN 0003-6846
EI 1466-4283
UT WOS:000429026500005
ER
PT J
AU Warsame, Mohammed Hersi
Ireri, Edward Mugambi
TI Moderation effect on Islamic banking preferences in UAE
VL 36
IS 1
BP 41
EP 67
DI 10.1108/IJBM-08-2016-0121
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to examine the direct and
indirect moderation effects of demographic and socio-economic(s) factors
on the adoption of Islamic banking in UAE.
Design/methodology/approach - Convenience sampling was done on the
residents of Sharjah, Dubai, and Abu Dhabi. A closed-ended questionnaire
with 30 items was designed and pre-tested before the start of the study.
Path analysis and moderation testing were the main analytical approach.
A total of 320 respondents completed the survey.
Findings - The research revealed that demographic and socio-economic(s)
moderators may have direct and indirect moderation effects on the
adoption of the Islamic banking in the UAE, which indicates the
importance of these factors in the provision of Islamic banking products
and services in the UAE.
Practical implications - This study further revealed that these
moderators have huge practical implications for Islamic bank managers
and marketers as they can exploit these demographics to enhance their
market share in the UAE.
Social implications - In UAE, minimal attention has been directed toward
the role moderators would play in the criterion that individual
investors would use in the adoption of Islamic banking products and
services in a cosmopolitan environment that is experiencing competition
from conventional banks.
Originality/value - An extensive review of the existing literature on
the adoption of Islamic banking reveals that no empirical research has
been undertaken to explore the role played by demographic and
socio-economic(s) moderators in the adoption of Islamic banking in UAE
and internationally. This study attempts to fill this gap.
OI Ireri Mugambi, Edward/0000-0001-8356-9187
Z8 0
TC 4
ZA 0
ZB 0
ZR 0
ZS 0
Z9 4
U1 3
U2 6
SN 0265-2323
EI 1758-5937
UT WOS:000428625800003
ER
PT J
AU Jaiyeoba, Haruna Babatunde
Adewale, Abideen Adeyemi
Quadry, Mahmud Oluwaseyi
TI Are Malaysian Islamic banks' corporate social responsibilities
effective? A stakeholders' view
VL 36
IS 1
BP 111
EP 125
DI 10.1108/IJBM-10-2016-0146
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to investigate the effectiveness
of Islamic banks' corporate social responsibility (CSR) using data
collected from stakeholders in Malaysia. While Islamic scholars have
developed the Islamic CSR from the Qur'anic verses, the Sunnah of the
Prophet (SAW) and from the western ideologies, the focus of this paper
is to assess the effectiveness of the developed Islamic CSR practices.
Design/methodology/approach - Quantitative research design was adopted
for this study. Exploratory factor analysis, confirmatory factor
analysis, and other analyses are performed on the data collected from
193 stakeholders in Malaysia.
Findings - Based on the data collected and analyzed, the results show
that stakeholders view the Malaysian Islamic banks' CSRs as effective.
Research limitations/implications - This study investigates the
effectiveness of Malaysian Islamic banks' CSR based on the survey data
collected. However, future studies could explore this in greater depth
using mixed methods.
Practical implications - The research findings have great implications
for researchers. Since this study is among the few research studies that
investigate the effectiveness of Islamic CSR, the researchers have paved
ways for further investigation in this area. In addition, the study
encourages the Malaysian Islamic banks and other Islamic financial
institutions to contribute more to the society.
Originality/value - The study examines the effectiveness of Islamic
banks' CSR and contributes to the growing discussions on the Islamic
CSR. The study has opened up this area for further investigations by
other researchers.
ZR 0
TC 7
ZS 0
Z8 0
ZB 0
ZA 0
Z9 7
U1 0
U2 5
SN 0265-2323
EI 1758-5937
UT WOS:000428625800006
ER
PT J
AU Nomran, Naji Mansour
Haron, Razali
Hassan, Rusni
TI Shari'ah supervisory board characteristics effects on Islamic banks'
performance: Evidence from Malaysia
VL 36
IS 2
BP 290
EP 304
DI 10.1108/IJBM-12-2016-0197
PD 2018
PY 2018
AB Purpose Islamic banks (IBs) must stay Shari'ah compliant to enhance
their customer loyalty and obtain a competitive edge. Given the
performance of Shari'ah supervisory board (SSB) continues to be a matter
of concern especially for IBs across countries that have a different
regulatory environment, the purpose of this paper is to examine the
effects of SSB characteristics on IBs' performance in Malaysia being a
country that applies the most extreme intervention of regulatory
agencies (pro-active model).
Design/methodology/approach A sample of 15 Malaysian IBs is used to test
the study hypotheses for the period from 2008 to 2015 using the
Generalized Method of Moments estimator.
Findings The results reveal strong support for a significant association
between SSB size, doctoral qualification, change in the SSB composition
and performance. In addition, the study supports the view that SSB with
cross-membership and reputation is very important in improving the
performance of IBs.
Research limitations/implications First, the paper focused only on
Malaysia which adopts a pro-active model, and therefore, extending the
investigation to include countries that adopt the different models may
provide a better view of the best Shari'ah governance (SG) practices for
IBs. Second, there is a need for more empirical analysis regarding the
optimal SSB size of IBs.
Practical implications This paper provides empirical evidence for
regulators and policy makers in Malaysia, to understand how to enhance
the performance of IBs using SG. Furthermore, marketers of Malaysian IBs
should focus on SG practices as an important element for attracting
Muslim customers, especially as there is a lack in this aspect.
Originality/value To date, it seems there is no empirical study that has
examined to what extent the impact of SSB characteristics on IBs
performance can be affected by the degree of agencies intervention,
whether extreme or slight. Malaysia has been chosen as the only country
that adopts the most extreme model.
RI Haron, Razali/AAG-3205-2019; Hassan, Rusni/S-8001-2019
OI Haron, Razali/0000-0003-0415-4093;
ZB 0
Z8 0
ZS 0
TC 10
ZA 0
ZR 0
Z9 10
U1 1
U2 10
SN 0265-2323
EI 1758-5937
UT WOS:000428475600004
ER
PT J
AU Ullah, Md. Hafij
Khanam, Ruma
TI Whether Shari'ah compliance efficiency is a matter for the financial
performance: The case of Islami Bank Bangladesh Limited
VL 9
IS 2
BP 183
EP 200
DI 10.1108/JIABR-01-2016-0001
PD 2018
PY 2018
AB PurposeShari'ah is the foundation of Islamic banks. Although all the
Islamic banks required complying with the Shari'ah requirements fully,
the level of compliance differs among the Islamic banks. At the same
time, Islamic banks have been performing well, but all do not
demonstrate similar financial performance. This paper aims to explore
whether Shari'ah compliance efficiency makes any difference in financial
performance of Islami Bank Bangladesh Limited (IBBL).
Design/methodology/approach This study used IBBL as a case. For
exploring the issue of study, this paper applied an e-mail interview
approach and interviewed 24 interviewees including financial analysts,
IBBL clients and executives of regulatory bodies, the IBBL and other
Islamic- and interest-based traditional banks. Interview opinions are
then analyzed and interpreted for a deeper understanding of the topic.
Findings The study observed that some other factors influence the
financial performance of IBBL, but Shari'ah compliance is the dominant
instinct of acquiring the leading position. Superior Shari'ah compliance
creates internal strengths and external opportunities that facilitate
IBBL in achieving higher financial performance. Most interviewees argued
that Shari'ah is the only disposition that makes IBBL unique. Moreover,
the bank that considerably follows Shari'ah gets better financial
outcomes.
Research limitations/implications The study used a qualitative method
using interview responses only for evaluating the relationship between
Shari'ah compliance and financial performance. Further study may be
conducted based on a quantitative approach.
Practical implications This paper expects to uphold the significance of
Shari'ah in improving the financial performance of IBBL and
simultaneously motivating the parties associated with the Islamic banks
in enhancing the level of Shari'ah compliance. Moreover, this study
provides new insights into the importance Islamic banks and their
performance in relation to the choice of customers.
Originality/value This study explores the significance of Shari'ah
compliance in creating avenues for greater financial performance and
develops a model showing the ways how Shari'ah compliance leads Islamic
banks to achieve higher financial positions.
RI Ullah, Md. Hafij/E-6539-2014
OI Ullah, Md. Hafij/0000-0001-8474-6499
ZS 0
ZA 0
TC 1
ZB 0
ZR 0
Z8 0
Z9 1
U1 0
U2 3
SN 1759-0817
EI 1759-0825
UT WOS:000428539100006
ER
PT J
AU Hakimi, Abdelaziz
Rachdi, Houssem
Mokni, Rim Ben Selma
Hssini, Houda
TI Do board characteristics affect bank performance? Evidence from the
Bahrain Islamic banks
VL 9
IS 2
BP 251
EP 272
DI 10.1108/JIABR-06-2015-0029
PD 2018
PY 2018
AB Purpose Although most previous studies interested in Islamic banks have
focused on quantitative aspects such as performance, risk and stability,
this paper aims to deal with the institutional dimension and focus
precisely on the link between board characteristics and bank
performance.
Design/methodology/approach Based on a data related to 13 banks in
Bahrain observed over the period of 2005-2011, this study investigates
the impact of board directors on the level of performance. To this end,
the authors have used two empirical approaches. The first one is the
panel data analysis with regard to random effect (RE) regression. The
second one is the generalized method of moments (GMM) in system, which
checked the soundness of the first result.
Findings The result of RE regression indicates that the board duality is
positively and significantly correlated with the bank performance for
both ROA (return on assets) and ROE (return on equity). However, the
board size exerts a positive and significant impact only when
profitability is measured by ROE. The authors find that regression with
GMM in system confirms the RE result exclusively for ROE. Findings also
indicate that a financial crisis exerts a negative but not significant
effect on bank performance.
Practical implications These findings are relevant to both policymakers
and regulators. Islamic banks in Bahrain should grant more importance to
the structure and the quality of the board to improve their performance.
Originality/value This study aims to extend the existing literature by
focusing about the role of the Shariah board in bank performance.
RI Hakimi, Abdelaziz/AAQ-6750-2020
OI Hakimi, Abdelaziz/0000-0003-2715-0239
TC 3
Z8 0
ZB 0
ZS 0
ZR 0
ZA 0
Z9 3
U1 0
U2 9
SN 1759-0817
EI 1759-0825
UT WOS:000428539100009
ER
PT J
AU Suki, Norazah Mohd
TI Criteria for choosing banking services: gender differences in the
university students' perspective
VL 45
IS 2
BP 300
EP 315
DI 10.1108/IJSE-12-2016-0354
PD 2018
PY 2018
AB Purpose - The purpose of this paper is to investigate the criteria
invoked by university students when choosing banking services, and
determine whether male and female students rate the importance of the
various criteria differently.
Design/methodology/approach - Data are gathered via a quantitative
approach using a questionnaire, from 300 students of a public higher
learning institution in the Federal Territory of Labuan, Malaysia. The
students were all aged between 18 and 25 years old, and the data
obtained are analysed using exploratory factor analysis and confirmatory
factor analysis findings, prior to using Statistical Package for Social
Sciences to conduct a multiple discriminant analysis.
Findings - The multiple discriminant analysis revealed that bank
services, people influences, electronic services, and banking security
significantly affect students' decisions when choosing banking services,
and that female students attach more importance to each of these factors
than do their male counterparts.
Practical implications - Banks as financial service providers should
provide less complex and more user-friendly banking systems and services
that require minimal mental and physical effort for students, and should
ensure their compatibility with students' banking norms and lifestyles.
Originality/value - The identification of the most noteworthy criteria
for choosing banking services, particularly accounting for gender
differences among university students, provides information to banks
that allows them to improve their standards of service, offer more
attractive incentives and increase their visibility, thereby attracting
and retaining customers.
RI Suki, Norazah Mohd/C-9312-2016
OI Suki, Norazah Mohd/0000-0002-8422-2449
ZA 0
ZR 0
TC 0
ZS 0
Z8 0
ZB 0
Z9 0
U1 3
U2 4
SN 0306-8293
EI 1758-6712
UT WOS:000423706800006
ER
PT J
AU Wahla, Asim Ehsan
Hasan, Hamid
Bhatti, M. Ishaq
TI Measures of customers' perception of car Ijarah financing
VL 9
IS 1
BP 2
EP 16
DI 10.1108/JIABR-10-2015-0051
PD 2018
PY 2018
AB Purpose - The main aim of this paper is to measure customers' perception
of car Ijarah financing transactions services provided by the Islamic
banks and financial institutions in Pakistan.
Design/methodology/approach - The paper uses two research methodologies:
Kruskal-Wallis and Mann-Whitney test (non-parametric) and logit
regression model (parametric). Both methods are then applied to a real
data set of 300 respondents from various cities of Pakistan in the car
Ijarah financing industry. The demographic effects are also investigated
to see the perception about the degree of Shari'ah compliance and the
quality of service of transaction offered by banks.
Findings - Main finds of the paper reveal that the customers who used
the car Ijarah facility from Islamic banks have positive attitude toward
this sort of transaction. In addition, gender, income, marital status
affect the perception about the quality of Shari'ah compliance, and the
quality of service of transaction issues are very important to selected
clients in the industry.
Research limitations/implications - These findings are limited to the
car Ijarah financing industry and may not be applicable in other banking
products in Pakistan and elsewhere.
Practical implications - Based on the results of this study, potential
Islamic bank customers may find it helpful choose products or make
product decisions conveniently. The findings of the paper also support
Islamic banks in improving the Ijarah facility to increase their
customer base in the geo-political locality with similar characteristics
as Pakistan.
Social implications - Shari'ah compliance in the Islamic finance
industry is a sensitive issue in Pakistan, and hence, car Ijarah's
Shari'ah compliance can affect banks' reputation and sensitivity.
Originality/value - The work reported in this paper is original,
unpublished and the paper is not submitted elsewhere for publication.
RI Bhatti, M.Ishaq/B-5489-2015
OI Bhatti, M.Ishaq/0000-0002-5027-7871
ZS 0
ZB 0
TC 2
ZR 0
Z8 0
ZA 0
Z9 2
U1 0
U2 10
SN 1759-0817
EI 1759-0825
UT WOS:000419732900001
ER
PT J
AU Yusof, Rosylin Mohd
Usman, Farrell Hazsan
Mahfudz, Akhmad Affandi
Arif, Ahmad Suki
TI Macroeconomic shocks, fragility and home financing in Malaysia: can
rental index be the answer?
VL 9
IS 1
BP 17
EP 44
DI 10.1108/JIABR-11-2015-0058
PD 2018
PY 2018
AB Purpose - This study aims to investigate the interactions among
macroeconomic variable shocks, banking fragility and home financing
provided by conventional and Islamic banks in Malaysia. Identifying the
causes of financial instability and the effects of macroeconomic shocks
can help to foil the onset of future financial turbulence.
Design/methodology/approach - The autoregressive distributed lag
bound-testing cointegration approach, impulse response functions (IRFs)
and forecast error variance decomposition are used in this study to
unravel the long-run and short-run dynamics among the selected
macroeconomic variables and amount of home financing offered by both
conventional and Islamic banks. In addition, the study uses Granger
causality tests to investigate the short-run causalities among the
selected variables to further understand the impact of one macroeconomic
shock to Islamic and conventional home financing.
Findings - This study provides evidence that macroeconomic shocks have
different long-run and short-run effects on amount of home financing
offered by conventional and Islamic banks. Both in the long run and
short run, home financing provided by Islamic banks is more linked to
real sector economy and thus is more stable as compared to home
financing provided by conventional banks. The Granger causality test
reveals that only gross domestic product (GDP), Kuala Lumpur Syariah
Index (KLSI)/Kuala Lumpur Composite Index (KLCI) and house price index
(HPI) are found to have a statistically significant causal relationship
with home financing offered by both conventional and Islamic banks.
Unlike the case of Islamic banks, conventional home financing is found
to have a unidirectional causality with interest rates.
Research limitations/implications - This study has focused on analyzing
the macroeconomic shocks on home financing. However, this study does not
assess the impact of financial deregulation and enhanced information
technology on amount of financing offered by both conventional and
Islamic banks. In addition, it is not within the ambit of this present
study to examine the effects of agency costs and information asymmetry.
Practical implications - The analysis of cointegration and IRFs exhibits
that in the long run and short run, home financing provided by Islamic
banks are more linked to real sector economy like GDP and House Prices
(HPI) and therefore more resilient to economic vulnerabilities as
compared to home financing provided by conventional banks. However, in
the long run, both conventional and Islamic banks are more susceptible
to fluctuations in interest rates. The results of the study suggest that
monetary policy ramifications to improve banking fragility should focus
on stabilizing interest rates or finding an alternative that is free
from interest.
Social implications - Because interest plays a significant role in
pricing of home loans, the potential of an alternative such as rental
rate is therefore timely and worth the effort to investigate further.
Therefore, Islamic banks can explore the possibility of pricing home
financing based on rental rate as proposed in this study.
Originality/value - This paper examines the unresolved issues in Islamic
home financing where Islamic banks still benchmark their products
especially home financing, to interest rates in dual banking system such
as in the case of Malaysia. To the best of the authors' knowledge,
studies conducted in this area are meager and therefore is imperative to
be examined.
OI Mahfudz, Akhmad Affandi/0000-0002-0806-8347
Z8 0
ZB 0
ZS 0
ZR 0
TC 1
ZA 0
Z9 1
U1 0
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000419732900002
ER
PT J
AU Asadov, Alam
Sori, Zulkarnain Bin Muhamad
Ramadilli, Shamsher Mohamad
Anwer, Zaheer
Shamsudheen, Shinaj Valangattil
TI Musharakah Mutanaqisah home financing: issues in practice
VL 9
IS 1
BP 91
EP 103
DI 10.1108/JIABR-08-2015-0036
PD 2018
PY 2018
AB Purpose - This paper aims to examine the practical issues in the
Musharakah Mutanaqisah (MM) financing and subsequently, recommends
possible solutions to mitigate these issues and improve the current
practice.
Design/methodology/approach - This paper analyses the theory and current
practices of MM offered by Islamic banks.
Findings - It is suggested that Islamic financial institutions consider
revaluation of property's value to its fair value, especially during
termination of MM contract and annual or agreed periodic review of the
market value of the assets to determine the "rental" payments by the
customer. It is also recommended that Islamic financial institutions
should share all associated costs in performing the contract.
Research limitations/implications - Research findings reported in this
paper contribute to the body of knowledge on MM in general and to the
Islamic finance practices in Malaysia and abroad. Indeed, the Malaysia
Central Bank (i.e. Bank Negara Malaysia) should form a special committee
to look into the issues highlighted in this paper and recommend strict
guidelines for Islamic financial institutions to improve their
practices.
Practical implications - Islamic banks should extend the use of MM
contract in automobile and trade financing where rent or profit could be
easily identified and value of the asset is more certain. The regulators
and Islamic financial standard setting authorities need to oversee the
Shari'ah board decisions on MM contracts and keep the gates in the
interest of ensuring a more viable and authentic Islamic finance
industry.
Originality/value - This paper briefly views the current mode of MM
contracts, specifically for home financing, and highlights the
incompliance to Shari'ah requirements in exercising these contracts in
practice.
RI Anwer, Zaheer/D-6529-2016; Asadov, Alam/E-4344-2018
OI Anwer, Zaheer/0000-0003-3698-7073; Asadov, Alam/0000-0003-0805-6482
TC 3
ZR 0
ZA 0
Z8 0
ZS 0
ZB 0
Z9 3
U1 0
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000419732900006
ER
PT B
AU Mohamad, Mohammad Taqiuddin
Saeed, Munazza
BA KhosrowPour, M
TI Does Inter-Bank Investments Restraints Financing Performance of Islamic
Banks?
SO ENCYCLOPEDIA OF INFORMATION SCIENCE AND TECHNOLOGY, 4TH EDITION
BP 36
EP 48
DI 10.4018/978-1-5225-2255-3.ch003
PD 2018
PY 2018
Z8 0
ZB 0
ZS 0
ZR 0
TC 0
ZA 0
Z9 0
U1 0
U2 1
BN 978-1-5225-2256-0; 978-1-5225-2255-3
UT WOS:000416401300004
D2 10.4018/978-1-5225-2255-3
ER
PT J
AU Ghenimi, Ameni
Chaibi, Hasna
Omri, Mohamed Ali Brahim
TI The effects of liquidity risk and credit risk on bank stability:
Evidence from the MENA region
VL 17
IS 4
BP 238
EP 248
DI 10.1016/j.bir.2017.05.002
PD DEC 2017
PY 2017
AB The global financial crisis has induced a series of failures of most
conventional banks. This study investigates the main sources of banking
fragility. We use a sample of 49 banks operating in the MENA region over
the period 2006-2013 to analyze the relationship between credit risk and
liquidity risk and its impact on bank stability. Our results show that
credit risk and liquidity risk do not have an economically meaningful
reciprocal contemporaneous or time-lagged relationship. However, both
risks separately influence bank stability and their interaction
contributes to bank instability. These findings provide bank managers
with more understanding of bank risk and serve as an underpinning for
recent regulatory efforts aimed at strengthening the joint risk
management of liquidity and credit risks. Copyright (c) 2017, Borsa
Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V. This is
an open access article under the CC BY-NCND license
ZR 0
ZA 0
ZB 0
ZS 0
TC 15
Z8 0
Z9 15
U1 0
U2 4
SN 2214-8450
EI 2214-8469
UT WOS:000425014400004
ER
PT J
AU Fathi, Wan Nor Iffah Wan Mohd
Ghani, Erlane K.
Said, Jamaliah
Puspitasari, Evita
TI Potential Employee Fraud Scape in Islamic Banks: The Fraud Triangle
Perspective
VL 7
IS 2
BP 79
EP 93
PD DEC 2017
PY 2017
AB Fraud committed by employees has become a serious issue as it impacts
the reputation of an organisation as well as ruining employees'
morality. Many of the fraud cases previously reported were from the
conventional banks and little attention has been given to fraud cases in
Islamic banks. This study examines whether Islamic bank employees'
profile may influence them to commit fraud. Specifically, this study
aims to examine whether gender, age, position and religiosity would
influence them to commit asset misappropriation. Utilising the Fraud
Triangle model, this study conducts questionnaire survey to 109
employees in Islamic banks in Malaysia. The results show significant
relationship on gender, age, position and religiosity in influencing the
bank employees to commit asset misappropriation in the Islamic banks.
The findings in this study indicates that higher authority of the
Islamic banks need to outline various plans or programs in preventing
fraud in their organisations. The findings in this study contributes to
the literature and to the practitioners on the potential factors that
may influence asset misappropriation.
RI Ghani, Erlane K/AAJ-7162-2020; SAID, JAMALIAH/
OI SAID, JAMALIAH/0000-0003-1912-2529
ZA 0
TC 0
ZR 0
Z8 0
ZS 0
ZB 0
Z9 0
U1 0
U2 3
SN 2232-0474
EI 2232-0482
UT WOS:000424560600003
ER
PT J
AU Al Arif, M. Nur Rianto
TI Spin-off and market share in the Indonesian Islamic banking industry: a
difference in difference analysis
SO MANAGEMENT & MARKETING-CHALLENGES FOR THE KNOWLEDGE SOCIETY
VL 12
IS 4
BP 540
EP +
DI 10.1515/mmcks-2017-0032
PD DEC 2017
PY 2017
AB According to The Act No. 21 of 2008 concerning Islamic Banking in
Indonesia, the conventional banks are obligated to spun-off their
Islamic business units after achieving a certain set of requirements.
The spin-off requirements are: (i) reach 50% market share asset of its
parents; or (ii) 15 years after the implementation of the Islamic
Banking Act. This study emphasizes the impact of Islamic banks' spin-off
on market share. The method used in this study is a difference in
difference analysis. This technique is a quasi-expehment separate into
two groups, such as the treatment groups (four spin-offs' banks) and
control group (two full-fledged Islamic banks). This study used
quarterly data from 2005 until 2016. The results show that, first, there
is a difference in the Islamic banks' market share between pre-and
post-spin-off. Second, there is a difference in the market share of
spin-offs' banks between pre-and post-spin-off. Third, there are there
external factors that can affect the Islamic banks' market share, i.e.,
inflation rate, interest rate, and economic growth rate. The paper is a
useful source of information that may provide relevant guidelines in
helping the future development of spin-off activity in Islamic banking
industry. The finding could be helpful for policymakers to create a
supporting strategy to accelerate the development of Islamic banking
industry. This result also could be of use for Islamic banking
industries in other countries.
RI Arif, Mohammad Nur Rianto Al/I-4290-2019
OI Arif, Mohammad Nur Rianto Al/0000-0002-5731-1411
ZS 0
Z8 0
ZR 0
TC 1
ZB 0
ZA 0
Z9 1
U1 0
U2 5
SN 1842-0206
EI 2069-8887
UT WOS:000419978800002
ER
PT J
AU Miah, Mohammad Dulal
Uddin, Helal
TI Efficiency and stability: A comparative study between islamic and
conventional banks in GCC countries
SO FUTURE BUSINESS JOURNAL
VL 3
IS 2
BP 172
EP 185
DI 10.1016/j.fbj.2017.11.001
PD DEC 2017
PY 2017
AB This research aims at examining the differences between Islamic and
conventional banks in terms of business orientation, stability, and
efficiency. Data for this research are collected from 48 conventional
banks and 28 Islamic banks of the Gulf Cooperative Council (GCC)
countries over the period 2005 to 2014. Collected data are analyzed
using accounting ratios, Stochastic Frontier Analysis (SFA), and
ordinary least square (OLS) regression technique. Results show that
conventional banks are more efficient in managing cost than their
Islamic counterparts. However, Islamic banks are more solid in terms of
short-term solvency but no such difference exists as far as the
long-term stability is concerned. Regression estimation further shows
that the operations of Islamic banks are different from their
conventional counterparts and the results remain statistically
significant even after controlling for bank specific variables.
Moreover, larger banks have less intermediation ratio which indicates
diseconomies of scale. Results also indicate that highly capitalized
banks are more stable but cost inefficient which proves that
capital-rich banks have failed to capitalize on the leverage effect. (c)
2017 Faculty of Commerce and Business Administration, Future University.
Production and Hosting by Elsevier B.V.
RI Miah, Mohammad Dulal/O-9033-2019
OI Miah, Mohammad Dulal/0000-0001-9545-837X
Z8 0
ZA 0
TC 12
ZS 0
ZB 0
ZR 0
Z9 12
U1 0
U2 7
SN 2314-7210
UT WOS:000419065300007
ER
PT J
AU Omar, Maznah Wan
Anuar, Marhana Mohammed
Ali, Mohd Noor Mohd
TI Customer's confidence on dual banking system
SO INTERNATIONAL JOURNAL OF ADVANCED AND APPLIED SCIENCES
VL 4
IS 12
BP 162
EP 164
DI 10.21833/ijaas.2017.012.028
PN 2
PD DEC 2017
PY 2017
AB This paper will look into the customers' confidence towards Islamic
Personal Saving in comparison to conventional deposits in a bank.
Respondents from three different states in the northern states in
Peninsular Malaysia were the samples of study. A systematic sampling
method was employed with three hundred and fifty samples collected in a
period of six month were obtain for further analysis. Multiple
Regression analyses helps to confirm the framework conceptualized in the
beginning of the study. Availability of electronic information shows a
significant influence on the customers usage of Islamic finance system
while for the conventional deposits, reputation of the bank
significantly influence customers to use the conventional finance
system. (C) 2017 The Authors. Published by IASE.
RI Anuar, Marhana Mohamed/AAD-6048-2019
TC 0
ZS 0
ZA 0
Z8 0
ZB 0
ZR 0
Z9 0
U1 0
U2 4
SN 2313-626X
EI 2313-3724
UT WOS:000418514400003
ER
PT J
AU Othman, Norfaizah
TI Partnership financing and bank efficiency
VL 46
BP 1
EP 13
DI 10.1016/j.pacfin.2017.08.002
PN A
PD DEC 2017
PY 2017
AB This paper aims to analyze the effect of partnership financing on bank
efficiency. Partnership financing, which has similar concept with
venture capital, refers to the equitable sharing of risks and profits
between the client and bank. By employing output distance function on
Malaysian and Indonesian Islamic bank over 1996 to 2012, we estimate
bank efficiency score using Stochastic Frontier Approach and examine its
determinants. Our results show that banks with partnership financing are
more efficient than other banks. Banks with low capital risk coupled
with large amount of partnership financing tend to be more efficient.
However, when estimating the probability of crises using an early
warning system, banks with high partnership financing appear to be less
efficient during crises. The results suggest that the use of partnership
financing improves efficiency, especially for banks with low capital
risk except during crisis.
RI Othman, Norfaizah/AAS-9055-2020; Abdul-Rahman, Aisyah/H-7345-2016; Abdul-Majid,
Mariani/AAE-3801-2020
OI Abdul-Rahman, Aisyah/0000-0001-8347-2705; Abdul-Majid,
Mariani/0000-0002-4730-332X
ZA 0
Z8 0
TC 5
ZR 0
ZS 0
ZB 0
Z9 5
U1 0
U2 20
SN 0927-538X
EI 1879-0585
UT WOS:000418220600001
ER
PT J
AU Abedifar, Pejman
Giudici, Paolo
Hashem, Shatha Qamhieh
TI Heterogeneous market structure and systemic risk: Evidence from dual
banking systems
VL 33
BP 96
EP 119
DI 10.1016/j.jfs.2017.11.002
PD DEC 2017
PY 2017
AB This paper investigates how banking system stability is affected when we
combine Islamic and conventional finance under the same roof. We compare
systemic resilience of three types of banks in six GCC member countries
with dual banking systems: fully-fledged Islamic banks (IB), purely
conventional banks (CB) and conventional banks with Islamic windows
(CBw). We employ market-based systemic risk measures such as MES, SRISK
and CoVaR to identify which sector is more vulnerable to a systemic
event. We also compute weighted average GES to determine which sector is
most synchronised with the market. Moreover, we use graphical network
models to determine the most interconnected banking sector that can more
easily spread a systemic shock to the whole system. Using a sample of
observations on 79 publicly traded banks operating over the 2005-2014
period, we find that CBw is the least resilient sector to a systemic
event, it has the highest synchronicity with the market, and it is the
most interconnected banking sector during crisis times. (C) 2017
RI Giudici, Paolo Stefano/AAD-7430-2019; Qamhieh Hashem, shatha/; Abedifar, Pejman/
OI Giudici, Paolo Stefano/0000-0002-4198-0127; Qamhieh Hashem,
shatha/0000-0002-4077-7477; Abedifar, Pejman/0000-0002-7648-7201
ZA 0
ZB 0
Z8 0
ZS 0
TC 9
ZR 0
Z9 9
U1 1
U2 18
SN 1572-3089
EI 1878-0962
UT WOS:000417189200007
ER
PT J
AU Zheng, Changjun
Moudud-Ul-Huq, Syed
Rahman, Mohammad Morshedur
Ashraf, Badar Nadeem
TI Does the ownership structure matter for banks' capital regulation and
risk-taking behavior? Empirical evidence from a developing country
VL 42
BP 404
EP 421
DI 10.1016/j.ribaf.2017.07.035
PD DEC 2017
PY 2017
AB This paper applies the two-stage least squares (2SLS) estimator to
examine the bi-directional relationship between banks' capital
regulation and risk-taking behavior concerning the impact of ownership
structure. We have used a balanced panel dataset of banks from a
developing country over the most recent period between 2006 and 2014.
The empirical findings of this study suggest that higher capital
regulation enhances banks' stability when it combats with credit risk
but higher credit risk often persuades abating capital ratio.
Particularly, the key results are as follows: (i) the higher association
of minority active shareholding in stability issues is positive; (ii)
the higher contribution of active share holding promotes banks' capital
ratio; (iii) the lower ownership concentration prevents credit risk;
(iv) private commercial banks are more risk averse and stable than
state-owned banks and other type of banks; and (v) notably, Islamic
banks show their superiority through overall performance despite their
lower capital stability than conventional banks. Besides, no models show
significant non-linear relationship between capital regulation and
risk-taking except models of stability show a U-shaped relation in
capital equation, indicating that when regulatory pressure works in a
country then bank lose solvency at the initial stage. Finally, it also
provides some imperative policy implications which will be very useful
for a wide range of stakeholders.
RI Ashraf, Badar Nadeem/N-7381-2016
OI Ashraf, Badar Nadeem/0000-0001-5750-6414
ZB 0
Z8 0
ZR 0
TC 10
ZS 0
ZA 0
Z9 10
U1 4
U2 13
SN 0275-5319
EI 1878-3384
UT WOS:000416974400031
ER
PT J
AU Otero Gonzalez, Luis
Razia, Alaa
Vivel Bua, Milagros
Lado Sestayo, Ruben
TI Competition, concentration and risk taking in Banking sector of MENA
countries
VL 42
BP 591
EP 604
DI 10.1016/j.ribaf.2017.07.004
PD DEC 2017
PY 2017
AB This paper tests the relationship between competition and bank stability
for 356 banks operating in the Middle East North Africa (MENA) countries
during the period 2005-2012. Our results show that for the overall
sample, a U-shaped relationship between competition and banks' risk
taking for MENA banks. The negative linear relationship between Z-Score
and H-statistics in Gulf countries shows that an increase in competition
leads to a reduction in the level of financial stability. In the case of
other non-Gulf countries, the increase of competition in uncompetitive
markets can lead to an increase in stability. The results confirm the
importance of the market structure as an explanatory factor for
financial stability, but also indicate that concentration is not
associated with uncompetitive markets.
RI Razia, Alaa/AAU-1592-2020; Lado-Sestayo, Ruben/N-6943-2018; Lado-Sestayo,
Ruben/AAC-3201-2019; Otero, Luis/F-2087-2015
OI Lado-Sestayo, Ruben/0000-0003-3760-2868; Lado-Sestayo,
Ruben/0000-0003-3760-2868; Otero, Luis/0000-0002-8214-6227
ZS 0
Z8 0
ZB 0
TC 12
ZA 0
ZR 0
Z9 12
U1 0
U2 4
SN 0275-5319
EI 1878-3384
UT WOS:000416974400046
ER
PT J
AU Alandejani, Maha
Asutay, Mehmet
TI Nonperforming loans in the GCC banking sectors: Does the Islamic finance
matter?
VL 42
BP 832
EP 854
DI 10.1016/j.ribaf.2017.07.020
PD DEC 2017
PY 2017
AB This paper investigates the bank-level and country-level factors
determining nonperforming loans (NPL) in the commercial banking industry
of Gulf Cooperation Council (GCC) countries. Specifically; it examines
the impact of the sectoral distribution financing growth and Islamic
finance methods growth on NPL. To do so, we apply generalized method of
moments (GMM) techniques, over the 2005-2011 period. Our findings
indicate that the sectoral distribution of Islamic financing has an
adverse impact on NPL, which suggest that the sectoral financing growth
of Islamic banks increases the credit risk exposure more than
conventional banks. The findings of the Islamic finance methods growth
show that the impact of fixed-income debt contracts could increase NPL
more than profit-and-loss-sharing contracts.
OI Asutay, Mehmet/0000-0003-4939-6053
ZB 0
TC 6
ZS 0
ZR 0
Z8 0
ZA 0
Z9 6
U1 1
U2 9
SN 0275-5319
EI 1878-3384
UT WOS:000416974400061
ER
PT J
AU Shibani, Osama
De Fuentes, Cristina
TI Differences and similaritites between corporate governance principles in
Islamic banks and Conventional banks
VL 42
BP 1005
EP 1010
DI 10.1016/j.ribaf.2017.07.036
PD DEC 2017
PY 2017
AB The purpose of this paper is to present the some differences and
similarities between corporate governance principles in Islamic banks
and conventional banks by paradigmatic diversification. Since Corporate
governance in Islamic banks is a social phenomenon in Islamic societies,
the paper uses social theory paradigms (functionalist, interpretive,
radical humanist and radical structuralist) to compare between corporate
governance in Islamic banks and conventional banks. This paper
demonstrates that mainstream corporate corporate governance theories are
not a law of nature but a social construct.
ZR 0
ZA 0
ZS 0
Z8 0
ZB 0
TC 3
Z9 3
U1 1
U2 6
SN 0275-5319
EI 1878-3384
UT WOS:000416974400075
ER
PT J
AU Abdul-Majid, Mariani
Falahaty, Manizheh
Jusoh, Mansor
TI Performance of Islamic and conventional banks: A meta-frontier approach
VL 42
BP 1327
EP 1335
DI 10.1016/j.ribaf.2017.07.069
PD DEC 2017
PY 2017
AB This study conducts a stochastic frontier analysis and adopts
meta-frontier approach towards Malaysian banks' data and finds that
conventional banks are more cost efficient than Islamic ones. The
primary factors contributing to the differences in efficiency between
the two banks are the wide disparity from their respective best banks
and technological constraints. While few Islamic banks use technologies
that are similar and close to the industry's standard, many others have
diverse technologies. The latter can be attributed to differences in
organisational structure and operational processes. By contrast,
conventional banks are closer in terms of structure and processes to
their best bank and adopt technologies that are almost similar to those
used in the industry. These findings show that a different treatment is
required in terms of the policy, regulations, and management for both
bank types, a key implication for policy makers, bank regulators, and
industry players.
RI Abdul-Majid, Mariani/AAE-3801-2020
TC 7
ZB 0
ZS 0
Z8 0
ZA 0
ZR 0
Z9 7
U1 1
U2 6
SN 0275-5319
EI 1878-3384
UT WOS:000416974400101
ER
PT J
AU Quttainah, Majdi A.
Almutairi, Ali R.
TI Corporate ethics: evidence from Islamic banks
VL 21
IS 4
BP 815
EP 840
DI 10.1007/s10997-016-9360-6
PD DEC 2017
PY 2017
AB The purpose of this study is to investigate whether banks' management
behavior is related to corporate ethics. We employ earnings-management
and expense-preference measures to evaluate management behavior. Using a
very large sample of banks from 15 countries and controlling for a
number of bank- and country-level factors, we find that managers in
Islamic banks are less likely to engage in unethical business practices
compared to those in commercial banks. We also document that Shari'ah
supervisory boards embedded in Islamic banks affect and shape managerial
behavior and mitigate agency problems. These results establish a link
between corporate ethics and management behavior through Shari'ah and
Shari'ah supervisory boards.
ZB 0
TC 3
ZR 0
ZA 0
ZS 0
Z8 0
Z9 3
U1 0
U2 15
SN 1385-3457
EI 1572-963X
UT WOS:000414201400002
ER
PT J
Mayes, David G.
Brown, Kym
TI Islamic bank efficiency compared to conventional banks during the global
crisis in the GCC region
VL 51
BP 58
EP 74
DI 10.1016/j.intfin.2017.08.010
PD NOV 2017
PY 2017
AB The efficiency of Islamic and conventional banks in the GCC region is
investigated using DEA and SFA before, during and after the global
financial crisis (GFC). Results suggest that during the GFC, Islamic
banks were more cost efficient in comparison to conventional banks. In
addition, Islamic banks closed the inherent gap in terms of profit
efficiency to an insignificant level compared to the period prior to the
GFC and through the period under investigation. Conversely, during the
period subsequent to the GFC, Islamic banks suffered more than
conventional banks in terms of profit efficiency and lost their cost
efficiency superiority. Crown Copyright (C) 2017 Published by Elsevier
OI Brown, Kym/0000-0003-2725-6236
TC 15
ZA 0
Z8 0
ZR 0
ZB 1
ZS 0
Z9 15
U1 2
U2 11
SN 1042-4431
UT WOS:000415926300004
ER
PT J
AU Jawadi, Fredj
Jawadi, Nabila
Cheffou, Abdoulkarim Idi
Ben Arneur, Hachmi
Louhichi, Wael
TI Modelling the effect of the geographical environment on Islamic banking
performance: A panel quantile regression analysis
VL 67
BP 300
EP 306
DI 10.1016/j.econmod.2017.01.018
PD OCT 2017
PY 2017
AB While studies have focused on Islamic banking, research on the effect of
the geographical environment on Islamic banks is scarce. We investigate
this issue by using daily data on 12 Islamic banks in four regions
(Africa, Asia, Europe, and the United States) from July 2007 to April
2016. We apply different methodological approaches (principal component
analysis, panel data tests, and quantile regression). First, the
principal component analysis shows that the performance of Islamic banks
varies among regions. Second, the linear panel regression highlights
that the geographical environment positively and significantly affects
Islamic banking, suggesting the importance of externality effects.
Finally, the environmental effect seems to vary with quantiles (positive
effect for the lowest quantile versus negative effect for the highest
quantile). This quantile specification points to nonlinearity in the
environment Islamic bank performance relationship, reflecting a
time-varying discipline imposed by the Sharia board (Islamic Law). This
finding helps better explain the main difference between Islamic banks
in the East (Africa and Asia) and those in the West (Europe and the
United States) and also enables investors to adjust their portfolio
choices when considering the products of Islamic banks according to
regional specificities.
ZS 0
ZR 0
Z8 0
ZA 0
TC 3
ZB 0
Z9 3
U1 1
U2 5
SN 0264-9993
EI 1873-6122
UT WOS:000416616700026
ER
PT J
AU Suseno, Priyonggo
Bamahriz, Omar
TI Examining the impact of bank's risks to Islamic banks' profitability
VL 9
IS 2
BP 125
EP 137
PD OCT 2017
PY 2017
AB This paper analyzes the impact of banks' risk to the profitability of
Islamic banks and to identify what risks play the non-trivial role. To
this objective, 75 Islamic banks in 24 countries in 2015 have been
studied. A series of bank risks, industry-specific and macroeconomic
indicators are combined to explain the profitability of Islamic banking
as measured by Return on Average Assets (ROAA), Return on Average Equity
(ROAE), and Value Added (VA). The bank risks comprise credit risk,
insolvency risk, liquidity risk, and operational risk. Having used
robust linear regressions, the results indicate that all four types of
risk influence bank's profitability. Operational risk is the risk that
plays the most important role in influencing banks' profitability,
whether measured by ROAA, ROAE or profit before taxes over the total
asset (PBTTA). On the other hand, credit risk, liquidity, and insolvency
do not conclusively increase or decrease Islamic bank profitability.
Macroeconomic conditions, measured by inflation, actually has a positive
impact on the profitability of Islamic banks. This indicates that
operational risks and macroeconomic stability should be given primary
attention in increasing bank's profitability.
Z8 0
ZR 0
ZA 0
ZB 0
TC 0
ZS 0
Z9 0
U1 0
U2 2
SN 2086-3128
EI 2502-180X
UT WOS:000447313800002
ER
PT J
AU Basher, Syed Abul
Kessler, Lawrence M.
Munkin, Murat K.
TI Bank capital and portfolio risk among Islamic banks
VL 34
BP 1
EP 9
DI 10.1016/j.rfe.2017.03.004
PD SEP 2017
PY 2017
AB Minimum capital requirements are often implemented under the notion that
increased capital improves bank safety and stability. However, an
unintended consequence of higher capital requirements could arise if
increasing capital induces banks to invest in riskier assets. Several
researchers have examined this relationship between bank capital and
risk among conventional banks, and interest around this topic has
intensified since the 2007-2008 financial crisis. However, the findings
are rather mixed. Moreover, very few studies have focused on Islamic
banks, which differ greatly from their conventional counterpart's due to
their need to be Shariah-compliant. In this paper a sample of 22 Islamic
banks is analyzed over a seven year period from 2007 to 2013. The
empirical approach is fully parametric and Bayesian utilizing techniques
developed by Kessler and Munkin (2015) and building on previous banking
research by Shrieves and Dahl (1992) and Jacques and Nigro (1997). Some
evidence is found suggesting that increases in total capital positively
affect the levels of asset risks among Islamic banks. (c) 2017 Elsevier
TC 7
ZS 0
ZR 0
ZA 0
ZB 0
Z8 0
Z9 7
U1 0
U2 4
SN 1058-3300
EI 1873-5924
UT WOS:000415901500001
ER
PT J
AU Saxena, Stuti
Al-Hadrami, Aflah Said Nasser
TI Do We Need a GCC Bank to Facilitate the Economic Turnaround of the GCC
Region?
SO DIGEST OF MIDDLE EAST STUDIES
VL 26
IS 2
BP 226
EP 247
DI 10.1111/dome.12111
PD FAL 2017
PY 2017
AB Amidst the ongoing crisis of plummeting oil prices, the GCC (Gulf
Cooperation Council) terrain has become a haunt of economists and
financial analysts to tackle the ongoing challenges in the region. GCC
constituents are gearing themselves with a robust political will that
they hope could result in a turnaround of their economy by adopting a
policy of economic diversification in nonoil-based sectors. With this
background supported by extensive qualitative scan of literature
pertaining to the reforms proposed by the six members of the GCC to
drive the economy forward amidst ongoing economic crisis, this article
seeks to underscore the prospect of a shared initiative by the GCC
constituents in institutionalizing a GCC bank as a potent innovative
solution which may serve to provide an edifice for pushing forth the
region's economy in nonhydrocarbon segments contingent upon the
individual needs of the GCC constituents. As an exploratory study, this
paper sheds light on these issues besides discussing the fundamental
functions of the GCC bank.
ZR 0
ZB 0
TC 1
ZA 0
Z8 0
ZS 0
Z9 1
U1 0
U2 1
SN 1060-4367
EI 1949-3606
UT WOS:000415021100002
ER
PT J
AU Alandejani, Maha
Kutan, Ali M.
Samargandi, Nahla
TI Do Islamic banks fail more than conventional banks?
