Journal ArticleDOI
Risk in Islamic Banking
TLDR
In this article, the authors investigated risk and stability features of Islamic banking using a sample of 553 banks from 24 countries between 1999 and 2009 and found that small Islamic banks that are leveraged or based in countries with predominantly Muslim populations have lower credit risk than conventional banks.Abstract:
This paper investigates risk and stability features of Islamic banking using a sample of 553 banks from 24 countries between 1999 and 2009. Small Islamic banks that are leveraged or based in countries with predominantly Muslim populations have lower credit risk than conventional banks. In terms of insolvency risk, small Islamic banks also appear more stable. Moreover, we find little evidence that Islamic banks charge rents to their customers for offering Sharia compliant financial products. Our results also show that loan quality of Islamic banks is less responsive to domestic interest rates compared to conventional banks.read more
Citations
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Journal ArticleDOI
Credit risk in Islamic banking: evidence from the GCC
TL;DR: In this paper, the authors investigated the differences in the credit profiles of Islamic and conventional banks in the Gulf Cooperation Council (GCC) region and tried to identify the factors responsible for those differences.
Journal ArticleDOI
Regulatory capital and stability of Islamic and conventional banks
Fakhri Korbi,Khemaies Bougatef +1 more
TL;DR: In this article, the authors used 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.
Journal ArticleDOI
The conditioning role of performance on the bank risk-taking channel of monetary policy: Evidence from a multiple-tool regime
Van Dan Dang,Van Cuong Dang +1 more
TL;DR: In this paper, the authors investigated how monetary policy affects bank risk-taking under a multiple-tool regime of Vietnam during 2007-2018 and showed that the liquidity injection initiated