VL 50
BP 135
EP 155
DI 10.1016/j.intfin.2017.05.007
PD SEP 2017
PY 2017
AB This study aims to investigate the survival time of Islamic and
conventional banks in the Gulf Cooperation Council (GCC) countries,
taking into account the impact of the global financial crisis by
employing the discrete-time duration models. The empirical application
is comprised of 56 commercial banks based in five GCC countries over the
period 1995-2011. In addition, to examine the differences between banks,
a range of explanatory variables from both the bank-level and
macro-level are included in several models. The results of hazard and
survivor functions indicate that Islamic banks have a higher incidence
rate of failure and therefore a shorter survival time than conventional
banks. The discrete-time duration model (or the complementary log-log
model) findings for the all-banks-pooled model confirm that the hazard
rate increases with Islamic banks. Furthermore, the analysis of each
bank type reveals that the effect of explanatory variables on survival
time differs between Islamic and conventional banks. For instance,
increasing the net interest margin ratio causes the hazard rate in
Islamic banks to rise, whereas this rate is lowered in conventional
banks. Among the macro-level variables, a higher inflation rate leads to
a higher hazard rate; improving the regulatory quality correspondingly
reduces the hazard rate of survival time in the banking sector of
countries within the GCC. (C) 2017 Elsevier B.V. All rights reserved.
RI SAMARGANDI, NAHLA/P-9385-2015
OI SAMARGANDI, NAHLA/0000-0001-7237-398X
Z8 0
TC 10
ZS 0
ZB 1
ZA 1
ZR 0
Z9 11
U1 2
U2 14
SN 1042-4431
UT WOS:000414227100009
ER
PT J
AU Alaeddin, Omar
Archer, Simon
Rasid, Mohd Eskandar Shah Mohd
TI Do Profit-sharing Investment Account Holders Provide Market Discipline
in an Islamic Banking System?
SO JOURNAL OF FINANCIAL REGULATION
VL 3
IS 2
BP 210
EP 232
DI 10.1093/jfr/fjx006
PD SEP 2017
PY 2017
AB Market discipline is one of the main pillars of stability and resiliency
in the banking system. The mechanism of market discipline primarily
relies on the role of depositors who receive timely information and act
accordingly through their respective accounts. In this study, we use
generalized method of moments panel technique for 44 Islamic banks
across different regions to research the presence of market discipline
in the global Islamic banking system, focusing on the behaviour of the
PSIA holders and their role in the governance of Islamic banks. These
results have a significant policy implication in reviewing the framework
governing the Islamic banks.
RI /AAD-1515-2020
OI /0000-0002-9850-923X
Z8 0
ZR 0
ZB 0
ZS 0
TC 2
ZA 0
Z9 2
U1 0
U2 3
SN 2053-4833
EI 2053-4841
UT WOS:000410671000004
ER
PT J
AU Louhichi, Awatef
Boujelbene, Younes
TI Bank capital, lending and financing behaviour of dual banking systems
VL 41
BP 61
EP 79
DI 10.1016/j.mulfin.2017.05.009
PD SEP 2017
PY 2017
AB As a "novel" business model based on risk-sharing, Islamic banking
largely differs from the risk-based conventional banking model. We
investigate whether the quality of bank capital affects bank lending and
financing in Islamic versus conventional banks, using 123 banks
operating in 10 Middle Eastern and Asian countries. The sample period
2005-2014 helps highlight the effects of the 2008 Global Financial
Crisis and differentiate between bad time intervals and good ones. A
distinction is established between Tier 1 bank capital and Tier 2 bank
capital, respectively standing for high loss-absorbing capacity versus
low loss-absorbing capacity. We find that high-quality capital helps
provide banks with enough strength to effectively withstand financial
crises. Additionally, Islamic versus conventional banks display
different behaviours, with Tier 1 capital serving as a buffer in Islamic
banks and as an incentive device in conventional banks. (C) 2017
RI Louhichi, Awatef/N-5103-2019
OI Louhichi, Awatef/0000-0002-7254-6905
ZR 0
TC 5
Z8 0
ZA 0
ZB 0
ZS 0
Z9 5
U1 0
U2 7
SN 1042-444X
EI 1873-1309
UT WOS:000411578300004
ER
PT J
AU Olson, Dennis
Zoubi, Taisier
TI Convergence in bank performance for commercial and Islamic banks during
and after the Global Financial Crisis
VL 65
BP 71
EP 87
DI 10.1016/j.qref.2016.06.013
PD AUG 2017
PY 2017
AB This study examines whether the Global Financial Crisis (GFC) has led to
a convergence in performance between Islamic and commercial banks in the
Middle East, Africa, and Southeast Asia (MENASA) region in recent years.
Using the largest sample to date for 1996-2014, we find that Islamic
banks (IBs) initially weathered the onslaught of the GFC better than
commercial banks (CBs) in 2007-2008. Then, as the crisis spread to the
real economy in 2009, profitability declined substantially for IBs
relative to CBs. Beta and sigma convergence tests suggest convergence
toward the mean for all banks and all financial ratios. The speed of
convergence is generally slower for Islamic banks but the difference has
declined in the aftermath of the GFC. The recently developed more robust
Phillips and Sul (2007a) log-t test for convergence shows little
convergence over the whole sample period, but for the years 2010-2014,
all banks appear to be converging toward similar levels of profitability
as measured by ROA and ROE. The log-t test shows convergence in
profitability across all banks (IBs and CBs) in the post-crisis period.
However, it does not show convergence across all asset composition and
risk measure-meaning that IBs and CBs still operate differently even if
they are moving toward similar profitability results. Club convergence
results indicate a lack of convergence over the whole sample, but quite
strong convergence across all banks post-crisis. However, some clusters,
such as the Southeast Asia region does not display convergence in
profitability ratios-suggesting that the GFC has differentially impacted
various countries and regions. (C) 2016 Board of Trustees of the
RI Olson, Dennis/AAU-1458-2020
TC 19
Z8 0
ZA 0
ZR 0
ZB 0
ZS 0
Z9 19
U1 1
U2 8
SN 1062-9769
EI 1878-4259
UT WOS:000424987300007
ER
PT J
AU Bitar, Mohammad
Hassan, M. Kabir
Walker, Thomas
TI Political systems and the financial soundness of Islamic banks
VL 31
BP 18
EP 44
DI 10.1016/j.jfs.2017.06.002
PD AUG 2017
PY 2017
AB We investigate whether and how political systems affect the financial
soundness of conventional and Islamic banks. Using factors extracted
from principal component analysis, we find that Islamic banks
underperform their conventional counterparts in more democratic
political systems but outperform them in hybrid and Sharia'a-based legal
systems. The findings reflect the challenges Islamic banks face in
Western countries in terms of perception, financial infrastructure, and
regulatory constraints while mirroring the recognition of their
specificities and their cultural and religious compliance with Sharia'a
law in Muslim countries. The findings are robust to a battery of
alternative estimation techniques and methods of correcting standard
errors. (C) 2017 Elsevier B.V. All rights reserved.
TC 18
ZA 0
ZR 0
Z8 0
ZB 0
ZS 0
Z9 18
U1 2
U2 13
SN 1572-3089
EI 1878-0962
UT WOS:000410819700002
ER
PT J
AU Azad, Abul Kalam
Munisamy, Susila
Muhammad Masum, Abdul Kadar
Saona, Paolo
Wanke, Peter
TI Bank efficiency in Malaysia: a use of malmquist meta-frontier analysis
SO EURASIAN BUSINESS REVIEW
VL 7
IS 2
BP 287
EP 311
DI 10.1007/s40821-016-0054-4
PD AUG 2017
PY 2017
AB This paper uses a two-stage data envelopment analysis to examine bank
efficiency in Malaysia. In the first stage, we use meta-frontier
technology to address bank heterogeneity-bank nature (Islamic vs.
conventional banks) and bank ownership (local vs. foreign banks). Using
a data set of 43 Malaysian commercial banks, the application of
meta-frontier enables us to compare the existence of inefficiency among
Malaysian banks because of their business nature and ownership. In doing
so, we empirically demonstrate that using different approaches (i.e.,
production, profitability, and intermediation) for calculating bank
efficiency can give significant contradictory results in efficiency
scores. In the second stage, we use Simar and Wilson's double bootstrap
regression to estimate the determinants of efficiency in Malaysian
banks. This helps to achieve valid inference even in the presence of
unknown serial correlation in the meta-frontier efficiency scores. The
results from double bootstrap regression confirm that bank ownership,
bank nature and gross domestic product have significant influence on
bank efficiency. This study reveals that Islamic banks have
outperformed. The frontier results reveal that local Islamic banks have
moved towards the group technology and foreign Islamic banks have taken
the lead in country frontier technology.
RI Azad, Abul Kalam/E-2814-2016; Wanke, Peter/G-3184-2010; Saona, Paolo/
OI Azad, Abul Kalam/0000-0003-3463-2738; Wanke, Peter/0000-0003-1395-8907;
Saona, Paolo/0000-0002-3151-9855
ZR 0
TC 7
Z8 0
ZB 0
ZS 0
ZA 0
Z9 7
U1 7
U2 18
SN 1309-4297
EI 2147-4281
UT WOS:000406302400008
ER
PT J
AU Ahmed, Selim
Islam, Rafikul
Mohiuddin, Mohammad
TI Service Quality, Shariah Compliance and Customer Satisfaction of Islamic
Banking Services in Malaysia
VL 4
IS 2
BP 71
EP 82
DI 10.26414/tujise.2017.4.2.71-82
PD AUG 2017
PY 2017
AB The present study investigates the level of service quality and customer
satisfaction of Islamic banks in Malaysia based on demographics such as
gender, nationality, experience with the bank and income. This study
surveyed 179 customers who have had first hand experience with Islamic
banking services in Malaysia.The research data was analysed based on
reliability analysis, independent samples t-tests and one-way ANOVA
using SPSS version 23. The research findings indicate that Malaysian
customers have a better perception of reliability, responsiveness,
assurance, empathy, tangibles and satisfaction compared to international
customers. The findings also suggest that the customers who have 6-10
years' experience with Islamic banking services, have a better
perception of reliability, assurance and Shariah compliance compared to
other experience groups.
OI Islam, Rafikul/0000-0002-4272-3085
ZR 0
ZB 0
Z8 0
TC 0
ZS 0
ZA 0
Z9 0
U1 0
U2 2
SN 2587-2303
EI 2587-232X
UT WOS:000448974500005
ER
PT J
AU Sukmana, Raditya
Ibrahim, Mansor H.
TI How Islamic are Islamic banks? A non-linear assessment of Islamic rate -
conventional rate relations
VL 64
BP 443
EP 448
DI 10.1016/j.econmod.2017.02.025
PD AUG 2017
PY 2017
AB In this paper, we perform a non-linear assessment of Islamic rate
conventional rate relations for the case of Malaysia. Using monthly data
covering the period January 1999 to November 2016, we find strong
evidence supporting non-linear reactions of the Islamic investment rates
to conventional rates in the long run and/or short-run for all matched
maturities. More precisely, the Islamic investment rates exhibit faster
upward movement (slower downward movement) in responses to conventional
deposit rate increases (decreases). The asymmetric pricing behaviour of
Islamic banks however tends to weaken as maturity lengthens.
Accordingly, we infer that Islamic banks do not rigidly peg their
investment deposit rates to conventional deposit rates as some have
claimed in questioning the Islamicity of Islamic banks.
RI Ibrahim, Mansor/AAU-6887-2020; Ibrahim, Mansor/
OI Ibrahim, Mansor/0000-0003-0413-0075
TC 6
Z8 0
ZA 0
ZR 0
ZS 0
ZB 0
Z9 6
U1 0
U2 11
SN 0264-9993
EI 1873-6122
UT WOS:000405052600037
ER
PT J
AU Doumpos, Michael
Hasan, Iftekhar
Pasiouras, Fotios
TI Bank overall financial strength: Islamic versus conventional banks
VL 64
BP 513
EP 523
DI 10.1016/j.econmod.2017.03.026
PD AUG 2017
PY 2017
AB A number of recent studies compare the performance of Islamic and
conventional banks with the use of individual financial ratios or
efficiency frontier techniques. The present study extends this strand of
the literature, by comparing Islamic banks, conventional banks, and
banks with an Islamic window with the use of a bank overall financial
strength index. This index is developed with a multicriteria methodology
that allows us to aggregate various criteria capturing bank capital
strength, asset quality, earnings, liquidity, and management quality in
controlling expenses. We find that banks differ significantly in terms
of individual financial ratios; however, the difference of the overall
financial strength between Islamic and conventional banks is not
statistically significant. This finding is confirmed with both
univariate comparisons and in multivariate regression estimations. When
we look at the bank financial strength within regions, we find that
conventional banks outperform both the Islamic banks and the banks with
Islamic window in the case of Asia and the Gulf Cooperation Council;
however, Islamic banks perform better in the MENA and Senegal region.
Second stage regressions also reveal that the bank overall financial
strength index is influenced by various country-specific attributes.
These include control of corruption, government effectiveness, and
operation in one of the seven countries that are expected to drive the
next big wave in Islamic finance.
RI Pasiouras, Fotios/AAK-6582-2020
Z8 0
ZB 0
ZR 0
ZS 0
TC 22
ZA 1
Z9 23
U1 1
U2 21
SN 0264-9993
EI 1873-6122
UT WOS:000405052600044
ER
PT J
AU Zins, Alexandra
Weill, Laurent
TI Islamic banking and risk: The impact of Basel II
VL 64
BP 626
EP 637
DI 10.1016/j.econmod.2017.05.001
PD AUG 2017
PY 2017
AB The expansion of Islamic banking raises questions about its impact on
financial stability. We question whether the implementation of Basel II
standards influences the gap in risk between Islamic and conventional
banks. We use a sample of 558 banks from 24 countries that had an
Islamic banking presence between 2007 and 2013. We exploit the variation
in Basel II implementation across countries to use a
differences-in-differences approach. Risk is considered according to
insolvency risk and credit risk indicators. We find that Basel II
standards enlarge the gap in risk between Islamic and conventional banks
at the expense of Islamic banks. These findings are also observed when
separately considering small banks and large banks. We thus support the
view that the relationship between Islamic banking and risk is
conditional to the regulatory framework.
ZS 0
TC 12
ZA 0
ZR 0
Z8 0
ZB 0
Z9 12
U1 0
U2 15
SN 0264-9993
EI 1873-6122
UT WOS:000405052600053
ER
PT J
AU Batir, Tugba Eyceyurt
Volkman, David A.
Gungor, Bener
TI Determinants of bank efficiency in Turkey: Participation banks versus
conventional banks
VL 17
IS 2
BP 86
EP 96
DI 10.1016/j.bir.2017.02.003
PD JUN 2017
PY 2017
AB This study examines the technical, allocative, and cost efficiency of
conventional and participation banks in Turkey with data envelopment
analysis (DEA) method. In the wake of finding technical, allocative, and
cost efficiency results by DEA intermediation approach, Tobit regression
analysis is used to determine the factors influencing the efficiency.
The main purpose of this paper is analyzing efficiency of the banking
system in Turkey and compare the efficiency of participation banks and
conventional banks. The results of DEA indicate that average
participation bank efficiency is higher than the average conventional
bank efficiency each year. Regarding Tobit regression analysis, while
expenses and loan quality have a significantly negative relationship
with efficiency of conventional banks, they have a significantly
positive relationship with the efficiency of participation banks. While
the total loans have a significantly positive relationship, external
variables have a significantly negative relationship with efficiency of
both types of the banks. Copyright (C) 2017, Borsa Istanbul Anonim
Sirketi. Production and hosting by Elsevier B.V. This is an open access
article under the CC BY-NC-ND license.
OI eyceyurt batir, tugba/0000-0003-4688-1811
ZR 0
Z8 0
ZS 0
TC 13
ZB 0
ZA 0
Z9 13
U1 4
U2 6
SN 2214-8450
EI 2214-8469
UT WOS:000425013300002
ER
PT J
AU Nor, Alias M.
Ahmad, Nor Hayati
Ahmad, Mohd A.
TI Impact of Staff Efficiency on Impaired Financing of Islamic Banks, MENA
Countries
VL 25
IS 2
BP 977
EP 992
PD JUN 2017
PY 2017
AB This paper reports evidence to support the insight that the impaired
financing problem is highly likely connected to low staff efficiency in
MENA country Islamic banks. Several macro and micro factors widely used
in banking research are used along the measure of staff efficiency as
the intervening factor to identify banking performance under impaired
financing conditions. It is reasonable to assume that if staff do not
work efficiently (for example for lack of skill), bank performance ought
to be seriously affected; hence, staff efficiency would have a
moderating effect when this factor is added to eight bank-specific
factors. Impaired financing to total financing, as a ratio, is a proxy
for impaired financing condition. Financial data are accessed for 22
banks from MENA countries covering the recent nine years to 2013.
Applying a random effect model, we identify seven factors as significant
contributors to performance. Next, by applying a hierarchical regression
model, our tests reveal staff efficiency is a significant moderating
factor. The result provides statistical support for the Resource-Based
Theory, which suggests banks could reduce their impaired financing
significantly by increasing staff efficiency. This is a new and
significant finding on the linkage of finance with staff efficiency as a
factor.
Z8 0
ZB 0
TC 1
ZR 0
ZS 0
ZA 0
Z9 1
U1 0
U2 1
SN 0128-7702
EI 2231-8534
UT WOS:000412194900032
ER
PT J
AU Mushtaq, Saba
Siddiqui, Danish Ahmed
TI Effect of interest rate on bank deposits: Evidences from Islamic and
non-Islamic economies
VL 3
IS 1
BP 1
EP 8
DI 10.1016/j.fbj.2017.01.002
PD JUN 2017
PY 2017
AB Banking sector is the backbone of any country's economy and bank
deposits are the major tool of success for banking sector. Bank deposits
are also a major part and determinant of country's saving. According to
economic theories and practical considerations, interest rate is
considered one of the major elements that can affect savings as well as
bank deposits. But as we knows that in Islam interest is considered
forbidden and Muslims tries to avoid interest income, So the basic
purpose of this study is to know the fact that either religious factors
have any effect on Muslim's decision while keeping their saving in
banks. We used panel ARDL(Autoregressive Distributed Lag) method by
using 23 non-Islamic and 23 Islamic countries data from 1999 to 2014 for
this study. Results showed that in Islamic countries interest rate don't
have any impact on bank deposits both in long run and short run. But in
the case of non-Islamic countries interest rate have positive
significant impact on bank deposits. Hence there is need of Islamic
banks in countries with more Muslim population and there should be
different economic policies for Islamic countries as religious factor
affects decision of Muslims and interest rate doesn't have any impact on
bank's deposits. (C) 2017 Faculty of Commerce and Business
Administration, Future University. Production and Hosting by Elsevier
B.V.
RI Siddiqui, Danish A/X-8457-2018
ZS 1
ZR 0
TC 8
Z8 0
ZA 0
ZB 0
Z9 9
U1 0
U2 3
SN 2314-7210
UT WOS:000409500100001
ER
PT J
Sufian, Fadzlan
Loong, Foong Wei
TI Assessing the domestic and foreign Islamic banks efficiency: Insights
from selected Southeast Asian countries
VL 3
IS 1
BP 33
EP 46
DI 10.1016/j.fbj.2017.01.005
PD JUN 2017
PY 2017
AB The objective of this study is to examine the technical efficiency (TE)
and the decomposition of pure technical efficiency (PTE) and scale
efficiency (SE) of domestic and foreign Islamic banks from the selected
Southeast Asian Countries. The sample comprised of 29 domestic and
foreign Islamic banks from Malaysia, Indonesia and Brunei over the
period of 2006-2014. This study employ the Data Envelopment Analysis
(DEA) method to measure banks' efficiency. In addition, the parametric
(t-test) and non-parametric (Mann-Whitney [Wilcoxon] and
Kruskall-Wallis) tests also performed to examine the difference in the
efficiency of the foreign and domestic Islamic banks. The results
indicate that the domestic Islamic banks have exhibited higher
efficiency levels compared to their foreign bank peers. In addition, the
empirical findings from this study seem to suggest that the domestic
Islamic banks have exhibited a higher efficiency levels for all three
efficiency measures and consistent with home field advantage theory. The
findings of this study are expected to contribute significantly to the
regulators or policymakers, Islamic banking itself, investors and
existing knowledge on the operating performance of the Islamic banking
sector. (C) 2017 Faculty of Commerce and Business Administration, Future
University. Production and Hosting by Elsevier B.V.
RI Kamarudin, Fakarudin/AAL-8942-2020; Kamarudin, Fakarudin/
OI Kamarudin, Fakarudin/0000-0001-8180-1173
ZR 0
ZB 0
Z8 0
ZA 0
ZS 0
TC 4
Z9 4
U1 1
U2 5
SN 2314-7210
UT WOS:000409500100004
ER
PT J
AU Daly, Saida
Frikha, Mohamed
TI Determinants of bank Performance: Comparative Study Between Conventional
and Islamic Banking in Bahrain
VL 8
IS 2
BP 471
EP 488
DI 10.1007/s13132-015-0261-8
PD JUN 2017
PY 2017
AB In this study, Data Envelopment Analysis (DEA) is used to examine the
determinants of banking performance in Bahrain between 2005 and 2009.
This performance is analyzed through a comparative study of 12 banks
(six conventional and six Islamic banks). A diversity of internal and
external banking characteristics were used to forecast this performance.
The main of them are the return on assets (ROA), return on equity (ROE),
and efficiency (EFF). Our determinant study of bank performance confirms
previous investigations. The increase in size of Islamic banks and the
rapid growth in the customers' deposits are the important factors of
performance. Moreover, our results indicate that the variables related
to the government intervention have a negative impact on the banking
performance in the conventional funding model.
TC 4
ZR 0
ZA 0
ZB 0
ZS 0
Z8 0
Z9 4
U1 3
U2 10
SN 1868-7865
EI 1868-7873
UT WOS:000407746200006
ER
PT J
Rizvi, Syed Aun R.
TI Do we need bigger Islamic banks? An assessment of bank stability
VL 40
BP 77
EP 91
DI 10.1016/j.mulfin.2017.05.002
PD JUN 2017
PY 2017
AB In this paper, we evaluate from the stability point of view whether
Islamic banks should stay small or should be bigger. More specifically,
in relating bank stability to bank size, we examine potential non-linear
effects of size on bank soundness and the roles regulation plays in
strengthening or weakening the size-stability relation using a panel
sample of 45 Islamic banks from 13 countries. Our results show that
larger Islamic banks are more stable, at least when they surpass a
certain threshold size. As regards regulation, activity restrictions and
capital stringency play a role in strengthening the stability-size
relation. By contrast, the positive stability-size relation is weakened
with more private monitoring and supervisory power. Hence, our results
point to the benefits of having bigger Islamic banks. They also suggest
that, to further enhance the stability implications of larger Islamic
banks, policymakers should focus on improving regulation in the forms of
activity restrictions and capital stringency. (C) 2017 Elsevier B.V. All
rights reserved.
RI Rizvi, Syed Aun R./B-1215-2017; Rizvi, Syed Aun R/AAI-5807-2020; Ibrahim,
Mansor/AAU-6887-2020; Haroon, Omair/O-9174-2019; Ibrahim, Mansor/
OI Rizvi, Syed Aun R./0000-0002-6976-299X; Haroon,
Omair/0000-0002-6976-299X; Ibrahim, Mansor/0000-0003-0413-0075
ZS 0
ZB 0
TC 9
ZR 0
Z8 0
ZA 1
Z9 10
U1 0
U2 10
SN 1042-444X
EI 1873-1309
UT WOS:000404850800006
ER
PT J
AU Aaminou, Mohamed Wail
Aboulaich, Rajae
TI Modeling Consumers' Behavior in New Dual Banking Markets: The Case of
Morocco
SO REVIEW OF PACIFIC BASIN FINANCIAL MARKETS AND POLICIES
VL 20
IS 2
AR 1750009
DI 10.1142/S0219091517500096
PD JUN 2017
PY 2017
AB This paper aims to model the impact of retail consumers' behavior on a
new banking dual market featuring both conventional and Islamic banking
products. To build the model, we conduct an empirical qualitative and
quantitative survey on Moroccan market consumers in order to appraise
their preferences with regard to banking products' attributes. Then, we
use conjoint analysis method to determine the consumers' decision
function. We run market simulations on a MultiAgents Simulation platform
and analyze the results. Our findings indicate that in new dual markets,
and under a range of assumptions, it is predicted that Islamic banks
will face excess liquidity while conventional banks will be exposed to
liquidity shortage.
ZS 0
ZR 0
TC 3
Z8 0
ZA 0
ZB 0
Z9 3
U1 1
U2 5
SN 0219-0915
EI 1793-6705
UT WOS:000404897100002
ER
PT J
AU Bitar, Mohammad
Madies, Philippe
Taramasco, Ollvier
TI What makes Islamic banks different? A multivariate approach
SO ECONOMIC SYSTEMS
VL 41
IS 2
BP 215
EP 235
DI 10.1016/j.ecosys.2016.06.003
PD JUN 2017
PY 2017
AB Using data from 8615 banks (including 123 Islamic banks) in 124
developed and developing countries for the period between 2006 and 2012,
we examine the financial characteristics that distinguish between
conventional and Islamic banks. As banks' financial characteristics are
multi-faceted concepts, our indicators are constructed using principal
component analysis. We find that Islamic banks are more capitalized,
more liquid and more profitable, but have more volatile earnings
compared to US and European banks. However, similarities in terms of
liquidity and earnings volatility are more noticeable when the sample is
limited to banks operating in countries where both systems coexist.
Finally, we find that higher capital makes the returns of Islamic banks
more volatile, while higher liquidity decreases the profitability of
conventional banks. (C) 2017 Published by Elsevier B.V.
ZB 0
Z8 0
ZR 0
ZA 0
ZS 1
TC 15
Z9 15
U1 0
U2 14
SN 0939-3625
EI 1878-5433
UT WOS:000403731000005
ER
PT J
AU Meslier, Celine
Risfandy, Tastaftiyan
Tarazi, Amine
TI Dual market competition and deposit rate setting in Islamic and
conventional banks
VL 63
BP 318
EP 333
DI 10.1016/j.econmod.2017.02.013
PD JUN 2017
PY 2017
AB This paper addresses the issue of competition in dual banking markets by
analyzing the determinants of deposit rates in Islamic and conventional
banks. Using a sample of 20 countries with dual banking systems over the
2000-2014 period, our results show significant differences in the
drivers of Islamic and conventional banks' pricing behavior.
Conventional banks with stronger market power set lower deposit rates
but market power is not significant for Islamic banks. In predominantly
Muslim environments, conventional banks set higher deposit rates and
further higher when their market power is lower. Whereas conventional
banks are influenced by the competitiveness of Islamic banks, Islamic
banks are only affected by their peers in predominantly Muslim
countries. Our findings have important implications regarding
competition and bank stability in dual banking markets.
OI Tarazi, Amine/0000-0001-8385-2994; Risfandy,
Tastaftiyan/0000-0002-5544-726X
TC 17
ZS 0
ZB 0
Z8 0
ZR 0
ZA 0
Z9 17
U1 1
U2 12
SN 0264-9993
EI 1873-6122
UT WOS:000400222800024
ER
PT J
AU Cerovic, Ljerka
Nikolaj, Stella Suljic
Maradin, Dario
TI COMPARATIVE ANALYSIS OF CONVENTIONAL AND ISLAMIC BANKING: IMPORTANCE OF
MARKET REGULATION
SO EKONOMSKA MISAO I PRAKSA-ECONOMIC THOUGHT AND PRACTICE
VL 26
IS 1
BP 241
EP 263
PD JUN 2017
PY 2017
AB Unlike conventional banks, whose main goal is maximizing profit based on
loans, Islamic banks comply with the Islamic law (Shariah), which
strictly prohibits the use of interest. Because of this is precise
characteristic of Islamic banks, many were skeptical when the first
Islamic banks were established, considering that interest-free banking
can't survive. Despite this skepticism, Islamic banks are one of the
fastest growing financial industries. Interest-free banking doesn't
meanbanking without profit, but a more stable and secure ethical
alternative, because instead of interest, Islamic banks receive fees and
commissions for their services, participate in a profit(loss)-sharing
with their clients and they are protected with contracts. The purpose of
this paper is to identify and analyze the similarities and differences
between conventional and Islamic banks and draw conclusions about the
stability and efficiency of conventional and Islamic banks before,
during and after the crisis. In obtaining these results, special
attention was given to the phenomenon of the banking sector regulation,
highlighting the advantages of regulation over Adam Smith's "invisible
hand" as one of the key reasons for the last economic crisis. From the
example of conventional and Islamic banks, it becomes clear that any
regulation policy needs to be carefully adapted to the specific
conditions of individual industries, and that the same basic principles
and uniform legal solutions for all market participants will not achieve
desired results, as pointed out by the Nobel laureate, Jean Tirole.
RI Maradin, Dario/Q-9380-2018; Suljic Nikolaj, Stella/R-4667-2018
OI Maradin, Dario/0000-0001-9642-6038; Suljic Nikolaj,
Stella/0000-0002-0435-4047
Z8 0
TC 5
ZS 0
ZB 0
ZR 0
ZA 0
Z9 5
U1 0
U2 0
SN 1330-1039
EI 1848-963X
UT WOS:000456096400013
ER
PT J
AU Abdullrahim, Najat
Robson, Julie
TI The importance of service quality in British Muslim's choice of an
Islamic or non-Islamic bank account
SO JOURNAL OF FINANCIAL SERVICES MARKETING
VL 22
IS 2
SI SI
BP 54
EP 63
DI 10.1057/s41264-017-0025-6
PD JUN 2017
PY 2017
AB Using an extended SERVQUAL model, this study identifies and compares the
importance of service quality to Muslim consumers with an Islamic or
non-Islamic bank account in a non-Muslim country, Britain. Eight group
discussions and a survey of 300 Muslims were conducted. Five dimensions
of service quality were identified, i.e. responsiveness, credibility,
Islamic tangibles, accessibility and reputation. These differ in
structure and content from the original SERVQUAL developed in a western
context and the subsequent CARTER model constructed in a Muslim country.
In addition, significant differences were found in the importance of
items between Islamic bank account and non-Islamic bank account holders.
This study is one of the first to identify and compare the importance of
service quality between Islamic and non-Islamic bank account holders in
a western non-Muslim country. The results advance our understanding of
the impact of culture on SERVQUAL. The study provides insight into
Muslims' bank choice and helps bank managers of both Islamic and
non-Islamic banks to focus their attention on the service quality
dimensions that matter most to Muslim customers.
RI Aguilar Solis, Ana Laura/N-5997-2017; Robson, Julie/V-8857-2019
OI Aguilar Solis, Ana Laura/0000-0001-9175-0381; Robson,
Julie/0000-0003-1966-6470
ZB 0
ZR 0
ZA 0
Z8 0
ZS 0
TC 5
Z9 5
U1 2
U2 16
SN 1363-0539
EI 1479-1846
UT WOS:000401606300003
ER
PT J
Said, Noor Latifah Hanim Mohd
Sulaiman, Ahmad Azam
TI Financing Structure and Liquidity Risk: Lesson from Malaysian Experience
SO JOURNAL OF CENTRAL BANKING THEORY AND PRACTICE
VL 6
IS 2
BP 125
EP 148
DI 10.1515/jcbtp-2017-0016
PD MAY 2017
PY 2017
AB This study examines the relationship between financing structure and
bank liquidity risk. We compare the findings between Islamic and
conventional banks for the case of Malaysia. We adopt four measures to
represent financing structure; namely 1) real estate financing, 2)
financing concentration, 3) stability of short-term financing structure
and 4) stability of medium-term financing structure. Two BASEL III
liquidity risk measures are tested; namely, liquidity coverage ratio
(LCR) and the net stable funding ratio (NSFR) to measure short- and
long-term liquidity risk, respectively. Based on panel data regression
comprising 27 conventional and 17 Islamic banks from 1994 to 2014, our
findings show that real estate financing and stability of short-term
financing structure for Islamic banks are positively related to both
liquidity risk measures. This implies that an increasing number of real
estate financing and a stable short-term financing structure may
increase Islamic banks' short- and long-term liquidity risks. However,
although real estate financing does not affect conventional banks'
liquidity risks, a stable short-term financing structure and increasing
financing concentration can positively influence bank long-term
liquidity risk. Our findings shed light crucial policy implications for
regulatory bodies and market players in the context of liquidity risk
management framework as well as the need to develop a separate framework
between conventional and Islamic banking institutions.
RI Abdul-Rahman, Aisyah/H-7345-2016; sulaiman@mohamad, ahmad azam/B-8148-2010
OI Abdul-Rahman, Aisyah/0000-0001-8347-2705; sulaiman@mohamad, ahmad
azam/0000-0002-5822-749X
ZR 0
TC 2
ZA 0
ZS 0
ZB 0
Z8 0
Z9 2
U1 2
U2 3
SN 1800-9581
EI 2336-9205
UT WOS:000449849300007
ER
PT J
Mayes, David G.
Brown, Kym
TI Reprint of Economic turmoil and Islamic banking: Evidence from the Gulf
Cooperation Council
VL 42
BP 113
EP 125
DI 10.1016/j.pacfin.2016.06.013
PD APR 2017
PY 2017
AB Using a panel of 101 banks across six Gulf Cooperation Council (GCC)
economies, we investigate with the bank performance model CAMEL, whether
Islamic banks outperformed conventional banks in the time of economic
shocks over the period 1998-2012. We find that while Islamic banks
performed better in terms of capitalisation, profitability and liquidity
in the early stages of the global financial crisis (GFC), they performed
worse in later stages with the real economic downturn, particularly in
the areas of capitalisation, profitability and efficiency. Thus while
the GCC Islamic banks may have avoided the consequences of more volatile
financial instruments, they were not immune in the face of a major
economic shock. Crown Copyright (C) 2016 Published by Elsevier B.V. All
rights reserved.
OI Brown, Kym/0000-0003-2725-6236
Z8 0
ZR 0
TC 2
ZS 0
ZB 0
Z9 2
U1 0
U2 0
SN 0927-538X
EI 1879-0585
UT WOS:000398750700008
ER
PT J
AU Sun, Poi Hun
Mohamad, Shamsher
Ariff, M.
TI Determinants driving bank performance: A comparison of two types of
banks in the OIC
VL 42
BP 193
EP 203
DI 10.1016/j.pacfin.2016.02.007
PD APR 2017
PY 2017
AB This paper extracts key variables from documented findings on bank
intermediation margins of two types of banks in the Organisation of
Islamic Countries. The intermediation margins used as the dependent
variable are: net interest margins of conventional banks and the net
profit margins of Islamic banks. To overcome the endogeneity issue of
variables, an appropriate econometric procedure namely the dynamic
Generalized Method of Moments is applied using data from 105 commercial
banks over 14 years. The results are interesting: there is a significant
difference in the margins across the two types of banks, 2.17% and 1.61%
respectively. Capital adequacy, management quality, and diversification
determinants significantly explain the margins of both types of banks.
We also find evidence suggesting market quality matters. This is an
expected result since both banks operate, despite their inherent
institutional differences, in a competitive environment to meet the core
demands for funds, which are the same, for traditional lending and
borrowing activities: However, this also shows that both CBs and IBs in
dual banking system are not significantly different from each other,
despite the perception arising from minor institutional differences.
These findings provide insights on the unique banking performance in
dual banking systems. (C) 2016 Elsevier B.V. All rights reserved.
OI Sun, Poi Hun/0000-0003-3045-9675
ZS 0
ZR 0
ZB 0
Z8 0
TC 20
ZA 0
Z9 20
U1 0
U2 13
SN 0927-538X
EI 1879-0585
UT WOS:000398750700014
ER
PT J
AU Mollah, Sabur
Hassan, M. Kabir
Al Farooque, Omar
Mobarek, Asma
TI The governance, risk-taking, and performance of Islamic banks
SO JOURNAL OF FINANCIAL SERVICES RESEARCH
VL 51
IS 2
BP 195
EP 219
DI 10.1007/s10693-016-0245-2
PD APR 2017
PY 2017
AB We examine whether the difference in governance structures influences
the risk taking and performance of Islamic banks compared to
conventional banks. Using a sample of 52 Islamic banks and 104
conventional banks in 14 countries for the period from 2005 to 2013, we
conclude that the governance structure in Islamic banks plays a crucial
role in risk taking as well as financial performance that is distinct
from conventional banks. Particularly, we show that the governance
structure in Islamic banks allows them to take higher risks and achieve
better performance because of product complexities and transaction
mechanisms. However, Islamic banks maintain a higher capitalization
compared to conventional banks. These results support the research on
Islamic investment and risk taking. Our results add a new dimension to
the governance research that could be a valuable source of knowledge for
policy makers and regulators in the financial services sector.
RI Farooque, Omar Al/H-4169-2019; mollah, sabur/
OI Farooque, Omar Al/0000-0002-6346-1125; mollah, sabur/0000-0002-6342-8309
ZR 0
ZA 0
TC 43
Z8 0
ZB 1
ZS 0
Z9 43
U1 0
U2 34
SN 0920-8550
EI 1573-0735
UT WOS:000397599300003
ER
PT J
AU Aysan, Ahmet F.
Disli, Mustafa
Duygun, Meryem
Ozturk, Huseyin
TI Islamic Banks, Deposit Insurance Reform, and Market Discipline: Evidence
from a Natural Framework
VL 51
IS 2
BP 257
EP 282
DI 10.1007/s10693-016-0248-z
PD APR 2017
PY 2017
AB Although it has been intensively claimed that Islamic banks are subject
to more market discipline, the empirical literature is surprisingly mute
on this topic. To fill this gap and to verify the conjecture that
Islamic bank depositors are indeed able to monitor and discipline their
banks, we use Turkey as a test setting. The theory of market discipline
predicts that when excessive risk taking occurs, depositors will ask
higher returns on their deposits or withdraw their funds. We look at the
effect of the deposit insurance reform in which the dual deposit
insurance was revised and all banks were put under the same deposit
insurance company in December 2005. This gives us a natural experiment
in which the effect of the reform can be compared for the treatment
group (i.e., Islamic banks) and control group (i.e., conventional
banks). We find that the deposit insurance reform has increased the
market discipline in the Turkish Islamic banking sector. This reform may
have upset the sensitivities of the religiously inspired depositors, and
perhaps more importantly it might have terminated the existing mutual
supervision and support among Islamic banks.
OI Duygun, Meryem/0000-0002-1112-0898; Disli, Mustafa/0000-0003-0584-0060
ZA 0
ZR 0
TC 8
ZS 0
Z8 0
ZB 0
Z9 8
U1 0
U2 13
SN 0920-8550
EI 1573-0735
UT WOS:000397599300005
ER
PT J
AU Faisol
TI ISLAMIC BANK FINANCING AND IT'S IMPACT ON SMALL MEDIUM ENTERPRISE'S
PERFORMANCE
SO ETIKONOMI
VL 16
IS 1
BP 13
EP 24
DI 10.15408/etk.v16i1.4404
PD APR 2017
PY 2017
AB The purpose of this paper is to examine the influence of Islamic bank's
financing toward the business performance. Besides that, this paper is
going to analyze how far the influence of Islamic bank financing toward
Small Medium Enterprises (SME's) welfare. This research is using partial
least square analysis. The population of this research is all of the
small medium enterprises especially farmers and industries in the
District of Kediri who got Islamic bank financing for one year. The
results showed that the Islamic bank financing has significant influence
with a positive direction on the SMEs's performances. This means that
when the Islamic bank financing improved, will improve the SMEs's
performance. Further Islamic bank financing has a significant effect
with positive direction towards the SMEs's Welfare.
TC 1
Z8 0
ZB 0
ZR 0
ZS 0
ZA 0
Z9 1
U1 0
U2 1
SN 1412-8969
EI 2461-0771
UT WOS:000462821700002
ER
PT J
AU Olimov, Sayakhmad
Hamid, Abdul
Mufraini, M. Arief
TI PERFORMANCE OF DEPOSITOR FUND: A LESSON FROM INDONESIAN ISLAMIC BANKING
INDUSTRY
SO ETIKONOMI
VL 16
IS 1
BP 53
EP 70
DI 10.15408/etk.v16i1.4871
PD APR 2017
PY 2017
AB The objective of study is to analyze the performance of Depositor Fund
in the operation of Islamic bank as an alternative banking sector in
financial market based on the profit and loss mode of financing in the
case of Indonesia. The research methodology is quantitative analysis
based on the Multiple Regression. In the study secondary data is used
and were collected from Annual Report of Islamic Banks. The sample of
study is the bank, which is selected from 36 samples of Islamic
Commercial Banks relates to non-probability purposive sampling method as
a statistical research techniques. The result of study showed that the
performance of Depositor Fund in the operation of Islamic banks has
negative proficiency and otherwise the Islamic banks have weaknesses
capability to improve the high ratio of increasing productivity
Depositor Fund based on the financial ratio factors, which are analysed.
ZS 0
ZA 0
Z8 0
ZR 0
TC 0
ZB 0
Z9 0
U1 0
U2 0
SN 1412-8969
EI 2461-0771
UT WOS:000462821700005
ER
PT J
AU Pappas, Vasileios
Ongena, Steven
Izzeldin, Marwan
Fuertes, Ana-Maria
TI A Survival Analysis of Islamic and Conventional Banks
VL 51
IS 2
BP 221
EP 256
DI 10.1007/s10693-016-0239-0
PD APR 2017
PY 2017
AB Are Islamic banks inherently more stable than conventional banks? We
address this question by applying a survival analysis based on the Cox
proportional hazard model to a comprehensive sample of 421 banks in 20
Middle and Far Eastern countries from 1995 to 2010. By comparing the
failure risk for both bank types, we find that Islamic banks have a
significantly lower risk of failure than that of their conventional
peers. This lower risk is based both unconditionally and conditionally
on bank-specific (microeconomic) variables as well as macroeconomic and
market structure variables. Our findings indicate that the design and
implementation of early warning systems for bank failure should
recognize the distinct risk profiles of the two bank types.
OI Izzeldin, Marwan/0000-0003-1662-1584; Pappas,
Vasileios/0000-0003-1885-4832
Z8 0
ZB 0
ZA 0
TC 17
ZS 0
ZR 0
Z9 17
U1 0
U2 24
SN 0920-8550
EI 1573-0735
UT WOS:000397599300004
ER
PT J
AU Yazid, A. S.
Umar, Farouk K.
TI The Relationship between Strategic Information Systems and Strategic
Performance: The Case of Islamic Banks in Malaysia
VL 25
SI SI
BP 79
EP 90
PD MAR 2017
PY 2017
AB The banking business is very competitive and requires good strategies,
thus, the use of information systems in the daily operationof banks is
considered critical. This paper is aimed at determining the effects of
strategic information systems on the strategic performance of Islamic
banks. The sample of the study population was randomly selected, and a
total of 302 questionnaires were distributed among Islamic bank
executives in Kuala Terengganu, Malaysia. The analysis was conducted
using a second generation multivariate analysis, also known as
Structural Equation Modelling (SEM). The results of the study reveal
that strategic information systems have a positive effect on the
strategic performance of Islamic banks, especially in terms of
flexibility and cost reduction. The paper reveals that Islamic bank
executives and stakeholders are obliged to fully comprehend the
relevance of strategic information systems in enhancing strategic
performance of organisations.
ZB 0
TC 0
ZR 0
Z8 0
ZS 0
Z9 0
U1 0
U2 0
SN 0128-7702
EI 2231-8534
UT WOS:000417375000009
ER
PT J
AU Bahrini, Raef
TI Efficiency Analysis of Islamic Banks in the Middle East and North Africa
Region: A Bootstrap DEA Approach
SO INTERNATIONAL JOURNAL OF FINANCIAL STUDIES
VL 5
IS 1
AR 7
DI 10.3390/ijfs5010007
PD MAR 2017
PY 2017
AB This paper measures and analyzes the technical efficiency of Islamic
banks in the Middle East and North Africa (MENA) region during the
period 2007-2012. To do this, the bootstrap Data Envelopment Analysis
(DEA) approach was employed in order to provide a robust estimation of
the overall technical efficiency and its components: pure technical
efficiency and scale efficiency in the case of MENA Islamic banks. The
main results show that over the period of study, pure technical
inefficiency was the main source of overall technical inefficiency
instead of scale inefficiency. This finding was confirmed for all MENA
Islamic banks as well as for the two subsamples: Gulf Cooperation
Council (GCC) and non-GCC Islamic banks. Furthermore, our results show
that GCC Islamic banks had stable efficiency scores during the global
financial crisis (2007-2008) and in the early post-crisis period
(2009-2010). However, a decline in overall technical efficiency of all
panels of MENA Islamic banks was recorded in the last two years of the
study period (2011-2012). Thus, we recommend that MENA Islamic bank
managers focus more on improving their management practices rather than
increasing their sizes. We also recommend that financial authorities in
MENA countries implement several regulatory and financial measures in
order to ensure the development of MENA Islamic banking.
RI Bahrini, Raef/C-7627-2017
OI Bahrini, Raef/0000-0002-0358-414X
ZS 0
TC 7
ZA 0
ZR 0
ZB 0
Z8 0
Z9 7
U1 0
U2 7
SN 2227-7072
UT WOS:000398685900006
ER
PT J
AU Shahrinaz, Irwan
Kasuma, Jati
Naim, Abang Sulaiman Abang
Rahim, Emelia Abdul
Arabi, Arrominy
Ismawi, Norlelawati
Rosli, Rosmiyati
TI Determinant of customers' preference in selecting Islamic banks
SO INTERNATIONAL JOURNAL OF ADVANCED AND APPLIED SCIENCES
VL 4
IS 3
BP 117
EP 121
DI 10.21833/ijaas.2017.03.018
PD MAR 2017
PY 2017
AB The presence of conventional bank and Islamic bank in Malaysia has
created a competition in capturing customer. Customer of Islamic bank
maintained their account with the bank if they are satisfied with the
product and services offered to them. Other research reveals that the
reasons for Muslim to choose Islamic banking are mostly due to religious
concern and motives. This study investigates the relationship between
religions; influence by family and friend and finally service quality
with customers' behavior towards bank selection preferences. Data was
collected from 380 customers using selfadministered questionnaires from
various Islamic banks in Miri. Results reveal that service quality and
preference of choosing Islamic bank in Miri has a strong and positive
relationship. Ultimately, friends and family has more impact towards
preference in choosing Islamic bank. Recommendation for future study
also discussed. (C) 2017 The Authors. Published by IASE.
RI Kasuma, Jati/J-4060-2019
ZB 0
Z8 0
ZA 0
TC 1
ZR 0
ZS 0
Z9 1
U1 0
U2 8
SN 2313-626X
EI 2313-3724
UT WOS:000397423300018
ER
PT J
AU Kabir, Md. Nurul
Worthington, Andrew C.
TI The 'competition-stability/fragility' nexus: A comparative analysis of
Islamic and conventional banks
SO INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
VL 50
BP 111
EP 128
DI 10.1016/j.irfa.2017.02.006
PD MAR 2017
PY 2017
AB The 'competition-stability/fragility' nexus is one of the more debated
issues in the banking literature. However, while there is ample evidence
concerning the relationship between competition and stability/fragility
in different countries and regions, no prior study investigates this in
the context of Islamic and conventional banks. We do this using data on
both types of banks drawn from 16 developing economies over the period
2000-12. We measure the lack of competition using the Lerner index, and
stability using both accounting-based measures, comprising the Z-score
and the nonperforming loan ratio, and market-based measures, including
Merton's distance to default. We employ panel vector autoregression and
two-stage quantile regression to estimate the relationship. Our results
lend support to the competition-fragility hypothesis in both Islamic and
conventional banks. We also find the magnitude of the market power
effect on stability is greater for conventional banks than Islamic
banks. Lastly, banks in the median quantile of stability have a greater
ability to reduce credit risk through gaining market power than banks in
the lower and upper quantiles. (C) 2017 Elsevier Inc. All rights
reserved.
OI Worthington, Andrew/0000-0003-4113-9036
Z8 0
TC 21
ZS 0
ZA 0
ZR 0
ZB 1
Z9 21
U1 1
U2 15
SN 1057-5219
EI 1873-8079
UT WOS:000398087500008
ER
PT J
AU Zulkhibri, Muhamed
Sukmana, Raditya
TI Financing Channels and Monetary Policy in a Dual Banking System:
Evidence from Islamic Banks in Indonesia
SO ECONOMIC NOTES
VL 46
IS 1
BP 117
EP 143
DI 10.1111/ecno.12076
PD FEB 2017
PY 2017
AB Using Indonesian Islamic banking data from 2003 to 2014, this article
employs a panel regression methodology to investigate the responses of
Islamic banks to changes in financing rates and monetary policy, which
may differ depending on their characteristics. The results suggest that
the financing rate has a negative impact on financing at Islamic banks,
while bank-specific characteristics have a positive influence on it. The
size and amount of capital have a greater impact than liquidity on
financing at Islamic banks. However, changes in monetary policy are
insignificant on bank financing, which implies that the transmission of
monetary policy through the Islamic segment of the banking sector is
weak. Furthermore, the weak impact of monetary policy on bank financing
can be explained by the dramatic expansion of Islamic banks during the
sample period, which contributed to a substantial increase in deposit
growth and a high liquidity position.
RI Zulkhibri, Muhamed/E-5974-2019
OI Zulkhibri, Muhamed/0000-0003-4136-1411
TC 4
ZR 0
Z8 0
ZB 0
ZS 0
ZA 0
Z9 4
U1 0
U2 7
SN 0391-5026
EI 1468-0300
UT WOS:000397197300005
ER
PT J
AU Elnahas, Ahmed M.
Hassan, M. Kabir
Ismail, Ghada M.
TI Religion and mergers and acquisitions contracting: The case of earnout
agreements
VL 42
BP 221
EP 246
DI 10.1016/j.jcorpfin.2016.11.012
PD FEB 2017
PY 2017
AB This paper contributes to the growing literature on the effect of
religion on corporate decision making. We posit that contingent payment
in mergers and acquisitions not only violates Islamic law but also
results in several agency issues by creating an incentive for managers
to participate in long-term value-destroying behavior during earnout
periods. Our empirical results, using regression as well as
difference-in-difference estimation, show that target managers
significantly manage earnings upward by cutting discretionary expenses
during earnout periods. As compared to a sample of matched non-earnout
M&A, acquisitions with earnout clauses are followed by significantly
lower long-term abnormal returns. Our arguments and results have
significant economic and legal consequences on cross-border M&A and
could be used to facilitate worldwide economic integration. (C) 2016
OI Hassan, M. Kabir/0000-0001-6274-3545
Z8 0
ZS 0
TC 8
ZR 0
ZA 0
ZB 0
Z9 8
U1 4
U2 51
SN 0929-1199
EI 1872-6313
UT WOS:000394471500012
ER
PT J
AU Kareem, Muritala Kewuyemi
TI ISLAMIC BANKING AND SHARI'AH SCHOLARS IN NIGERIA
VL 4
IS 1
BP 85
EP 112
DI 10.15238/tujise.2017.4.1.85-112
PD FEB 2017
PY 2017
AB Compliance with shari'ah - rules is compulsory for all Islamic banks;
and such compliance is monitored by shari'ah scholars. Therefore, the
paper examines and gauges the level of understanding of Nigerian
shari'ah scholars (the custodians of shari'ah rules in the country) and
their perceptions of the Islamic banking and its rules particularly
interest (riba). Survey method involving the use of purposive sampling
was adopted to administer 1,040 copies of a questionnaire on the
Nigerian shari'ah scholars though some key people were also interviewed.
The questionnaire which contains 19 items was designed to elicit
information from them on issues such as their understanding of riba, its
uses in the Qur'an, Islamic banking products, collateral security and
promotion (promos). Our findings revealed that the respondents (917) who
considered usury to be forbidden were more than those who considered
(871) interest to be forbidden. A large number of shari'ah scholars
(93.6%) confused interest with usury which suggests that both interest
and usury refer to riba. Some believed that only usury refers to riba
(48.6%) while most of the respondents (74.1%) opined that all foul's of
interest are prohibited. About 73.7%, 86.3% and 27.6% of the respondents
believed rahn (collateral security), innovating interest-free financial
products and patronising conventional banks respectively were allowed.
banking and finance.
ZA 0
Z8 0
ZS 0
ZR 0
ZB 0
TC 0
Z9 0
U1 0
U2 0
SN 2587-2303
EI 2587-232X
UT WOS:000448972700005
ER
PT J
AU Wahab, Hishamuddin Abdul
Saiti, Buerhan
Rosly, Saiful Azhar
Masih, Abul Mansur Mohammed
TI Risk-Taking Behavior and Capital Adequacy in a Mixed Banking System: New
Evidence from Malaysia Using Dynamic OLS and Two-Step Dynamic System GMM
Estimators
VL 53
IS 1
BP 180
EP 198
DI 10.1080/1540496X.2016.1162151
PD 2017
PY 2017
AB This study is the first attempt to investigate the relationship between
the level of risky assets and capital level in a mixed Malaysian banking
system covering 83months starting December 2006. The results of dynamic
ordinary least squares indicate positive relationship between capital
ratio (CAR) and risk-weighted asset ratio (RWA) in the long run.
Furthermore, the causality analysis based on panel vector error
correction model (VECM) and two-step dynamic system generalized method
of moments indicates unidirectional causality from CAR to RWA. Our
results further suggest that higher capital growth and capital buffer
provide an extra cushion for the Malaysian banks to pursue relatively
riskier financial activities, and the nature of risk-taking behavior of
Islamic banks follows that of the conventional banks.
RI Wahab, Hishamuddin Abdul/AAD-2586-2020; SAITI, BUERHAN/C-8168-2017
OI Wahab, Hishamuddin Abdul/0000-0002-4914-2929; SAITI,
BUERHAN/0000-0002-9984-489X
ZR 0
TC 9
ZB 0
Z8 0
ZA 0
ZS 0
Z9 9
U1 1
U2 15
SN 1540-496X
EI 1558-0938
UT WOS:000388932900012
ER
PT J
Hue, Chiun Zack
Sufian, Fadzlan
TI Does productivity of Islamic banks endure progress or regress? Empirical
evidence using data envelopment analysis based Malmquist Productivity
Index
SO HUMANOMICS
VL 33
IS 1
BP 84
EP 118
DI 10.1108/H-08-2016-0059
PD 2017
PY 2017
AB Purpose -This paper aims to explore the level of productivity of Islamic
banks specifically in selected Southeast Asian Countries from the period
2006 to 2014. Besides, this study also investigates the potential
determinants of bank-specific characteristics and macroeconomic
conditions that may influence the productivity of banking sector.
Design/methodology/approach -The present study gathers data on the 29
Islamic banks from Southeast Asian countries, namely, Brunei, Indonesia
and Malaysia. The productivity level of the Islamic banks is evaluated
using the data envelopment analysis-based Malmquist productivity index
method. The authors then used a panel regression analysis framework
based on the ordinary least square to identify potential determinants.
Findings -The domestic and foreign Islamic banks have exhibited progress
in total factor productivity change solely attributed to the increase in
efficiency change (EFFCH) which were mainly managerial rather than scale
related. Foreign-owned banks have been slightly more productive compared
to their domestic-owned bank counterparts, attributed to a higher EFFCH
but insignificantly different. Furthermore, capitalisation, liquidity
and world financial crisis determinants have significantly influenced
productivity level of Islamic banks.
Originality/value -The study on the productivity of Islamic banking is
still in its formative stage. To date, very limited study has been
conducted to examine the productivity level in Southeast Asian, which is
a strong regional hub for Islamic banking. This study intends to fill
the gaps with a specific focus on the productivity level, specifically
narrowing down to Southeast Asian countries in the domestic and foreign
RI Kamarudin, Fakarudin/AAL-8942-2020; Kamarudin, Fakarudin/; mohamad anwar,
nazratul aina/
OI Kamarudin, Fakarudin/0000-0001-8180-1173; mohamad anwar, nazratul
aina/0000-0003-2327-1201
ZR 0
ZA 0
ZS 0
ZB 0
TC 7
Z8 0
Z9 7
U1 1
U2 4
SN 0828-8666
EI 1758-7174
UT WOS:000396833500006
ER
PT J
AU Ahmed, Irfan
Akhtar, Muhammad
Ahmed, Ishaq
Aziz, Saima
TI PRACTICES OF ISLAMIC BANKING IN THE LIGHT OF ISLAMIC ETHICS: A CRITICAL
REVIEW
VL 25
IS 3
BP 465
EP 490
PD 2017
PY 2017
AB The purpose of this paper is to critically evaluate the practices of
Islamic banks in the light of Islamic ethical values and philosophy of
accountability to Allah and society. The paper's structure comprises
history and growth of Islamic banking, evaluation of non-compliance of
Islamic banking with PLS modes of financing, emergence of earning
management issues in Islamic banking, non-compliance with Accounting and
Auditing Organization for Islamic Financial Institutions (AAOIFI)
standards, issue of diverse versions of Islamic rulings (fatwa),
evaluation of practices against fundamental Islamic philosophy of
"accountability to Allah and society" and discussions and concluding
remarks for future development of Islamic banking. The findings show
that Islamic banks defend their practices by taking Islamic rulings from
Shari'ah advisors in order to make them shari'ah compliant not shari'ah
based. Profit maximization, availability of a vast range of Islamic
rulings, market competition, lack of adequate risk management tools and
trust on Islamic banking and meeting the general public expectations
caused Islamic banks to comply with debt base modes of financing.
Islamic Financial Institutions (IFIs) comply with International
Financial Reporting Standard (IFRS), US Generally Accepted Accounting
Principles (GAAP), domestic accounting standard or mix of these but do
not adopt the AAOIFI standard in their financial reporting. This paper
is a value addition in the literature of Islamic finance which suggests
what it ought to be. It also discusses the role of the Organization of
Islamic Countries (OIC) and the governments of Islamic countries.
TC 0
ZR 0
ZA 0
ZB 0
ZS 0
Z8 0
Z9 0
U1 0
U2 7
SN 1394-7680
UT WOS:000416785400002
ER
PT J
AU Akhtar, Beenish
Akhter, Waheed
Shahbaz, Muhammad
TI Determinants of deposits in conventional and Islamic banking: a case of
an emerging economy
VL 12
IS 2
BP 296
EP 309
DI 10.1108/IJoEM-04-2015-0059
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine the impact of base
lending rate (BLR), consumer prices, gross domestic product, money
supply (M-3), Karachi stock exchange composite index, KIBOR, and profit
rate of Islamic banks on deposits of both conventional and Islamic banks
in Pakistan.
Design/methodology/approach - Quarterly data of six years (2006-2011)
are obtained from 30 banks, consisting of 25 conventional and five
Islamic banks. The short-run as well as long-run relationships among
these variables are examined by utilizing advanced time series approach.
Bounds testing and autoregressive distributed lag have been used to
examine cointegration and error correction framework for short-run
dynamics.
Findings - The empirical results reveal that variables such as interest
rate of conventional banks, profit of Islamic banks, consumer prices,
M3, and BLR have different impact on conventional and Islamic bank
deposits. Depositors of conventional and Islamic banks are sensitive to
the returns received on deposits. A boost in interest rate increases the
deposits of conventional banks but decreases those of Islamic banks.
Originality/value - This study signifies that customers of Islamic banks
are motivated by profit. This indicates the normal behavior of
customers, hence endures the substitution effect in conventional system.
The study has important implications for Islamic banks to offer more
competitive rates of profit with respect to the interest rate of
conventional banks in order to collect more deposits. It also identifies
relevant policy implication for the central bank of the country.
RI Shahbaz, Muhammad/AAD-9038-2019; Akhter, Waheed/P-1466-2018
OI Akhter, Waheed/0000-0002-8653-2213
ZS 0
ZA 0
ZB 0
Z8 0
ZR 0
TC 10
Z9 10
U1 0
U2 6
SN 1746-8809
EI 1746-8817
UT WOS:000402905900008
ER
PT J
AU Kolsi, Mohamed Chakib
Grassa, Rihab
TI Did corporate governance mechanisms affect earnings management? Further
evidence from GCC Islamic banks
MANAGEMENT
VL 10
IS 1
BP 2
EP 23
DI 10.1108/IMEFM-07-2015-0076
PD 2017
PY 2017
AB Purpose - The aim of this paper is to examine the impact of corporate
governance mechanisms on earnings management practice for a sample of
Gulf Cooperation Council (GCC) Islamic banks (IBs) using a new model of
earnings management.
Design/methodology/approach - First, the authors estimate discretionary
accruals based on loan loss provisions discretionary loan loss provision
(DLLP) using the procedure derived from Jones' (1991) original model.
Second, the authors run a multivariate regression model to check the
linkage between corporate governance characteristics and discretionary
loan loss provision. Finally, the authors use an additional sensitivity
check analysis to assess whether the results are robust to the
estimation procedure and to other exogenous factors.
Findings - Using as sample of 26 IBs pertaining to the GCC region with a
total of 223 firm-year observations and a nine-year period (2004-2012),
the results are conclusive and show that first, IBs with large Shariah
Board size manage less DLLP. Secondly, Accounting and Auditing
Organization for Islamic Financial Institutions membership positively
impacts earnings management through DLLP in IBs. Third, there is a
negative relationship between boards of director's independence the
extent to which IBs manage DLLP. Fourth, the existence of block holders
positively affects earnings management by IBs. Fifth, there is a
negative relationship between audit committee meetings and DLLP.
Finally, institutional ownership and bank size have no effect on
earnings management through DLLPs.
Research limitations/implications - In this research, the authors do not
take into account all governance factors that are supposed to impact
earnings management in IBs. Future research should explore the impact of
additional IBs governance structures including chief executive officer
bonus, experience, gender and the extent to which IBs use real earnings
management with Murabaha, Mudaraba and Musharaka transactions.
Practical implications - The paper is a very useful source of
information that may provide relevant guidelines in helping the future
development of corporate governance of IBs. In addition, the findings
could prove to be useful for regulators because they are responsible for
the acceptable level of corporate governance standards. Thus, they must
consider strengthening governance mechanisms either through new
legislation or stronger enforcement where earnings management is of such
magnitude to that serious impedes information transparency and financial
reporting quality of IBs.
Originality/value - This study associates the corporate governance
characteristics with earnings management by IBs. The study contributes
to the growing body of literature on earnings management and corporate
governance in IBs. It should be useful to researchers, regulators,
investors, analysts and creditors as well as other players in the
capital markets, as it presents a new and important aspect that needs to
be accounted for when assessing the quality of IBs' accounting
information in GCC countries.
RI grassa, rihab/AAA-7623-2019; Kolsi, Mohamed Chakib/
OI Kolsi, Mohamed Chakib/0000-0002-0861-9073
ZA 0
ZB 0
ZR 0
ZS 0
TC 8
Z8 0
Z9 8
U1 2
U2 19
SN 1753-8394
EI 1753-8408
UT WOS:000401056700001
ER
PT J
AU Sheikh, Nadeem Ahmed
Qureshi, Muhammad Azeem
TI Determinants of capital structure of Islamic and conventional commercial
banks Evidence from Pakistan
MANAGEMENT
VL 10
IS 1
BP 24
EP 41
DI 10.1108/IMEFM-10-2015-0119
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to investigate how conventional
and Islamic commercial banks in Pakistan choose their capital structure
and what are the most significant factors that affect their choice of
capital structure.
Design/methodology/approach - The authors collected the data from the
annual reports of commercial banks listed on Karachi Stock Exchange
Pakistan during 2004-2014. Panel data techniques, namely, pooled
ordinary least squares, fixed effects and random effects, were used to
estimate the relationship between book leverage and bank-specific
variables such as profitability, size, growth, tangibility and earnings
volatility.
Findings - Descriptive statistics indicate that conventional commercial
banks are more levered than Islamic commercial banks. Moreover,
conventional commercial banks are larger, profitable and have relatively
safe earnings than Islamic commercial banks. In contrast, Islamic
commercial banks have relatively more fixed operating assets and growth
in total assets compared to the conventional commercial banks.
Regression results indicate that profitability, growth and tangibility
are negatively, whereas bank size and earnings volatility are
positively, related to book leverage of conventional commercial banks.
On the other hand, only three variables, namely, profitability, bank
size and tangibility, have material effects on capital structure choice
of Islamic commercial banks. Profitability and tangibility are
negatively while bank size is positively related to book leverage of the
Islamic banks. In sum, results of the study indicate that Islamic and
conventional commercial banks have their own way to choose the capital
structure than the non-financial firms; however, their choice is
affected by the similar variables as identified for non-financial firms
in Pakistan.
Practical implications - Results of this study provide support to bank
managers to understand the effects of bank-specific variables on capital
structure and make them able to determine a balanced capital structure
considering the regulations framed by the central bank of the country.
Originality/value - This is the first study that investigates the
factors that affect the capital structure of conventional and Islamic
commercial banks in Pakistan. Moreover, findings of this study lay some
foundation upon which a more detail analysis of capital structure of
banks could be based.
TC 2
ZA 0
Z8 0
ZR 0
ZS 0
ZB 0
Z9 2
U1 1
U2 10
SN 1753-8394
EI 1753-8408
UT WOS:000401056700002
ER
PT J
AU Mili, Mehdi
Abid, Sami
TI Moral hazard and risk-taking incentives in Islamic banks, does franchise
value matter!
MANAGEMENT
VL 10
IS 1
BP 42
EP 59
DI 10.1108/IMEFM-12-2015-0148
PD 2017
PY 2017
AB Purpose - This paper aims to examine risk-taking in Islamic banks by
exploring moral hazard and owner/manager agency problems simultaneously.
Design/methodology/approach - The authors propose to estimate a model of
bank risk-taking that includes both franchise value and ownership
structure as explanatory factors of bank risk.
Findings - The results show that franchise value is an important
determinant of Islamic bank risk-taking. Banks with high franchise
values are less likely to take risks than banks with low franchise
value. In contrast, outside block holders have, at best, limited
influences on bank risk-taking.
Originality/value - This paper conducts the first empirical examination
of the relationship between managerial risk preferences and Islamic
banks ownership. The authors examine simultaneously the effect of
franchise value and owner/manager problem on Islamic bank risk taking
behavior. They consider separately the impact on total risk, systematic
risk and bank specific risk.
ZR 0
TC 2
ZB 0
Z8 0
ZS 0
ZA 0
Z9 2
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000401056700003
ER
PT J
AU Al Ajlouni, Ahmed Taha
TI Interest free liquidity management scheme (time-weighted debt units)
MANAGEMENT
VL 10
IS 1
BP 60
EP 76
DI 10.1108/IMEFM-05-2015-0060
PD 2017
PY 2017
AB Purpose - This paper aims to develop an instrument that helps in
managing liquidity. Liquidity is one of the most critical issues to be
considered by the financial management of the business firms to meet its
financial obligations. It is more vital for banks because of the liquid
nature of its assets and liabilities, along with the fact that the
confidence in the bank and degree of risk depends heavily on liquidity
as an indicator of its wellbeing. Islamic banks (IBs) look at the
liquidity issue from the same side as the traditional banks. IBs - the
most apparent Islamic financial institution - suffered from the problem
of not benefiting from the lender of last resort that Central Banks
(CBs) offer to traditional banks because IBs cannot borrow from the CBs
at interest. The experience of Institution(s) offering Islamic Financial
Services[1] (IIFS) regarding the establishment of Islamic money markets
did not show a tangible success instead of the early studies done by
some scholars. In spite of the rich experience of some countries in
creating new money market instruments or configuration of the
interest-based ones according to Islamic - Shari'ah[2], the designs of
these instruments have many limitations in terms of their tradability
and flexibility, restricting their use for open-market operations by
CBs.
Design/methodology/approach - The purpose of calculating the time
weighted debt units (TWDUs) is to find the equivalent amount of money
that the supplier can borrow to the lender in the future for a maturity
that differs from the first credit contract. It is a swap between an
amount of credit for a particular period of time and another amount for
another period. The scheme are called traditionally as reciprocal
(mutual) loans, reciprocal (mutual) deposits, swapped conditional loans
and "I lend you, provided you lend me" (Hammad, 2010). It is also well
known in Pakistan as time multiple counter loan (TMCL), and known within
some Arabic IBs as specks (Nomar = numbers) system. This contract will
be called the reciprocal loans in the current paper.
Findings - The current paper represents a blue print of suggested money
market instrument (scheme) that is based on the idea of Al Qardh El
Hasan (interest-free loan) - called TWDUs. This instrument does not
promise any revenue for the supplier and no charge for the lender.
Research limitations/implications - The suggested model is known in
traditional and contemporary writings of Islamic economists and -
Shari'ah scholars. It is accepted by many - Shari'ah Boards in IBs
(Merah, 2011) and was accepted by the Council of Islamic Ideology in
Pakistan in 1980 through the TMCL. Despite that, it is still not
discussed in depth by international - Shari'ah boards as the
International Islamic Fiqh Academy - in addition to the wide spread of
opponent viewpoint that considers this contract as a kind of riba.
Originality/value - TWDUs is presumed to help IBs and other IIFS to add
more flexibility in liquidity management in the side of risk
management[3] (represented by the potential loss to IIFS arising from
their inability either to meet their obligations or to fund increases in
assets as they fall due without incurring unacceptable costs or losses)
in addition to avoiding the case of hoarding surplus funds in the short
term. Also, the suggested instrument will not be exclusive to IBs or
IIFS; it can be developed to be used at a later stage by them as a mean
of overdraft between IBs and their clients. Moreover, beside its
viability to help in liquidity management for other firms in business
sector (non-financial) or government agencies in liquidity management,
TWDUs look for Islamic financial theory as an alternative to the
traditional financial theory that is based on interest. Moreover, TWDUs
is expected to play an important role in monetary policy in a totally
Islamic financial system or even in a mixed one (Islamic and
capitalistic).
TC 1
ZR 0
ZA 0
Z8 0
ZB 0
ZS 0
Z9 1
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000401056700004
ER
PT J
AU Cupian
Abduh, Muhamad
TI Competitive condition and market power of Islamic banks in Indonesia
MANAGEMENT
VL 10
IS 1
BP 77
EP 91
DI 10.1108/IMEFM-09-2015-0098
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine the competitive
conditions and market power of Islamic banks in Indonesia for the period
of 2006-2013.
Design/methodology/approach - Using samples of 27 Islamic banks, the
study uses a variety of structural and non-structural measures related
to the traditional approach and the new empirical approach of the
industrial organization. The methodology is based on a set of measures
of the competition and market power. The first measures, concentration
ratios and Herfindahl-Hirschman index, are to determine the
competitiveness level, while the second measures of Panzar-Rosse
H-statistic and Lerner index are to examine the market power of Islamic
banks in Indonesia.
Findings - The finding of this study has confirmed the situation of
Islamic banking industry in Indonesia which is operated in a higher
degree of market power which leads to a less competitive market. Islamic
banks earn their revenues under monopolistic competition over the tested
period. This study has also found a negative but insignificant
relationship between concentration and competition which shows that in
the past few years, the market power for leading firms in Indonesia
Islamic banking industry has reduced.
Practical implications - The paper is a very useful source of
information that may provide relevant guidelines in guiding the future
development of competition of Islamic Banking industry. In addition, the
paper provides relevant guidelines for improving competitiveness of
Islamic banks.
Originality/value - This study combines two approaches for bank
competition measurement and bank market powers measurement which can
provide more robust findings. To the best of the authors' knowledge, the
study on Islamic banking competitiveness level and market power is very
limited, especially in the case of Indonesia. Therefore, this study
could contribute significantly toward the literature of the related
field.
RI Abduh, Muhamad/C-3497-2012
OI Abduh, Muhamad/0000-0002-1918-6525
ZR 0
Z8 0
ZB 0
ZA 0
TC 5
ZS 0
Z9 5
U1 1
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000401056700005
ER
PT J
AU Al-Kayed, Lama Tarek
TI Dividend payout policy of Islamic vs conventional banks: case of Saudi
Arabia
MANAGEMENT
VL 10
IS 1
BP 117
EP 128
DI 10.1108/IMEFM-09-2015-0102
PD 2017
PY 2017
AB Purpose - This paper aims to identify the factors that affect dividend
payments for Saudi Arabian Islamic and conventional banks and to test
whether the factors that affect Islamic banks' dividend policy differ
from the factors affecting conventional banks' dividends.
Design/methodology/approach - Panel regression was run on data for six
Islamic banks and six conventional banks.
Findings - The paper found that profitability, lagged dividends and
leverage are all significant determinants of Islamic Banks' dividend
policy. Lintner's (1956) model applies to Islamic bank's dividend
policy, as Islamic banks who payout dividends commit to their payments.
All factors included in the study (profitability, liquidity, leverage,
growth and lagged dividend) are found to be significant determinants of
conventional banks' dividend payments.
Research limitations/implications - Future research should include
ownership variables in the regression to test the agency theory
regarding dividends. Ownership variables were not included in the study
because of data availability issues.
Practical implications - The results of this study have practical
implications for analysts, investors and regulators. For Islamic banks
to compete in the local and global deposit markets, their management
must carefully decide upon their dividend policy. As conventional banks
are distributing stable dividends, it is time for Islamic banks to plan
for a stable dividend policy to send positive signals to the market. As
newcomers to the market Islamic banks should avoid spontaneous and
inconsistent dividend distributions that do not carry any signals to the
market. It will be difficult for Islamic banks to raise capital or
attract investors because of their lower dividend yields compared to
conventional banks. Boards of directors of Islamic banks should use
dividends as an agency monitoring device; large-scale retention of
earnings encourages behaviour by managers that does not maximize
shareholder value. Dividends, then, are a valuable financial tool for
these firms because they help firms avoid asset/capital structures that
give managers wide discretion to make value-reducing investments.
Originality/value - This is the first study - up to the author's
knowledge - to investigate the financial institutions (banks) dividend
policy in Saudi Arabia.
RI Al-kayed/AAT-4939-2020
ZB 0
Z8 0
ZR 0
ZA 0
ZS 0
TC 4
Z9 4
U1 0
U2 10
SN 1753-8394
EI 1753-8408
UT WOS:000401056700008
ER
PT J
AU Rashid, Abdul
Yousaf, Saba
Khaleequzzaman, Muhammad
TI Does Islamic banking really strengthen financial stability? Empirical
evidence from Pakistan
MANAGEMENT
VL 10
IS 2
BP 130
EP 148
DI 10.1108/IMEFM-11-2015-0137
PD 2017
PY 2017
AB Purpose - This paper aims to empirically assess the contribution of
Islamic banks toward the financial stability of Pakistan. For this, the
authors investigate the relative financial strength of Islamic banks and
their contribution toward the financial stability. They also examine the
relationship between the competitive conduct of banks and banking system
stability.
Design/methodology/approach - The authors use quarterly data of ten
conventional banks, four full-fledged Islamic banks and six standalone
Islamic branches of conventional banks of Pakistan for the period
2006-2012. The z-score has been computed and used as the measure of
stability of banks and the random effects estimator applied to quantify
the impact of bank-specific variables and macroeconomic indicators on
the financial stability. The empirical framework used in the paper
enables the authors us to examine the differential effect of each
underlying variable on the financial stability across Islamic and
conventional banks. To check the robustness of the results, the authors
have estimated several models with different specifications.
Findings - The regression results indicate that income diversity,
profitability ratio, loan to asset ratio, asset size and the market
concentration ratio of banks have significant effects on the stability
of banks. Comparing Islamic and conventional banks, notable differential
effects of the empirical determinants of financial stability for Islamic
and conventional banks have been observed. The results suggest that
Islamic banks have performed better as compared to conventional banks
and contributed more effectively in the stability of financial sector.
Overall, the results depict that the contribution of Islamic banks
toward the financial stability has been reasonable and prospective.
Practical implications - The empirical results of the paper are very
useful not only for banks' managements but also for the investors, bank
customers and policymakers. Specifically, the findings help in enhancing
our understanding as to how the bank-specific variables and
macroeconomic indicators are related to the financial stability of the
banking system. The results also help understand the role of both
Islamic and conventional banks in the financial stability. Further, the
results suggest that the financial soundness can be enhanced by creating
healthy competition in the banking industry. The results about
macroeconomic indicators imply that protective measures are required to
intensify (mitigate) the positive (negative) effect of gross domestic
product (inflation) on banks' financial stability.
Originality/value - This paper provides an overall comparative analysis
of financial stability of both Islamic and conventional banks of
Pakistan. First, the paper computes the z-score for each bank included
in the sample, and then, it performs the regression analysis to study
how bank-specific variables and macroeconomic factors are related to the
financial stability of banks. Unlike the previous studies, our empirical
framework enables the authors to examine the differential effect of each
underlying variable on the financial stability across Islamic and
conventional banks.
TC 10
ZB 0
ZS 0
Z8 0
ZA 0
ZR 0
Z9 10
U1 0
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000407062700001
ER
PT J
AU Azad, Abul Kalam
Kian-Teng, Kwek
Talib, Muzalwana Abdul
TI Unveiling black-box of bank efficiency An adaptive network data
envelopment analysis approach
MANAGEMENT
VL 10
IS 2
BP 149
EP 169
DI 10.1108/IMEFM-12-2016-0184
PD 2017
PY 2017
AB Purpose - This paper aims to examine the efficiency of Islamic vs
conventional banks in Malaysia by unveiling the traditional efficiency
concept - black box - with a three-stage network structure of bank
operations.
Design/methodology/approach - This paper applies data envelopment
analysis (DEA) for examining bank efficiency. An adaptive three-step
network DEA (NDEA) model is demonstrated for redefining the traditional
black box of banking operations. Slack-based variable returns to scale
approach is used. Data from all 43 commercial banks in Malaysia are
examined over a six-year study period (2010-2015). Inputs and outputs of
the model are selected based on CAMELS rating. Undesired output is also
considered in time of examining bank efficiency in Malaysia.
Findings - The empirical results of this study signify that only a few
banks in Malaysia have been performing well in converting deposits and
equities into profit as well as minimizing loan loss provisions. Islamic
banks in Malaysia have performed better both in production (converting
deposits and equities into earning assets) and profitability (converting
loans into net income). Conventional banks, however, have over scored in
intermediation (converting earning assets into loans).
Originality/value - An adaptive NDEA approach proposed in this paper
defines the core banking process instead of traditional approaches in
examining bank efficiency based on individual functions (nodes in the
network model). This approach has proven to provide better benchmark
capacity.
RI TALIB, MUZALWANA ABDUL/B-9188-2010
ZS 0
ZB 0
TC 1
ZA 0
Z8 0
ZR 0
Z9 1
U1 2
U2 6
SN 1753-8394
EI 1753-8408
UT WOS:000407062700002
ER
PT J
AU Ghosh, Saibal
TI Capital buffers in Middle East and North Africa (MENA) banks: is market
discipline important?
MANAGEMENT
VL 10
IS 2
BP 208
EP 228
DI 10.1108/IMEFM-08-2016-0101
PD 2017
PY 2017
AB Purpose - The role of market discipline in influencing capital buffers
has been debated in literature. Limited evidence on this score is
available for Middle East and North Africa (MENA) countries. In this
context, using data for 2001-2012, the paper aims to examine the role
and relevance of market discipline in affecting capital buffer for MENA
banks.
Design/methodology/approach - Given the longitudinal nature of the data,
the paper employs dynamic panel data techniques that take on board the
potential endogeneity between the dependent and independent variables.
Findings - The analysis indicates that the disciplining effect of
depositors in MENA banks on capital buffer occurs primarily through the
quantity channel, although this behaviour differs for banks with high
versus those with low buffers. In particular, bigger banks which
typically have thin capital cushion are much less subject to market
discipline, presumably owing to their too-big-to-fail status.
Originality/value - The analysis differs from the extant literature in
three distinct ways. First, the paper examines the differential response
of Islamic banks on capital buffers via market discipline. Second,
several of these countries are primarily commodity exporters.
Accordingly, the paper examines the behaviour of these countries with
regard to market discipline. Third, how far did the global financial
crisis impact bank capital buffer had not been explored in prior
empirical research, an aspect that is addressed in this study.
ZA 0
TC 1
ZB 0
ZR 0
ZS 0
Z8 0
Z9 1
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000407062700005
ER
PT J
AU Korbi, Fakhri
Bougatef, Khemaies
TI Regulatory capital and stability of Islamic and conventional banks
MANAGEMENT
VL 10
IS 3
BP 312
EP 330
DI 10.1108/IMEFM-06-2016-0079
PD 2017
PY 2017
AB Purpose - The purpose of this paper is twofold. First, it attempts to
determine the factors that influence the stability of Islamic and
conventional banks. Second, it focuses on the relationship between the
regulatory capital and bank soundness.
Design/methodology/approach - Thus, the authors use the Z-score to
assess the stability of Islamic and conventional banks operating in the
Middle East and North Africa region over the period 1999 to 2014.
Findings - The comparative analysis reveals that Islamic banks seem to
be less stable than their conventional peers. With regard to the
determinants of bank stability, the findings suggest that the regulatory
capital represents the primordial factor that reinforces the soundness
of banking systems. The authors also find that bank stability depends on
both bank-specific variables as well as macroeconomic and institutional
variables. Interestingly, the corruption level turns out to have a
significant negative effect on financial strength in the both types of
banks.
Originality/value - The authors believe that investigating the
relationship between regulatory capital and the failure risk in a
comparative study between Islamic and conventional banks deserves a
particular attention and looks very interesting because it will allow
them to identify the difference between the factors explaining the
failure risk of each type of banks. The authors also believe that the
analysis of the relationship between corruption and bank stability is
very interesting because corruption can be seen as an example of moral
hazard which forces Islamic banks to use non-PLS instruments.
ZB 0
ZS 0
TC 0
Z8 0
ZR 0
ZA 0
Z9 0
U1 1
U2 9
SN 1753-8394
EI 1753-8408
UT WOS:000407636300002
ER
PT J
AU Alharbi, Ahmad T.
TI Determinants of Islamic banks' profitability: international evidence
MANAGEMENT
VL 10
IS 3
BP 331
EP 350
DI 10.1108/IMEFM-12-2015-0161
PD 2017
PY 2017
AB Purpose - The purpose of this paper was to investigate the determinants
of Islamic banks' profitability using longitudinal data from 1992 to
2008 of almost all Islamic banks in the world.
Design/methodology/approach - An unbalanced panel data fixed-effects
regression model was used.
Findings - The results of the study indicate that capital ratio, other
operating income, GDP per capita, bank size, concentration and oil
prices affected Islamic banks positively. Insurance schemes, foreign
ownership and real GDP growth affected Islamic banks negatively.
Research limitations/implications - This study did not include data
beyond 2008 (the financial crisis), which can be considered a limitation
to this study. However, evidence suggests that including data beyond
2008 would not have changed the outcome of the study[1].
Originality/value - The paper adds to the literature on the determinants
of Islamic banks' profitability for the reasons mentioned above. In
addition, this study used a purified sample of Islamic banks (see the
Data section for details). Furthermore, to the author's knowledge, this
is the first time deposit insurance has been included in a study related
to Islamic banks' profitability.
ZR 0
ZB 0
TC 0
ZS 0
Z8 0
Z9 0
U1 0
U2 6
SN 1753-8394
EI 1753-8408
UT WOS:000407636300003
ER
PT J
AU Suandi, Aprilia Beta
TI Classification of profit-sharing investment accounts A survey of
financial statements of Islamic banks in Asia
MANAGEMENT
VL 10
IS 3
BP 351
EP 370
DI 10.1108/IMEFM-05-2015-0067
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine the classification of
profit-sharing investment accounts (PSIAs) under various accounting
standards, and determine whether Islamic banks maintain uniform
practices when the same accounting standards are applied. It also aims
to determine whether Islamic banks consider investment account holders
(IAHs) important financial statement users by disclosing necessary
information pertaining to PSIAs.
Design/methodology/approach - A sample composed of financial statements
from 63 Islamic banks from 15 countries is compared with respect to the
information related to PSIAs.
Findings - The results show heterogeneity of classification for PSIAs.
Applying the same standards does not lead to the uniform classification
of PSIAs when banks apply International Financial Reporting Standards,
while financial statements applying Financial Accounting Standards by
the Accounting and Auditing Organization for Islamic Financial
Institutions are more similar. The perplexity in classifying PSIAs
brings obscurity on the treatment for PSIA-related accounts,
particularly returns attributable to IAHs. The fact of fewer disclosures
pertaining to PSIAs in Islamic banks - which apply accounting standards
not specifically tailored to Islamic finance - suggests that IAHs
receive less attention under those accounting standards.
Research limitations/implications - The main limitation relates to the
lack of financial statements available online and the possibility of
sample selection bias toward larger Islamic banks.
Originality/value - This research contributes to the limited literature
on accounting for PSIAs, and reveals the diversity of reporting methods
for unique transactions in Islamic banks and the insufficiency of
current accounting standards to guide them, which create possible
challenges of comparability.
ZS 0
Z8 0
TC 1
ZR 0
ZB 0
Z9 1
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000407636300004
ER
PT J
AU Uddin, Ajim
Chowdhury, Mohammad Ashraful Ferdous
Islam, Md. Nazrul
TI Resiliency between Islamic and conventional banks in Bangladesh Dynamic
GMM and quantile regression approaches
MANAGEMENT
VL 10
IS 3
BP 400
EP 418
DI 10.1108/IMEFM-06-2016-0083
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine the resiliency between
conventional banks (CBs) and Islamic banks (IBs) in Bangladesh at the
financial crisis, pre-crisis and post-crisis period.
Design/methodology/approach - Data from 25 banks, 18 CBs and 7 IBs,
operating in Bangladesh during the period 2005-2014 have been collected
and divided into three stages: the pre-crisis period (2005-2006), the
crisis period (2007-2008) and the post-crisis period (2009-2014).
Dynamic generalized method of moments and quantile regression analysis
have been used for this study.
Findings - This paper uses Z-score as an indicator of bank stability and
found a significant difference in stability between IBs and CBs during
the financial crisis. In addition, this paper also tries to identify the
type of banks that performed better during pre-crisis, crisis and
post-crisis periods but found no significant differences between IBs and
CBs in this regards. For robustness, quantile regression found that the
statistical significance level of credit risk, capital adequacy ratio
and efficiency ratio of CBs and IBs differ at different percentile.
Originality/value - Most of the previous studies were conceptual or
narrative and conducted on a global basis, not country-specific. To
filling the country-level research gap, this study provides a meaningful
insight about how these two types of banks performed in different
periods.
ZA 0
ZS 0
ZR 0
TC 1
ZB 0
Z8 0
Z9 1
U1 0
U2 5
SN 1753-8394
EI 1753-8408
UT WOS:000407636300006
ER
PT J
AU Khan, Imran
Khan, Mehreen
Tahir, Muhammad
TI Performance comparison of Islamic and conventional banks: empirical
evidence from Pakistan
MANAGEMENT
VL 10
IS 3
BP 419
EP 433
DI 10.1108/IMEFM-05-2016-0077
PD 2017
PY 2017
AB Purpose - This study aims to investigate the performance differences of
Islamic and conventional banks in Pakistan by using financial ratios.
Design/methodology/approach - This study analyzed 5 Islamic and 19
conventional banks for the periods of 2007-2014. Two types of analyses
were performed - sample t-test and logistic regression. Analysis was
also performed on sub-sample considering crisis effects.
Findings - It was found that Islamic banks are relatively better in
profitability, efficiency, risk and liquidity management, while
conventional banks are superior in asset quality. Higher efficiency of
Islamic banks contradicts with previous studies conducted in Pakistan.
Probable reasons for this include phenomenal expansion of Islamic
banking industry and its broad appeal to customers in Pakistan. Risk
management practices of Islamic banks are superior to conventional
banks, as Shariah rules restrict pure speculation in monetary terms.
Better asset quality of conventional banks is attributed to their
recognition and product diversity. During the crisis, Islamic banks were
found less profitable than their counterparts.
Research limitations/implications - This study suggests that high
operational efficiency of Islamic banks should be converted into
technical efficiency by improving human resource, introducing innovative
market-oriented products and prudent resource allocations. As
operational efficiency does not promise returns in long term, to sustain
ongoing phenomenal growth of Islamic banking, management needs to gain
customer trust.
Originality/value - This is an original research that compares
performance differences across Islamic and conventional banks by using
financial ratios.
RI Khan, Imran/AAQ-5637-2020
Z8 0
ZR 0
ZA 0
ZS 0
ZB 1
TC 9
Z9 9
U1 2
U2 6
SN 1753-8394
EI 1753-8408
UT WOS:000407636300007
ER
PT J
AU Mahdzan, Nurul Shahnaz
Zainudin, Rozaimah
Hashim, Rosmawani Che
Sulaiman, Noor Adwa
TI Islamic religiosity and portfolio allocation: the Malaysian context
MANAGEMENT
VL 10
IS 3
BP 434
EP 452
DI 10.1108/IMEFM-11-2016-0162
PD 2017
PY 2017
AB Purpose - This study aims to investigate the association between Muslim
individuals' portfolio allocation choice and Islamic religiosity (levels
and dimensions), controlling for risk tolerance and sociodemographic
factors.
Design/methodology/approach - The study uses primary data collected via
survey questionnaires from a sample of 751 Muslim working individuals in
Kuala Lumpur, Malaysia. Owing to the ordinal nature of the dependent
variable, which reflects the levels of proportions of risky assets in
portfolios, the data were analyzed using an ordered probit regression
model.
Findings - The findings reveal that Islamic religiosity levels in
general were insignificantly related to portfolio allocation, but that
two dimensions of religiosity (virtue and obligation) significantly
impact the allocations of risky assets in the portfolio. The higher the
level of virtue, the lower the propensity to allocate risky assets into
the portfolio. On the contrary, the higher the level of obligation, the
higher the propensity to allocate risky assets in the portfolio.
Meanwhile, individuals with higher risk tolerance, income and education
levels show greater propensity to allocate risky assets in the
portfolio.
Research limitations/implications - The sample is restricted to Muslims
in Kuala Lumpur; hence, the findings are not easily generalized to
Muslim investors in general. Findings may differ between Muslims across
the world, so future research needs to expand from a country specific to
an international analysis. In addition, future studies could include
other determinants of portfolio allocation, such as financial literacy.
Practical implications - The findings of this study may assist financial
planners and policymakers to better understand the drivers of portfolio
allocation among their Muslim clients.
Originality/value - While other studies have tended to focus on the
impact of religiosity on the holdings of specific financial assets, such
as Islamic bank accounts or Takaful, the present study explores the
effect of Islamic religiosity dimensions on the allocations of risky
assets in the portfolio. The study also develops an ordinal measure of
portfolio allocation and makes a methodological contribution by using an
ordered probit regression analysis.
RI Mahdzan, Nurul Shahnaz/B-9441-2010; Mahdzan, Nurul Shahnaz/M-9161-2019;
ZAINUDIN, ROZAIMAH/B-9626-2010
OI Mahdzan, Nurul Shahnaz/0000-0003-4700-9654; Mahdzan, Nurul
Shahnaz/0000-0003-4700-9654;
Z8 0
TC 2
ZB 0
ZS 0
ZA 0
ZR 0
Z9 2
U1 1
U2 9
SN 1753-8394
EI 1753-8408
UT WOS:000407636300008
ER
PT J
AU Trabelsi, Mohamed Ali
Trad, Naama
TI Profitability and risk in interest-free banking industries: a dynamic
panel data analysis
MANAGEMENT
VL 10
IS 4
BP 454
EP 469
DI 10.1108/IMEFM-05-2016-0070
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine whether Islamic
finance could replace or complement the traditional financial system and
could guarantee stability in times of crisis.
Design/methodology/approach - To achieve the aim, the authors examined
both risk-taking and profitability of 94 Islamic banks (IBs) operating
in 18 countries observed during the 2006-2013 financial crisis period. A
series of bank-specific and other country-specific indicators are
combined to explain profitability of IBs as measured by return on assets
and return on equity, and risk divided into credit risk measured by
impaired loans/gross loans and total equity/net loans, and insolvency
risk measured by Z-score. Indeed, a bank is stronger than another if it
is stable with a higher capacity to absorb risks, on the one hand, and
increased performance on the other.
Findings - Using dynamic panel data econometrics (generalized moment
method system), the authors estimated five regressions and found the
following results: bank capital is found to be the main indicator that
contributes to maximizing profitability and stability of IBs and
reducing their credit risk. However, the study of liquidity and asset
quality determinants often leads to inconclusive results. Nevertheless,
they found that Gulf region-operating IBs are more profitable, more
solvent and less risky than those operating in the South East Asian
region. At the macroeconomic level, the authors could not find a
significant relationship between inflation rate and IBs profitability.
However, unlike for IBs in Southeast Asia, the authors found that
inflation rate improves IBs stability and reduces their credit risk
level.
Practical implications - The results of this study have numerous
implications for bank management and the different stakeholders
(investors, customers). This study identified several factors that may
help bank managers to improve their financial outlook by controlling
risk level and profitability. These factors could as well help to
understand how macroeconomic indicators affect both banking risk and
profitability, in particular Islamic banking. Likewise, portfolio
managers can use these results to support their decisions to include IBs
in their assets portfolios to mitigate potential risk.
Originality/value - This study contributes to the existing literature in
two ways. First, this paper provides fresh data and recent information
on Islamic banking in Gulf Cooperation Council and South East Asian
countries. Second, the obtained results helped us to conclude that the
Islamic financial system cannot replace but rather supplements the
traditional system. This result may be explained by the fact that
Muslims look for Islamic banking products, which conventional banks are
not offering.
RI Trabelsi, Mohamed Ali/P-5803-2019
OI Trabelsi, Mohamed Ali/0000-0003-2307-323X
TC 2
ZS 0
ZR 0
ZB 0
ZA 0
Z8 0
Z9 2
U1 0
U2 13
SN 1753-8394
EI 1753-8408
UT WOS:000418521700001
ER
PT J
AU Majeed, Muhammad Tariq
Zainab, Abida
TI How Islamic is Islamic banking in Pakistan?
MANAGEMENT
VL 10
IS 4
BP 470
EP 483
DI 10.1108/IMEFM-03-2017-0083
PD 2017
PY 2017
AB Purpose - Increasing popularity of Islamic banks in the wake of recent
global financial crisis of 2008 has generated debate among researcher
about practicality of Islamic banks. Critics argue that Islamic banks
are not working according true spirits of Sharia'h. This paper aims to
empirically address the question that how Islamic is Islamic banking in
the case of Pakistan.
Design/methodology/approach - The target population in this paper is
staff at the Islamic banks who are employees and managers. Data are also
collected from customers to analyze their views. Sample comprises 63
branches of five full-fledge Islamic banks and five Islamic branches of
conventional banks in Islamabad. For analysis purpose, the study uses
exploratory factor analysis.
Findings - Findings indicate that Islamic banks are following Sharia'h
excluding the provision of profit loss sharing contracts and provision
of qard-ul-hassan. Moreover, it is found that customers are less agreed
and more neutral about Sharia'h-based operations at Islamic banks.
Originality/value - Findings will help regulators to introduce wide
range of Islamic financial contracts that involve profit loss sharing
and consider the expansion of emerging industry. Moreover, findings
suggest to consider promotional techniques to create awareness of
Islamic banking among the customers.
ZB 0
TC 2
ZA 0
Z8 0
ZS 0
ZR 0
Z9 2
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000418521700002
ER
PT J
AU Yuksel, Serkan
TI The causality between returns of interest-based banks and Islamic banks:
the case of Turkey
MANAGEMENT
VL 10
IS 4
BP 519
EP 535
DI 10.1108/IMEFM-12-2013-0133
PD 2017
PY 2017
AB Purpose - This paper aims to shed light on the risk structure in the
presence of Islamic banking. The author concentrates on the relationship
between Islamic banking and conventional banking in Turkey. Islamic
banking and conventional banking are considered to be different kinds of
sources for funding. Returns in the conventional banking are expected to
be heavily influenced by the interest rate in the money market. However,
Islamic banking returns are interest-free so that interest rate changes
are not expected to affect the deposit returns in Islamic banks.
Interest rates in the economy are a proxy to highlight the general risk
level of the economy. By looking at the causal relationship between the
deposit returns of both Islamic banks and conventional banks, it is
possible to address the different types of banking in the general risk
structure of the economy. This is one of the first studies to address
the mentioned difference in banking sector in Turkish economy.
Design/methodology/approach - This paper tries to identify the direction
of causality between Islamic and conventional banking term deposit rates
by means of Granger Causality. Also, Granger Causality test results will
guide to explore the Islamic and conventional banking deposit return
linkages. The author has extended the study with vector autoregressive
analysis to understand the correlation structure between conventional
deposit rates and the profit-loss sharing ratio of Islamic Banks. The
author has also extended this study with impulse response functions to
see whether the shocks hitting into the conventional banking affect
Islamic banking and vice versa.
Findings - The results suggest that there is no significant clear
relationship between both banking sectors. This result can be
interpreted, as Islamic banks do not adjust their profit-loss sharing
(PLS) ratios pegged to the interest rate offered by conventional banks.
Also, conventional banks determine their interest rate without any
connection to the Islamic banking PLS ratios. Overall results of this
study contradict the findings of studies which conclude that Islamic
banking might not be different from the conventional banking. It is
reported that inferences from pair-wise Granger causality alone might be
spurious, as the analysis based on non-stationary series can be a
consequence of time functional characteristics of the time series.
Social implications - The results can be taken as counter evidence to
the hypothesis "Islamic banks determine their PLS ratios based on the
interest rates offered by conventional banks". This address that the
Islamic banks may offer alternative financing methodology which has
different procedure. Hence, Islamic finance can be taken as an
alternative method with its asset-based healthier structure.
Originality/value - This is one of the first studies to address the
Islamic versus interest-based banking difference in banking sector in
Turkish economy. This paper tries to identify the direction of causality
between Islamic and conventional banking termdeposit rates by means of
Granger causality.
RI Yuksel, Serkan/R-6706-2019
ZS 0
ZR 0
ZA 0
ZB 0
TC 1
Z8 0
Z9 1
U1 0
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000418521700005
ER
PT J
AU Angel Perez-Castro, Miguel
Angel Montero-Alonso, Miguel
Abderrahman-Azaar, Akram
TI Bankarization in the first European cities with an equal number of
Muslim and Christian inhabitants Melilla and Ceuta
MANAGEMENT
VL 10
IS 4
BP 554
EP 580
DI 10.1108/IMEFM-02-2017-0033
PD 2017
PY 2017
AB Purpose - This paper aims to analyze the situation of the financial
system in the Spanish-governed cities of Melilla and Ceuta, Christian
and Muslim cities located on the north coast of Africa, and compared it
with the mean bankarization level in the rest of Spain in 2000-2015.
Design/methodology/approach - Although different calculation methods
have been proposed, most authors agree that the bankarization level of a
country or a territory reflects the development of the society as a
whole and has a positive correlation with economic growth. The
indicators of financial depth proposed by these researchers are not only
the ratio between variables such as loans, deposits, etc., but also the
ratios of these variables to the population and the gross domestic
product (GDP) of the country or territory.
Findings - The results obtained revealed that there are differences
between these two North African Spanish cities. Furthermore, the
financing gap between the mean bankarization levels of these cities and
those of mainland Spain was found to be even larger than most of the
other economic indicators ( GDP per capita and the unemployment rate).
Practical implications - The authors are convinced that the manuscript
is a contribution of great interest for serving pilot experience in
cities wishing to offer a development of traditional banking and Islamic
banking. The paper should be of interest to readers in the areas of
finance systems and commercial banks where two different cultures
coexist.
Originality/value - This is the first research study on the financial
framework of European cities whose populations have an approximately
equal percentage of Christians and Muslims. The data reflected the
existence of savings and loan methods parallel to conventional banking.
The conclusion was that in the near future, it would be advisable for
European banks to take into account the cultural customs and religious
practices of potential Muslim clients.
RI Montero-Alonso, Miguel Angel/F-3470-2016
OI Montero-Alonso, Miguel Angel/0000-0002-1214-9035
ZB 0
Z8 0
ZS 0
ZR 0
TC 0
ZA 0
Z9 0
U1 0
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000418521700007
ER
PT J
AU Ahroum, Rida
Achchab, Boujemaa
TI Pricing of Sukuk Musharakah with joint venture as underlying, beyond the
use of PLS ratio
VL 8
IS 4
SI SI
BP 406
EP 419
DI 10.1108/JIABR-03-2016-0036
PD 2017
PY 2017
AB Purpose - Participatory contracts reflect the true spirit of Islamic
finance. However, these contracts face several challenges during their
implementation. This is reflected by the low volume of contracts
processed by Islamic banks and the low number of Sukuk issued. This
study aims to introduce a new parameter related to the valuation of
Sukuk Musharakah when the underlying asset is a joint venture.
Design/methodology/approach - The author applies the Gordon & Shapiro
model on the valuation of Sukuk Musharakah with a joint venture as
underlying. A new pricing framework is introduced with several usual
parameters such as the profit and loss sharing ratio, besides a new
parameter, which is the dividend payout ratio. The framework shall
contain price, duration and convexity computation. The new framework
differs from the classic bond pricing methodology broadly used nowadays
in determination of Sukuk prices.
Findings - The results indicate that negotiating only the profit and
loss sharing ratio is not sufficient to have a fair price of Sukuk
Musharakah when the underlying is a joint venture. It is due to the
mismatch of interest between investors and issuers. Thus, another
parameter should be negotiated which is the dividend payout ratio.
Research limitations/implications - The research focuses exclusively on
Sukuk Musharakah with joint venture as underlying. Also, the choice of
Gordon & Shapiro formula, by definition of the model, restricts the
calculation of the net asset value by using only the future expected
dividends with constant growth. This choice is made primarily to explain
the objective of this paper in a simple way.
Practical implications - For investors, a compatible pricing framework
with the underlying flows and risks of an asset is essential to create a
liquid market. This work would help investors to boost the Sukuk
Musharakah market.
Originality/value - Several studies have analyzed the various challenges
in Sukuk markets. Few of them dealt with specificities of Sukuk
Musharakah by focusing on the underlying nature. So far, the profit and
loss sharing ratio is the only parameter analyzed in these studies.
Thus, the authors contribute to the literature by studying other
parameters that can solve the various challenges of Sukuk Markets.
RI Achchab, Boujemaa/E-1568-2019
ZR 0
TC 2
ZB 0
ZA 0
ZS 0
Z8 0
Z9 2
U1 2
U2 7
SN 1759-0817
EI 1759-0825
UT WOS:000411461100005
ER
PT J
AU Lee, Siew Peng
Isa, Mansor
TI Determinants of bank margins in a dual banking system
VL 43
IS 6
BP 630
EP 645
DI 10.1108/MF-07-2016-0189
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to determine of bank margins for
conventional and Islamic banks in the dual banking system in Malaysia.
Design/methodology/approach - The study uses unbalanced panel data for
20 conventional banks and 16 Islamic banks over the period 2008-2014.
The dynamic two-step GMM estimator technique introduced by Arellano and
Bond (1991) is applied.
Findings - The results suggest that there are significant similarities
with minor differences in terms of factors determining bank margins
between conventional and Islamic banks in Malaysia. The margins for
conventional banks are influenced by operating costs, efficiency, credit
risk, degree of risk aversion, market share, size of operation, implicit
interest payments and funding costs. For Islamic banks, the margin
determinants are found to be operating costs, efficiency, credit risk,
market share and implicit interest payments. This means that more
factors influence the margins in conventional banks compared to Islamic
banks. Although bank diversification activities have increased in recent
years, their impact on bank margins is minimal.
Practical implications - The results suggest that improving operational
costs, operational efficiency and credit risk management, and minimising
implicit interest payments would be the best strategy to enhance the
bank margins for both conventional and Islamic banks. The results also
have important policy implications on the necessity to expand the size
of Islamic banking in Malaysia.
Originality/value - There are relatively few studies concerning
determinants of bank margins in emerging markets. The present study adds
to the literature by presenting evidence from Malaysia, an emerging
market with a dual banking system. This allows us to explore the
similarities and differences between conventional and Islamic banks in
Malaysia in respect of determinants of the margins.
ZA 0
ZR 0
TC 7
ZS 0
Z8 0
ZB 0
Z9 7
U1 0
U2 9
SN 0307-4358
EI 1758-7743
UT WOS:000404852800001
ER
PT J
AU Sakti, Muhammad Rizky Prima
Tareq, Mohamad Ali
Saiti, Buerhan
Akhtar, Tahir
TI Capital structure of Islamic banks: a critical review of theoretical and
empirical research
VL 9
IS 3
BP 292
EP 308
DI 10.1108/QRFM-01-2017-0007
PD 2017
PY 2017
AB Purpose - This paper aims to critically evaluate theoretical and
empirical research into capital structure practices in Islamic banks
(IBs) from four perspectives, namely, theoretical aspect and its nature,
determinants of capital structure in IBs, links between capital
structure and risk management and nexus between capital structure and
performance of IBs.
Design/methodology/approach - The authors will review and examine past
studies on IBs' capital structure from both theoretical and empirical
research.
Findings - The paper concludes that most of the literature on IB capital
structure is largely theoretical than empirical. The existing studies on
IB capital structure have various limitations, which suggest a need for
detailed empirical work. Detailed empirical research in the field of
capital structure will support bank managers and policymakers in making
decisions about improving capital structure.
Originality/value - This research will make several noteworthy
contributions to address literature gaps for IB capital structure.
Furthermore, this paper will identify areas for future research into
capital structure practices and IB financing decisions. Lastly, this
paper will equip regulators with guidelines for establishing sound
capital requirements for IB.
RI Sakti, Muhammad Rizky Prima/C-7532-2016; SAITI, BUERHAN/C-8168-2017; Tareq,
Mohammad Ali/D-5524-2016
OI Sakti, Muhammad Rizky Prima/0000-0001-8717-1838; SAITI,
BUERHAN/0000-0002-9984-489X; Tareq, Mohammad Ali/0000-0001-5521-8814
ZA 0
ZS 0
ZB 0
Z8 0
TC 2
ZR 0
Z9 2
U1 3
U2 11
SN 1755-4179
UT WOS:000407392900005
ER
PT J
AU Soedarmono, Wahyoe
Pramono, Sigid Eko
Tarazi, Amine
TI The procyclicality of loan loss provisions in Islamic banks
VL 39
BP 911
EP 919
DI 10.1016/j.ribaf.2016.05.003
PN B
PD JAN 2017
PY 2017
AB From a sample of Islamic banks around the world from 1997 to 2012, this
paper examines whether loan loss provisioning in Islamic banks is
procyclical. Our empirical findings highlight that loan loss
provisioning in Islamic banks remains procyclical, although the
èxpected' loan loss model (E-LLM) has been implemented for Islamic
banks in several countries. A closer investigation further documents
that Islamic banks also use loan loss provisions for discretionary
managerial actions, especially related to capital management in which
loan loss reserves and provisions are inflated when bank capitalization
declines. Eventually, this paper highlights that higher capitalization
can mitigate the procyclicality of loan loss provisions in Islamic
banks. In other words, loan loss provisioning becomes countercyclical
for Islamic banks with higher capitalization. This paper therefore casts
doubts on the adoption of the E-LLM for Islamic banks to promote
countercyclical effects, because the E-LLM may be influenced by
managerial discretion, including opportunistic capital management using
loan loss provisions that may undermine the importance of maintaining
bank capitalization. (C) 2016 Elsevier B.V. All rights reserved.
OI Tarazi, Amine/0000-0001-8385-2994; Soedarmono,
Wahyoe/0000-0002-5658-8929
ZA 0
ZB 0
Z8 0
ZS 0
ZR 0
TC 10
Z9 10
U1 1
U2 3
SN 0275-5319
EI 1878-3384
UT WOS:000396463300022
ER
PT B
AU Habibullah, Muzafar Shah
Baharom, Abdul Hamid
Din, Badariah Haji
Furuoka, Fumitaka
BE Alam, N
Rizvi, SAR
TI Mitigating Shadow Economy Through Dual Banking Sector Development in
Malaysia
SO ISLAMIC ECONOMIES: STABILITY, MARKETS AND ENDOWMENTS
SE Palgrave CIBFR Studies in Islamic Finance
BP 41
EP 62
DI 10.1007/978-3-319-47937-8_4
PD 2017
PY 2017
AB Theory argues that as long as the shadow economy is of sufficient size,
the leakage or loss of tax revenue through tax evasion will also be
substantial. In this chapter, we provide new estimates of the size of
the shadow economy in Malaysia for the period 1971-2013. Further, we
relate the shadow economy to its determinants as measured by the misery
index. This chapter reveals that the relationship between the shadow
economy and financial development in Malaysia exhibits an inverted
U-shaped curve. The chapter concludes that the Malaysian government
should embark on programs that can reduce the size of the shadow
economy, relying on its dual banking system of Islamic and conventional
banks.
RI Hamid, Baharom Abdul/AAE-1718-2019
OI Hamid, Baharom Abdul/0000-0001-7335-9119
ZR 0
ZB 0
TC 0
Z8 0
ZS 0
ZA 0
Z9 0
U1 0
U2 0
BN 978-3-319-47937-8; 978-3-319-47936-1
UT WOS:000443801400004
D2 10.1007/978-3-319-47937-8
ER
PT J
AU Kacar, Bahrija
Curic, Jasmina
Ikic, Selma
TI ISLAMIC BANKS AND FINANCE AND THE POSSIBILITY OF AGRICULTURAL
INVESTMENTS IN THE REPUBLIC OF SERBIA
SO EKONOMIKA POLJOPRIVREDA-ECONOMICS OF AGRICULTURE
VL 64
IS 3
BP 1081
EP 1100
PD 2017
PY 2017
AB Financing the economy and agriculture as well in the Republic of Serbia
in recent past present was realized and has been implemented with the
financial and credit support of the state, as well as through expensive
commercial bank loans and financial leasing. Bearing in mind the
productive resources, the importance of agriculture to the national
economy and employment of the population, and that the financing of
agriculture in the Republic of Serbia, at its current level of
development, should be implemented with the support of the state. States
should work towards the establishment of specialized agricultural banks
and by legislation facilitate the arrival of financial institutions
which will place funds at favorable conditions such as the Islamic
financial institutions do.
Islamic financial institutions in the placement of funds-loans do not
use the loan interest rate which is according to the Islamic beliefs
unfair and unacceptable. The theoreticians of Islamic economy see an
alternative in the fundamental values and teachings of Islam, the Quran
and the Sunnah, which strictly prohibit interest.
Islamic bank can make certain comparative advantages in respect to the
other domestic banks. It is in a position to establish a sound business
relationship with clients from Muslim countries for the local companies
to perform in their markets, as well as with the performance of
companies from Muslim countries on the Serbian market. A further
advantage of this bank we see in the fact that one of its founders would
be the IDB - Islamic Development Bank - the leading development bank of
the Muslim world, whose experience in the implementation of development
projects in Serbia can be of great benefit. However, the largest Islamic
bank has potential in the establishment and development of business
relationships and cooperation with a growing number of financial and
other institutions whose operations are based on the principles of
Shariah.
ZR 0
ZS 0
ZA 0
ZB 0
Z8 0
TC 0
Z9 0
U1 1
U2 2
SN 0352-3462
UT WOS:000425048400014
ER
PT J
AU Migdad, Abdalrahman Mohamed
TI CSR practices of Palestinian Islamic banks: contribution to
socio-economic development
VL 9
IS 2
BP 133
EP 147
DI 10.1108/IJIF-06-2017-0001
PD 2017
PY 2017
AB Purpose - Corporate social responsibility (CSR) is an important
corporate activity that affirms the importance of giving back to the
community. This research aims to examine the CSR practices of
Palestinian Islamic banks and their contribution to socio-economic
development. There is an ongoing debate regarding Islamic financial
institutions' profit motive versus their motivation to achieve human
welfare. The Palestinian Islamic banks are not disconnected from this
debate, and this paper aims to discuss this issue.
Design/methodology/approach - For the purpose of assessing the CSR
practices of Palestinian Islamic banks, a secondary analysis of the
banks' annual reports was carried out. In addition, 11 structured
interviews were conducted with Islamic banks' practitioners at the
decision-making level and with some of the banks' Shari'ah board members
to gather their views on CSR. These have been analyzed in light of the
actual CSR practices disclosed in each bank's annual reports.
Findings - The main research findings suggest that the CSR practice is
highly valued by the Palestinian Islamic banks, but it is small and has
marginal effects on the community's socio-economic development. Another
important observation from report analysis is that Islamic banks have
great potential for expansion, given that the demand for Islamic
financial transactions is double of what Islamic banks currently offer.
If Islamic banks live up to that opportunity, they could deliver more in
CSR practices, which is their ultimate goal according to the majority of
the interviewees.
Originality/value - Existing literature has presented findings on the
CSR of Palestinian corporations in general, but there is no available
literature on the CSR practices of Palestinian Islamic banks. This
research attempts to fill in the gap by presenting preliminary findings
on Palestinian Islamic banks' CSR practices.
ZB 0
ZA 0
TC 3
ZR 0
ZS 0
Z8 0
Z9 3
U1 0
U2 3
SN 0128-1976
EI 2289-4365
UT WOS:000424530200003
ER
PT J
AU Yunus, Saidatolakma Mohd
al Haneef, Sayed Sikandar
Kamaruddin, Zuraidah
TI JURISTIC METHODS OF PURIFYING HARAM INCOMES: AN ANALYSIS IN THE CONTEXT
OF ISLAMIC BANKS IN MALAYSIA
SO AL-SHAJARAH
VL 22
IS 2
BP 193
EP 213
PD 2017
PY 2017
AB This study attempts to articulate juristic mechanisms by which Islamic
banks in Malaysia can purge the unlawful income from their assets. An
Islamic bank being a modern corporate entity when dealing with people of
diverse cultures and conventional business entities, at times, feels the
pressure of not being able to stay away from transactions tainted with
haram. Islamic banks as a matter of principle should not involve
themselves in any unlawful business activities in the process of which
they can procure unlawful incomes. A question of how Islamic banks in
Malaysia should treat such incomes, both classical and contemporary
jurists have proposed their own set of juristic methods. This study
recommends the Islamic banks to address the importance of undertaking
the purification process of haram income according to Shari'ah.
TC 0
ZR 0
ZA 0
ZB 0
ZS 0
Z8 0
Z9 0
U1 0
U2 1
SN 1394-6870
UT WOS:000419263100003
ER
PT J
AU Muafi
Suwitho
Purwohandoko
Salsabil, Imanirrahma
TI HUMAN CAPITAL IN ISLAMIC BANK AND ITS EFFECT ON THE IMPROVEMENT OF
HEALTHY ORGANIZATION AND EMPLOYEE PERFORMANCE
SO INTERNATIONAL JOURNAL FOR QUALITY RESEARCH
VL 11
IS 4
BP 849
EP 867
DI 10.18421/IJQR11.04-08
PD 2017
PY 2017
AB Human resources have become one of strategic issues of Islamic banking
in Indonesia. Islamic bank is important to have a good human capital,
who has specialized knowledge and expertise related to Islamic aspects.
The quality of human resource that is bad will affect the organization
to grow unhealthy and also the employee performance. This research aims
to test and analyze the role of human capital that affect the healthy
organization and the employee performance. This research was conducted
on all employees of Islamic banks in the Province of Daerah Istimewa
Yogyakarta (DIY) and East Java. The reason is because nowadays, Islamic
banking in Indonesia is experiencing a slowdown growth of business
performance, especially market share so that it needs human capital with
good quality. Sampling technique is using purposive sampling. Bank
employees came from Islamic bank, government bank, and private bank. The
result concludes that human capital (HC) has significant positive effect
on the improvement of employee performance (EP) and healthy organization
(HO). Meanwhile, healthy organization (HO) has significant positive
effect on the improvement of employee performance (EP). Healthy
organization mediates the relationship between human capital and
employee performance.
RI , Muafi/Q-3004-2019; Muafi, Muafi/
OI Muafi, Muafi/0000-0002-5078-4670
ZS 0
ZB 0
ZA 0
Z8 0
TC 1
ZR 0
Z9 1
U1 0
U2 3
SN 1800-6450
EI 1800-7473
UT WOS:000419236400009
ER
PT J
AU Hasan, Aznan
Haron, Muhamad Nasir
Mohamed, Mohd Faysal
Mana, Budeeman
TI CLASSIFICATION OF DEFAULTERS IN THE PAYMENT OF DEBT IN ISLAMIC BANKING
PRACTICES
SO AL-SHAJARAH
SI SI
BP 85
EP 103
PD 2017
PY 2017
AB This paper discusses the issue of treatment of debt defaulters from
Shari'ah perspective and its current practices in Islamic banking and
finance. In doing so, the paper first explains the concept of debt and
its payment obligation from Islamic point of view. The paper also
critically reviews the current practice of treating defaulters by
Islamic banks. A thorough analysis on various opinions and views of the
classical and contemporary jurists in determining the types of
defaulters is also provided. The paper concludes that besides the
categorization of defaulters to solvent and insolvent in the modern
Islamic banking practice, a new category namely, muta'atthir (a solvent
debtor who is facing temporary shortage of liquidity) should also be
considered. These debtors are not insolvent based on the ratio of their
total assets to debts. However, they are in situation of default due to
temporary shortage of liquidity that they are facing. Hence, this new
category might have its own ruling from Shari'ah point of view in terms
of debt settlement and restructuring where it does not carry the ruling
of insolvent debtor.
ZB 0
ZS 0
ZR 0
Z8 0
TC 0
Z9 0
U1 0
U2 2
SN 1394-6870
UT WOS:000418624800004
ER
PT J
AU Ali, Engku Rabiah Adawiah Engku
Oseni, Umar A.
Ellias, Muhd Ramadhan Fitni
Haron, Muhamad Nasir
TI TOWARDS THE DEVELOPMENT OF SHARI'AH COMPLIANT HIGH QUALITY LIQUID ASSETS
FOR ISLAMIC FINANCIAL INSTITUTIONS
SO AL-SHAJARAH
SI SI
BP 233
EP 264
PD 2017
PY 2017
AB Islamic banks are required to be able to access and hold sufficient
levels of High Quality Liquid Assets (HQLA) as part of Basel III
requirements. Such HQLA are specifically meant to allow the Islamic
banks to raise funds in money markets in the event of liquidity shortage
or in some cases for the finding of new profitable investments. Against
this backdrop, this study examines existing efforts in developing
Shari'ah-compliant HQLA and the challenges Islamic financial
institutions are facing in assessing such liquid instruments. Beside the
laudable efforts of a policy-driven supranational institution in
developing Shari'ah-compliant HQLA, there has not been much effort in
the global Islamic finance industry to develop more HQLAs. As a matter
of fact, it is the overarching dearth of such Shari'ah compliant HQLA
for liquidity management that led the Bank of England to commence work
on the feasibility of introducing central bank liquidity facilities such
as the proposed Shari'ah compliant find based deposit in 2015 which is
expected to be ready for implementation by Spring 2018. This study also
finds that experts have considered the potential of gold as HQLA for
bank's liquidity management.
ZS 0
ZA 0
TC 0
Z8 0
ZR 0
ZB 0
Z9 0
U1 0
U2 4
SN 1394-6870
UT WOS:000418624800010
ER
PT J
AU Marsidi, Asri
Annuar, Hairul Azlan
Rahman, Abdul Rahim Abdul
TI DISCLOSURES AND PERCEPTIONS OF PRACTITIONERS ON ITEMS OF FINANCIAL AND
SOCIAL REPORTING INDEX DEVELOPED FOR MALAYSIAN ISLAMIC BANKS
VL 18
IS 3
BP 563
EP 578
PD 2017
PY 2017
AB The study examines the views of accountants concerning the importance of
items in the developed index for Islamic Financial and Social Reporting
(IFSR) as well as measures and discusses the level of weighted IFSR for
Islamic banks based on the IFSR index developed for Malaysian Islamic
banks. The research uses the questionnaires and the annual reports to
collect the relevant data with respect to the views of accountants and
IFSR score of Islamic banks respectively. The findings suggest that the
financial part, and the auditing and governance part in the index of
IFSR are important and close to important, respectively, while the
social part is viewed as fairly important. Moreover, the other finding
reflects that the weighted IFSR for Islamic banks in Malaysia is
considered as fair. The findings with respect to the level of weighted
IFSR disclosure may not be generalised to the years prior and after the
examination period. The research provides empirical insights on the
importance of items in the IFSR index and the weighted level of IFSR
practices among Malaysian Islamic banks. The paper highlights the
importance of items in the IFSR index as well as IFSR disclosure in
enhancing the accountability and sustainability of Islamic banks.
Z8 0
ZR 0
TC 0
ZS 0
ZB 0
Z9 0
U1 0
U2 0
SN 1511-6670
UT WOS:000418886600011
ER
PT J
AU Farandy, Alan Ray
Suwito, Demas Asfario
Dabutar, Lila Kondi
TI EFFICIENCY OF ISLAMIC BANKS IN INDONESIA: DATA ENVELOPMENT ANALYSIS
VL 25
IS 2
SI SI
BP 337
EP 354
PD 2017
PY 2017
AB This paper measures the efficiency of Islamic commercial banks in
Indonesia by analyzing factors that affect the level of efficiency using
the two-stage data envelopment analysis (DEA) method. The objects of
this study are 10 Islamic commercial banks in Indonesia which are
analyzed from 2011 to 2014. Two methods are used in this study, namely
nonparametric method of DEA in the first stage and Tobit model in the
second stage. The actual average efficiency of Islamic commercial banks
in Indonesia is at fairly good level with an average score 91.82, which
means that although relatively inefficient, Islamic commercial banks in
Indonesia are able to optimize their resource inputs to produce outputs
as an intermediary institution. The application of the Tobit model uses
asset (ASSET), non-performing financing (NPF), capital adequacy ratio
(CAR), number of bank branches (BRANCH) and return on asset (ROA) as the
explanatory variables. The results showed that the variables of assets,
number of bank branches, and ROA significantly affect Islamic commercial
bank efficiency, while CAR and NPF empirically do not have a significant
effect on efficiency.
ZR 0
ZB 0
Z8 0
TC 1
ZS 0
Z9 1
U1 0
U2 2
SN 1394-7680
UT WOS:000416784600008
ER
PT J
AU Aliyu, Sirajo
Yusof, Rosylin Mohd
TI A PANEL SURVIVAL ANALYSIS FOR ISLAMIC BANKS
VL 25
IS 2
SI SI
BP 381
EP 410
PD 2017
PY 2017
AB This study aims at exploring the significant predictors of Islamic bank
survival within the time-varying covariate of risk time exposure. Thus,
limited survival studies on the Islamic banks divert the attention of
policymakers and practitioners on the failure hazard likelihood and
other means to mitigate its menace. The paper adopted panel survival
analysis on the Islamic banks of 24 countries. Subsequently, mixed
effect and logit model were employed to confirm the earlier predictions
and to ascertain the most promising determinants for Islamic bank
survival. The findings reveal that non-interest liabilities, assets
quality, liquidity and per capita income have a strong influence in
explaining Islamic bank survival. Additionally, managerial efficiency
and time-varying covariate are better explained in the time survival
models. Future survival studies have the opportunity to incorporate
Maqasid Al-Shari'ah index and outreach to verify the social justice
compliance of the Islamic banks. Consequently, employing accelerated
failure time model will provide other evidence in relation to time
length to the event. The paper suggested monitoring the banks' failure
predictors and urged the banks to focus on the real economic sector
investment coupled with efficient resource utilization for longer
survival.
OI Aliyu, Sirajo/0000-0002-2090-3886
ZR 0
TC 2
ZA 0
ZB 0
ZS 0
Z8 0
Z9 2
U1 0
U2 1
SN 1394-7680
UT WOS:000416784600010
ER
PT J
AU Kahf, Monzer
Ibrahim, Abdul-Jalil
TI RETURN ON THE LETTER OF GUARANTEE: ISSUES AND NEW PROPOSALS IN
STRUCTURING THE PRODUCT
VL 25
IS 3
BP 549
EP 579
PD 2017
PY 2017
AB The paper aims at discussing the issues surrounding earning of return on
Letters of Guarantee (LG) issued under kafalah by Islamic banks and to
propose alternative ways of structuring it by shari'ah compliant Islamic
banks. The paper proposes structuring LG as a service contract under
wakalah or as a reputation-based partnership. Letter of guarantee can be
issued as a service contract and the Islamic Bank can charge service
fees commensurate with the direct and indirect costs of issuing the
cover. The paper further proposed that an Islamic Bank and a client
(prospective guaranteed) can set up a reputation-based partnership for
an underlining project where the Islamic Bank contributes through the
issuance of the LG with profit sharing agreed upon and losses borne
proportionate to capital contribution. The paper contributes to Islamic
bank practice in the financial intermediation role by providing an
instrument for such banks to meet unique needs of their clients with
financial solutions fulfilling the dual needs of financial
intermediation and shari'ah compliance.
ZS 0
ZB 0
Z8 0
TC 0
ZR 0
ZA 0
Z9 0
U1 0
U2 0
SN 1394-7680
UT WOS:000416785400006
ER
PT J
Abd Wahab, Norazlina
Hamzah, Hanissah
TI DOES HOME FINANCING PROMOTE AFFORDABILITY OF HOME OWNERSHIP IN MALAYSIA?
AN EMPIRICAL ANALYSIS BETWEEN ISLAMIC AND CONVENTIONAL BANKS
VL 25
IS 3
BP 601
EP 627
PD 2017
PY 2017
AB The aim of this study is to examine the influence of home financing
offered by both Islamic and conventional banks and affordability of home
ownership (as measured by House Price/GDP per capita) in Malaysia. At
the same time, it attempts to assess the effects of employment and
interest rate as measured by Overnight Policy Rate (OPR) on home
ownership affordability. The study employs the Auto Regressive
Distributed Lag Model (ARDL) on yearly data from 2007 to 2014 in order
to investigate the link between affordability and selected banking
variables such as total home financing by Islamic banks and OPR. Data
were extracted from the National Property Information Center (NAPIC) and
Bank Negara Malaysia (BNM) Monthly Statistical Bulletin. This study
finds that there are cointegrating relationships among all the selected
variables at the selected lag length. Home financing of both Islamic and
conventional banks were found to be significant in influencing
Affordability of Home ownership in Malaysia. Consistent with the
fundamentals of Islamic finance, our findings further suggest that OPR
(interest rate) is less significant in determining home affordability in
the case of Islamic home financing compared to conventional home loan.
This study is an empirical attempt to analyze the effect of Islamic home
financing as well as conventional loan on affordability. The approach
used is technically not new, but it offers better insights into the
applicability of Islamic finance in promoting affordability of home
ownership. This finding therefore warrants a more in-depth analysis to
explore alternative home financing mechanisms such as rental rate
pricing to promote home ownership affordability among low to medium
income earners in Malaysia.
ZB 0
ZA 0
ZS 0
ZR 0
TC 3
Z8 0
Z9 3
U1 0
U2 0
SN 1394-7680
UT WOS:000416785400008
ER
PT B
Rasid, Mohamed Eskandar Shah Mohd
BE Mutum, DS
Butt, MM
Rashid, M
TI Determinants of Performance of Islamic Banks in GCC Countries: Dynamic
GMM Approach
SO ADVANCES IN ISLAMIC FINANCE, MARKETING, AND MANAGEMENT: AN ASIAN
PERSPECTIVE
BP 49
EP 80
PD 2017
PY 2017
AB Purpose - The main objective of this study is to identify the main
determinants of the Islamic banks' performance in Gulf Cooperation
Council (GCC) regions.
Methodology/approach - The research uses both static model (fixed
effects and random effects) and Generalized method of Moments (GMM). The
data for this study are obtained from the annual reports of 29 Islamic
banks from GCC countries using Bankscope database for the period from
2005 to 2013.
Findings - The empirical findings reveal that Islamic banks' specific
factors such as the equity financing and bank size are positive and
statistically significant to the profitability of Islamic banks. The
operating efficiency ratio is negatively and statistically significant
to return on asset. It is also found that macroeconomic variables such
as money supply and inflation are negatively and statistically
significant to the performance of Islamic banks whereas oil price has
been found positive and statistically significant to the performance of
Islamic banks in the GCC region.
Research implications - The present study seeks to fill a demanding gap
in the literature by providing new empirical evidence on the factors
that influence the profitability of the Islamic banking sector in GCC
regions.
Originality/value - These findings have significant contribution to the
literature by comprehensively clarifying and critically analyzing the
current state of profitability among the Islamic banks in GCC regions.
ZB 0
ZS 0
ZA 0
Z8 0
ZR 0
TC 3
Z9 3
U1 0
U2 1
BN 978-1-78635-898-1; 978-1-78635-899-8
UT WOS:000414971300004
ER
PT B
Shoyeb, Mohammad
Akbar, Chowdhury
Islam, Md Nazrul
BE Mutum, DS
Butt, MM
Rashid, M
TI Risk Sharing Paradigm of Islamic Banks: Case of Bangladesh
PERSPECTIVE
BP 103
EP 130
PD 2017
PY 2017
AB Purpose - The purpose of this study is to examine the effect of risk
sharing and non-risk sharing instruments on both the profitability of
Islamic banks and the economic growth of the country. This study also
aims to improve the profit and loss sharing-based asset growth of
Islamic banks.
Methodology/approach - The data for this study are obtained from the
annual reports of all Islamic banks from Bangladesh using Bank scope
database and annual report for the period of 1983 - 2014. The research
uses Autoregressive Distributive Lag approach.
Findings - The findings reveal that risk sharing instruments are
positively related to profitability and the economic growth of the
country. This study also finds that non-risk sharing instruments play a
predominant role in the profitability of the Islamic bank but are
negatively related to the economic growth of the country.
Research implications - Banks and other financial institutions need to
pay greater attention to systemic risk created by risk transfer and
apply risk sharing methods of financing more vigorously than has
hitherto been the case.
Originality/value - This study will also contribute to the literature as
relatively few Islamic financial literatures deal with the relationship
between equity financing and profitability which may make a strong
contribution to the area of Islamic finance.
ZR 0
TC 3
ZA 0
ZB 0
ZS 0
Z8 0
Z9 3
U1 0
U2 0
BN 978-1-78635-898-1; 978-1-78635-899-8
UT WOS:000414971300006
ER
PT B
AU Rafay, Abdul
Mohsan, Tahseen
Sadiq, Ramla
BE Mutum, DS
Butt, MM
Rashid, M
TI Structural Mix of Credit Portfolios in Islamic Banking System: Evidence
from a South Asian Economy
PERSPECTIVE
BP 185
EP 210
PD 2017
PY 2017
AB Purpose - Inquiring into the role of Islamic and conventional banks
regarding the core responsibility of lending is an established
phenomenon. This chapter is based on key findings regarding dynamic
changes in the structural mix of credit portfolios in Islamic banks and
conventional banks of Pakistan.
Methodology/approach - The nature of the study is exploratory; the
sample consists of 5 Islamic banks and 20 conventional banks of Pakistan
comparatively evaluated for the time frame of 2008 - 2014.
Findings - Our findings show that for Islamic banks, there is an
increasing trend in the credit portfolios as a proportion to assets as
well as to equity, whereas in case of conventional banks the findings
are opposite. The results further prove a positive and negative growth
of credit portfolios as proportional to assets and equity in case of
Islamic and conventional banks respectively. It is also observed that
credit portfolios of Islamic banks are growing with higher degree as a
proportion to equity as compared to proportion to assets. On the other
hand, conventional banks show higher degree of decline of credit
portfolios as a proportion to equity as compared to assets.
Originality/value - These findings also show that primary stakeholders
in Islamic banks are more risk seekers thus more inclined towards risky
investments than ordinary credits.
RI Rafay, Abdul/AAA-4184-2020; RAFAY, ABDUL/
OI RAFAY, ABDUL/0000-0002-0285-5980
TC 0
ZA 0
ZR 0
ZB 0
ZS 0
Z8 0
Z9 0
U1 0
U2 0
BN 978-1-78635-898-1; 978-1-78635-899-8
UT WOS:000414971300009
ER
PT B
AU Che-Ha, Norbani
Hamzah, Zalfa Laili
Abd Sukor, Mohd Edil
Said, Saad Mohd
Veeriah, Komala
BE Mutum, DS
Butt, MM
Rashid, M
TI Profiling Islamic Banking Customers: Does Product Awareness Matter?
PERSPECTIVE
BP 223
EP 243
PD 2017
PY 2017
AB Purpose - Islamic banking contributes significantly to the total assets
of Malaysian banking sector. Yet, many argue that Islamic banking in
Malaysia does not receive satisfactory support and participation from
the public mainly due to poor awareness of its products and services and
misconception about the Islamic banking system. It is timely to study
consumers' awareness of Islamic banking in the hopes of providing useful
strategies for and assistance with marketing plans. This study is to
explore consumer awareness towards Islamic banking products and services
across a diverse set of demographic variables.
Methodology/approach - A quantitative approach was used in this study. A
total of 1,000 questionnaires were distributed via convenience and
snowballing sampling method to bank customers in a public university in
Malaysia, and 817 responses from the survey were used for the analysis.
Descriptive and non-parametric statistics were employed to answer
objectives of this study.
Findings - The findings of this study are anticipated to provide a
holistic and comprehensive marketing insight to improve and strengthen
Islamic banking in Malaysia.
Originality/value - This study examines the role of demographics such
age, gender, race/religion, education level, occupation and income level
in trying to understand the issues of Islamic banks' product awareness.
It is well accepted that the consumer's attitude or behaviour should be
studied among others through understanding customers' demographics.
RI SUKOR, MOHD EDIL ABD/B-9079-2010
OI SUKOR, MOHD EDIL ABD/0000-0002-3682-3100
Z8 0
ZB 0
TC 1
ZA 0
ZS 0
ZR 0
Z9 1
U1 0
U2 0
BN 978-1-78635-898-1; 978-1-78635-899-8
UT WOS:000414971300011
ER
PT B
AU Menne, Firman
BE Mutum, DS
Butt, MM
Rashid, M
TI Evidence of CSR Practices of Islamic Financial Institutions in Indonesia
PERSPECTIVE
BP 341
EP 362
PD 2017
PY 2017
AB Purpose - This chapter is derived from the result of research conducted
by Firman Menne, Lanita Winata and Mohammad Hossain. The emergence of
Islamic Financial Institutions (IFIs) is expected to provide enormous
benefits for the Muslim community in Indonesia such as the availability
of IFIs based on Sharia law and the implementation of Islamic value in
the community. Like Corporate Social Responsibility (CSR) practices in
all business organizations, the IFI's CSR becomes one of the important
factors in improving organizational performance. The implementation of
CSR in IFIs is unique as it is based on Sharia law. Zakat and Qardh are
the unique IFI CSR practices. There are many studies which have
investigated the relationship of Zakat and Qardh on organizational
performance in Arabic and Muslim countries. In Muslim countries, Islamic
laws, including providing Zakat and Qardh, are practices of every
business organization. As Indonesia is not a Muslim country, Zakat and
Qardh are only required for IFIs as part of CSR practices. This study
aims to analyse the influence of CSR practices on the financial
performances of IFIs in Indonesia using gender as a control variable.
Methodology/approach - The samples of this research were taken from the
annual reports of nine Islamic banks for the period of 2010 - 2014.
Regression method was used to analyse and test hypotheses.
Findings - The results of this research indicate that the relationship
between CSR practices and financial performance is significant, the
value of R is 0.737, and R square is 0.543.
Practical implications - This means that the implementation of CSR
practices (Zakat and Qardh) improves organizational financial
performances of IFIs in Indonesia.
Originality/value - This study also has a limitation as it only focuses
on Zakat and Qardh; thus in the future, it is necessary to advance the
variable of CSR practices on the real social and environmental practices
such as environmental improvement, increasing the quality of human
resources, involvement in any jobs or reducing unemployment and any
other activities.
TC 1
ZA 0
ZR 0
Z8 0
ZS 0
ZB 0
Z9 1
U1 0
U2 2
BN 978-1-78635-898-1; 978-1-78635-899-8
UT WOS:000414971300016
ER
PT B
AU Zgheib, Philippe W.
Massalkhy, Lama I.
BA Zgheib, PW
TI Entrepreneurial Innovation in Islamic Banking
SO ENTREPRENEURSHIP AND BUSINESS INNOVATION IN THE MIDDLE EAST
SE Advances in Business Strategy and Competitive Advantage (ABSCA) Book
Series
BP 286
EP 313
DI 10.4018/978-1-5225-2066-5.ch015
PD 2017
PY 2017
AB Instruments of Islamic finance have recently reemerged as an innovative
tool for entrepreneurial transactions. Purpose of this chapter is to: a)
define Islamic banking Product; b) compare with nearest western banking
equivalent; c) highlight advantages and disadvantages of product; d)
state future progression of banking towards convergence or divergence
between Islamic and Western banking; and e) finally evaluate the role of
client focus and customer driven performance in the future trends of
entrepreneurial Islamic funding. This chapter highlights the concept of
Islamic Banking. Business is slowly adopting Islamic banking as a rival
market to western fractional reserve banking from the perspective of
delivering customer value. This synopsis covers 19 instruments of
Islamic banking by comparing the advantages and disadvantages of each
one to that of conventional banking. Interestingly, the comparative
methods result in several findings including the fact that banks must be
completely devoted to providing customers with excellent service
standards, and must also cater for customers' needs and demands. In
addition, if Islamic services are desired, then the ones who cater for
those needs will survive. Whereas western banks have a higher chance to
penetrate the Islamic banking sector, Islamic banks can't provide any
conventional banking services due to Sharia'a rules that prohibit fixed
or floating payment or acceptance of specific interest or fees for any
service. This chapter also concludes with a contrast between Islamic and
western banking from a customer perspective.
ZA 0
TC 0
Z8 0
ZS 0
ZB 0
ZR 0
Z9 0
U1 0
U2 3
BN 978-1-5225-2067-2; 978-1-5225-2066-5
UT WOS:000410702600017
D2 10.4018/978-1-5225-2066-5
ER
PT S
AU Sadeghi, Mehdi
BE Hacioglu, U
Dincer, H
TI The Systemic Benefits of Islamic Banking and Finance Practices: A
Comparative Study
SO GLOBAL FINANCIAL CRISIS AND ITS RAMIFICATIONS ON CAPITAL MARKETS:
OPPORTUNITIES AND THREATS IN VOLATILE ECONOMIC CONDITIONS
SE Contributions to Economics
BP 387
EP 400
DI 10.1007/978-3-319-47021-4_27
PD 2017
PY 2017
AB An emerging literature in the aftermath of the recent GFC has attempted
to investigate whether growing Islamic banking and finance practices add
any systemic benefit to the global economic system. This paper explores
the issue by examining the determinants of systemic risk for a sample of
Islamic banks and financial institutions compared with conventional
counterparts. Systemic risk is defined as a function of the stock market
capitalization, marginal expected shortfall, leverage ratio, correlation
of return, and volatility of return. Our finding shows the impact of
market capitalization on reducing the systemic risk of Islamic banks and
financial institutions is relatively higher than conventional
counterparts. This is consistent with the results of some previous
studies on the perceived benefits of Islamic finance practices. However,
the influence of leverage ratio and marginal expected shortfall on
systemic risk of Islamic banks and financial institutions is not
significantly different from the results for banks and financial
institutions in the control samples. Overall, our result provides some
support for the notion that Islamic banking and finance practices can
provide more systemic benefit to the financial system than conventional
counterparts.
OI Sadeghi, Mehdi/0000-0003-2042-185X
ZB 0
ZS 0
TC 1
ZR 0
Z8 0
Z9 1
U1 0
U2 1
SN 1431-1933
BN 978-3-319-47021-4; 978-3-319-47020-7
UT WOS:000409545700029
D2 10.1007/978-3-319-47021-4
ER
PT J
AU Rashid, Mamunur
Ramachandran, Jayalakshmy
Fawzy, Tunku Suleiman Bin Tunku Mahmood
TI CROSS-COUNTRY PANEL DATA EVIDENCE OF THE DETERMINANTS OF LIQUIDITY RISK
IN ISLAMIC BANKS: A CONTINGENCY THEORY APPROACH
VL 18
SI SI
BP 3
EP 22
SU 1
PD 2017
PY 2017
AB The objective of this study is to examine the determinants of liquidity
in Islamic banks in Malaysia and the Gulf Corporation Council (GCC)
countries. The study also aims at examining the dynamic nature of the
liquidity position of the selected banks. We have used panel data fixed
effect models to test the determinants of liquidity risk for 39 Islamic
Banks in Malaysia and GCC countries, excluding Oman, over a six-year
period from 2009 to 2014. The study employed 'cash-to-asset' and 'total
investment to total assets ratio' as the two proxies for the liquidity
position of the Islamic banks against several macro-economic and
bank-specific independent variables. The macroeconomics independent
variables include inflation rate, growth rate of gross domestic product
and the growth rate of broad money. The bank specific independent
variables include bank size, loan loss provision ratio and return on
asset. These are the most robust set of determinants with respect to the
most recent array of literature. The findings reveal that liquidity risk
management in Islamic banks is primarily contingent upon three bank
specific variables - past liquidity condition, size of the bank and loan
loss provision, and two industry specific variables growth of broad
money and growth of GDP. In the presence of auto-regressive terms in
investment-to-asset model, almost all the independent variables turnout
to be important determinants of liquidity, lending some leads on the
dynamic effect of these variables on liquidity risk of the Islamic
banks. The results indicate that there must be an integration between
the role played by the bank management and the policymakers to reduce
the liquidity risk. The study has considered the starting time range for
the sample to be from 2008 to limit the effect of global financial
crisis, which has reduced the sample frame. Since the study provides
insights on the key determinants of liquidity risk in Islamic banks, the
results may be useful in improvement of overall enterprise risk
management of the Islamic banks. We have redrawn the contingency theory
framework in the context of risk management in Islamic banks.
RI Rashid, Mamunur/R-3106-2019
OI Rashid, Mamunur/0000-0002-6688-5740
TC 6
ZR 0
ZA 0
ZB 2
Z8 0
ZS 0
Z9 6
U1 1
U2 3
SN 1511-6670
UT WOS:000416088400002
ER
PT J
AU Rosman, Romzie
Azmi, Anna Che
Amin, Siti Noraini
TI DISCLOSURE OF SHARI'AH NON-COMPLIANCE INCOME BY ISLAMIC BANKS IN
MALAYSIA AND BAHRAIN
VL 18
SI SI
BP 45
EP 58
SU 1
PD 2017
PY 2017
AB The reporting of any earnings or expenditures derived from Shari'ah
non-compliant activities enhances transparency of business and financial
dealings of Islamic banks. The main objectives of this paper are to
develop a Shari'ah non-compliance income (SNCI) disclosure index and
examine whether there are significant differences in the SNCI disclosure
indexes of Islamic banks from Bahrain and Malaysia. The samples used for
this study are 17 Islamic banks from Bahrain and 17 Islamic banks from
Malaysia for the years 2013, 2014, and 2015. The findings show that
Islamic banks in Bahrain and Malaysia made prudent disclosures of SNCI,
whereby both countries obtained a high SNCI disclosure index, especially
in the year 2014. However, there is still room for improvement for both
countries in selected areas of SNCI disclosure. Also, this study found
no significant differences of the SNCI disclosure index between these
two countries. The contribution of this study is that it establishes a
comparable standard disclosure of SNCI, through the SNCI disclosure
index, which may assist the users of financial statements in making
informed decisions. Subsequently, this study also identifies areas in
SNCI disclosures practices that may need further attention from
policymakers and standards setters, nationally and globally.
ZR 0
Z8 0
ZB 0
TC 1
ZA 0
ZS 0
Z9 1
U1 0
U2 0
SN 1511-6670
UT WOS:000416088400004
ER
PT J
AU Abdullah, Md. Faruk
Amin, Md. Ruhul
Ab Rahman, Asmak
TI IS THERE ANY DIFFERENCE BETWEEN ISLAMIC AND CONVENTIONAL MICROFINANCE?
EVIDENCE FROM BANGLADESH
VL 18
SI SI
BP 97
EP 112
SU 1
PD 2017
PY 2017
AB This study aims to compare the microfinance operation of Grameen Bank
and the Rural Development Scheme of Islami Bank Bangladesh Limited.
Qualitative approach is employed to obtain in-depth information
concerning the operation of Grameen Bank and Rural Development Scheme.
The data were collected through interviews conducted with Grameen Bank
and Islamic Bank Bangladesh Limited officers and the customers of both
microfinance providers. The study found that Grameen Bank was an
interest-based microfinance organization, which used peer pressure as
collateral for distributing loans, while the Rural Development Scheme
implemented different types of investment modes to finance the poor.
Moreover, it targeted the family as borrower instead of merely targeting
women. Although Grameen Bank had a higher number of members and greater
coverage, in some cases, the performance of the Rural Development Scheme
was better, such as the effectiveness of the credit. Although
conceptually Islamic microfinance is different from the conventional
microfinance but few studies have been done on how they differ each
other in terms of their operations. The study may contribute to
determine the weaknesses and strengths for both types of institution.
RI Abdullah, Faruk/P-8496-2015
OI Abdullah, Faruk/0000-0002-9111-1755
ZR 0
TC 1
Z8 0
ZS 0
ZA 0
ZB 0
Z9 1
U1 0
U2 4
SN 1511-6670
UT WOS:000416088400007
ER
PT J
AU Ali, Abd elrhman Elzahi Saaid
TI The challenges facing poverty alleviation and financial inclusion in
North-East Kenya Province (NEKP)
VL 44
IS 12
BP 2208
EP 2223
DI 10.1108/IJSE-05-2016-0133
PD 2017
PY 2017
AB Purpose - Poverty alleviation is one of the most compelling challenges
facing Kenya today. It is not only widespread but it is also steadily
rising. This highlights the need for sustainable solutions to poverty
particularly through microfinance. This research investigated the case
of North Eastern Kenya Province. The purpose of this paper is to explore
the unique micro-level challenges that are faced by poverty alleviation
programs adopted by microfinance institutions operating in this region.
Design/methodology/approach - The study used structured questionnaires
to collect primary data. The sample covered 600 respondents randomly
selected from three counties, namely, Wajir, Mandera and Marsabit. Three
focus group discussions comprising 24 participants held to facilitate a
deeper understanding of the challenges of poverty among the North
Eastern Province's communities when alleviated through micro-finance.
Findings - The results reveal that the illiteracy due to the weakness of
education and the unfavorable basic and financial infrastructures such
as roads, telecommunications network represents the most important
challenges that may affect the success of micro-finance programs.
Research limitations/implications - These results recommend that both
conventional and Islamic micro-finance might contribute positively for
poverty alleviation for the poorest Kenyan region if the challenges are
mitigated.
Practical implications - The study provides policy recommendations for
the Kenya Government and the conventional and Islamic banks in Kenya to
provide the expected support for the poorest area in the country. Social
implications - The result of this research might help the government,
micro-finance providers and the donors to assist in alleviating the
poverty of the Northern Kenyan community.
Originality/value - To overcome the challenges of alleviating poverty in
the region of Northern Kenya.
OI Ali, Abd Elrhman/0000-0001-7838-7557
ZB 0
ZA 0
TC 1
ZR 0
ZS 0
Z8 0
Z9 1
U1 1
U2 17
SN 0306-8293
EI 1758-6712
UT WOS:000415099000042
ER
PT J
AU Riaz, Umair
Khan, Musafar
Khan, Naimat
TI An Islamic banking perspective on consumers' perception in Pakistan
VL 9
IS 4
BP 337
EP 358
DI 10.1108/QRFM-03-2017-0020
PD 2017
PY 2017
AB Purpose - The aim of this study is to examine the perceptions of
consumers on Islamic banking and finance in Pakistan. Islamic finance is
an emerging phenomenon, and its survival depends on the availability,
affordability and awareness. This paper attempts to fill the gap in the
literature by exploring the perceptions of consumers and bankers in an
attempt to gain insights so that the availability of products and
awareness can be increased.
Design/methodology/approach - The study uses a regression model by using
perception as a dependent variable and awareness, knowledge and
religious motivation as independent variables. Primary data is collected
using 150 questionnaires distributed amongst finance students in several
universities and employees of Islamic banks in the Khyber Pakhtunkhwa
(KPK) Province of Pakistan.
Findings - The findings reveal that overall consumers' perception is
positive about Islamic banking and finance in Pakistan. Statistical
analysis shows that awareness, knowledge and religiosity level have a
positive influence on the perception of consumers about Islamic
financing products and services in Pakistan. To improve the awareness
and understanding, Islamic banks could make better marketing strategies
and could increase their presence by mosque visits and conferences.
Cooperation between the industry and scholars could help in providing
more innovative products to the consumers.
Research limitations/implications - There has been a limited amount of
work carried out on the perceptions of consumers about Islamic banking
in Pakistan. The present study represents the start of a larger context
for examining Islamic banking practices in Pakistan. The findings of the
study can be used as a reference in future research projects in the
areas of perceptions and awareness.
Originality/value - Little research has been conducted to study this
problem from the perspectives of consumers and Islamic banking
employees. Most of the research associated with Islamic banks fails to
pay attention to these stakeholder groups in one study.
RI Khan, Naimat Ullah/J-9596-2019; Riaz, Umair/
OI Riaz, Umair/0000-0003-1057-9514
ZS 0
Z8 0
ZR 0
ZA 0
TC 2
ZB 0
Z9 2
U1 0
U2 3
SN 1755-4179
UT WOS:000415702700003
ER
PT J
AU Janahi, Mohamed Abdulnaser
Al Mubarak, Muneer Mohamed Saeed
TI The impact of customer service quality on customer satisfaction in
Islamic banking
VL 8
IS 4
BP 595
EP 604
DI 10.1108/JIMA-07-2015-0049
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to contribute to the Islamic
banking literature by examining the impact of different factors of
customer service quality on customer satisfaction.
Design/methodology/approach - The paper presents a model which is not
frequently used in Islamic banking literature and shows relationships
between six factors of customer service quality and customer
satisfaction in the Islamic banking sector. Customers of five main
Islamic banks are contributing in this study.
Findings - This paper demonstrates strong and positive relationships
between the six main dimensions of customer service quality (Compliance,
Assurance, Reliability, Tangibility, Empathy and Responsiveness) and
customer satisfaction.
Research limitations/implications - The study may suffer from lack of
generalization, as it is conducted in one country (Bahrain). It might
also be useful to enlarge the study sample and include comparison
between Islamic versus conventional banking with regard to service
quality and customer satisfaction.
Practical implications - This paper can influence the current Islamic
banks with regard to service quality with an ultimate aim of increasing
customer satisfaction and retaining customers.
Originality/value - This study is one of the few that focus on effects
of customer service quality dimensions on customer satisfaction in the
Islamic banking sector. It reveals that, although customers pay special
attention to Sharia'h laws (compliance) in their transactions with
banks, the way services are delivered matters to them too.
ZR 0
ZB 0
ZA 0
ZS 0
TC 11
Z8 0
Z9 11
U1 1
U2 9
SN 1759-0833
EI 1759-0841
UT WOS:000414977600005
ER
PT J
AU Ali, Muhammad
Puah, Chin-Hong
TI Acceptance of Islamic banking as innovation: a case of Pakistan
SO HUMANOMICS
VL 33
IS 4
BP 499
EP 516
DI 10.1108/H-11-2016-0085
PD 2017
PY 2017
AB Purpose - This study aims to investigate the factors that determine the
customer adoption of Islamic banking in Pakistan.
Design/methodology/approach - This paper aims to use a sample of 540
Islamic bank customers located in the biggest city of Pakistan
(Karachi). This study is based on the diffusion of innovation (DOI)
theory and analyzed the role of five attributes (compatibility, relative
advantage, complexity, observability and trialability) along with the
consumer awareness about the customer adoption of Islamic banking.
Additionally, the present research also considers Islamic banking as a
new idea (innovation) in Pakistan under the framework of DOI theoretical
assumptions. The exploratory and confirmatory factor analyses are
applied to the sample data. The theoretical framework is then tested
using structural equation modeling.
Findings - The findings of the study revealed that all five attributes
of the DOI theory are positively and significantly related to the
customer adoption of Islamic banking. The customer awareness also proved
its importance in the hypothesizedmodel by representing a positive and
significant relationship.
Originality/value - The present study provides a useful guideline for
the Islamic bank managers and the academicians to better understand the
customer adoption of Islamic banking.
RI Ali, Muhammad/AAL-3747-2020; Puah, Chin-Hong/O-9658-2018; Ali, Dr. Muhammad/
OI Ali, Dr. Muhammad/0000-0003-2929-8202
ZS 0
ZR 0
ZB 0
ZA 0
Z8 0
TC 2
Z9 2
U1 0
U2 10
SN 0828-8666
EI 1758-7174
UT WOS:000414261400007
ER
PT J
AU Ajili, Hana
Bouri, Abdelfettah
TI Comparative study between IFRS and AAOIFI disclosure compliance Evidence
from Islamic banks in Gulf Co-operation Council countries
VL 15
IS 3
SI SI
BP 269
EP 292
DI 10.1108/JFRA-03-2016-0023
PD 2017
PY 2017
AB Purpose - This study measures and compares the level of compliance with
the disclosure requirements provided by the International Financial
Reporting Standards (IFRS) and the Accounting and Auditing Organization
for Islamic Financial Institutions (AAOIFI). This study also aims to
investigate the factors associated with this compliance in a sample of
Islamic banks (IBs) in Gulf Cooperation Council member states.
Design/methodology/approach - The sample consists of 39 IBs between 2010
and 2014. Among the selected IBs, 23 banks were complying with the
AAOIFI standards and 16 banks were complying with the IFRS standards. An
unweighted disclosure index was used to measure the level of compliance
with IFRS/AAOIFI disclosure requirements.
Findings - It was found that the level of compliance with IFRS is higher
than that of compliance with AAOIFI. In addition, the results reveal
that compliance with IFRS/AAOIFI disclosure requirements is higher for
larger and older IBs. Finally, it was observed that compliance was more
noticeable for IBs having a higher leverage and multinational
subsidiaries.
Originality value - These findings would be of great help to regulators
and policymakers to better understand the accounting disclosure
practices of IBs.
ZR 0
Z8 0
ZS 0
ZA 0
TC 1
ZB 0
Z9 1
U1 0
U2 6
SN 1985-2517
EI 2042-5856
UT WOS:000413028300002
ER
PT J
AU Ali, Muhammad
Raza, Syed Ali
Puah, Chin-Hong
TI Factors affecting to select Islamic credit cards in Pakistan: the TRA
model
VL 8
IS 3
BP 330
EP 344
DI 10.1108/JIMA-06-2015-0043
PD 2017
PY 2017
AB Purpose - This paper aims to investigate the factors affecting
intentions to select Islamic credit cards in Pakistan by using the
theory of reasoned action (TRA) model. In general, bank customers are
aware of credit card facility, but the leading factors to select Islamic
credit cards are particularly unexplored. Due to this fact, the study
examined the effect of subjective norm (SN) and attitude (ATT) with the
inclusion of new construct, namely, perceived financial cost (PFC) to
predict the intention of customers about the Islamic credit card in
Pakistan.
Design/methodology/approach - Sample data were conveniently drawn from
the bank customers with the help of a self-administered survey based
questionnaire, which was consisted over five-point Likert scale. The
study uses a sample of 492 bank customers located in the biggest city of
Pakistan. Out of these responses, only 466 responses were used in the
analysis, while the remaining responses were ignored due to missing data
and incomplete responses. The data were analyzed through factor and
regression analysis.
Findings - Findings from regression analysis suggest that SN and ATT
show positive and significant impact on intentions to select an Islamic
credit card, while PFC has a negative impact on intentions to select
Islamic credit cards. Moreover, SN was found to be the most influential
factor to predict the selection of Islamic credit card.
Research implications - This study has some practical implications for
the academicians and Islamic bank managers. Through this research, bank
managers can educate their customers about Islamic credit and financial
products. Not only this, they should develop a strategy for the
awareness of Islamic banking products through social networking and
other marketing modes. On the other side, this study laid a foundation
for future researchers to explore additional predictors of Islamic
credit card. Their empirical work will provide a help to benefit and
understand customers' financial knowledge.
Originality/value - Islamic credit facility is entirely new in Pakistan
and lacking with empirical support. Therefore, this investigation
contributes to the existing body of knowledge by providing a
comprehensive explanation on the Islamic credit card service in
Pakistan.
RI Ali, Muhammad/AAL-3747-2020; Raza, Syed Ali/I-3879-2016; Puah, Chin-Hong/O-9658-
2018; Ali, Dr. Muhammad/
Muhammad/0000-0003-2929-8202
Z8 0
ZS 0
ZA 0
ZR 0
ZB 0
TC 9
Z9 9
U1 0
U2 5
SN 1759-0833
EI 1759-0841
UT WOS:000412071200001
ER
PT J
AU Wahyuni, Sri
Fitriani, Nani
TI Brand religiosity aura and brand loyalty in Indonesia Islamic banking
VL 8
IS 3
BP 361
EP 372
DI 10.1108/JIMA-06-2015-0044
PD 2017
PY 2017
AB Purpose - Brand loyalty reveals about such important issues as brand
personality and brand bond. This study mainly examines the influence of
brand aura on brand loyalty management. The study aims to inform
strategic aspects of brand aura. The authors conduct an analysis of
prominent brands of sharia commercial brand saving product in Indonesia.
Design/methodology/approach - This study is an exploratory research,
using sample of 277 respondents of Islamic bank customers in five major
cities in Indonesia (Semarang, Yogyakarta, Surabaya, Bandung and
Jakarta). The data were analyzed using structural equation modeling
(SEM) technique with AMOS (analysis of moment structure) program to
examine the influence of brand religiosity aura toward brand loyalty.
Findings - The finding reveals the importance of brand aura as valuable
moderating dimension of brand personality and brand bond relationship.
The study found brand religiosity aura as a valuable determinant in the
marketing strategies for Indonesia Islamic banking. Brand religiosity
aura contributed to the development of the concept of marketing
management through its impact to the positive attitude of Islamic
banking saving customers.
Research limitations/implications - The authors describe conclusion with
a consideration of the findings' implications for conceptualizing future
researchs and practicing brand managers.
Originality/value - This study originates in conceptualizing the brand
religiosity aura to mediate the brand personality and brand emotional
attachment in brand management and marketing management as well as to
increase brand loyalty.
RI Fitriani, Nani/G-3025-2016
OI Fitriani, Nani/0000-0001-9746-0000
Z8 0
ZB 0
ZR 0
ZA 0
TC 8
ZS 0
Z9 8
U1 0
U2 5
SN 1759-0833
EI 1759-0841
UT WOS:000412071200003
ER
PT J
AU Oseni, Umar A.
TI Fatwa shopping and trust: towards effective consumer protection
regulations in Islamic finance
SO SOCIETY AND BUSINESS REVIEW
VL 12
IS 3
BP 340
EP 355
DI 10.1108/SBR-03-2017-0016
PD 2017
PY 2017
AB Purpose - This study aims to examine the phenomenon of Fatwa shopping,
its effect on consumer trust in Islamic finance products and the needfor
effective consumer protection regulations in the Islamic finance
industry.
Design/methodology/approach - The methodology used in this study is
qualitative research which draws significantly from relevant regulations
on financial consumer protection through analytical method to identify
common themes on Fatwa shopping and consumer trust in the relevant
literature.
Findings - This study finds that the increasing practice of Fatwa
shopping through clandestine searches by some Islamic banks to get their
new products endorsed by leading Shari'ah scholars requires proper legal
regulation to avoid a total erosion of trust in the entire Islamic
finance industry.
Research limitations/implication - Though Fatwa shopping is practiced in
the Islamic finance industry, it is always difficult to get some
desperate Islamic bankers to agree to this; hence, this study does not
portend to examine the evidence on Fatwa shopping, but it seeks to bring
to the fore the effect of Fatwa shopping on consumer trust in Islamic
financial services, and the need for effective consumer protection
regulations.
Practical implications - This study is expected to provide an invaluable
guide and policy framework for emerging and promising jurisdictions on
the need to regulate Fatwa shopping through an effective legal framework
based on some best practices identified in the study.
Originality/value - Though there have been a number of studies relating
to Fatwa shopping, focusing on the need for effective consumer
protection regulations in the Islamic finance industry will enrich the
existing literature and have significant implications for the future of
the industry.
ZA 0
Z8 0
TC 1
ZB 0
ZS 0
ZR 0
Z9 1
U1 1
U2 7
SN 1746-5680
EI 1746-5699
UT WOS:000414167300008
ER
PT J
AU Kashi, Aghilasse
Mohamad, Azhar
TI Does Musharakah Mutanaqisah converge with Bai Bithamin Ajil and
conventional loans?
VL 59
IS 5
BP 740
EP 755
DI 10.1108/IJLMA-04-2016-0044
PD 2017
PY 2017
AB Purpose - This study aims to examine the disputable Shari'ah and the
technical issues underlying the implementation of the Musharakah
Mutanaqisah partnership (MMP) model in home financing by Islamic banks
in Malaysia. It assesses whether this much-lauded facility is in line
with Shari'ah rules and whether it diverges from or converges to the
Bay' Bithaman Ajil (BBA) and conventional loan models.
Design/methodology/approach - This study uses a qualitative methodology
based on in-depth interviews to achieve these objectives.
Findings - With regard to the issue of convergence, it is obvious from
the interviewees' perceptions that the MMP model is converging with the
BBA and conventional housing loans.
Originality/value - Many factors were mentioned as the reasons for this
convergence, with the most important being that Islamic banks are not
operating in a fully fledged Islamic financial system, reducing the risk
weightage and regulatory restrictions. As for Shari'ah compliance,
controversy may result from the enhanced features that structure this
facility. Though these enhanced features are Shari'ah compliant, it
transforms theMMP model into a debt rather than a partnership contract.
RI Mohamad, Azhar/D-8591-2017
OI Mohamad, Azhar/0000-0002-1075-598X
ZS 0
ZA 0
ZB 0
ZR 0
Z8 0
TC 2
Z9 2
U1 0
U2 0
SN 1754-243X
EI 1754-2448
UT WOS:000411502600009
ER
PT J
AU Almutairi, Ali R.
Quttainah, Majdi Anwar
TI Corporate governance: evidence from Islamic banks
SO SOCIAL RESPONSIBILITY JOURNAL
VL 13
IS 3
BP 601
EP 624
DI 10.1108/SRJ-05-2016-0061
PD 2017
PY 2017
AB Purpose - This paper aims to examine the impact of Shari'ah supervisory
boards (SSBs) on the performance of Islamic banks (IBs). It also tests
whether SSBs' attributes affect the performance of IBs. Based on a
sample of 1,803 Islamic bank-year observations from 82 banks in 15
countries over the period 1993-2014 and controlling for factors known to
affect bank performance, this study reveals a robust and significant
positive relationship between SSBs and Islamic bank performance. This
study also shows that the characteristics of SSBs affect the performance
of IBs. This research reveals how SSBs influence the performance of IBs,
as well as the processes and roles SSBs use to ensure Shari'ah
compliance in business transactions.
Design/methodology/approach - The purpose of this study design is to
relate SSB presence, size and diversity to financial performance using
three techniques. The first technique is a multivariate data analysis
that analyzes data arising from more than one variable. The second
technique is a clustered regression (clustering by bank), which corrects
for serial correlation and produces unbiased t-statistics. Because this
sample is drawn from panel data, it is expected serial autocorrelation
of the independent variables and error term within banks. In cases where
within-company correlation exists, t-statistics based on average
regression coefficients from year-by-year regression are upwardly biased
and potentially severe (Peterson, 2009). Therefore, this study uses a
technique that agrees with Stock and Watson (2002), who show that the
standard method of calculating heteroskedasticity-robust standard errors
for the fixed-effects estimator generates inconsistent variance
estimates. Thus, using the clustered regression is consistent with the
fixed-effects estimator. The third technique is a two-stage
least-squares regression that helps build an instrumental variable for
robustness tests purposes.
Findings - The findings suggest that large corporate boards and large
SSBs are more efficient in dealing with different monitoring and
advisory roles than small SSBs. Consequently, this suggests that
increasing the size of corporate boards and SSBs should improve
monitoring and advisory functions, management behavior and
organizational performance.
Research limitations/implications - It is possible that there is an
upper limit to this benefit, however; we do not explore this limit,
which therefore provides opportunities for additional research. Because
Shari'ah compliance relates only to a rational legal framework of
negative screening relegated to interest prohibition and limiting
uncertainty. The interest prohibition and limiting uncertainty have not
been investigated between the two samples due to data unavailability. In
addition, limited accounting-based measures of financial performance may
not accurately portray IB performance; hence, an additional market
measure is implemented, which is Tobin's Q.
Practical implications - Ultimately, these findings could help IBs
improve their financial results by enhancing their internal and external
governance mechanisms (Walsh and Seward, 1990). They provide a basis for
developing larger, more diverse SSBs that are more focused on complying
with Shari'ah and corporate governance. The results also have
significant policy implications for improving firm-level corporate
governance versus improving country-level institutional factors. Both
views have their advocates. However, it is very difficult to reform the
legal system in a short time. Still, this study shows that struggling
IBs have a way to improve their corporate governance and simultaneously
improve their financing environment.
Originality/value - This research contributes to the literature on the
effects of SSBs on IBs' organizational financial performance, processes
and roles. It is the first to examine empirically the underpinnings of
how SSBs affect organizational financial performance via agency theory
and contingency theory.
ZS 0
TC 10
ZR 0
ZA 0
ZB 0
Z8 0
Z9 10
U1 1
U2 28
SN 1747-1117
EI 1758-857X
UT WOS:000407625200010
ER
PT J
AU Ali, Muhammad
Raza, Syed Ali
Puah, Chin-Hong
Abd Karim, Mohd Zaini
TI Islamic home financing in Pakistan: a SEM-based approach using modified
TPB model
SO HOUSING STUDIES
VL 32
IS 8
BP 1156
EP 1177
DI 10.1080/02673037.2017.1302079
PD 2017
PY 2017
AB The present study attempts to examine the Islamic home financing using
the modified theory of planned behavior model (TPB). Sample data of 375
are conveniently drawn from walk-in customers of Islamic banks located
in the biggest city Karachi. This study employed both exploratory factor
analysis and confirmatory factor analysis to confirm the validity and
reliability of the measurement model. The modified theoretical framework
was examined by applying the structural equation modeling using
frequently reported goodness-of-fit indices. The findings indicate that
the original constructs of TPB model, attitude (ATT), subjective norm
(SN) and perceived behavioral control has a positive and significant
impact on the customer intention to use Islamic home financing.
Furthermore, ATT is found to be the most influential factor in
determining the customer intention toward Islamic home financing. On the
other hand, we introduced two new factors, pricing on home financing
(PHF) and religious belief (RB), which proved their presence in the TPB
model by showing a significant impact on the customer intention to use
the facility of home financing. In addition, PHF has a negative impact
while religious belief has a positive relationship with the customer
intention to use Islamic home financing in Pakistan. This study also
suggests that the standard TPB model is successfully modified by
introducing PHF and RB factors. Therefore, Islamic bank managers should
consider this study to promote the Islamic home financing facility in
Pakistan.
RI PAN, ZEQIANG/X-6341-2018; Ali, Muhammad/AAL-3747-2020; Raza, Syed Ali/I-3879-
2016; Puah, Chin-Hong/O-9658-2018; Ali, Dr. Muhammad/
Muhammad/0000-0003-2929-8202
ZB 0
Z8 0
ZS 0
ZR 0
TC 5
ZA 0
Z9 5
U1 1
U2 13
SN 0267-3037
EI 1466-1810
UT WOS:000410843600007
ER
PT J
AU Trad, Naama
Rachdi, Houssem
Hakimi, Abdelaziz
Guesmi, Khaled
TI Banking stability in the MENA region during the global financial crisis
and the European sovereign debt debacle
SO JOURNAL OF RISK FINANCE
VL 18
IS 4
SI SI
BP 381
EP 397
DI 10.1108/JRF-10-2016-0134
PD 2017
PY 2017
AB Purpose - This paper aims to focus on the main determinants of the
performance and stability-banking sector in the Middle East and North
Africa (MENA) region during the global financial crisis. Using a data
set of 13 countries with both of 77 Islamic and 101 conventional banks
during the period 2006-2013, empirical results show that specific
variables allow explaining the change in the level of performance and
stability for conventional and Islamic banks. However, the effect of
some banks' characteristics is not the same for the two bank groups. For
the macroeconomic effect, it is observed that inflation exerts a
negative effect on the bank performance except for conventional banks
when it increases the profitability.
Design/methodology/approach - Using a data set of 13 countries with both
of 77 Islamic and 101 conventional banks (CvB) during the period
2006-2013 and performing the generalized method of moments (GMM) method,
the findings provide comprehensive evidence for the bank systems studied
which are of interest also to policy makers and practitioners.
Findings - The main finding is that after the international financial
crises of 2008, many worldwide banks have been experiencing crises in
contrast to Islamic banks (IsB) which remain Gen more stable and more
profitable. Foreign banks had a higher degree of exposure to risk, given
their higher number of subsidiaries in the developed economies. As for
the determinants of profitability, the bank-specific variables allow to
explain the change in the level of performance and stability for
conventional and Islamic banks. However, the effect of some banks
characteristics is not the same for the two bank groups. For the
macroeconomic effect, it is observed that inflation exerts a negative
effect on the bank performance except for CvB when it increases the
profitability measured by the return on assets (ROA). It is also found
that the growth rate acts positively when the dependent variable is the
ROA and negatively when the performance is measured by return on equity.
Originality/value - The inflation rate exerts a negative effect only on
the ROA. This study differs from previous contributions in that it is
tested the hypothesis of determinants of bank profitability and
stability for both conventional and Islamic banks in the MENA region. It
is of great interest to both policymakers and investors, with respect to
regional development policies and dedicated portfolio investment
strategies in each emerging region respectively. The authors adopted
several ratios from the empirical literature on bank profitability and
stability. Using a data set of 13 countries with both of 77 Islamic and
101 CvB during the period 2006-2013 and performing the GMM method, the
findings have significant contributions to the literature by
comprehensively clarifying and critically analyzing the current state of
profitability and stability for both banks.
RI Hakimi, Abdelaziz/AAQ-6750-2020
OI Hakimi, Abdelaziz/0000-0003-2715-0239
ZB 0
TC 1
ZS 0
ZA 0
Z8 0
ZR 0
Z9 1
U1 0
U2 4
SN 1526-5943
EI 2331-2947
UT WOS:000410818600003
ER
PT J
AU Abu Saleh, Md
Quazi, Ali
Keating, Byron
Gaur, Sanjaya S.
TI Quality and image of banking services: a comparative study of
conventional and Islamic banks
VL 35
IS 6
BP 878
EP 902
DI 10.1108/IJBM-08-2016-0111
PD 2017
PY 2017
AB Purpose - Bank customers' perceptions of service quality and service
image of Islamic banks may differ from those of conventional banks. The
purpose of this paper is to examine the differing perceptions of
customers of Islamic and conventional banking systems in an emerging
market, which has rarely been addressed and adds to the body of
knowledge on this topic. This study also re-examines the SERVQUAL model
of customer banking services to measure their impact on customer
satisfaction and loyalty.
Design/methodology/approach - The study uses responses from a randomly
drawn sample of 229 customers from conventional banks and 225 customers
from Islamic banks operating in Bangladesh using a structured
questionnaire. SPSS and structural equation modeling techniques were
employed as statistical tools for data analysis.
Findings - Overall, the examined service quality dimensions wield
varying effects on client satisfaction mediated through the perceived
image of banking services. Islamic bank customers' perceptions of the
level of reliability, responsiveness, security and reputation were
significantly higher than those of conventional banks.
Research limitations/implications - This study enhances our
understanding of how Islamic banking practices differ from those of
conventional banking in terms of service quality and image-related
factors. More specifically, the findings of this research explain
consumers' perceived assessment of satisfaction and loyalty in a
comparative research setting.
Originality/value - No prior studies have addressed the impact of the
individual service quality dimensions on image factors in the context of
conventional and Islamic banking in an emerging market, Bangladesh.
RI Gaur, Sanjaya/AAC-9504-2020; Keating, Byron/
OI Keating, Byron/0000-0003-4864-7789
ZS 0
TC 11
Z8 0
ZB 0
ZR 0
ZA 0
Z9 11
U1 3
U2 19
SN 0265-2323
EI 1758-5937
UT WOS:000408864900002
ER
PT J
AU Zakiah, Farah
Al-Aidaros, Al-Hasan
TI Customers' Islamic ethical behavior: the case of Malaysian Islamic banks
SO HUMANOMICS
VL 33
IS 3
SI SI
BP 371
EP 383
DI 10.1108/H-03-2017-0046
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to determine the framework of
customers' Islamic ethical behavior in Islamic banks in Malaysia.
Design/methodology/approach - This paper used a quantitative approach
based on Maqasid Shariah (objectives of Islamic law) and by running
exploratory factor analysis. A survey questionnaire was created. The
data of 530 respondents were collected from the customers of Islamic
banks located in Malaysia.
Findings - The findings revealed that the theoretical framework consists
of four main constructs: Islamic ethical behavior, religious obligation,
reputation and profit and investment, in which all constructs are
complying with Maqasid Shariah and three (i.e. Islamic ethical behavior,
religious obligation and reputation) consist of two components for each
construct.
Research limitations/implications - There are two limitations that
require further acknowledgements. First, the study population only
focused on Islamic banks' customers. Second, this research highlighted
only Malaysia and Malaysian citizens.
Originality/value - The paper contributes to the literature on Islamic
ethical behavior in Southeast Asian economy. Unlike other Islamic
ethical studies where the writing is mainly theoretical in nature, this
study used an empirical method to reveal what should constitute for the
framework of customers' Islamic ethical behavior which is based on
Maqasid Shariah.
ZR 0
ZB 0
Z8 0
ZS 0
ZA 0
TC 0
Z9 0
U1 0
U2 1
SN 0828-8666
EI 1758-7174
UT WOS:000408247800007
ER
PT J
AU Yanikkaya, Halit
Pabuccu, Yasar Ugur
TI Causes and solutions for the stagnation of Islamic banking in Turkey
VL 9
IS 1
BP 43
EP 61
DI 10.1108/IJIF-07-2017-005
PD 2017
PY 2017
AB Purpose - This paper aims to evaluate the root causes of stagnation of
the Islamic banking sector in Turkey in three steps and proposes
solutions and policy recommendations.
Design/methodology/approach - First, global Islamic banking practices in
terms of governance and instruments are summarised and compared with the
Turkish experience. Second, the financial and efficiency ratios of
Turkish Islamic banks (IBs) and conventional banks (CBs) are compared
and analysed for the period 2005 to 2015. Finally, the long-term growth
strategy of Turkish IBs is evaluated.
Findings - This paper asserts that Islamic banking in Turkey diverges
from Islamic banking practices of prominent countries by not having a
Shari. ah governance framework at either a national or bank level.
Turkey is thus immediately in need of a sound Shari. ah governance
framework. Increasing the variety of instruments and improving the
perception of Islamic banking in the society are other critical points.
Furthermore, regulatory and research institutions specifically focusing
on Islamic banking are insufficient. A large number of financial and
efficiency ratios reveal that the efficiency and profitability of IBs
fall behind that of CBs. IBs should improve their business models,
operational efficiencies and information technology infrastructure as
these issues are undervalued in their growth strategy.
Originality/value - This study sheds light on the Turkish Islamic
banking sector, which is a rarely studied topic. It is the first study
that provides institutional differences of banking practices and
evaluates the efficiency status and growth strategy of IBs in Turkey.
OI YANIKKAYA, Halit/0000-0003-1542-0174
TC 3
ZS 0
ZR 0
Z8 0
ZA 0
ZB 0
Z9 3
U1 0
U2 5
SN 0128-1976
EI 2289-4365
UT WOS:000406910700005
ER
PT J
AU Ashraf, Muhammad Adeel
Lahsasna, Ahcene
TI Proposal for a new Shari ah risk rating approach for Islamic banks
VL 9
IS 1
BP 87
EP 94
DI 10.1108/IJIF-07-2017-008
PD 2017
PY 2017
AB Purpose - Customers of Islamic banking industry continue to be skeptical
on Shari ah compliance of Islamic banks despite receiving fatwa from the
competent authorities. The purpose of this paper is to quantify the
Shari. ah risk taken by Islamic banks, so that customers are better
informed on the level of Shari. ah compliance that will help in removing
the persistent level of skepticism toward Shari. ah compliance.
Design/methodology/approach - This research has used the scorecard based
modeling approach to build the Shari ah risk rating model, which
consists of 14 factors that capture Shari ah risk and are grouped in 5
major areas revolving around regulatory support, quality of Shari ah
supervision, business structure, product mix and treatment of capital
adequacy ratio. The score calculated by applying the model is grouped
into 4 tiers reflecting the level Shari. ah compliance at bank as
non-compliant, weak compliance, satisfactory compliance and high level
of Shari ah compliance. Three case studies were conducted by applying
the model to Islamic banks fromMalaysia, Pakistan and Saudi Arabia.
Findings - The final Shari. ah risk scores calculated by the model
clearly differentiate the 3 banks on basis of their Shari ah risk. The
underlying scores also highlighted the areas where banks need to improve
to reduce their Shari ah risk.
Originality/value - This model can be applied by customers of Islamic
banks who are interested in understanding Shari ah-related aspects of
Islamic banking industry. This model can be applied on standalone basis
or as an extension to the conventional counter party risk rating models.
This model can benefit management of Islamic banks toward allocation of
capital against Shari ah risk under Basel III, and regulators can apply
the model to measure industry wide risk of Shari ah non-compliance.
Z8 0
ZS 0
ZB 0
TC 2
ZA 0
ZR 0
Z9 2
U1 0
U2 3
SN 0128-1976
EI 2289-4365
UT WOS:000406910700008
ER
PT J
AU Ahmad, Mahadi
Ansary, Riaz
TI O Fiqhi views on bay' wa salaf and qard-based Islamic banking deposit
accounts in Malaysia
VL 9
IS 1
BP 106
EP 112
DI 10.1108/IJIF-07-2017-011
PD 2017
PY 2017
AB Purpose - Islamic banks are obliged to carry out transactions that only
comply with Islamic commercial laws. Malaysia has been championing the
Shari. ah-based banking system, and so, continuous improvement on the
compliance level of the institutions offering Islamic financial services
is key to its global recognition in this industry. One of the issues
that can affect deposit products is existence of a sale contract and
loan facility in one transaction. Famous prophetic tradition prohibits
this. Hence, this paper aims to examine the linkage between bay' wa
salaf (combination between a sale contract and loan in one transaction)
and deposits accounts in Malaysia.
Design/methodology/approach - The subject matter of this paper is one
that is researchable within library-based research. It is on this
premise the research used the non-empirical qualitative research
methodology. It used inductive method of analysis of both Islamic and
policy documents on Islamic banking in Malaysia. Literature from Islamic
jurisprudence, websites of some of the Islamic banks in Malaysia and
relevant resolutions from the Shariah Advisory Council of Central Bank
of Malaysia were consulted.
Findings - Based on the methodology mentioned above, the researchers
arrived at the following findings: that, although there is no juristic
disagreement about the prohibition of bay. wa salaf, disagreement,
however, occurs in results of some contracts. The most notable area of
agreement on the existence of bay. wa salaf is when there is express
stipulation of sale or rendering of service and express or implied
stipulation of loan alongside of the sale or service rendering. In an
organized reversed tawarruq, the use of these deposits by the banks is
regarded as loan from the depositors to the banks, who will soon put the
money into sale that will generate profit to be divided between the
banks and their depositors. However, this study finds that this is not
bay. wa salaf prohibited by the prophetic tradition.
Originality/value - The originality of this topic is proven by the new
banking regulation regime of Malaysia, which compels Islamic banks to
guarantee all deposits under them. As Islamic banks carry out their
banking activities through trading, there is need to conduct a research
such as this. This is to examine whether Islamic banks' unilateral use
of depositors' funds in non-investment accounts which is translated,
constructively, as loan from the depositors to Islamic banks amounts to
bay. wa salaf before the future tawarruq. Here there is loan and sale,
which is the tawarruq. Hence, the need to do this research.
ZS 0
Z8 0
ZB 0
TC 0
ZR 0
ZA 0
Z9 0
U1 0
U2 4
SN 0128-1976
EI 2289-4365
UT WOS:000406910700011
ER
PT J
Haque, Md Mahmudul
Masih, Mansur
TI Re-Examining the Determinants of Islamic Bank Performance: New Evidence
from Dynamic GMM, Quantile Regression, and Wavelet Coherence Approaches
VL 53
IS 7
BP 1519
EP 1534
DI 10.1080/1540496X.2016.1250076
PD 2017
PY 2017
AB This study is the first attempt to conduct a comparative analysis of the
internal and external determinants of the Islamic banks' profitability
in the GCC region applying dynamic GMM, quantile regression, and wavelet
coherence approaches. The dynamic GMM tends to indicate that equity
financing and operating efficiency and macroeconomic variables such as
money supply, and inflation are significantly related to Islamic banks'
performance. The bank-specific variables such as credit risk, equity
ratio, and cost-efficiency ratios are not significant at different
percentiles. ROA is driven by credit risk, equity ratio, and
cost-efficiency ratios (as evidenced in wavelet coherence analysis).
ZB 0
ZA 0
Z8 0
ZS 0
ZR 0
TC 6
Z9 6
U1 1
U2 15
SN 1540-496X
EI 1558-0938
UT WOS:000407246400005
ER
PT J
AU Abdul-Baki, Zayyad
Uthman, Ahmad Bukola
TI Exploring the "social failures" of Islamic banks: a historical
dialectics analysis
VL 8
IS 3
BP 250
EP 271
DI 10.1108/JIABR-06-2014-0021
PD 2017
PY 2017
AB Purpose - This paper aims to argue that the current environment in which
the Islamic banking system is situated is not ideal for the system's
pursuance of its socioeconomic ideals, thus necessitating the system's
shift from pursuing falah to maximizing profits.
Design/methodology/approach - The paper theorizes and conceptualizes
this shift from falah to profit maximization using two complementary
theories - systems theory and institutional theory - to prove that such
a shift is not unexpected. The paper further adopts a dialectical
analysis that is somewhat historical to analyse the shift.
Findings - The measure of the Islamic banks' performance in terms of
their social ideals is misplaced, as the environment in which they
currently operate does not support such goals. Thus, stemming from the
theoretical base, the Islamic banks' pursuance of profit maximization
instead of falah should not be unexpected. The paper concludes that
despite the unfavorable environment, the social ideals of the Islamic
banking system may still be met, to an extent, through investment in
microfinance and awqaf.
Research limitations/implications - The paper adopts document analysis
for sourcing data majorly from prior studies. Hence, the authors do not
conclude that the analysis herein is applicable to all Islamic banks.
Secondly, as the authors could not get a complete historical account of
the Islamic banking system's development, some aspects of the
dialectical analysis - contradiction and change - have been discussed in
a general fashion.
Practical implications - The need for Islamic banks in the current
environment, especially for the Muslim population, cannot be over
emphasized; however, the achievement of falah given this current
environment may be daunting.
Originality/value - The current analyses of the shift of Islamic banks
from pursuing falah to pursuing profit maximization are not
well-defined, as they lack a proper theorization of the challenges faced
by Islamic banks. This paper fills this gap.
ZS 0
Z8 0
ZR 0
ZA 0
TC 0
ZB 0
Z9 0
U1 2
U2 8
SN 1759-0817
EI 1759-0825
UT WOS:000404819400001
ER
PT J
AU Rosly, Saiful Azhar
Naim, Muhammad Arzim
Lahsasna, Ahcene
TI Measuring Shariah non-compliance risk (SNCR): claw-out effect of
al-bai-bithaman ajil in default
VL 8
IS 3
BP 272
EP 283
DI 10.1108/JIABR-02-2016-0018
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine the meaning, nature
and measurement of Shariah non-compliant risk faced by Islamic banks.
Design/methodology/approach - Al-bai-bithaman ajil (BBA) contract
documentation is analyzed in the light of the legal environment in
Malaysia and measurement of Shariah non-compliant risk based on
constructed or hypothetical cases.
Findings - Shariah non-compliant risk will adversely affect bank's
earnings when BBA contracts are deemed invalid in the court of law,
either in a foreclosure or ruling via court declaration.
Research limitations/implications - The paper is written based on
content analysis, Malaysian legal cases with hypothetical examples for
better understanding.
Practical implications - Islamic banking should be able to use the
findings to estimate potential loss from Shariah non-compliant risk and
make the necessary provisions.
Originality/value - This paper provides new insights of risks faced by
credit-intensive Islamic banks, that when relinquishing critical
requirement of Islamic contract such as ownership risk will suffer loss.
TC 1
ZB 0
Z8 0
ZR 0
ZS 0
Z9 1
U1 0
U2 1
SN 1759-0817
EI 1759-0825
UT WOS:000404819400002
ER
PT J
AU Ahmed, Ishfaq
Nawaz, Muhammad Musarrat
Danish, Rizwan Qaisar
Usman, Ahmad
Shaukat, Muhammad Zeeshan
TI Objectives of Islamic banks: a missive from mission statements and
stakeholders' perceptions
VL 8
IS 3
BP 284
EP 303
DI 10.1108/JIABR-08-2014-0028
PD 2017
PY 2017
AB Purpose - It is believed that the core aim of Islamic institution is
idiosyncratic from conventional business entities. Considering this
presumption, this study aims to reveal the understandings of various
stakeholders about objectives of Islamic banks.
Design/methodology/approach - The research endeavor is based on the
findings of two distinctive studies, where Study 1 was aimed at
investigating the communication of objectives through mission statements
of Islamic banks and conventional banks with window operations. Here,
mission statements were analyzed using content analysis and readability
and understandability tests. Study 2, on the other hand, was aimed at
investigating the understandings of various stakeholders, both internal
(employees) and external (Muslim and non-Muslim customers of both
Islamic and conventional banks, employees and management of conventional
banks and business students). In total, 370 responses were received and
analyzed in this study.
Findings - The findings (Study 1) unveil, the fact, that the mission
statements of Islamic banks working in Pakistan are not good at
communicating the corporate goals clearly. Out of ten banks investigated
for Study 1, it is evident that only one bank (HBL, with window
operations) was at par with readability threshold standards. Thus, it
was imperative to share that mission statements of Islamic banks are
difficult to read and comprehend. Study 2 adds further by revealing that
most of the stakeholders are not clear about the objectives of these
banks, while customers of conventional banks do not value the
distinctive objectives of Islamic banks.
Research limitations/implications - This study leaves a valuable message
for the policy makers and top management of Islamic banks by focusing on
the unattended part on their end, i.e. quality of mission statements and
stakeholders' perception about the objectives of their organization,
thus highlighting the needs of greater emphasis on the communication
flow to stakeholders, as the clarity of business purpose may change the
way customers react toward the business and opt for banking customer
relation in future.
Originality/value - This study covers a multi-dimensional investigation
of the understanding and communication of objectives of Islamic banks.
There is dearth of literature focusing on the aspects of content
analysis, mission statement readability and understandability and
investigation of stakeholders' perception in tandem.
RI Ahmed, Ishfaq/AAH-9130-2019; Danish, Rizwan Q/I-5489-2016
OI Ahmed, Ishfaq/0000-0003-1980-5872;
ZA 0
ZB 0
Z8 0
ZS 0
ZR 0
TC 1
Z9 1
U1 2
U2 11
SN 1759-0817
EI 1759-0825
UT WOS:000404819400003
ER
PT J
AU Nawaz, Tasawar
TI INTELLECTUAL CAPITAL, FINANCIAL CRISIS AND PERFORMANCE OF ISLAMIC BANKS:
DOES SHARIAH GOVERNANCE MATTER?
VL 18
IS 1
BP 211
EP 226
PD 2017
PY 2017
AB This paper empirically examines the impact of intellectual capital (IC)
and Shariah governance on economic performance of 47 Islamic banks (IBs)
operating in the Gulf Cooperation Council (GCC) region in pre- and
post-financial crisis period. The analysis suggests that higher IC
efficiency helps IBs to improve their odds of survival at all times i.e.
before-and after-crisis. Further, higher IC efficiency helps IBs to
maintain their profitability i.e. ROA and market valuation i.e. Tobin's
Q at all times. Arguably, knowledge-resources i.e. IC is the main line
of defence for IBs against negative shocks. Lastly, the study reveals
that Shariah governance alone may fall short in explaining the growth
trends in Islamic finance industry.
TC 5
ZS 0
Z8 0
ZR 0
ZB 0
ZA 0
Z9 5
U1 0
U2 9
SN 1511-6670
UT WOS:000404764400013
ER
PT J
AU Usman, Hardius
Tjiptoherijanto, Prijono
Balqiah, Tengku Ezni
Agung, I. Gusti Ngurah
TI The role of religious norms, trust, importance of attributes and
information sources in the relationship between religiosity and
selection of the Islamic bank
VL 8
IS 2
BP 158
EP 186
DI 10.1108/JIMA-01-2015-0004
PD 2017
PY 2017
AB Purpose - This paper aims to examine the assumption used in previous
studies that all Muslims adopt and believe the same law on the
prohibition of bank interest and to investigate the indirect effect of
religiosity on customers' decision for using Islamic banking services.
Design/methodology/approach - This study uses an exploratory approach
and the natural experimental design with seemingly causal models. A
total of 363 questionnaires were distributed to three groups of bank
customers, i.e. Islamic banks customers, conventional banks customers
and customers of both banks (121 respondents in each group).
Findings - The results show that the role of religiosity in the
customers' decision for using the Islamic banking services depends on
religious norms variable. Religiosity affects the decision of customers
in the traditional group, but it does not have any effect for the
contemporary group. Other findings suggest that religiosity indirectly
affects the decision for using the Islamic banks through intervening
variables of trust and information source.
Originality/value - This is the first paper to investigate the
relationship between religiosity and customers' decision for using the
Islamic banking services by considering the religious norm variable.
This paper also examines indirect affects of religiosity to the Islamic
banks' choice through intervening variables of trust and information
source.
RI Balqiah, Tengku Ezni/AAQ-4617-2020; Balqiah, Tengku Ezni/Q-9311-2019; Balqiah,
Tengku Ezni/; Usman, Hardius/
OI Balqiah, Tengku Ezni/0000-0003-4668-149X; Usman,
Hardius/0000-0003-2797-1993
Z8 0
TC 20
ZR 0
ZS 0
ZA 0
ZB 0
Z9 20
U1 0
U2 3
SN 1759-0833
EI 1759-0841
UT WOS:000404561700001
ER
PT J
AU Altaf, Mohsin
Iqbal, Naveed
Mokhtar, Sany Sanuri Mohd.
Sial, Maqbool Hussain
TI Managing consumer-based brand equity through brand experience in Islamic
banking
VL 8
IS 2
BP 218
EP 242
DI 10.1108/JIMA-07-2015-0048
PD 2017
PY 2017
AB Purpose - The purposes of the study are to investigate the role of brand
experience in the generation of consumer-based brand equity (CBBE) in
Islamic banking and to identify the important components of brand
equity, in light of Aaker (1991) and Keller (1993), who combined effect
on brand loyalty to effectively manage CBBE in Islamic banking.
Design/methodology/approach - Paper and pencil technique was used to
collect data from the consumers of Islamic banking products. In total,
365 respondents were finally considered for data analysis. Convenient
sampling technique was used to collect data. Correlation, multiple
regression and hierarchical regression techniques were used with the aid
of SPSS and AMOS to analyse the data.
Findings - The results show that perceived quality, brand image, brand
experience, brand loyalty and brand awareness are positively associated
and have a significant influence on overall brand equity. Based on the
results, the study concludes that perceived quality is an important
variable in the management of CBBE in Islamic banking to improve overall
brand equity. Hence, it is concluded that perceived quality, brand
experience and brand image are the most important focusing areas from
CBBE in the management of Islamic banks' brand equity and cannot be
undervalued.
Practical implications - The research findings illustrate the importance
of brand experience and effects of overall brand equity dimensions in
the process of building strong brand equity of Islamic banks. Therefore,
this research has implications not only for experiential marketing but
also for human resource managers and brand managers. The scope of the
present study is limited only to the consumers of Islamic banks products
of Malaysia and Pakistan.
Originality/value - Brand management literature focused on the
components of brand equity model and its importance in creating overall
brand equity. Previous studies are yet to investigate the combined
effect of brand equity components (perceived quality, brand awareness,
brand image and brand loyalty) to manage overall brand equity.
Therefore, the present research fills the gap by investigating the
combination of best brand equity components that are very effective to
manage brand loyalty and overall brand equity. Second, this study
investigates the impact of brand experience on CBBE components in
Islamic banking which has not been tested before in Islamic banking.
RI Sial, Maqbool/AAR-8841-2020; Altaf, Mohsin/A-9874-2012
OI Altaf, Mohsin/0000-0002-7377-7801
ZS 0
ZR 0
TC 8
Z8 0
ZA 0
ZB 0
Z9 8
U1 1
U2 11
SN 1759-0833
EI 1759-0841
UT WOS:000404561700004
ER
PT J
AU Mohammed, Sulaiman Abdullah Saif Al-Nasser
Muhammed, Datin Joriah
TI Financial crisis, legal origin, economic status and multi-bank
performance indicators Evidence from Islamic banks in developing
countries
SO JOURNAL OF APPLIED ACCOUNTING RESEARCH
VL 18
IS 2
BP 208
EP 222
DI 10.1108/JAAR-07-2014-0065
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to investigate the performance of
Islamic banks in developing countries from 2007 to 2010 which includes
the period of the financial crisis by empirically examining the way in
which the macroeconomy affected Islamic banking performance (IBP) in
developing countries. The empirical examination involves two approaches
of measuring performance: Sharia-based and conventional-based
performance measurement.
Design/methodology/approach - For this paper, the authors have utilized
a Data Stream/Bank Scope database and data from the Bank Negara Malaysia
(Malaysian Central Bank) to collect a panel set of annual financial
information for Islamic banking from the year 2007-2010. The initial
sample covers 34 Islamic banks from developing countries that are listed
on the International Islamic Service Board. Furthermore, the authors
adopted only those listed Islamic banks to tackle the data availability
issue. The authors' final sample comprised 136 observations with
complete data as the numbers of Islamic banks in developing countries
are low in comparison to their conventional peers. The financial crisis
dummy follows America's commonly used National Bureau of Economic
Research timeline for the financial crisis. The authors also used the
method of a generalized least square (GLS) method of pooled panel data
analysis regression model. The rationale for employing the GLS technique
was made on the basis of the ability of GLS to give less weight to the
error term that is closely clustered around the mean, to improve the
goodness of fit and to remove autocorrelation compared with normal,
random, and fixed effect models.
Findings - The authors of this paper found that the macroeconomic
factors reflected in gross domestic product, gross domestic product
growth, and inflation rate have a significant positive relationship with
the return on assets. In addition, a significant negative relationship
was found between the financial dummy and IBP in developing countries.
On the other hand, it failed to find evidence of a relationship between
the macroeconomic factors and performance including the legal system and
the financial crisis dummy, when the performance is reflected by the
Zakat ratio. The result embedded that the financial crisis had an impact
on the performance of Islamic banks in developing countries when viewed
from the conventional banking perspective. The financial crisis played a
role in reducing the profitability of Islamic banks which is consistent
with a previous study by Hasan and Dridi (2011). However, in the view of
Sharia, the financial crisis did not have any effect on IBP; even the
macro factors did not have any effect on the level of performance.
Research limitations/implications - There are possible explanations for
these contradictory coefficient signs. First, the contradictory signs of
the coefficient for the same independent variable that was regressed
with different dependent variables show that researchers would need to
take caution in using the right indicators when measuring IBP.
Conventional indicators bring different results in comparison to Islamic
indicators (Badreldin, 2009; Mudiarasan. Kuppusamy, 2010; Zahra and
Pearce, 1989). Second, Richard et al. (2009), having reviewed
performance measurement-related publications in five of the leading
management journals (722 articles between 2005 and 2007), suggested that
the past studies reveal a multidimensional conceptualization of
organizational performance with limited effectiveness of commonly
accepted measurement practices. Accordingly, these studies call for more
theoretically grounded research and debate for establishing which
measures are appropriate in a given research context. Today, there is a
general consensus that the old financial measures are still valid and
relevant (Yip et al., 2009). However, these needbe balanced with more
contemporary, intangible, and externally oriented measures. It has been
argued that various researchers working in their own disciplines using
functional performance measures (such as market share in marketing,
schedule adherence in operations and so on) ought to link their
discipline to focused performance measures of overall organizational
performance.
Practical implications - Islamic banking has unique characteristics in
comparison to conventional banking and this paper examines the
differences between the two and also investigates the resilience of
Islamic banks during a period of economic turbulence. Furthermore, due
to these unique characteristics, a comparison cannot be made by using
the conventional performance measures alone. In addition, amid the
in-depth studies examining the resilience of Islamic banks during
periods of economic crises, there are instances of theoretical
disagreement in the extant empirical literature examining finance and
economics. In that regard, the majority of the existing literature is
either based on advanced markets or countries where the majority of the
population practices the faith of Islam, and little is known about the
performance of Islamic banking from the pooled emerging markets;
particularly in developing countries.
Originality/value - Introducing Zakat as a performance measurement in
Islamic banking context relating it to macroeconomic factors enhances
the thinking of new research in Islamic theory about bank performance.
RI Nasser, Sulaiman/H-6543-2011
ZS 0
ZR 0
TC 2
Z8 0
ZB 0
ZA 0
Z9 2
U1 0
U2 17
SN 0967-5426
EI 1758-8855
UT WOS:000402924600003
ER
PT J
AU Nawaz, Tasawar
Haniffa, Roszaini
TI Determinants of financial performance of Islamic banks: an intellectual
capital perspective
VL 8
IS 2
BP 130
EP 142
DI 10.1108/JIABR-06-2016-0071
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to empirically examine the effect
of intangible resources, i.e. intellectual capital (IC) on financial
performance of 64 Islamic financial institutions (IFIs) operating in 18
different countries for the period 2007-2011, while controlling for
firm-specific variables, namely, bank size, level of risk, listing
status, and firm complexity.
Design/methodology/approach - The required data to calculate different
constituents of IC are derived from Bankscope database. Value Added
Intellectual Coefficient (VAIC) methodology devised by Pulic is used to
determine the impact of IC on financial performance of IFIs.
Findings - Results indicate a significant positive relationship between
VAIC and accounting performance based on return on assets (ROA). The
results further indicate a significant positive relationship between
accounting performance and capital employed efficiency (CEE) and human
capital efficiency (HCE), but no significant relationship with regards
to structural capital efficiency. Overall, the results suggest that
value creation capability of IFIs is highly influenced by HCE and CEE.
Research limitations/implications - The main limitation of the present
study lies in its methodological tool, the VAIC methodology, which has
been criticized by some researchers as not really measuring IC. Despite
the inherent limitation of the VAIC methodology which relies on
secondary data published in annual reports, it is still considered by
some researchers as one of the best available tool to measure firms' IC
in the absence of access to detailed internal information on IC.
Practical implications - The findings may serve as a useful input for
Islamic bankers in managing their investments in IC within their
institutions.
Originality/value - The main contribution of this paper is to use a
previously little-studied area, Islamic banking and finance, to identify
the effect of intellectual capital on performance.
ZB 0
Z8 0
ZR 0
TC 16
ZA 1
ZS 1
Z9 18
U1 1
U2 26
SN 1759-0817
EI 1759-0825
UT WOS:000401065900001
ER
PT J
AU Fakhfakh, Mondher
TI The harmonization of audit reports of Islamic banks An advanced and
original empirical investigation
VL 8
IS 2
BP 203
EP 228
DI 10.1108/JIABR-05-2014-0016
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine the level of
harmonization of auditors' reports issued by independent auditors of
Islamic banks.
Design/methodology/approach - The homogenization of the auditors'
reports of Islamic banks has been statistically measured. Supranational
auditing standards on auditors' reports (ISA 700 and AAOIFI standard)
are used as the control.
Findings - The results show lack of harmonization in several elements
related to the form of the auditor's report and in all elements related
to the content of the auditor's report among the Islamic banks.
Originality/value - This paper provides new empirical evidence about the
measurement of harmonization in the form and content of the auditors'
reports of Islamic banks. It discusses the level of compliance with the
elements enumerated by the standards issued by the International
Federation of Accountants and the Accounting and Auditing Organization
for Islamic Financial Institutions.
Z8 0
ZR 0
ZB 0
ZS 0
ZA 0
TC 1
Z9 1
U1 1
U2 11
SN 1759-0817
EI 1759-0825
UT WOS:000401065900005
ER
PT J
AU Mukhlisin, Murniati
TI Unveiling IASB standardization projects and its influence on the
position of Takaful Industry in Indonesia
VL 8
IS 2
BP 229
EP 247
DI 10.1108/JIABR-06-2015-0025
PD 2017
PY 2017
AB Purpose - This paper aims to explore the alignments of the Takaful
industry between the Islamic and the International Financial Reporting
Standards (IFRS) requirement and the subsequent social and political
consequences.
Design/methodology/approach - Meta-analysis of thorough examination of
1* to 4* relevant peer-reviewed journals in the academic journal guide
2015 of the Association of Business School from the period when first
IFRS was issued in 2005 to 2012 and where Indonesia declared to fully
adopt IFRS. The examination also includes some other appropriate
Indonesian and Islamic accounting publications. The paper employs
comparative analysis between IFRS, Auditing Organization for Islamic
Financial Institution and the financial reporting standards practiced by
Takaful industry to examine the hindrance towards the standardization
process.
Findings - It is shown that the literature emphasis not only on the
technical matters related to financial reporting standardization but
also on the complex arrangement in different country settings. Learning
from Indonesian experience, the literature suggests that neo-liberalism
is piercing through different parts of economic and political setting of
the country's infrastructural powers leading up to the influence of
financial reporting standardization process.
Originality/value - The paper contributes to the existing ontological
arguments whether the Takaful industry is a mere business entity that
has no specific requirements for financial reporting standards.
OI Mukhlisin, Murniati/0000-0002-7807-7628
Z8 0
ZB 0
ZA 0
ZS 0
ZR 0
TC 0
Z9 0
U1 0
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000401065900006
ER
PT J
AU Al-Jarrah, Idries M.
Al-Abdulqader, Khalid S.
Hammoudeh, Shawkat
TI Cost-efficiency and financial and geographical characteristics of
banking sectors in the MENA countries
VL 49
IS 35
BP 3523
EP 3537
DI 10.1080/00036846.2016.1262524
PD 2017
PY 2017
AB We utilize the translog stochastic frontier model to estimate the
cost-efficiency levels for conventional and Islamic, Cooperation Council
(GCC) and non-GCC banks in the Middle East and North African (MENA)
countries. The estimated cost-efficiency averages around 77% for those
MENA banks, but with slight changes in this score for the individual
countries. The results also show that the banks in the GCC countries are
the most efficient in the region and the efficiency scores for the
conventional and Islamic banks are similar. Finally, the recent
financial crisis seems to have a slight impact on the observed
efficiency scores of those banks.
OI Al-Jarrah, Idries/0000-0002-5486-7107
ZB 0
ZR 0
ZA 0
ZS 0
TC 0
Z8 0
Z9 0
U1 0
U2 4
SN 0003-6846
EI 1466-4283
UT WOS:000400598000004
ER
PT J
AU Nawaz, Tasawar
TI Momentum investment strategies, corporate governance and firm
performance: an analysis of Islamic banks
SO CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY
VL 17
IS 2
BP 192
EP 211
DI 10.1108/CG-03-2016-0052
PD 2017
PY 2017
AB Purpose -The purpose of this paper is to empirically examine the effect
of investments in organisational resources and corporate governance
features on market-based performance of Islamic banks (IBs).
Design/methodology/approach -The required data to calculate different
constituents of banks' investment strategies and governance mechanism
were hand collected from 268 annual reports. Different regression models
were used to determine the impact of investment in human and structural
capital and corporate governance features on market performance of IBs.
Findings -The paper finds that investments in knowledge resources (human
capital, in particular) have a significantly positive impact on the
market value of IBs. The results further reveal that IBs' strategy to
rely on long-term human capital accumulation can be seen as
idiosyncratic problem-solving knowledge capital. Based on market
measure, the paper finds role duality to have a significant positive
impact and the size of the advisory board to have the opposite effect on
market value.
Research limitations/implications -This study includes IBs only and
ignores other Islamic financial services providers such as Takaful
(insurance) companies. The study leaves this chasm to be filled by
future researchers.
Practical implications -The findings may serve as a useful input for
both Islamic bankers and regulators to apply knowledge management in
their institutions. Furthermore, the dominant role of human capital also
provides insight to managers with respect to business performance
levers.
Originality/value -The main contribution of this paper is to provide
insight into the Islamic banking business model using a unique
hand-collected data set, to identify the effect of investments in
organisational resources and bank governance on market value in before,
during and after financial crisis.
ZA 0
Z8 0
ZS 0
ZB 0
TC 6
ZR 0
Z9 6
U1 1
U2 29
SN 1472-0701
EI 1758-6054
UT WOS:000399036800002
ER
PT J
AU Abdul-Wahab, Abdul-Hamid
Haron, Razali
TI Efficiency of Qatari banking industry: an empirical investigation
VL 35
IS 2
BP 298
EP 318
DI 10.1108/IJBM-07-2016-0090
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to examine the efficiency of the
banking sector in Qatar. The paper utilizes 15 banks comprising Islamic,
conventional and foreign banks for the duration of 2007 to 2011.
Design/methodology/approach - Data envelopment analysis (DEA) technique
is applied to compute technical efficiency, pure technical efficiency
and scale efficiency. Also, Malmquist productivity index (MPI) is used
to identify the sources of productive efficiencies of the banks.
Findings - The results suggest that Qatari banks are operating below
optimum performance and thus there is still room for improvement. While
conventional banks are the most efficient in Qatar in terms of technical
and pure technical efficiencies, Islamic banks are most efficient in
terms of scale efficiency. Besides, pure technical inefficiency
dominated scale inefficiency in the Qatari banking sector. Moreover, as
compared to the Islamic banks, conventional and foreign banks recorded a
reduction in average technical efficiency during the duration of the
2008/2009 global financial crisis. In terms of productivity progress,
all the Qatari banks were experiencing a decline in productivity mainly
attributed to less technological innovation in the banking sector of
Qatar.
Research limitations/implications - Most of the banks in Qatar do not
have published data before 2007 and after 2011.
Practical implications - There is less technological innovation in the
banking sector of Qatar. Hence, bank managers in Qatar should focus on
educating customers about modern banking technologies and other
innovative banking services in Qatar.
Originality/value - This study is a pioneering effort in the application
of DEA and MPI to study about the banking sector in Qatar.
RI Haron, Razali/AAG-3205-2019
OI Haron, Razali/0000-0003-0415-4093
TC 5
ZS 0
ZB 0
Z8 0
ZR 0
ZA 0
Z9 5
U1 2
U2 10
SN 0265-2323
EI 1758-5937
UT WOS:000399054400008
ER
PT J
AU Wahid, Muhamad Azhari
TI Comparing the competition of Malaysia Islamic and conventional banks
Evidence surrounding the global financial crisis
VL 8
IS 1
BP 23
EP 40
DI 10.1108/JIABR-06-2015-0022
PD 2017
PY 2017
AB Purpose - This study aims to analyse three main questions within the
Malaysian banking system: Are Islamic banks more competitive than
conventional banks? What are the levels of competition for Islamic and
conventional banking sectors pre, during and post the 2007-2009 global
financial crisis? Does penetration of Islamic banks affect the
competitive structure of conventional banks?
Design/methodology/approach - In measuring a bank competition, the
author estimates the PanzarRosse H-statistic (PRH) method on 17 Islamic
and 21 conventional banks in Malaysia over the period of 2004-2013. This
is then followed by ordinary least squares (OLS) robust regression
analysis to control Islamic banks' penetration, bank-specific and
macroeconomic factors.
Findings - Results from the PRH method (total revenue) suggest that
Malaysian Islamic banks are relatively more competitive than their
conventional counterparts. Furthermore, the author observes that the
level of competition for both Malaysian Islamic and conventional banks
increased tremendously during the 2007-2009 global financial crisis.
This suggests the impact of the crisis on the level of competition for
both banking systems. Finally, the OLS robust regression suggests that
Islamic banks' penetration has a significantly positive impact on the
level of competition for conventional banks. The PRH estimation using
total interest income indicates similar results, suggesting the
robustness of these results.
Practical implications - This study reveals whether Islamic banks'
penetration is able to increase the level of competition within the
conventional banking sector. Knowledge on this is important to the
policymaker.
Originality/value - To the best of the author's knowledge, this is the
first study using the PRH method in comparing the level of competition
for Malaysian Islamic and conventional banks. Furthermore, this is the
first study analysing the impact of Malaysian Islamic banks' penetration
on the level of competition for conventional banks.
OI Wahid, Muhamad Azhari/0000-0002-9984-9412
ZA 0
ZS 0
Z8 0
ZB 0
TC 1
ZR 0
Z9 1
U1 1
U2 5
SN 1759-0817
EI 1759-0825
UT WOS:000398665600002
ER
PT J
AU Atmeh, Muhannad Ahmed
Maali, Bassam
TI An accounting perspective on the use of combined contracts and donations
in Islamic financial transactions
VL 8
IS 1
BP 54
EP 69
DI 10.1108/JIABR-07-2014-0024
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to investigate the techniques
used by Islamic financial institutions (IFIs) to shift conventional
instruments to Shariah-compliant instruments. The paper additionally
aims to explore the effect of these techniques on financial reporting.
Design/methodology/approach - The study recognized two techniques used
by the IFI: the combination of contracts which compartmentalizes the
economic transaction into a series of linked sub-transactions, and the
inclusion of donation (Tabarru) in commercial contracts. The paper also
reviews the accounting treatment according to the Accounting and
Auditing Organization for Islamic Financial Institutions (AAOIFI), and
compares it to the concepts adopted by the traditional financial
reporting framework concepts (especially substance over form concept).
Findings - With regard to the combination of contracts technique, the
major accounting challenge is whether the substance over form concept is
considered. Mixed results are found: in some products, the economic
substance is presented in the financial reports, while in other cases,
the legal form of the contract is reported. This ambiguity may hinder
the faithful representation of financial statements. The Tabarru
contract is used to justify the risk-shifting practices by Islamic
banks. The accounting effects of such contracts may result in failure to
recognize assets or liabilities in the financial reports, earnings
management and incomplete financial information for the users of the
financial reports.
Originality/value - This study is a response to the call raised by the
consultative group established by the International Accounting Standards
Board. It provides an additional insight into the accounting treatments
for a combination of contracts and Tabarru contracts. It also contrasts
the accounting treatments, as stipulated by the AAOIFI, with the
conventional accounting frameworks.
RI Maali, Bassam/AAG-6757-2019; atmeh, muhannad a/B-6757-2015
OI Maali, Bassam/0000-0001-7000-8874;
TC 1
ZS 0
Z8 0
ZR 0
ZA 0
ZB 0
Z9 1
U1 0
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000398665600004
ER
PT J
AU Megeid, Nevine Sobhy Abdel
TI Liquidity risk management: conventional versus Islamic banking system in
Egypt
VL 8
IS 1
BP 100
EP 128
DI 10.1108/JIABR-05-2014-0018
PD 2017
PY 2017
AB Purpose - This research aims to analyze and compare the effectiveness of
liquidity risk management of Islamic and conventional banking in Egypt
to ascertain which of the two banking systems are performing better.
Design/methodology/approach - A sample of six conventional banks (CBs)
and two Islamic banks (IBs) in Egypt was selected. Using the liquidity
ratios, the investigation involves analyzing the financial statements
for the period of 2004-2011. The data were obtained from Bank scope
database.
Findings - The research found that in Egypt, CBs perform better in terms
of liquidity risk management than IBs. The liquidity risk management
significant differences between IBs and CBs could be attributed more
cash availability to CBs than to IBs, in addition, Egyptian Central Bank
regulations on capital and liquidity requirements for IBs disconcert
IBs' performance.
Practical implications - This research facilitates the bankers,
academician, scholars and bankers to have an alluded picture about
Egyptian banking developments in liquidity risk management. The results
can be used by bankers' policy decision-makers to improve and enhance
their consideration for liquidity risk management.
Originality/value - This research covers a period and a country that
compares CBs' and IBs' liquidity risk management. Its value is
attributed to the increasing differentiation between CBs and IBs.
TC 3
ZB 0
Z8 0
ZR 0
ZS 0
ZA 0
Z9 3
U1 0
U2 3
SN 1759-0817
EI 1759-0825
UT WOS:000398665600007
ER
PT J
AU Abou-El-Sood, Heba
El-Ansary, Osama
TI Asset-liability management in Islamic banks: evidence from emerging
markets
SO PACIFIC ACCOUNTING REVIEW
VL 29
IS 1
BP 55
EP 78
DI 10.1108/PAR-04-2016-0050
PD 2017
PY 2017
AB Purpose - Motivated by massive bank failures during the financial crisis
and the remarkable resilience of Islamic banks (IBs), this paper aims to
analyze the interdependencies between asset/liability portfolio choices
of IBs in emerging markets.
Design/methodology/approach - The authors collect data from the
financial statements of IBs in the Middle East and North Africa region
and Southeast Asia during the period 2002-2012. Using canonical
correlation analysis, the authors investigate the degree of
interdependencies between the asset/liability accounts unique to IBs and
how their ALM models work at times of economic turmoil.
Findings - IBs tend to make decisions on sources of finance based on
their asset portfolio choices. The interdependencies are stronger for
small banks. IBs direct more of their investments to risk-mitigating
instruments that share the risk with the borrower/client and are based
on the purchase and sale of real goods rather than financial
instruments. Additionally, banks tend to rely less on equity to finance
their investments during economic boom and increase their equity
holdings during economic bust.
Practical implications - This paper contributes to research on an
under-researched, globally growing finance sector. It extends research
on ALM while providing novel evidence using non-standardized
asset/liability accounts unique to IBs.
Originality/value - The analysis of unique accounts has not been
discussed in prior studies, which mainly used standardized account
balances to compare Islamic and conventional banks. Moreover, the
resilience of IBs and whether their ALM models are superior at times of
turmoil has remained a black box. The results of this study are relevant
to unravel this unanswered question.
Z8 0
TC 3
ZR 0
ZB 0
ZA 0
ZS 0
Z9 3
U1 1
U2 8
SN 0114-0582
EI 2041-5494
UT WOS:000398661100003
ER
PT J
AU Alam, Nafis
Parinduri, Rasyad A.
TI Do Islamic banks shift from mark-up to equity financing when their
contracting environments are improved?
VL 24
IS 8
BP 545
EP 548
DI 10.1080/13504851.2016.1210759
PD 2017
PY 2017
AB Islamic banks should share their profits and losses with their customers
through equity financing but most of their assets are mark-up financing,
which resembles loans. Theoretically, one of the reasons is Islamic
banks operate in poor contracting environments where equity financing is
very risky. Using fixed-effects models, we examine whether better
contracting environments induce Islamic banks to shift from mark-up to
equity financing. We find no evidence that contracting environments do,
which means debt-like instruments will continue dominating Islamic
banks' assets in the near future.
RI Parinduri, Rasyad A./E-9684-2011; Alam, Nafis/D-5071-2014
OI Parinduri, Rasyad A./0000-0001-7540-8906; Alam,
Nafis/0000-0002-7096-3692
ZR 0
TC 3
ZB 0
ZS 0
ZA 0
Z8 0
Z9 3
U1 2
U2 9
SN 1350-4851
EI 1466-4291
UT WOS:000395102200008
ER
PT J
AU Jawadi, Fredj
Jawadi, Nabila
Ben Ameur, Hachmi
TI Does Islamic banking performance vary across regions? A new puzzle
VL 24
IS 8
BP 567
EP 570
DI 10.1080/13504851.2016.1210764
PD 2017
PY 2017
AB This article investigates the performance of Islamic banks (IBs) across
four different regions (Egypt, the Gulf, the UK and the US) in the
aftermath of the subprime crisis. Using daily data and two performance
ratio proxies (ROA (Return on Asset) and Tobin Q), we show that the
performance of IBs varies significantly from one region to another, with
the highest level for regions in the West. This result suggests a new
puzzle as application of the same Sharia Board rules and sales of
similar products should normally provide comparable performance outcomes
for IBs.
TC 2
Z8 0
ZS 0
ZB 0
ZR 0
ZA 0
Z9 2
U1 0
U2 9
SN 1350-4851
EI 1466-4291
UT WOS:000395102200013
ER
PT J
AU Oseni, Umar A.
Omoola, Sodiq O.
TI Prospects of an online dispute resolution framework for Islamic Banks in
Malaysia An empirical legal analysis
VL 25
IS 1
BP 39
EP 55
DI 10.1108/JFRC-07-2016-0055
PD 2017
PY 2017
AB Purpose - This study aims to examine the prospects of using an online
dispute resolution (ODR) platform for resolving relevant Islamic banking
disputes in the usual banker-customer relationship in Malaysia. It is
argued that through proper regulation, such innovative dispute
management mechanism would not only address some legal risks associated
with banking disputes but could also prevent reputational risks in the
Islamic financial services industry.
Design/methodology/approach - Based on an internet survey, responses
were obtained from about 109 respondents in Malaysia. The data obtained
were subjected to multivariate statistical analyses considering factors
such as access to justice, attitude of stakeholders, resolving disputes,
practical issues and understanding of ODR.
Findings - The results obtained showed that "access to justice",
"attitude of stakeholders" and "resolving disputes" are the most
influencing factors affecting the intention to use ODR among
stakeholders, particularly customers and bankers in the Islamic
financial services industry in Malaysia.
Practical implications - This study provides a way in which the recently
introduced Islamic Financial Services (Financial Ombudsman Scheme)
Regulations 2015 can be better enhanced to cater for internet banking
disputes which might require an ODR framework.
Originality/value - Though there have been numerous studies on the
dispute resolution framework in the Islamic banking industry in Malaysia
generally, the current study focuses on a less explored framework ODR -
a new framework for handling banking disputes.
OI Omoola, Sodiq/0000-0003-4856-7930
Z8 0
TC 1
ZS 0
ZB 0
ZA 0
ZR 0
Z9 1
U1 1
U2 12
SN 1358-1988
EI 1740-0279
UT WOS:000396546900003
ER
PT J
AU Amin, Hanudin
Rahman, Abdul Rahim Abdul
Razak, Dzuljastri Abdul
Rizal, Hamid
TI Consumer attitude and preference in the Islamic mortgage sector: a study
of Malaysian consumers
SO MANAGEMENT RESEARCH REVIEW
VL 40
IS 1
BP 95
EP 115
DI 10.1108/MRR-07-2015-0159
PD 2017
PY 2017
AB Purpose - The purpose of this study is to investigate the effects of
service quality, product choice and Islamic debt policy on consumer
attitude within the context of Islamic mortgage sector in Malaysia. The
present study also examines the effect of attitudinal-behaviour on
consumer preference towards preference of Islamic mortgage selection.
Design/methodology/approach - The study is based on questionnaire
survey. Data are collected using sample from customers of Islamic banks
in Malaysia. The study collects 351 respondents. Data are analysed using
partial least squares (PLS).
Findings - The results indicate that service quality, product choice and
Islamic debt policy significantly influence consumer attitude, in turn,
affecting the Islamic home financing preference. Consumer attitude also
mediates the effects of service quality, product choice and Islamic debt
policy on the Islamic home financing preference.
Research limitations/implications - Several limitations warrant future
research. First, this study considers only a specific user group in one
public university. Second, this study does not consider attitude as a
moderator. Third, this study suffers from the limited number of factors
used. These limitations, however, provide directions for future
research.
Practical implications - Our results will add value to the consumer
preference topic for Islamic home financing literature. The present
study provides bank managers with valuable insights into better planning
of Islamic home financing services in Malaysia.
Originality/value - This study is a pioneering effort at exploring
consumer attitude and preference from the context of Islamic mortgage
sector in Malaysia. The use of PLS analysis provides another important
contribution to the literature in this area.
RI Hamid, Rizal/L-3842-2013; Amin, Hanudin/I-1176-2017
OI Amin, Hanudin/0000-0003-3645-287X
ZR 0
ZA 0
ZS 0
Z8 0
TC 17
ZB 0
Z9 17
U1 1
U2 5
SN 2040-8269
EI 2040-8277
UT WOS:000395703100007
ER
PT J
AU Kholvadia, Faatima
TI Islamic banking in South Africa - form over substance?
SO MEDITARI ACCOUNTANCY RESEARCH
VL 25
IS 1
BP 65
EP 81
DI 10.1108/MEDAR-02-2016-0030
PD 2017
PY 2017
AB Purpose The purpose of this study is to understand the economic
substance of Islamic banking transactions in South Africa and to analyse
whether the economic substance is closely related to the legal form.
Additionally, this study highlights the similarities and differences in
the execution of Islamic banking transactions across different South
African banks. The transactions analysed are deposit products of qard
and Mudarabah and financing products of Murabaha, Ijarah and diminishing
Musharaka.
Design/methodology/approach - The study was conducted through interviews
with representatives from each of the four South African banks that
offers Islamic banking products. Interviews were semi-structured and
allowed interviewees to voice their perspectives, increasing the
validity of the interviews.
Findings - The study found that specific Shariah requirements of Islamic
banking transactions are considered and included in the legal structure
of the contracts by all four banks offering Islamic banking products.
However, the economic reality of these transactions was often
significantly different from its legal form and was found to,
economically, replicate conventional banking transactions. The study
also found that all four banks offer Islamic banking products under the
same Shariah principles, but in some instances (e.g. diminishing
Musharaka), execute these transactions in different ways. This study is
the first of its kind in South Africa.
Research limitations/implications - While safeguards have been used to
ensure the reliability and validity of the research, there remain a few
inherent limitations which should be noted: interviewees, while chosen
for their expertise and level of knowledge, may provide highly technical
insight which may be difficult to interpret. Detailed technicalities
were therefore excluded from this research. The regulatory environment
of banks in South Africa, for example, regulation imposed by the
Financial Service Board on all financial institutions in South Africa,
has not been explored. However, the regulatory environment was brought
to the readers' attention to help illustrate certain themes. This
research uses only Shariah requirements as detailed in Section 2.2 to
analyse transactions. Fatwas (rulings) issued by the Shariah Boards of
South African Islamic banks have not been included in this study and may
be an area of future research.
Originality/value - This study is the first of its kind in South Africa.
The study adds to the Islamic banking literature by analysing the real
execution of Islamic banking transactions rather than the theoretical
compliance with Shariah law.
Z8 0
ZA 0
ZR 0
ZS 0
TC 5
ZB 0
Z9 5
U1 1
U2 2
SN 2049-372X
EI 2049-3738
UT WOS:000396451100004
ER
PT J
AU Aliyu, Sirajo
Hassan, M. Kabir
Mohd Yusof, Rosylin
Naiimi, Nasri
TI Islamic Banking Sustainability: A Review of Literature and Directions
for Future Research
VL 53
IS 2
BP 440
EP 470
DI 10.1080/1540496X.2016.1262761
PD 2017
PY 2017
AB This study reviews literature on the Islamic banking sustainability and
presents directions for future research. The article discourses
scholars' and practitioners' views on the two perspectives of
sustainability in relation to the objectives of Islamic banking and
finance. That there are limited studies on Islamic banking
sustainability is one of the major issues presented in the article. The
study highlights essential issues on the sustainability without in-depth
empirical analysis. The needs for long-term economic, social, and
environmental sustainability are not a compromising issue. Therefore,
Islamic banks must strike a balance between the institutional, societal,
and environmental sustainability in order to achieve the objective of
Sharia.
OI Aliyu, Sirajo/0000-0002-2090-3886
ZS 0
TC 15
ZR 0
ZA 0
ZB 0
Z8 0
Z9 15
U1 0
U2 23
SN 1540-496X
EI 1558-0938
UT WOS:000395127200015
ER
PT J
AU Mohammed, Sulaiman Abdullah Saif Al-Nasser
Muhammed, Joriah
TI The relationship between agency theory, stakeholder theory and Shariah
supervisory board in Islamic banking An attempt towards discussion
SO HUMANOMICS
VL 33
IS 1
BP 75
EP 83
DI 10.1108/H-08-2016-0062
PD 2017
PY 2017
AB Purpose -In relation to the critical problem, this paper aims to present
an understanding of the agency theory and the stakeholder theory from
the perspective of the Islamic principles. Indeed, a thorough
examination of the theoretical background explaining corporate
governance from the Islamic perspective is necessary to conduct research
analysing corporate governance in Islamic banks.
Design/methodology/approach -The authors followed a critical review
discussion; this method takes into consideration presenting important
theories and comparing those theories with Islamic perspective.
Findings -The authors presented important arguments on the difference
between ordinary theories to explaining corporate governance and Islamic
perspective. The paper browsed into whether the Shariah Supervisory
Board is a fit with the agency theory by explaining the agency theory
and how it differs from the Islamic banking concepts. The paper involved
an analytical review on stakeholder theory and presented a critique and
the rationale as to why there is ample room for the Shariah Supervisory
Board to be considered a fit with the stakeholder theory, as the Shariah
Supervisory Board is an independent body influencing the firm.
Originality/value -The paper is of important value to those conducting
research in the area of governance in Islamic banks; they may find it
beneficial in terms of underlining theory building their research
framework.
RI Nasser, Sulaiman/H-6543-2011
ZA 0
Z8 0
TC 2
ZS 0
ZR 0
ZB 0
Z9 2
U1 1
U2 10
SN 0828-8666
EI 1758-7174
UT WOS:000396833500005
ER
PT J
AU Sellami, Yosra Mnif
Tahari, Marwa
TI Factors influencing compliance level with AAOIFI financial accounting
standards by Islamic banks
SO JOURNAL OF APPLIED ACCOUNTING RESEARCH
VL 18
IS 1
BP 137
EP 159
DI 10.1108/JAAR-01-2015-0005
PD 2017
PY 2017
AB Purpose - The purpose of this paper is to investigate the compliance
level of Islamic banks with disclosure accounting standards in some
Middle East and North African countries, and most importantly to analyse
the factors associated with compliance.
Design/methodology/approach - This study uses a self-constructed
checklist of 203 items to measure the compliance of 38 Islamic banks
with disclosure accounting standards during the 2011-2013 period.
Amultivariate regression analysis is used to determine significant
factors influencing the extent of this compliance.
Findings - The results show a wide variation in compliance levels among
the disclosure accounting standards and reveal that compliance is
positively related to the listing status, the existence of an audit
committee, the bank's age and the country of domicile.
Research limitations/implications -This study analyses the compliance
level with only disclosure accounting standards. It remains to future
research to examine compliance with all Accounting and Auditing
Organization for Islamic Financial Institutions' Financial Accounting
Standards (AAOIFI FAS). Moreover, the explanatory power of the model
remains modest. This connotes the existence of omitted variables that
could be explored in future research.
Practical implications -The research contributes to the international
financial accounting literature about the banking industry. The results
are relevant for researchers, accounting professionals, stakeholders,
standard-setters and regulatory bodies that are concerned with Islamic
banks' disclosures.
Originality/value -Although AAOIFI was established since 1991, very few
empirical studies about compliance with the FAS have been undertaken. To
the authors' knowledge, there are no studies that investigated the
determinants of compliance level with AAOIFI FAS. Then, this study
concentrates on disclosure accounting standards (FAS 1 and FAS 5) with a
high risk of non-compliance.
TC 6
ZR 0
ZB 0
ZA 0
Z8 0
ZS 0
Z9 6
U1 0
U2 10
SN 0967-5426
EI 1758-8855
UT WOS:000395675700007
ER
PT J
AU Ali, Muhammad
Raza, Syed Ali
TI Service quality perception and customer satisfaction in Islamic banks of
Pakistan: the modified SERVQUAL model
SO TOTAL QUALITY MANAGEMENT & BUSINESS EXCELLENCE
VL 28
IS 5-6
BP 559
EP 577
DI 10.1080/14783363.2015.1100517
PD 2017
PY 2017
AB The aim of this study is to measure the relationship between service
quality and customer satisfaction among the customers of Pakistani
Islamic banks. This study employed a modified SERVQUAL model by
introducing a unique dimension of compliance in the context of service
industry. A self-administered questionnaire-based field survey was
conducted with the help of modified SERVQUAL dimensions. Data were
gathered from 450 walk-in customers of Islamic bank. The sample data
were statistically analysed through exploratory factor analysis followed
by confirmatory factor analysis (CFA) and structural equation modelling
(SEM) analysis to determine the service quality perception and customer
satisfaction. Namely, CFA is used in order to test the model validity,
while SEM is used for testing the impact of different service quality
dimensions on customer satisfaction. Results revealed that the
multidimensional service quality scale is positively and significantly
associated with the unidimensional scale of customer satisfaction. In
addition, the compliance dimension of the SERVQUAL model proved its
importance by showing the highest contributing factor in the overall
model. Furthermore, this study has practical implications for the
policy-makers of Islamic banks to better understand the behavioural
intentions of Islamic bank customers.
RI Raza, Syed Ali/I-3879-2016; Ali, Muhammad/AAL-3747-2020
OI Raza, Syed Ali/0000-0002-2455-6922;
TC 45
Z8 0
ZS 0
ZA 0
ZB 0
ZR 0
Z9 45
U1 8
U2 66
SN 1478-3363
EI 1478-3371
UT WOS:000395065300007
ER
PT J
AU Trad, Naama
Trabelsi, Mohamed Ali
Goux, Jean Francois
TI Risk and profitability of Islamic banks: A religious deception or an
alternative solution?
SO EUROPEAN RESEARCH ON MANAGEMENT AND BUSINESS ECONOMICS
VL 23
IS 1
BP 40
EP 45
DI 10.1016/j.iedeen.2016.09.001
PD JAN-APR 2017
PY 2017
AB The aim of this paper is to examine whether Islamic finance could be an
alternative to the traditional financial system and could guarantee
stability in times of crisis. To this end, 78 Islamic banks in 12
countries have been studied over the 2004-2013 period. A series of
bank-specific and other country specific indicators are combined to
explain the soundness of Islamic banking in terms of profitability as
measured by ROA and ROE, and risk divided into credit risk measured by
IMLGL and EQL, and insolvency risk measured by Z-SCORE. The aim is to
estimate five regressions using dynamic panel data econometrics (GMM
system). The results indicate that bank size and capital are the main
factors responsible for increasing profitability and stability of
Islamic banks and reducing their credit risk. However, the ratios
forming the variable liquidity and asset quality often lead to
inconclusive results. It is also found that macroeconomic variables,
except inflation, are able to improve Islamic banks' stability. This is
not the case for credit risk where the ratio is still unfavorable.
The conclusion is that there are no major differences between IBs and
CBs in terms of their profitability and risk features. (C) 2016 AEDEM.
Published by Elsevier Espalia, S.L.U.
RI Trabelsi, Mohamed Ali/P-5803-2019
OI Trabelsi, Mohamed Ali/0000-0003-2307-323X
ZR 0
Z8 0
ZB 0
TC 13
ZS 0
ZA 1
Z9 14
U1 0
U2 13
SN 2444-8834
EI 2444-8842
UT WOS:000390257500006
ER
PT J
AU Amran, Azlan
Fauzi, Hasan
Purwanto, Yadi
Darus, Faizah
Yusoff, Haslinda
Zain, Mustaffa Mohamed
Naim, Dayang Milianna Abang
Nejati, Mehran
TI Social responsibility disclosure in Islamic banks: a comparative study
of Indonesia and Malaysia
VL 15
IS 1
BP 99
EP 115
DI 10.1108/JFRA-01-2015-0016
PD 2017
PY 2017
AB Purpose - This paper aims to explore social responsibility reporting of
full-fledged Islamic banks in two developing countries, namely,
Indonesia and Malaysia. Corporate social responsibility (CSR) has become
an important aspect of business society. As such, companies have shown a
growing interest in reporting their social and environmental
initiatives.
Design/methodology/approach - Content analysis of the annual reports for
three full-fledged local Islamic banks in Indonesia and three Islamic
banks in Malaysia was carried out for the period of 2007-2011.
Findings - Results of the study revealed that CSR disclosure of Islamic
banks has generally grown both in Malaysia and Indonesia. More
specifically, it was found that workplace and community dimensions were
the most highly disclosed areas by the Islamic banks in both countries.
Research limitations/implications - The current study provides a
cross-cultural perspective on social responsibility disclosure in
Islamic banks across two countries. The study is limited by
investigating a five-year time frame.
Practical implications - By discussing the findings according to the
stages of growth model for CSR, the authors suggest that Islamic banks
can enhance their responsiveness, and transform their role from being
CSR reporters of social responsibility to responders.
Originality/value - While the tenets of CSR have a lot in common with
Islamic moral law (Shariah), little is known about CSR disclosure of
Islamic banks.
RI Fauzi/N-2390-2013; Azlan, Amran/F-2503-2012
OI Fauzi/0000-0003-1275-6166; Azlan, Amran/0000-0002-9747-547X
ZB 0
ZA 1
ZS 0
TC 19
Z8 0
ZR 0
Z9 20
U1 0
U2 10
SN 1985-2517
EI 2042-5856
UT WOS:000401476500006
ER
PT J
AU Grassa, Rihab
TI Corporate governance and credit rating in Islamic banks: Does Shariah
governance matters?
VL 20
IS 4
BP 875
EP 906
DI 10.1007/s10997-015-9322-4
PD DEC 2016
PY 2016
AB We investigate whether Islamic banks with strong corporate governance
benefit from higher credit ratings relative to Islamic banks with weaker
governance and whether Shariah governance can affect the credit ratings
of Islamic banks or not. We document, after controlling for Islamic
bank-specific risk characteristics, that credit ratings are negatively
associated with the number of blockholders, CEO power, the supervisory
role of the Shariah board and investment deposits; and positively
associated with share listing ownership, board independence, women
directors, board directors expertise and Shariah board expertise. As
well as, credit rating is higher for Southeast Asian Islamic banks and
weaker for GCC Islamic banks.
ZB 0
TC 18
ZA 0
ZS 0
ZR 0
Z8 0
Z9 18
U1 0
U2 9
SN 1385-3457
EI 1572-963X
UT WOS:000408344700009
ER
PT J
AU Alaabed, Ain
Masih, Mansur
Mirakhor, Abbas
TI Investigating risk shifting in Islamic banks in the dual banking systems
of OIC member countries: An application of two-step dynamic GMM
SO RISK MANAGEMENT-AN INTERNATIONAL JOURNAL
VL 18
IS 4
BP 236
EP 263
DI 10.1057/s41283-016-0007-3
PD DEC 2016
PY 2016
AB In the last five decades, advances in information technology and in
financial innovations have made possible the emergence of an immense
capacity for banks to switch regimes from risk transfer to risk
shifting. The devastating power of this capacity was amply pronounced in
the financial crisis of 2007/2008. The fallout of which has intensified
calls for a re-examination of current banking model and its risk
management (or rather mismanagement). Risk shifting is, axiomatically,
absent in an ideal Islamic financial system. The Islamic banking model,
thus, provides unique paradigm with risk sharing at its core,
potentially fostering financial inclusion and reducing the incidence of
bank failures and the size of losses incurred by depositors and tax
payers. However, the present formation of Islamic banking has grown out
of conventional banking and reverse engineers many of its techniques and
instruments. The main objective of this paper is to empirically
investigate risk management in Islamic banks in dual banking systems in
member states of the Organization of Islamic Countries. The two-step
dynamic difference GMM is applied to cater for the nature of Islamic
banking data, which is characterized by a larger dynamic panel and a
smaller timeframe. Findings tend to indicate that Islamic banking has a
limiting effect on risk shifting. The effect however is not sufficient
to fully nullify the overall risk shifting incentives. The evidence
supports strengthening risk sharing and reforming Islamic banking
configuration as the way forward.
TC 1
ZA 0
Z8 0
ZS 0
ZB 0
ZR 0
Z9 1
U1 0
U2 35
SN 1460-3799
EI 1743-4637
UT WOS:000392167700003
ER
PT J
AU Gundogdu, Ahmet Suayb
TI Islamic electronic trading platform on organized exchange
VL 16
IS 4
BP 249
EP 255
DI 10.1016/j.bir.2016.06.002
PD DEC 2016
PY 2016
AB Today Islamic finance industry is under severe criticism, particularly,
concerning liquidity management practices of treasury departments. Since
cash lending is not possible under Islamic Shari'ah, Islamic banks tend
to use securitized asset related schemes which are by no means neither
acceptable under Islamic finance jurisprudence nor compliant with
Maqasiq Al-Shari'ah. Maqasid Al-Shariah oversees economic activities
which produce wealth and prosperity for all members of society to
empower any member with certain level of belongings to bestow freedom
while condemning inequality. Under this wider aim of Maqasid
Al-Shari'ah, this paper presents alternative state-of-art Shari'ah
compliant products, which is used in international trade finance, to be
migrated to electronic trading platform under organized exchange in
pursuit of replacing controversial liquidity management products.
Besides, this paper introduces Islamic Commodity Future Contract,
derived from asset backed Murabaha, with physical delivery as an
alternative liquidity management tool for Islamic FIs and hedging tool
for companies. Copyright (C) 2016, Borsa Istanbul Anonim Sirketi.
Production and hosting by Elsevier B.V.
RI Gundogdu, Ahmet Suayb/F-9095-2018
OI Gundogdu, Ahmet Suayb/0000-0002-8910-6690
ZA 0
ZR 0
TC 2
Z8 0
ZS 0
ZB 0
Z9 2
U1 1
U2 1
SN 2214-8450
EI 2214-8469
UT WOS:000427634100005
ER
PT J
AU Boone, Christophe
Oezcan, Serden
TI Ideological Purity vs. Hybridization Trade-Off: When Do Islamic Banks
Hire Managers from Conventional Banking?
SO ORGANIZATION SCIENCE
VL 27
IS 6
BP 1380
EP 1396
DI 10.1287/orsc.2016.1097
PD NOV-DEC 2016
PY 2016
AB Organizations that compete in institutional environments in which
oppositional logics compete for dominance face a risk-return trade-off
between maintaining ideological purity versus pragmatism by borrowing
template elements from the rival ideology. Deviating from ideological
purity might improve a firm's competitive strength, however, at the same
time, it might also undermine its very identity and legitimacy. Although
such decisions are of strategic importance, research about why, how, and
where these trade-offs are made is still limited.
We develop the argument that organizations will be more likely to
deviate from ideological purity when the potential return of borrowing
from the oppositional template exceeds the perceived risk of doing so.
The more organizations aspire to be ideologically pure, the more they
are constrained by the moral codes that define the category, and,
therefore, the higher the risk associated with deviating from purity.
However, given the potential benefits of pragmatism, pure organizations
will be particularly sensitive to contextual cues that reduce the
perceived risk of borrowing, tilting their trade-off balance toward
pragmatism. Specifically, we expect that pure (compared to less pure)
organizations will be particularly tempted to seize the opportunities
offered by pragmatism when (1) they perform below aspiration, (2) the
relevant market attaches less importance to ideological purity, and (3)
pragmatism is becoming taken-for-granted.
We test our hypotheses on detailed data of the hiring process of branch
managers of Turkish Islamic banks analyzing when and in which
communities Islamic banks hire managers from conventional banking in
order to implement their geographical expansion strategy in the period
2003-2016.
RI ozcan, serden/K-7258-2019
ZB 0
ZR 0
ZS 0
ZA 0
TC 5
Z8 0
Z9 5
U1 5
U2 44
SN 1047-7039
UT WOS:000391220600003
ER
PT J
AU Wanke, Peter
Azad, Md. Abul Kalam
Barros, Carlos Pestana
Hassan, M. Kabir
TI Predicting efficiency in Islamic banks: An integrated multicriteria
decision making (MCDM) approach
VL 45
BP 126
EP 141
DI 10.1016/j.intfin.2016.07.004
PD NOV 2016
PY 2016
AB This paper presents an efficiency assessment of the 114 Islamic banks
from 24 countries using the Technique for Order Preference by Similarity
to the Ideal Solution (TOPSIS). TOPSIS is a multicriteria decision
making technique similar to Data Envelopment Analysis (DEA), which ranks
a finite set of units based on the minimization of distance from an
ideal point and the maximization of distance from an anti-ideal point.
In this research, TOPSIS is used first in a two-stage approach to assess
the relative efficiency of Islamic banks using the most frequent
indicators adopted by the literature. Then, in the second stage, neural
networks are combined with TOPSIS results as part of an attempt to
produce a model for banking performance with effective predictive
ability. The results reveal that variables related to both country
origin and cost structure have a prominent impact on efficiency.
Findings also indicate that the Islamic banking market would benefit
from higher level of competition between institutions. (C) 2016 Elsevier
RI Azad, Abul Kalam/E-2814-2016; Wanke, Peter/G-3184-2010
OI Azad, Abul Kalam/0000-0003-3463-2738; Wanke, Peter/0000-0003-1395-8907
ZS 1
TC 17
ZR 0
ZA 0
Z8 0
ZB 0
Z9 18
U1 4
U2 29
SN 1042-4431
UT WOS:000390501000008
ER
PT J
AU Ghassan, Hassan B.
Fachin, Stefano
TI Time series analysis of financial stability of banks: Evidence from
Saudi Arabia
VL 31
SI SI
BP 3
EP 17
DI 10.1016/j.rfe.2016.06.007
PD NOV 2016
PY 2016
AB Islamic banks are characterized by their compliance to Islamic laws and
practices, primarily the prohibition of interest and the trading of
loans. During the 2008-2009 financial crisis, when a large number of
conventional banks announced bankruptcy, no Islamic bank failures were
reported. However, there is no clear consensus in the literature on the
question of whether Islamic banks are more or less stable than
conventional banks. To shed some light on this issue, we studied a
sample of Saudi banks using quarterly data over a period centered on the
2008 financial crisis. Careful analysis of the data suggested first of
all that many of the variables typically used in financial stability
studies may be non-stationary, a methodological point largely ignored in
the literature. Using time series methods suitable for this type of
data, we concluded that individual heterogeneity may matter more than
either the conventional or Islamic nature of the banks. Concentrating on
the largest banks, we find the Islamic banks contribute positively to
the stability of the system. (C) 2016 Elsevier Inc. All rights reserved.
RI Ghassan, Hassan B./I-8589-2019
OI Ghassan, Hassan B./0000-0002-2007-4440
Z8 0
ZS 0
ZR 0
TC 3
ZA 0
ZB 1
Z9 3
U1 0
U2 5
SN 1058-3300
EI 1873-5924
UT WOS:000390342500002
ER
PT J
AU Ali, Mohsin
Azmi, Wajahat
TI Religion in the boardroom and its impact on Islamic banks' performance
VL 31
SI SI
BP 83
EP 88
DI 10.1016/j.rfe.2016.08.001
PD NOV 2016
PY 2016
AB The impact of board diversity, in terms of gender, race, ethnicity etc.,
on performance and stability of firms has been researched extensively.
However, the impact of religious diversity and its impact on performance
and stability has been completely ignored. This issue is quite relevant,
especially for the Islamic banks because of their primary objective i.e.
to be in compliant with Islamic principles in all their dealings. Taking
a cue from this argument, we believe if the majority board members are
Muslim it can have a positive impact on the performance as they would
better understand the importance of the substance of the shari'ah
compliant dealings and that can translate into good performance and make
it more stable. Based on our arguments, we examined the impact of
religious diversity on the performance and stability on Malaysian banks
Islamic and Conventional both for the period of 9 years, through 2005 to
2013. Our results from GMM estimation reveal that the religious
orientation has no impact on the performance and this result is robust
to various proxies. Our results imply that a non-Muslim member of the
board of directors is able to run the Islamic banking business as good
as a Muslim board member. (C) 2016 Elsevier Inc. All rights reserved.
OI Ali, Mohsin/0000-0002-7407-6513
ZR 0
ZS 0
Z8 0
ZA 0
ZB 0
TC 4
Z9 4
U1 0
U2 14
SN 1058-3300
EI 1873-5924
UT WOS:000390342500010
ER
PT J
AU Oseni, Umar A.
Adewale, Abideen
Zain, Nor Razinah Binti Mohd
TI Customers' perceptions on the dispute resolution clauses in Islamic
finance contracts in Malaysia
VL 31
SI SI
BP 89
EP 98
DI 10.1016/j.rfe.2016.05.004
PD NOV 2016
PY 2016
AB This empirical legal study examines the perceptions of retail customers
on the dispute resolution clauses contained in the governing law and
jurisdiction clauses in Islamic finance contracts in Malaysia. Since
Islamic financial institutions and their customers are more likely to
opt for litigation in the event of a dispute, this study explores ways
of providing for unambiguous dispute resolution clauses that are well
understood by the parties. Such clauses are expected to incorporate
effective dispute resolution processes such as mediation and arbitration
through a multi-tiered mechanism. Primary data collected through survey
questionnaire administered on 160 Islamic bank customers is analysed
using both factor analysis and structural equation modelling. The
empirical legal study reveals that there is a statistically significant
direct effect of dispute resolution clauses in Islamic finance contracts
on the legal awareness and understanding of the customers and indirect
effect on the customers' dispute resolution channels. It therefore
follows that there is a need to provide for more effective clauses that
allow for mediation and arbitration in the governing law and
jurisdiction clauses of Islamic finance contracts in Malaysia. Such
alternative dispute resolution processes can be structured in a
multi-tiered manner that will only allow for litigation as a last
resort. This will allow Islamic financial institutions and their
customers to make informed decisions about the best option for effective
dispute management. (C) 2016 Elsevier Inc. All rights reserved.
ZB 0
Z8 0
TC 2
ZR 0
ZA 0
ZS 0
Z9 2
U1 0
U2 7
SN 1058-3300
EI 1873-5924
UT WOS:000390342500011
ER
PT J
AU Mohanty, Sunil K.
Lin, Hong-Jen
Aljuhani, Eid A.
Bardesi, Hisham J.
TI Banking efficiency in Gulf Cooperation Council (GCC) countries: A
comparative study
VL 31
SI SI
BP 99
EP 107
DI 10.1016/j.rfe.2016.06.004
PD NOV 2016
PY 2016
AB We measure cost and profit efficiencies of banks operating in six GCC
countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United
Arab Emirates) using heteroskedastic stochastic frontier (HSF) models.
Our results show that measures of cost and profit efficiencies of banks
vary widely across the six gulf countries over the same period. We
examine whether cost and profit efficiencies of Islamic banks are
significantly different from that of conventional banks. After allowing
for bank risk, asset quality, environmental influences such as the level
of interest rate, and country effect, we find that cost and profit
efficiencies of Islamic banks are similar to that of conventional banks.
Our results suggest that the country-specific variables have significant
impact on cost and profit efficiencies of banks operating in GCC
countries. Our findings indicate that cost and profit efficiencies of
Islamic banks are more volatile than that of conventional banks. (C)
2016 Published by Elsevier Inc.
ZS 0
ZA 0
Z8 0
ZB 0
TC 8
ZR 0
Z9 8
U1 0
U2 9
SN 1058-3300
EI 1873-5924
UT WOS:000390342500012
ER
PT J
AU Jawadi, Fredj
Jawadi, Nabila
Louhichi, Wael
TI On the Reputation of Islamic Banks: a Panel Data Qualitative
Econometrics Analysis
SO OPEN ECONOMIES REVIEW
VL 27
IS 5
BP 987
EP 998
DI 10.1007/s11079-016-9414-z
PD NOV 2016
PY 2016
AB This study investigates the issue of reputation for Islamic banks. Bank
reputation can either be modelled using a direct approach based on Game
Theory (Chemmanur and Fulghieri in J Financ 49:57-79, 1994) or through
an indirect approach that investigates linkages between conventional and
Islamic banks. Adopting the indirect test approach, we propose a binary
measure of Islamic Banks (IBs) reputation by testing their dynamic
interactions with regard to conventional banks. Interestingly, we
propose different qualitative econometric specifications to capture the
drivers of IBs' reputation. Using panel data for 10 major conventional
banks and 10 Islamic banks over the period April 2006 - February 2013
(about 17,800 observations), we show that reputation probability can
significantly increase in line with Islamic banking performance, while
excess risk taken by Islamic bankers will decrease it. Further, we show
that an environment with high global financial risk -induced for example
by an increase in conventional product risk- has a negative effect on
IBs' reputation.
CT 2nd International Workshop on Financial Markets and Nonlinear Dynamics
(FMND)
CY JUN 04-05, 2015
CL Paris, FRANCE
Z8 0
TC 2
ZS 0
ZR 0
ZA 0
ZB 0
Z9 2
U1 0
U2 19
SN 0923-7992
EI 1573-708X
UT WOS:000385247400009
ER
PT J
AU Minhat, Marizah
Dzolkarnaini, Nazam
TI Islamic corporate financing: does it promote profit and loss sharing?
SO BUSINESS ETHICS-A EUROPEAN REVIEW
VL 25
IS 4
BP 482
EP 497
DI 10.1111/beer.12120
PD OCT 2016
PY 2016
AB Islamic financing instruments can be categorised into profit and
loss/risk sharing and non-participatory instruments. Although profit and
loss sharing instruments such as musharakah are widely accepted as the
ideal form of Islamic financing, prior studies suggest that alternative
instruments such as murabahah are preferred by Islamic banks.
Nevertheless, prior studies did not explore factors that influence the
use of Islamic financing among non-financial firms. Our study fills this
gap and contributes new knowledge in several ways. First, we find no
evidence of widespread use of Islamic financing instruments across
non-financial firms. This is because the instruments are mostly used by
less profitable firms with higher leverage (i.e. risky firms). Second,
we find that profit and loss sharing instruments are hardly used, whilst
the use of murabahah is dominant. Consistent with the prediction of
moral-hazard-risk avoidance theory, further analysis suggests that users
with a lower asset base (to serve as collateral) are associated with
murabahah financing. Third, we present a critical discourse on the
contentious nature of murabahah as practised. The economic significance
and ethical issues associated with murabahah as practised should trigger
serious efforts to steer Islamic corporate financing towards
risk-sharing more than the controversial rent-seeking practice.
RI Dzolkarnaini, Nazam/AAR-3312-2020
OI Dzolkarnaini, Nazam/0000-0003-2654-9539
ZS 0
ZR 0
Z8 0
ZA 0
TC 6
ZB 0
Z9 6
U1 1
U2 34
SN 0962-8770
EI 1467-8608
UT WOS:000383336400008
ER
PT J
AU Hashem, Shatha Qamhieh
Giudici, Paolo
TI NetMES: a network based marginal expected shortfall measure
SO JOURNAL OF NETWORK THEORY IN FINANCE
VL 2
IS 3
BP 1
EP 36
DI 10.21314/JNTF.2016.020
PD SEP 2016
PY 2016
AB This paper aims to build novel measures of systemic risk that take the
multivariate nature of the problem into account by means of network
models. To account for model uncertainty, we also employ a Bayesian
approach, which allows model averaging over different network classes.
The resulting systemic risk measure, which we call NetMES, is applied to
the evaluation of the financial stability of the banking system in the
Gulf Cooperation Council countries. Banks are classified as
fully-fledged Islamic banks, conventional banks or hybrids: conventional
banks with an Islamic window. The empirical findings indicate the
presence of a difference between the two banking systems in terms of
systemic risk, which can be explained by different levels of
capitalization and leverage.
RI Giudici, Paolo Stefano/AAD-7430-2019; Qamhieh Hashem, shatha/
OI Giudici, Paolo Stefano/0000-0002-4198-0127; Qamhieh Hashem,
shatha/0000-0002-4077-7477
ZR 0
ZB 1
TC 6
Z8 0
ZA 0
ZS 0
Z9 6
U1 1
U2 4
SN 2055-7795
EI 2055-7809
UT WOS:000395313500002
ER
PT J
Mayes, David G.
Brown, Kym
TI Economic turmoil and Islamic banking: Evidence from the Gulf Cooperation
Council
VL 39
BP 44
EP 56
DI 10.1016/j.pacfin.2016.05.017
PD SEP 2016
PY 2016
AB Using a panel of 101 banks across six Gulf Cooperation Council (GCC)
economies, we investigate with the bank performance model CAMEL, whether
Islamic banks outperformed conventional banks in the time of economic
shocks over the period 1998-2012. We find that while Islamic banks
performed better in terms of capitalisation, profitability and liquidity
in the early stages of the global financial crisis (GFC), they performed
worse in later stages with the real economic downturn, particularly in
the areas of capitalisation, profitability and efficiency. Thus while
the GCC Islamic banks may have avoided the consequences of more volatile
financial instruments, they were not immune in the face of a major
economic shock. Crown Copyright (C) 2016 Published by Elsevier B.V. All
rights reserved.
OI Brown, Kym/0000-0003-2725-6236
TC 29
Z8 0
ZB 0
ZS 0
ZR 0
ZA 0
Z9 29
U1 0
U2 6
SN 0927-538X
EI 1879-0585
UT WOS:000384781700004
ER
PT J
AU Ashraf, Dawood
Ramady, Mohamed
Albinali, Khalid
TI Financial fragility of banks, ownership structure and income
diversification: Empirical evidence from the GCC region
VL 38
BP 56
EP 68
DI 10.1016/j.ribaf.2016.03.010
PD SEP 2016
PY 2016
AB This paper investigates the role that ownership structure and
diversification of income plays in the financial stability of banks from
the GCC region. We find evidence that suggests that higher concentration
of ownership in any type of shareholding is associated with higher
insolvency risk. However, this higher insolvency risk is not associated
with any specific type of shareholders. Higher financial fragility is
also associated with the size and whether the bank is an Islamic bank.
Banks engaged in substantial fee-based activities are more financially
stable as compared with banks that predominantly generate their incomes
from traditional intermediation activities. (C) 2016 Elsevier B.V. All
rights reserved.
OI Ashraf, Dawood/0000-0003-1097-6974
Z8 0
ZR 0
ZS 0
ZA 1
ZB 0
TC 15
Z9 16
U1 1
U2 10
SN 0275-5319
EI 1878-3384
UT WOS:000386012800006
ER
PT J
AU Hossain, Akhand Akhtar
TI Inflationary shocks and real output growth in nine Muslim-majority
countries: Implications for Islamic banking and finance
SO JOURNAL OF ASIAN ECONOMICS
VL 45
BP 56
EP 73
DI 10.1016/j.asieco.2016.06.004
PD AUG 2016
PY 2016
AB Low and stable inflation is important for maintaining the viability of
Islamic banking and finance within a dual banking system. Inflationary
shocks when transmitted to real output growth cause a shift of
investment to fixed return products as a hedge against the uncertainty
of returns on equity investment under Islamic profit-loss sharing
contracts. This study examines the transmission of inflationary shocks
to the real economy for nine Muslim-majority countries (Bahrain,
Bangladesh, Egypt, Indonesia, Iran, Malaysia, Pakistan, Saudi Arabia,
and Turkey) that have introduced Islamic banking, all except Iran within
dual-banking systems. A structural vector autoregressive (SVAR)
framework is deployed to understand macroeconomic relationships using
annual data from the late 1970s to 2014. The key finding is that
inflationary shocks affect real interest and exchange rates which in
turn impact real output growth. The paper argues that the absorption of
inflationary shocks in real interest and exchange rates is the outcome
of rigidities in nominal interest and exchange rates within repressed
financial systems. Policy regimes that allow for greater adjustment in
nominal interest and exchange rates under a deregulated financial system
would offer better shock absorption capacity which would lead to less
volatility in inflation, real interest and exchange rates, and real
output growth. The resulting more stable macroeconomic environment would
be more conducive to the development of an Islamic financial sector that
would promote economic growth. (C) 2016 Elsevier Inc. All rights
reserved.
ZA 0
TC 1
Z8 0
ZR 0
ZB 0
ZS 0
Z9 1
U1 0
U2 12
SN 1049-0078
EI 1873-7927
UT WOS:000390165400005
ER
PT J
AU Ashraf, Dawood
Rizwan, Muhammad Suhail
L'Huillier, Barbara
TI A net stable funding ratio for Islamic banks and its impact on financial
stability: An international investigation
VL 25
BP 47
EP 57
DI 10.1016/j.jfs.2016.06.010
PD AUG 2016
PY 2016
AB The Islamic Financial Services Board (IFSB) is the standard setting body
for the Islamic banking industry. The IFSB, while endorsing the Basel
III accord, modified the criteria to calculate the Net Stable Funding
Ratio (NSFR) to cater for the unique aspects of the Islamic banking
industry. In this paper, we calculated the modified NSFR of 136 Islamic
banks from 30 jurisdictions between 2000 and 2013 and explored the
potential impact the requirements of this ratio has on the financial
stability of Islamic banks after controlling for bank, country, and
market-specific variables. The empirical findings suggest that the
modified NSFR has a positive impact on the financial stability of
Islamic banks during the sample period. However, the marginal impact of
the NSFR on stability diminishes as the size of the bank increases. The
results remained robust after applying an alternative measure of
stability and using an alternative estimation model based on an
instrumental variable approach. These results validate the use of the
IFSB's modified NSFR for Islamic banks as a regulatory measure. (C) 2016
RI Ashraf, Dawood/E-9305-2019; L'Huillier, Barbara/
OI Ashraf, Dawood/0000-0003-1097-6974; L'Huillier,
Barbara/0000-0001-7853-1483
ZA 0
TC 30
ZB 0
ZS 0
Z8 0
ZR 0
Z9 30
U1 1
U2 17
SN 1572-3089
EI 1878-0962
UT WOS:000382252300004
ER
PT J
AU Akhatova, Malika
Zainal, Mohd Pisal
Ibrahim, Mansor H.
TI Banking Models and Monetary Transmission Mechanisms in Malaysia: Are
Islamic Banks Different?
SO ECONOMIC PAPERS
VL 35
IS 2
BP 169
EP 183
DI 10.1111/1759-3441.12131
PD JUN 2016
PY 2016
AB The present paper comparatively evaluates the credit channel of monetary
transmission process of Islamic banks and conventional banks by focusing
on their lending/financing behaviour in responses to monetary policy
shocks as well as other shocks. Adopting structural vector
autoregression (SVAR) specification, we validate the significant
responses of both conventional bank credit and Islamic bank financing to
monetary policy shocks. However, the dynamic behaviour of Islamic banks
following monetary policy shocks as well as other shocks tends to be
different. Our analysis indicates that the Islamic bank financing tends
to respond immediately while the conventional bank credit exhibits
delayed responses to interest rate hikes. These results are generally
robust to alternative specifications of the SVAR.
RI Ibrahim, Mansor/AAU-6887-2020
ZB 0
TC 3
ZA 0
ZS 1
ZR 0
Z8 0
Z9 4
U1 0
U2 6
SN 0812-0439
EI 1759-3441
UT WOS:000381689800007
ER
PT J
AU Fakhfekh, Mohamed
Hachicha, Nejib
Jawadi, Fredj
Selmi, Nadhem
TI Measuring volatility persistence for conventional and Islamic banks: An
FI-EGARCH approach
VL 27
BP 84
EP 99
DI 10.1016/j.ememar.2016.03.004
PD JUN 2016
PY 2016
AB This paper studies the volatility dynamics of conventional and Islamic
banks from the Gulf Cooperation Council (G.C.C) countries during calm
and crisis periods, providing a dual comparison in time and space. In
particular, it proposes an empirical measure of volatility persistence
using the FIEGARCH (Fractionally Integrated Exponential Generalized Auto
Regressive Conditional Heteroscedasticity) model. This specification is
useful for reproducing further asymmetry in volatility dynamics and
provides a direct measure of long-term volatility dependence. our
findings point to three interesting findings. First, volatility exhibits
asymmetry as bad news has a significantly higher impact on volatility
than positive news. Second, bad news affects the volatility of
conventional banks more strongly than that of Islamic banks. Third, it
seems that following a shock, volatility is more persistent in
conventional banks than in Islamic Banks. Accordingly, Islamic banks are
more resilient than conventional banks, but the degree of resilience is
somewhat heterogeneous and sample dependent Thus, while this may appear
to suggest that we could regulate the conventional bank system using the
industry rides of Islamic banks, it is worth noting that Islamic banks
in Saudi Arabia tend to provide the most resilient Islamic Bank
benchmark model. (C) 2016 Elsevier B.V. All rights reserved.
ZA 0
TC 17
Z8 0
ZB 0
ZS 0
ZR 0
Z9 17
U1 0
U2 9
SN 1566-0141
EI 1873-6173
UT WOS:000379556000005
ER
PT J
AU Athari, Seyed Alireza
Adaoglu, Cahit
Bektas, Eralp
TI Investor protection and dividend policy: The case of Islamic and
conventional banks
VL 27
BP 100
EP 117
DI 10.1016/j.ememar.2016.04.001
PD JUN 2016
PY 2016
AB This study examines the dividend policy behavior of. Islamic and
conventional banks operating in Arab markets. These banks operate in an
environment of Sharia law and low levels of investor protection. Our
results support the substitution agency model of dividends for Islamic
banks, and Islamic banks use the dividend policy as a substitute
mechanism for alleviating relatively more significant agency problems
and higher risks of expropriation by insiders. In these markets,
conventional banks operate in a more competitive environment and
experience relatively less significant agency problems. In contrast to
Islamic banks, conventional banks follow the outcome agency model of
dividends. (C) 2016 Elsevier B.V. All rights reserved.
RI Athari, Seyed Alireza/O-6004-2019; Adaoglu, Cahit/R-1795-2019
OI Athari, Seyed Alireza/0000-0003-4918-1597; Adaoglu,
Cahit/0000-0001-5771-9997
ZA 0
TC 12
ZR 0
Z8 0
ZS 0
ZB 0
Z9 12
U1 0
U2 19
SN 1566-0141
EI 1873-6173
UT WOS:000379556000006
ER
PT J
AU Hassan, M. Kabir
Unsal, Omer
Tamer, Hikmet Emre
TI Risk management and capital adequacy in Turkish participation and
conventional banks: A comparative stress testing analysis
VL 16
IS 2
BP 72
EP 81
DI 10.1016/j.bir.2016.04.001
PD JUN 2016
PY 2016
AB In this study, we investigate changes in banks' capital adequacy ratio
(CAR) under different stress scenarios and examine the results by
comparing conventional banks to participation banks in Turkey. Our
results report that the capital adequacy ratio of the banks declines
substantially given the stress scenarios. We find that participation
banks in Turkey suffer more in declined capital adequacy ratio compared
to conventional banks. Our findings reveal that participation banks in
Turkey are more sensitive to sudden changes in exchange rates and
increased non-performing loans. However, this sensitivity is in regards
to capital adequacy, not profit. Overall, our study shows the effect of
stress in the banking sector by contributing to the existing literature.
Copyright (C) 2016, Borsa Istanbul Anonim Sirketi. Production and
hosting by Elsevier B.V.
RI Unsal, Omer/; Hassan, M. Kabir/D-5053-2012
OI Unsal, Omer/0000-0002-6023-3821; Hassan, M. Kabir/0000-0001-6274-3545
ZB 0
ZA 0
ZS 0
Z8 0
TC 9
ZR 1
Z9 9
U1 0
U2 1
SN 2214-8450
EI 2214-8469
UT WOS:000447595000002
ER
PT J
AU Rashid, Abdul
Jabeen, Sana
TI Analyzing performance determinants: Conventional versus Islamic Banks in
Pakistan
VL 16
IS 2
BP 92
EP 107
DI 10.1016/j.bir.2016.03.002
PD JUN 2016
PY 2016
AB The aim of this study is to empirically examine the bank-specific,
financial, and macroeconomic determinants of performance of Islamic and
conventional banks in Pakistan. To do this, we first constructed the
financial performance index (FPI) based on CAMELS' ratios and then run
the computed index on the said determinants. We have used an unbalanced
annual panel data covering the period 2006-2012. The GLS regression
results show that operating efficiency, reserves, and overheads are
significant determinants of conventional banks' performance, whereas,
operating efficiency, deposits, and market concentration are significant
in explaining performance of Islamic banks. We also show that the impact
of GDP and the lending interest rate on performance is negative for both
types of banks. Bank managers may focus on controlling overheads and
operating costs to improve performance because, according the empirical
results presented in the study, both of these variables are negatively
related to the FPI. Our results suggest that advancements in overall
management practices and new standards in operating efficiency and
financial risk management are essential to enhance performance of banks.
Copyright (C) 2016, Borsa Istanbul Anonim Sirketi. Production and
hosting by Elsevier B.V.
ZB 0
ZA 0
Z8 0
ZR 0
TC 24
ZS 0
Z9 24
U1 0
U2 1
SN 2214-8450
EI 2214-8469
UT WOS:000447595000004
ER
PT J
AU Shaban, Mohamed
Duygun, Meryem
Fry, John
TI SME's lending and Islamic finance. Is it a "win-win" situation?
VL 55
BP 1
EP 5
DI 10.1016/j.econmod.2016.01.029
PD JUN 2016
PY 2016
AB Information asymmetry is a common feature that hinders lending to small
and medium enterprises (SMEs). In the last decade, the growth in Islamic
banks lending to SMEs was overwhelming to the extent that it prompted
practitioners to regard this as a "win-win" situation. Unlike a
conventional bank that mainly resorts to relationship banking to SMEs,
an Islamic bank uses a Murabaha contract that creates a "collateral
by-contract" to the borrower. Such distinct lending approaches by the
two types of banks have an implication on banks' cost curves that arise
from differences in monitoring cost. In this article, we develop a
two-stage competition model to investigate the growth in SMEs lending by
Islamic banks. In our theoretical model Islamic and conventional banks
compete with prices at the first stage (Bertrand framework) and with
loan output at the second stage (Cournot framework). Our results reveal
that in price competition an Islamic bank will gain market share
initially due to its differentiated product. However, in the second
stage, the amount of lending to SMEs by Islamic banks decreases due to
market share competition. (c) 2016 Elsevier B.V. All rights reserved.
OI Duygun, Meryem/0000-0002-1112-0898; Shaban, Mohamed/0000-0002-6939-113X
ZB 0
ZS 0
ZA 0
TC 8
ZR 0
Z8 0
Z9 8
U1 1
U2 39
SN 0264-9993
EI 1873-6122
UT WOS:000375164200001
ER
PT J
TI Business cycle and bank lending procyclicality in a dual banking system
VL 55
BP 127
EP 134
DI 10.1016/j.econmod.2016.01.013
PD JUN 2016
PY 2016
AB The paper studies bank lending behaviour over the business cycle in a
dual banking system, Malaysia, with the objective of ascertaining
whether Islamic banks have a role in stabilizing credit. The study makes
use of unbalanced panel data of 21 conventional banks and 16 Islamic
banks covering mostly the period 2001-2013. Applying dynamic GMM
estimators, we find the aggregate loans by banks to be pro-cyclical in
conformity with existing studies. However, when we segregate the
lending/financing behaviour of conventional and Islamic banks, the
cyclicality of bank lending seems to be true only for conventional
banks. As for the Islamic banks, the business cycle does not seem to
affect their financing decisions. Indeed, there is indication that the
Islamic banks in general and the full-fledged Islamic banks in
particular can even be counter-cyclical in their financing decisions.
This conclusion is fairly robust to a different loan measure,
alternative model specifications, and to an alternative business cycle
measure. Hence, our results provide further support to the "stability"
view of the Islamic banks in that they have the ability to stabilize
credit. (c) 2016 Elsevier B.V. All rights reserved.
RI Ibrahim, Mansor/AAU-6887-2020; Ibrahim, Mansor/
OI Ibrahim, Mansor/0000-0003-0413-0075
Z8 0
ZS 0
ZA 1
ZB 0
TC 20
ZR 0
Z9 21
U1 0
U2 21
SN 0264-9993
EI 1873-6122
UT WOS:000375164200012
ER
PT J
AU Mohamad, Juwairiah
Majid, Muhammad Fakhirin Che
TI A STUDY ON THE CUSTOMER'S ACCEPTANCE TOWARDS ISLAMIC BANKING PRODUCTS
AMONG NON-MUSLIM IN DUAL BANKING SYSTEM
SO INTERNATIONAL JOURNAL OF MANAGEMENT STUDIES
VL 23
IS 1
BP 1
EP 11
PD JUN 2016
PY 2016
AB Islamic banking products (IBP) are offered not only to the Muslim
community, but also to communities of other religions who are free to
choose products depending on their convenience. According to a report,
the percentage of non-Muslim communities choosing IBP in Malaysia has
been steadily increasing and is expected to continue to increase in
future. The Dual Banking System is one of the initiatives that has been
created in conventional banks as an extra facility for the communities
to engage with IBP easily without going to Islamic Banks. This paper
aims to study the factors that drive non-Muslim customers to accept IBP.
Specifically, this paper examines the relationship between four factors:
knowledge, understanding, perception and the level of awareness among
non-Muslim customers regarding their acceptance on IBP in the Dual
Banking System. About 140 non-Muslim IBP customers of the Dual Banking
System around Changlun, Jitra and Alor Setar were selected based on
convenience and were randomly picked as respondents of this study. Some
data were also collected through interviews with the bank personnel and
the bank's customers besides the self-administered questionnaire survey.
Employing the SPSS approach, the hypotheses of the study were tested.
The findings showed that there are significance relationships between
customer's knowledge, understanding, positive perception, and the level
of awareness perceived among non-Muslim customers and their acceptance
of IBP.
ZA 0
ZB 0
ZS 0
TC 1
ZR 0
Z8 0
Z9 1
U1 0
U2 1
SN 0127-8983
EI 2180-2467
UT WOS:000409083100001
ER
PT J
AU Daly, Saieda
Frikha, Mohamed
TI Islamic Finance: Basic Principles and Contributions in Financing
Economic
VL 7
IS 2
BP 496
EP 512
DI 10.1007/s13132-014-0222-7
PD JUN 2016
PY 2016
AB The aim of the study is to present the basic principles which guide the
financial activities and operations within an Islamic bank and to see
how the Islamic banking activities diverge from a conventional bank. Our
purpose is also to show how Islamic banks may contribute to provide
financial services to the real economy. The idealistic basis of an
Islamic financial system exceeds the simple interaction of production
factor and economic behavior. It can be completely respected only in the
case of Islam's directives on the business ethics, wealth distribution,
social and economic justice and honesty, and the role of the state.
While the conventional economic vision focuses principally on the
economic and financial aspects of operations, the Islamic economic
doctrine focuses on the ethical, moral, social, and religious
dimensions, to improve equality and fairness which are the values of
Islamic commandment and its practical application via the development of
Islamic economics. It is not necessary that the parties of an Islamic
financial contract be Muslims; however, they should respect the ethical
norms and values emphasized by Islamic law (Shari'ah).
ZB 0
Z8 0
TC 0
ZA 0
ZR 0
ZS 0
Z9 0
U1 5
U2 14
SN 1868-7865
EI 1868-7873
UT WOS:000407740300009
ER
PT J
AU Surjaatmadja, Surachman
Adriansyah, A.
TI Does Islamic Banking have a Competitive Advantage over Conventional
Banking in Indonesia?: A Study of Perspectives
VL 24
SI SI
BP 205
EP 213
PD JUN 2016
PY 2016
AB This research aims to highlight, from the perspective of competitive
advantage, the difference between Islamic and conventional banking. The
competitive advantage is based on capital's preference. The sample of
this study was 120 commercial banks but only 49 banks, accounting for
52% of banks in Indonesia, completed and returned the questionnaire
(response rate 39%). The research focused on the top management team and
data was collected using questionnaires. The questionnaire was based on
a variable construct, taking into consideration the bank's competitive
advantage and innovation performance among others. The results show that
capital is the only factor of advantage for Islamic banks.
Z8 0
TC 0
ZR 0
ZB 0
ZS 0
Z9 0
U1 0
U2 0
SN 0128-7702
EI 2231-8534
UT WOS:000408357000018
ER
PT J
AU Grira, Jocelyn
Hassan, M. Kabir
Soumare, Issouf
TI Pricing beliefs: Empirical evidence from the implied cost of deposit
insurance for Islamic banks
VL 55
BP 152
EP 168
DI 10.1016/j.econmod.2016.01.026
PD JUN 2016
PY 2016
AB Using a large international sample of 348,899 year-firm observations
covering 352 Islamic banks and 30,572 conventional banks in 213
countries over the 1999-2013 period, we estimate the deposit insurance
premiums of Islamic banks and conventional banks. We find that the
premiums for publicly listed Islamic banks are 28% lower than those for
publicly listed conventional banks. Moreover, we show that the premiums
of privately held banks are significantly higher than those of publicly
listed banks. Finally, we show that publicly listed Islamic banks did
not record an increase in the level of deposit insurance premiums during
the 2007-2009 financial crisis. (c) 2016 Elsevier B.V. All rights
reserved.
RI Soumare, Issouf/; Hassan, M. Kabir/D-5053-2012
OI Soumare, Issouf/0000-0002-3876-5661; Hassan, M.
Kabir/0000-0001-6274-3545
ZR 0
ZB 0
ZS 0
ZA 0
TC 19
Z8 0
Z9 19
U1 2
U2 12
SN 0264-9993
EI 1873-6122
UT WOS:000375164200014
ER
PT J
AU Ghosh, Saibal
TI Political transition and bank performance: How important was the Arab
Spring?
SO JOURNAL OF COMPARATIVE ECONOMICS
VL 44
IS 2
BP 372
EP 382
DI 10.1016/j.jce.2015.02.001
PD MAY 2016
PY 2016
AB Using data for 2000-2012, the article utilizes the natural experiment of
the Arab Spring to examine its impact on the risk and returns of MENA
banks. The analysis indicates that the Arab Spring lowered bank
profitability by roughly 0.2% and raised bank risk by 0.4% points. As
well, the evidence appears to suggest that there were no differential
effect of the political conflict on the performance and stability of
Islamic banks. Journal of Comparative Economics 44 (2) (2016) 372-382.
Department of Economic and Policy Research, Reserve Bank of India,
Central Office, Fort, Mumbai 400001, India. (C) 2015 Association for
Comparative Economic Studies. Published by Elsevier B.V. All rights
reserved.
Z8 0
ZB 0
ZS 0
TC 30
ZR 0
ZA 0
Z9 30
U1 0
U2 12
SN 0147-5967
EI 1095-7227
UT WOS:000377835600012
ER
PT J
AU Wanke, Peter
Azad, Md. Abul Kalam
Barros, Carlos Pestana
TI Financial distress and the Malaysian dual baking system: A dynamic
slacks approach
SO JOURNAL OF BANKING & FINANCE
VL 66
BP 1
EP 18
DI 10.1016/j.jbankfin.2016.01.006
PD MAY 2016
PY 2016
AB This paper presents an efficiency assessment of the Malaysian dual
banking system using the Dynamic Slacks Based Model (DSBM) in order to
assess the evolution of Malaysian Banks' potential
input-saving/output-increase from 2009 to 2013. More precisely, DSBM is
used first in a two-stage approach to assess the relative efficiency of
Malaysian Islamic and conventional banks by emulating the CAMEL rating
systems. Then, in the second stage, Monte Carlo Markov Chain (MCMC)
methods applied to generalized linear mixed models (GLMM) are combined
with DSBM results as part of an attempt to produce a model for banking
performance assessment with effective predictive ability. Results
indicate higher inefficiency levels and slacks in Islamic banks when
compared to conventional ones. Furthermore, when the scope of analysis
is the group of Malaysian Islamic banks, the efficiency levels of
foreign banks are lower compared to their national counterparts,
suggesting regulatory and cultural barriers. Policy implications are
derived. (C) 2016 Elsevier B.V. All rights reserved.
RI Wanke, Peter/G-3184-2010; Azad, Abul Kalam/E-2814-2016
OI Wanke, Peter/0000-0003-1395-8907; Azad, Abul Kalam/0000-0003-3463-2738
ZR 0
ZS 1
ZB 0
ZA 0
TC 26
Z8 0
Z9 27
U1 2
U2 28
SN 0378-4266
EI 1872-6372
UT WOS:000375499900001
ER
PT J
AU Bartal, Shaul
TI The danger of Israel according to Sheikh Yusuf Qaradawi
SO ISRAEL AFFAIRS
VL 22
IS 2
BP 479
EP 491
DI 10.1080/13537121.2016.1140343
PD APR 2 2016
PY 2016
AB Sheikh Yusuf Qaradawi, widely considered the most influential Islamic
scholar alive today, is the author of over 120 books and a spiritual
leader of the Muslim Brotherhood. He is a member of many international
Muslim organizations and the sharia advisor for a number of Islamic
banks. Qaradawi is considered a part of the political centre
(wasatiyya), positioned between those relying on ancient sunna and
Qur'an (salafiyya) sources and the more moderate new stream. His sermons
are broadcast live on television to millions of Muslims throughout the
world. He also appears on a popular weekly television show dealing with
current affairs regarding the sharia on the Al Jazeera network. His
beliefs about the PalestinianIsraeli conflict exert great influence over
the Muslim public across the globe. This article represents his views
and explains why the war against Israel is so important to the Islamic
world.
Z8 0
ZR 0
ZS 0
ZA 0
ZB 0
TC 0
Z9 0
U1 0
U2 2
SN 1353-7121
EI 1743-9086
UT WOS:000373284800011
ER
PT J
AU Nor, Shifa Mohd
Rahim, Ruzita Abdul
Senik, Zizah Che
TI The potentials of internalising social banking among the Malaysian
Islamic banks
SO ENVIRONMENT DEVELOPMENT AND SUSTAINABILITY
VL 18
IS 2
BP 347
EP 372
DI 10.1007/s10668-015-9651-0
PD APR 2016
PY 2016
AB Islamic banking has established for the last 40 years, yet only recently
researchers acknowledge social failures of Islamic banking and finance.
This has led to a proposition of forming new forms of banking and
non-banking institutions that include social banking. It is argued that
in considering the developmentalist needs of the Muslim societies in
Malaysia, there is a need to go back to fundamentals of Islamic finance
in realising the aspirational Islamic moral economy that emphasises on
the social good, capacity development at the individual and social
levels. This paper aims to explore the concept of social banking and
search for the possibilities for internalisation in Malaysian Islamic
banking. To gain understanding on this pertinent issue, an empirical
investigation was conducted at 17 Islamic banks in Malaysia. A mixed
method was employed. For the primary data collection, 477 respondents of
Islamic banks clients and employees participated in a self-administrated
survey, and 11 respondents from the executive and managerial level of
eight Islamic banks involved in a semi-structured interview survey. The
integrated analysis implies that Islamic banking significantly
contributes to socioeconomic development. On the contrary, financial and
economic practices in everyday life do not reflect the social economic
justice. The result further illustrates that the Islamic banks lack
social contributions as they prone to practice efficiency-oriented
institutions. Hence, a social banking model is needed to solve the lack
of socio-economic development issue in the current practice of Islamic
bank.
RI Malaysia, Universiti Kebangsaan/Y-7256-2019; ABDUL-RAHIM, RUZITA/AAA-3169-2020;
Nor, shifa Mohd/K-9993-2019
OI Nor, shifa Mohd/0000-0002-7205-1179
ZA 0
Z8 0
ZB 0
ZR 0
TC 4
ZS 0
Z9 4
U1 1
U2 12
SN 1387-585X
EI 1573-2975
UT WOS:000375377000002
ER
PT J
AU Jawadi, Fredj
Jawadi, Nabila
TI Do Islamic and Conventional Banks Really Differ? A Panel Data
Statistical Analysis
SO OPEN ECONOMIES REVIEW
VL 27
IS 2
BP 293
EP 302
DI 10.1007/s11079-015-9373-9
PD APR 2016
PY 2016
AB This study compares two types of banks: conventional banks and Islamic
banks. Indeed, since the aftermath of the credit crunch and the global
financial crisis (2008-2009), the former have been severely criticized,
while the latter are increasingly considered as an alternative form of
banking. From a panel sample of twenty major banks (ten conventional
banks and ten Islamic banks) located in various developed and emerging
countries over the period April 2006- February 2013, the present paper
examines whether or not there are significant differences between the
two banking systems. Our sample enables us to compare these
international banking systems, taking the crisis impact and new
regulations and supervisory rules into account. To this effect, we
carried out econometric analyses of univariate and multivariate panel
data, which pointed to two interesting findings. First, there are only a
few significant differences between IBs and CBs in terms of financial
risk. Second, PVAR (Panel Vector Autoregressive) estimates and the
analysis of Impulse Response Functions (IRFs) indicate weak interactions
between IBs and CBs, while panel causality tests reject the causality
hypothesis from IBs to CBs.
TC 9
ZS 0
ZB 0
Z8 0
ZA 0
ZR 0
Z9 9
U1 1
U2 21
SN 0923-7992
EI 1573-708X
UT WOS:000372267700004
ER
PT J
AU Aysan, Ahmet F.
Disli, Mustafa
Ng, Adam
Ozturk, Huseyin
TI Is small the new big? Islamic banking for SMEs in Turkey
VL 54
BP 187
EP 194
DI 10.1016/j.econmod.2015.12.031
PD APR 2016
PY 2016
AB While SMEs constitute the backbone of many economies, many SMEs have
limited access to finance. Yet, banks in some countries are actively
financing SMEs. This paper examines whether this is true in the case of
Turkey, a G20 economy that has a significant SME sector. We study the
determinants of banks' willingness to finance SMEs and banks' processing
ability of SME financing portfolio in Turkey based on a unique quarterly
small business panel data set of 40 commercial banks from 2006 to 2014.
Employing pooled OLS and fixed-effects estimators, we find that Islamic
banks (known as Participation banks in Turkey) are more inclined toward
financing SMEs than conventional banks. We also find that the quality of
Islamic banks' SME loan portfolio is comparable to that of conventional
banks. The results are fairly robust to different bank ownership forms
(state owned, private, and Islamic banks) and alternative model
specifications. Our findings provide further support to the notion of
"small is the new big" in that banking for SMEs can be a viable venture.
(C) 2016 Elsevier B.V. All rights reserved.
OI Ng, Adam/0000-0002-9189-7006; Disli, Mustafa/0000-0003-0584-0060
ZA 0
ZS 0
ZR 0
TC 16
Z8 0
ZB 0
Z9 16
U1 0
U2 21
SN 0264-9993
EI 1873-6122
UT WOS:000374195900015
ER
PT J
AU Mansour, Walid
Hajlaoui, Leila Lefi
Abdulkarim, Fadul
Nassief, Mohammad
TI Trust Crisis in Islamic Banking: Empirical Evidence Using Structural
Equations Modeling
SO INTERNATIONAL JOURNAL OF BUSINESS
VL 21
IS 2
BP 157
EP 177
PD SPR 2016
PY 2016
AB This paper studies the trust crisis of the Islamic banking industry
through a comparative approach. While Islamic banking harks back to the
maxims stemming from Islamic law (i.e., poverty alleviation,
equitability, and social justice), little is known about its failure in
terms of trust. This paper is a first attempt to model the variables
explaining the trust crisis by comparing Saudi Arabian and Tunisian
Islamic banking industries. The empirical design is based on a
questionnaire analyzed using structural equations modeling. The
empirical findings show that the trust is heterogeneously assessed in
the two cultural contexts. Various measures can be enforced to
strengthen the trust in Islamic banks in both countries. Examples of
interesting measures are related to Islamic products development and
favorable regulatory reforms that need to be 'unleashed' to maintain the
trust and sustain the competitiveness and growth of Islamic banks.
RI Bashir, Fadul/K-3896-2013
ZA 0
Z8 0
ZB 0
ZR 0
TC 3
ZS 0
Z9 3
U1 0
U2 8
SN 1083-4346
UT WOS:000378853700005
ER
PT J
AU Ozdemir, Nilufer
TI Implications of the Dual Banking System in the US
SO ATLANTIC ECONOMIC JOURNAL
VL 44
IS 1
BP 91
EP 103
DI 10.1007/s11293-016-9487-5
PD MAR 2016
PY 2016
AB This paper examines the differences in characteristics of federal and
state chartered banks by using individual commercial bank's data sets
from 1984 to 2006. The findings indicate significant differences between
these two groups of banks in terms of their asset and liability
management strategies. In line with these differences, credit channel of
monetary policy is found to work differently for state and federal
banks. Federal banks are found to be more responsive to monetary policy
changes.
TC 0
ZA 0
ZR 0
ZB 0
ZS 0
Z8 0
Z9 0
U1 0
U2 0
SN 0197-4254
EI 1573-9678
UT WOS:000408760900005
ER
PT J
AU Hamza, Hichem
TI Does investment deposit return in Islamic banks reflect PLS principle?
VL 16
IS 1
BP 32
EP 42
DI 10.1016/j.bir.2015.12.001
PD MAR 2016
PY 2016
AB The main purpose of this paper is to examine the compliance of
investment deposit return with profit and loss sharing principle. This
compliance is analyzed through the impact of bank's risk, governance
mechanisms and competition environment on investment deposit return. We
use a pooled regression model applied to a panel of sixty Islamic banks
during the period 2004-2012. The estimation indicates that the
management of investment deposit and PLS assets is characterized by a
moral hazard behavior and excessive risk taking. The estimation reveals
that capital ratio and interest rate affect positively investment
deposit return. Small Islamic banks offer a better return of deposit
compared to the large bank. We find no evidence of the impact of board
of directors and Sharia board. Following these results, we suggest that
investment accounts holders should be integrated in the bank governance
system. Besides, the Islamic banks are incited to develop a new
generation of investment deposits. Copyright (C) 2015, Borsa Istanbul
Anonim Sirketi. Production and hosting by Elsevier B.V.
ZR 0
TC 15
ZA 0
ZS 0
Z8 0
ZB 0
Z9 15
U1 0
U2 3
SN 2214-8450
EI 2214-8469
UT WOS:000447593900004
ER
PT J
AU Breitschopf, Masood
Wachsmuth, Shayaan
TI Qualitative Comparative Analysis of Conversion Behavior of Employees on
Conventional and Islamic Banks in Pakistan
SO COMPETITION POLICY INTERNATIONAL
VL 12
IS 1
BP 27
EP 38
PD SPR-FAL 2016
PY 2016
AB The aim of the study was to investigate the switching behavior of staff
working in traditional and Islamic Banks in Pakistan. We used
semi-structured interviews to gather data. Analysis is performed by
encoding and grouping data. Finally, eight topics appear in the data.
Low wages, poor benefits, poor working conditions, a poor annual
appraisal system, and regulatory misconduct were believed to be major
factors affecting the transformation of banking practices in Pakistan.
ZB 0
TC 0
ZR 0
Z8 0
ZA 0
ZS 0
Z9 0
U1 0
U2 0
SN 1554-0189
EI 1554-6853
UT WOS:000505265100003
ER
PT J
AU Nobanee, Haitham
Ellili, Nejla
TI Corporate sustainability disclosure in annual reports: Evidence from UAE
banks: Islamic versus conventional
SO RENEWABLE & SUSTAINABLE ENERGY REVIEWS
VL 55
BP 1336
EP 1341
DI 10.1016/j.rser.2015.07.084
PD MAR 2016
PY 2016
AB The objective of this paper is to measure the degree of the corporate
sustainability disclosure using annual data for listed banks in the UAE
financial markets during the period 2003-2013. The results show that the
overall level of sustainability disclosure based on sustainability
reporting for banks listed in the UAE financial markets is at a low
level. The results also show that the degree of the corporate
sustainability disclosure of the conventional banks is higher than the
Islamic banks. In addition, our empirical results reveal that the
sustainability disclosure affects significantly and positively the
banking performance of the conventional banks while no significant
effect on the Islamic banks performance. (C) 2015 Elsevier Ltd. All
rights reserved.
RI Nobanee, Haitham/F-9237-2012; Ellili, Nejla/
OI Nobanee, Haitham/0000-0003-4424-5600; Ellili, Nejla/0000-0003-1032-3965
ZS 0
ZB 2
ZA 0
Z8 0
TC 36
ZR 0
Z9 37
U1 2
U2 28
SN 1364-0321
UT WOS:000368959200098
ER
PT J
AU Hussain, Mumtaz
Shahmoradi, Asghar
Turk, Rima
TI Overview of Islamic Finance
SO JOURNAL OF INTERNATIONAL COMMERCE ECONOMICS AND POLICY
VL 7
IS 1
AR UNSP 1650003
DI 10.1142/S1793993316500034
PD FEB 2016
PY 2016
AB Islamic finance has started to grow in international finance across the
globe, with some concentration in few countries. Nearly 20% annual
growth of Islamic finance in recent years seems to point to its
resilience and broad appeal, partly owing to principles that govern
Islamic financial activities, including equity, participation, and
ownership. In theory, Islamic finance is resilient to shocks because of
its emphasis on risk sharing, limits on excessive risk taking, and
strong link to real activities. Empirical evidence on the stability of
Islamic banks (IBs), however, is so far mixed. While these banks face
similar risks as conventional banks (CBs) do, they are also exposed to
idiosyncratic risks, necessitating a tailoring of current risk
management practices. The macroeconomic policy implications of the rapid
expansion of Islamic finance are far reaching and need careful
considerations.
ZA 0
ZS 0
ZB 0
Z8 0
TC 8
ZR 0
Z9 8
U1 0
U2 3
SN 1793-9933
EI 1793-9941
UT WOS:000403805100003
ER
PT J
AU Hasan, Zubair
TI CREDIT CONTROL INSTRUMENTS IN A DUAL BANKING SYSTEM: LEVERAGE CONTROL
RATE (LCR) - A PROPOSAL
VL 3
IS 1
BP 1
EP 15
DI 10.15238/tujise.2016.3.1.1-15
PD FEB 2016
PY 2016
AB Islam banishes interest. This raises two questions contextual to Central
Banking. First, can Islamic banks create credit like the conventional?
We shall argue that Islamic banks cannot avoid credit creation; an
imperative for staying in the market where they operate in competition
with their conventional rivals. Evidently, the interest rate policy
would not be applicable to them as a control measure. This leads us to
the second question: What could possibly replace the interest rate for
Islamic banks? In reply, the paper suggests what it calls a leverage
control rate (LCR) as an addition to Central Banks' credit control
arsenal. The proposed rate is derived from the sharing of profit ratio
in Islamic banking. It is contended that the new measure has an edge
over the old fashioned interest rate instrument which it can in fact
replace with advantage. It can possibly be a common measure in a dual
system.
ZR 0
TC 2
Z8 0
ZA 0
ZB 0
ZS 0
Z9 2
U1 0
U2 0
SN 2587-2303
EI 2587-232X
UT WOS:000448970900001
ER
PT B
BE Muhammad, M
Ahmed, MU
TI PRINCIPLES AND BEST PRACTICES OF RISK MANAGEMENT
SO ISLAMIC FINANCIAL SYSTEM: PRINCIPLES & OPERATIONS, 2ND EDITION
BP 581
EP 617
PD 2016
PY 2016
AB Financial institutions deal with money belonging to others; hence, risk
is an integral component of their business. Financial services sector
can be considered as the most sensitive business sector in any economy.
Economic fiascos are often linked with the failure of the financial
services sector. As Islamic finance is relatively new, the risks
inherent in the instruments used are not always well comprehended.
Islamic banks face two types of risks-risks similar to those faced by
conventional financial intermediaries and risks that are unique to them
due to their compliance with the Shari'ah rules and principles.
Furthermore, Islamic banks are constrained from using some of the risk
mitigation instruments used by their conventional counterparts as these
are prohibited under the Islamic commercial law. This chapter provides
an overview of the concepts related to risks and the principles of risk
management. It also outlines the basic approach to risk management from
the Islamic perspective, and identifies issues and challenges related to
risk management in IFIs.
Z8 0
TC 0
ZR 0
ZB 0
ZS 0
Z9 0
U1 0
U2 0
BN 978-967-12220-1-0; 978-967-12220-6-5
UT WOS:000401261700016
ER
PT B
AU Aldoseri, Mahfod
Worthington, Andrew C.
BE Boubaker, S
Buchanan, B
Nguyen, DK
TI Risk Management in Islamic Banking: An Emerging Market Imperative
SO RISK MANAGEMENT IN EMERGING MARKETS: ISSUES, FRAMEWORK, AND MODELING
BP 229
EP 252
PD 2016
PY 2016
AB The purpose of this chapter is to review the risks Islamic financial
institutions face in an emerging market context, including risk sharing
in Islamic financing and Shari'ah (Islamic law) compliance risk. We
explore current risk management practices and establish the link between
risk management and the financial performance of banks and the
efficiency and effectiveness of financial sectors in emerging markets.
Because of their distinctive risk profile, Islamic finance institutions
face challenges in risk management. We show that Islamic banking is
riskier in emerging markets because of the presence of immature money
markets, limitations in the availability of lender of last resort
facilities, and deficiencies in market infrastructure. There is also no
evidence that Islamic banks have developed effective solutions for
managing the risks conventional banks face as well as their own unique
risks. We suggest that the countries that do this best are those that
prioritize the structure of risk management knowledge and capabilities
in a single financial regulator. Keywords: Islamic banking; risk
management; Shari'ah
ZA 0
ZS 0
ZR 0
ZB 0
TC 1
Z8 0
Z9 1
U1 1
U2 2
BN 978-1-78635-451-8; 978-1-78635-452-5
UT WOS:000403552900010
D2 10.1108/9781786354518
ER
PT J
AU Ahmed, Mezbah Uddin
Sabirzyanov, Ruslan
Rosman, Romzie
TI A critique on accounting for murabaha contract A comparative analysis of
IFRS and AAOIFI accounting standards
VL 7
IS 3
SI SI
BP 190
EP 201
DI 10.1108/JIABR-04-2016-0041
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to examine the accounting
treatment and reporting of a murabaha contract and its implication to
the financial statements of Islamic banks. In addition, the paper also
explains the implication of time value of money on the measurement of a
murabaha contract and the concept of substance over form in recognising
financial transactions.
Design/methodology/approach - This study reviews the accounting
treatment and reporting for a murabaha contract as stated in the
Financial Accounting Standards (FAS) of the Accounting and Auditing
Organization for Islamic Financial Institutions (AAOIFI) and the
application of a murabaha contract as a financial instrument based on
International Financial Reporting Standards (IFRS).
Findings - The paper finds that, while IFRS- based financial reporting
primarily focuses on economic consequences of financial instruments,
AAOIFI further takes into consideration the legal structure of the
instruments, which are based on Shari'ah precepts. The paper also finds
that IFRS- based financial reporting cannot always capture the
distinctive structure of the murabaha and, hence, may lack
representational financial reporting. However, the IFRS recognizes the
substance of a murabaha contract as financing, and the majority of
Islamic banks in Malaysia report it as one of financing and not as a
trading contract. For measurement, IFRS adopted the concept of time
value of money where the profit allocation is based on amortized cost,
which is similar to the measurement of conventional loan transactions
that apply the concept of effective interest rate. Meanwhile, AAOIFI
uses a straight- line basis to allocate the profit of a murabaha
contract.
Practical implications - The forthright discussion and the observations
of the paper are expected to assist regulators and standard setters in
developing accounting standards that are in convergence but also cater
to the unique characteristics of Islamic financial transactions.
Originality/value - The paper criticizes both accounting treatment of a
murabaha contract based on the AAOIFI and IFRS and then suggests an
extension of these treatments to be adopted to improve the reporting.
RI Ahmed, Mezbah Uddin/AAC-3048-2019
ZS 0
Z8 0
ZA 0
TC 2
ZR 0
ZB 0
Z9 2
U1 0
U2 7
SN 1759-0817
EI 1759-0825
UT WOS:000409186900002
ER
PT J
AU Gharbi, Leila
Khamoussi, Halioui
TI Fair value and banking contagion Empirical evidence from Islamic and
conventional banking sectors in GCC region
VL 7
IS 3
SI SI
BP 215
EP 236
DI 10.1108/JIABR-12-2014-0042
PD 2016
PY 2016
AB Purpose - This paper aims to explore empirically the impact of fair
value accounting on banking contagion in a comparative context between
Islamic banks and conventional banks.
Design/methodology/approach - The analysis of the impact of fair value
changes on banking contagion is carried out through a panel data model.
This study covers 20 Islamic banks and 40 conventional banks operating
in the Gulf Cooperation Council ( GCC) countries during nine years from
2003 to 2011.
Findings - Empirical evidence shows that there is a significant change
in dynamic volatility in GCC banking sector because of financial crisis
2008. However, results fail to confirm the hypothesis that fair value
accounting is significantly associated with an increase of banking
contagion for both Islamic and conventional banks operating in GCC
countries.
Originality/value - The outcome of this study provides some insights for
academicians, accountants as well as regulators in terms of enhancing
the effectiveness of accounting practices.
ZB 0
TC 0
ZS 0
ZR 0
Z8 0
Z9 0
U1 0
U2 2
SN 1759-0817
EI 1759-0825
UT WOS:000409186900004
ER
PT J
AU Ismail, Muhammad Issyam Itam
bt Hasan, Rusni
Alhabshi, Syed Musa
TI Shariah Governance Framework For Islamic Co-Operatives As An Integral
Social Insitution In Malaysia
VL 24
SI SI
BP 477
EP 500
PD 2016
PY 2016
AB In Malaysia, Islamic cooperatives are recognized as providers of some
form of Islamic financial service similar to Islamic Banks and Takaful
Operators. An Islamic Co-operative refers to a co-operative conducting
activities and businesses based on Shariah principles. Being a
non-banking financial institution, its main objective is to enhance
social economic welfare of its members. As a form of captive social
institution, it enables the less economically privileged members of
society to pool resources as a cooperative. Malaysia is spearheading the
Islamic banking and finance industry globally by having in place a
proper and well-designed legal and regulatory framework for Islamic
Financial Institutions, which includes the area of Shariah governance.
However, the Shariah governance framework for the Islamic Co-operative
in Malaysia is still in its infancy stage. In this paper, this area will
be given focus and properly highlighted. Later, comparison will be made
with the Shariah governance framework for the Islamic financial
institutions. This paper will conclude that the requirements with regard
to Shariah governance for the Islamic Co-operative are flexible and not
as strict as required for the Islamic financial institutions.
ZA 0
ZR 0
Z8 0
ZS 0
TC 5
ZB 0
Z9 5
U1 0
U2 3
SN 0128-4878
EI 2289-5639
UT WOS:000406144000007
ER
PT J
AU Maulan, Suharni
Omar, Nor Asiah
Ahmad, Maisarah
TI Measuring halal brand association (HalBA) for Islamic banks
VL 7
IS 3
BP 331
EP 354
DI 10.1108/JIMA-09-2014-0058
PD 2016
PY 2016
AB Purpose - The main purpose of this paper is to develop a reliable and
valid scale for measuring halal brand association (HalBA) for Islamic
banks. Brand association is a core dimension of brand equity that
Islamic bank managers need to develop to maintain competitiveness. Using
the process proposed by Churchill for developing measures of marketing
constructs, an instrument to assess HalBA for Islamic bank is
formulated.
Design/methodology/approach - The methodology consists of developing the
scale based on a literature review and qualitative method. The proposed
scale is then purified and validated through exploratory factor analysis
(EFA) and confirmatory factor analysis (CFA).
Findings - Based on the EFA and CFA, the result reveals that HalBA for
Islamic banks contains 15 attributes which can be categorized into three
dimensions: Shari ' ah-compliant association, God-consciousness
association and corporate social responsibility association.
Practical implications - The scale developed could assist practitioners
in further understanding the dimensions and measurement of halal bank
association, particularly in Islamic banking institutions. Knowledge of
the dimensions of HalBA that customers seek from an Islamic bank can
help managers and marketers to design branding strategies that better
meet the needs of consumers, thereby increasing their satisfaction and
loyalty.
Originality/value - The concept of brand association has been explored
primarily from a conventional marketing perspective. This study offers a
new dimension of HalBA in the context of Islamic banks.
RI Omar, Nor Asiah/K-9917-2019; Maulan, Suharni/
OI Maulan, Suharni/0000-0002-9449-3840
ZR 0
ZB 0
Z8 0
TC 7
ZA 0
ZS 0
Z9 7
U1 0
U2 9
SN 1759-0833
EI 1759-0841
UT WOS:000399078000005
ER
PT J
AU Setyobudi, Wahyu T.
Wiryono, Sudarso Kaderi
Nasution, Reza Ashari
Purwanegara, Mustika Sufiati
TI The efficacy of the model of goal directed behavior in explaining
Islamic bank saving
VL 7
IS 4
BP 405
EP 422
DI 10.1108/JIMA-12-2014-0080
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to test the efficacy of model of
goal- directed behavior (MGB) to explain and predict savings at Islamic
bank behavior. The importance of understanding consumer intention to
develop good strategy to accelerate consumer saving at Islamic bank is
inevitable. One of the most popular theories explaining behavioral
intention was the MGB. Although it has been validated and tested in a
variety of contexts, this theory has never been applied in behavior
related to Islamic banks.
Design/methodology/approach - The present study used a combination of
qualitative and quantitative data. Qualitative data obtained from 31 in-
depth interviews were used to develop behavioral beliefs components and
a control beliefs component, while quantitative data obtained from a
survey of 316 respondents were used to test the model. Structural
equation modeling was the main data analysis technique.
Findings - The result shows that MGB has good indicators of fit, which
implies that it can be used to explain and predict intention to save at
Islamic bank. This research also reveals several behavioral and control
beliefs that positively contribute to intention.
Originality/value - This paper contributes to behavior prediction
literature by exploring the possibility of the application of the MGB in
the Islamic bank context. It also gives a deeper understanding of the
Indonesian Islamic bank consumer market that has great potential for
development in the future.
ZA 0
ZB 0
TC 2
ZR 0
ZS 0
Z8 0
Z9 2
U1 0
U2 4
SN 1759-0833
EI 1759-0841
UT WOS:000399078100002
ER
PT J
AU Mansour, Ilham Hassan Fathelrahman
Eljelly, Abuzar M. A.
Abdullah, Abdelgardir M. A.
TI Consumers' attitude towards e-banking services in Islamic banks: the
case of Sudan
SO REVIEW OF INTERNATIONAL BUSINESS AND STRATEGY
VL 26
IS 2
BP 244
EP 260
DI 10.1108/RIBS-02-2014-0024
PD 2016
PY 2016
AB Purpose - This study aims to provide an analysis of the attitude toward
three banking services technologies in Sudan, namely, automated teller
machines (ATMs), mobile banking and internet (online) banking. The study
started by conducting an exploratory factor analysis, on the valid
responses received from a random sample of bank customers in Sudan
toward the three technologies.
Design/methodology/approach - The study used the "technology acceptance
model" as a conceptual framework to investigate the factors that
influence customers' acceptance and intention to use bank technologies.
Findings - The study found that the customers' attitude toward various
bank technologies is not the same and is influenced by different
factors. The results revealed that bank customers who are users of ATMs
are influenced by its convenience, ease of use and service quality,
whereas credibility was not seen as a significant driver. Mobile users
were found to be influenced more by the benefits and ease of use and
service quality, whereas internet customers were influenced by the
benefits and ease of use and credibility of the systems. Under the three
models, attitude emerged as a fully mediating factor for customers'
behavioral intentions.
Practical implications - The implications of this study are obvious for
both regulators and bankers in Sudan for careful designing and
implementation of their technology-based banking systems and focusing on
the features of concern and desirable most by bank customers and
necessary for secure and safe adoption of technology-based banking.
Originality/value - There are no studies to date that provide evidence
of customer acceptance and the use of these services, the volume of bank
business or profits derived from these services. This is especially
important because security concerns are always associated and attached
with technology-based services. The identification of technology
acceptance factors is very important for bank regulators, bank marketers
and banks' customer base.
RI Mansour, Ilham Hassan Fathelrahman/N-7908-2019
OI Mansour, Ilham Hassan Fathelrahman/0000-0002-0083-9426
ZA 1
ZB 0
Z8 0
ZR 0
ZS 0
TC 9
Z9 10
U1 1
U2 7
SN 2059-6014
EI 1758-8529
UT WOS:000399080500006
ER
PT J
Bahlous, Mejda
Haniffa, Roszaini
TI Rental rate as an alternative pricing for Islamic home financing An
empirical investigation on the UK Market
SO INTERNATIONAL JOURNAL OF HOUSING MARKETS AND ANALYSIS
VL 9
IS 4
BP 601
EP 626
DI 10.1108/IJHMA-10-2015-0063
PD 2016
PY 2016
AB Purpose - This paper aims to contribute to the banking and housing
market literature by proposing an alternative measure of rate of return
for Islamic banks that is based on the rental rate of the property. This
alternative Islamic mortgage pricing mechanism could be adopted by
Islamic banks as a replacement for mortgage rates if it is found to be
independent from any form of interest rates as required by Islamic law.
Design/methodology/approach - By investigating the short run and long
run dynamics between rental price index (RPI) and the proposed Islamic
Rental Rate (RR- I) and, three selected macroeconomic indicators in the
UK via autoregressive distributed lag model, the authors examine the
link between RPI, RR- I and the real economy.
Findings - The findings provide evidence that while RPI in the UK is
significantly related to three leading macroeconomic variables, namely,
gross domestic product (GDP), real effective exchange rate and interest
rates measures, while RR- I is only impacted by changes in GDP. More
importantly, the authors show that there is no short or long run
dynamics between the rental rate and any form of interest rates.
Research limitations/implications - This paper did not attempt to
investigate the impact of the physical attributes of the rental property
to formalize the model describing the relationship between RPI and RR-
I. Also, other macroeconomic factors like household income growth, risk,
house value growth rate and taxation could be included in future models.
Practical implications - As Rental Rate is not linked to the
macroeconomic determinants, it is therefore more stable, resilient and
sustainable and, at the same time, making the financing less risky for
both parties, as they are less susceptible to economic vulnerabilities.
Social implications - Some calculations incorporating the proposed RR- I
can also be extended to the pricing of products based on other contracts
such as Tawarruq, Bai Bithaman Ajil or even Murabahah for a fairer and
just pricing to both the banks and customers.
Originality/value - The results suggest that Islamic banks should
consider incorporating the proposed rental rate (RR-I) when pricing
their home financing products, as this will lead to less dependence on
interest rates for benchmarking. In addition, using the proposed rental
rate (RR-I) reduces the exposure to the subjective evaluation by
property valuators and speculative macroeconomic elements.
TC 6
ZB 0
ZS 0
ZA 0
Z8 0
ZR 0
Z9 6
U1 0
U2 5
SN 1753-8270
EI 1753-8289
UT WOS:000398668900012
ER
PT J
AU Ghosh, Saibal
TI Macroprudential policies, crisis and risk-taking Evidence from dual
banking systems in GCC countries
VL 7
IS 1
BP 6
EP 27
DI 10.1108/JIABR-03-2014-0011
PD 2016
PY 2016
AB Purpose -The role of macroprudential policies (MPPs) in influencing bank
risk-taking has recently attracted significant attention in the
literature. Several studies have emerged, both at the cross-country
level as well as at the level of individual countries that have examined
this issue. However, whether and to what extent do MPPs affect
risk-taking by Gulf Cooperation Council (GCC) banks has not been
investigated in prior empirical research. Toward this end, using data
during 1996-2010, the author examines the impact of MPPs on risk-taking
by GCC banks. The author considers the entire gamut of MPPs -those
focused on credit, capital and liquidity -and how they impact bank risk.
Design/methodology/approach -In view of the possible endogeneity between
the dependent variables and the crucial independent variable (i. e.
MPP), the paper uses advanced panel data techniques that address this
endogeneity. Toward this end, the author uses dynamic panel data
methodology to examine the interlinkage between bank risk taking and
MPPs for GCC banks.
Findings -The findings appear to suggest that although MPPs are useful,
not all of them are equally effective in containing the potential
build-up of financial stress. Viewed from this standpoint, it appears
that capital adequacy ratios and reserve requirements are the ones with
maximum efficacy in limiting potential build-up of risks. Classifying
the MPPs as per their impact on major balance sheet variables, the
results indicate that capital-related measures tend to exert the
greatest impact on credit.
Originality/value -A significant volume of literature has emerged in
recent years that examine the efficacy of MPPs on bank risk-taking.
Notwithstanding available cross-country research, limited analysis on
this aspect in the context of GCC banks. Toward this end, an extended
sample of GCC banks has been used to examine this issue. To the best of
the author's knowledge, this is one of the earliest studies for GCC
banking systems to examine this issue.
ZA 0
ZS 0
Z8 0
ZR 0
TC 6
ZB 0
Z9 6
U1 0
U2 4
SN 1759-0817
EI 1759-0825
UT WOS:000398665000002
ER
PT J
AU Suzuki, Yasushi
Uddin, S. M. Sohrab
TI Recent trends in Islamic banks' lending modes in Bangladesh: an
evaluation
VL 7
IS 1
BP 28
EP 41
DI 10.1108/JIABR-07-2013-0026
PD 2016
PY 2016
AB Purpose -This paper aims to assess recent trends in lending modes and to
address the reasons for and consequences of changes in Bangladesh's
Design/methodology/approach -Theoretical discourse is used to generate
an underpinning for the issues covered by the study. In addition,
empirical evidence from the banking sector, including the information
derived from interviews with the staff of three Islamic banks, is
presented to achieve the research objectives.
Findings -The findings clearly demonstrate that the Islamic banking
sector has experienced a paradigm shift from participatory financing to
asset-based financing. In particular, the murabaha mode of financing
dominates the current lending structure, which follows the general trend
of the global Islamic banking sector.
Research limitations/implications -It is necessary to concentrate on the
potential negative outcomes of the trade-based murabaha mode of
financing in a developing country such as Bangladesh, as banks have less
incentive under protective rent ( profit) opportunities to train the
experts to screen and monitor projects in other socially desirable
sectors such as agriculture and manufacturing including the small and
medium enterprises.
Originality/value -Despite substantial growth of the Islamic banking
sector, less research has been conducted to shed analytical light on the
operations of Islamic banks from the perspective of loan disbursement to
identify the disparities, if any, in between theory and practice in
countries where both Islamic and conventional banks operate
simultaneously. Using country-specific evidence, this study contributes
to the debate by highlighting the paradigm shift of Islamic banks from
participatory financing to the dominance of asset-based murabaha and
other modes of lending, by identifying the fundamental causes that
contribute to such a shift and by highlighting the consequences of such
changes.
OI Suzuki, Yasushi/0000-0002-3939-6917
ZA 0
Z8 0
ZR 0
TC 6
ZS 0
ZB 0
Z9 6
U1 0
U2 3
SN 1759-0817
EI 1759-0825
UT WOS:000398665000003
ER
PT J
AU Grassa, Rihab
TI Ownership structure, deposits structure, income structure and insolvency
risk in GCC Islamic banks
VL 7
IS 2
BP 93
EP 111
DI 10.1108/JIABR-11-2013-0041
PD 2016
PY 2016
AB Purpose -This paper aims to examine the effect of the concentration of
ownership concentration and the deposits structure on the link between
income structure and insolvency risk in Islamic banks operating in Gulf
Cooperation Council (GCC) countries.
Design/methodology/approach -Using data for 43 GCC Islamic banks over
the period from 2005 to 2012, this paper specifies a three-stage
least-squares model in which the impact of the concentration of
ownership concentration and the deposits structure on income
diversification and insolvency risk is jointly analyzed to address the
problem of endogeneity.
Findings -The findings show that the income structure influences the
insolvency risk in Islamic banks with a concentrated ownership
structure. This is because the deposits structure and large shareholders
influence strategic decisions.
Research limitations/implications -This paper is, also, subject to a
number of limitations. First, this study focuses exclusively on the GCC
context and excludes the other Middle East and Far East countries.
Second, the paper does not take into consideration banking regulation.
Practical implications -The paper findings shed light on the ongoing
debate about the benefits of revenue diversification and also provide
valuable insights for market participants, regulators and supervisors
about what drives performance in Islamic banks. Originality/value -The
paper fills the gap in the existing literature on insolvency risk in
Islamic banks. It is expected to provide useful information for policy
makers and Islamic bankers to develop a sound Islamic banking industry
in the GCC region. In addition, the link identified between ownership
concentration, deposits structure and revenue diversification is a novel
way of analyzing the impact of the latter on insolvency risk in Islamic
banks.
ZA 0
TC 2
Z8 0
ZR 0
ZS 0
ZB 0
Z9 2
U1 0
U2 5
SN 1759-0817
EI 1759-0825
UT WOS:000398665100002
ER
PT J
AU Naim, Asmadi Mohamed
Long, Mohd Noor Habibi Hj
Abu Bakar, Mahyuddin
Hussain, Muhammad Nasri Md
TI Shariah appraisal on the issue of imposing burden of proof to the
entrepreneur in trust based contracts
VL 7
IS 2
BP 148
EP 169
DI 10.1108/JIABR-03-2015-0009
PD 2016
PY 2016
AB Purpose -The purpose of this paper is to examine the Shariah view on the
legitimacy of requiring the entrepreneur to prove that he/she has
complied with all business requirements in case the actual profit was
below the expected profit in trust-based contracts such as mudarabah and
musharakah.
Design/methodology/approach -This paper is part of the research which
applies qualitative research approaches, including among others, content
analysis, interviews, observations and descriptive analysis using fiqh
muqaran (comparative analysis of jurists' arguments) in few phases.
Findings -The study found that shifting the burden of proof to the
fiduciary is the weightier view and necessary to ensure that both sides
are protected. The considerations of protecting people's wealth (hifz
amwal al-nas) and mitigating widespread greed (tamaz) are among the
reasons for allowing elements such as. urf, tuhmah and dalalat al-hal to
be treated as bayyinah in trust-based contracts when the fiduciary is
obliged to defend himself from litigation.
Research limitations/implications -The study is meant to strengthen the
practices of Islamic banks world wide.
Practical implications -Few protections can be applied for capital
provider.
Social implications -This study is meant to give solution in dealing
with moral hazard of both parties, and to provide solution to the
regulator for policy drafting and to increase confidence to the
industry.
Originality/value -The finding is important in assisting the regulators
in drafting the policy to protect both parties without neglecting the
essence of trust-based contracts.
RI naim, asmadi mohamed/B-2930-2018
Z8 0
TC 0
ZR 0
ZB 0
ZS 0
Z9 0
U1 0
U2 2
SN 1759-0817
EI 1759-0825
UT WOS:000398665100004
ER
PT J
AU Saqib, Lutfullah
Farooq, Muhammad Aitisam
Zafar, Aliya Mueen
TI Customer perception regarding Shariah compliance of Islamic banking
sector of Pakistan
VL 7
IS 4
BP 282
EP 303
DI 10.1108/JIABR-08-2013-0031
PD 2016
PY 2016
AB Purpose - This paper aims to analyze the impact of Shari` ah compliance
perception on customer satisfaction in Islamic banking sector of
Pakistan. Design/methodology/approach - Primary data were collected from
242 account holders of Islamic banks and Islamic banking branches of
conventional commercial banks and analyzed by correlation and regression
through self-administered questionnaires based on SERVQUAL model.
Findings -Significant moderating effects of Shari` ah compliance
perception on the relation between service quality and customer
satisfaction have been identified.
Research limitations/implications - As a cross-sectional study with
convenience sampling restricts generalizability and because financial
benefits offered by banks were not included as a variable, the scope of
this study is limited to service quality only. Future research may focus
on the moderating effect of Shari` ah compliance perception through
longitudinal study with larger sample size in a multi-cultural
environment.
Practical implications -Results of this paper recommend Islamic banks to
focus on their core strength "Shariah compliance" while developing their
product/service and building marketing strategies. Moreover, assurance
of high-quality services will sustain such strategies against
competition with conventional banks.
Social implications -Islamic banks must primarily develop their brand
through extensive communication and public awareness programs regarding
Shari` ah compliance standards in terms of products/services,
policy/procedures, code of conduct and Shari` ah board.
Originality/value -This research examines moderating role of Shari` ah
compliance perception between service quality and customer satisfaction
in Islamic banking sector of an Islamic Republic with dual banking
system. This interactive effect of Shari` ah compliance perception has
not been found as an overriding theme in any of the main stream
journals/articles. Therefore, this study fills this gap.
ZA 0
ZB 0
Z8 0
ZR 0
TC 8
ZS 0
Z9 8
U1 0
U2 10
SN 1759-0817
EI 1759-0825
UT WOS:000398665200003
ER
PT J
AU Mersni, Hounaida
Ben Othman, Hakim
TI The impact of corporate governance mechanisms on earnings management in
Islamic banks in the Middle East region
VL 7
IS 4
BP 318
EP 348
DI 10.1108/JIABR-11-2014-0039
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to examine whether corporate
governance mechanisms affect the reporting of loan loss provisions by
managers in Islamic banks in the Middle East region.
Design/methodology/approach -This empirical study uses balanced panel
data from 20 Islamic banks, from seven Middle East countries for the
period 2007 to 2011. The regression model is estimated using random
effects specifications.
Findings -The empirical results show that discretionary loan loss
provisions (DLLP) are negatively related to board size and the existence
of an audit committee. Results also report a positive relationship
between sharia board size and DLLP. This indicates that small sharia
supervisory boards are more effective than larger ones, which could be
due to the higher costs and negative effects of large groups on
decision-making. Results also highlight that the existence of scholars
with accounting knowledge sitting on the sharia board reduces
discretionary behavior. Additional results provide evidence that an
external sharia audit committee is also found to reduce discretion in
Islamic banks. The conclusions are found to be robust to endogeneity
issues and potentially omitted variables.
Practical implications -The findings are potentially useful for
regulators and shareholders. Regulators could use the findings to focus
on corporate governance mechanisms that restrain earnings management
practices in Islamic banks and implement regulations to strengthen them.
Additionally, this study gives shareholders further insight which
enables them to better monitor the actions of managers and thus increase
their control over their investments.
Originality/value -This study provides two contributions to the
literature on Islamic banking. First, to the authors' knowledge, this
study is only the second piece of research focused on the impact of
corporate governance on earnings management in Islamic banks. Second,
the authors have examined the effect of some new corporate governance
mechanisms that have not been studied previously in the research
literature.
RI Othman, Hakim Ben/F-3287-2012
OI Othman, Hakim Ben/0000-0003-4353-7142
ZA 0
TC 9
ZB 0
ZR 0
Z8 0
ZS 0
Z9 9
U1 0
U2 6
SN 1759-0817
EI 1759-0825
UT WOS:000398665200005
ER
EF

Savedrecs

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Savedrecs

Uploaded by

Copyright:

Available Formats

FN Clarivate Analytics Web of Science

You might also like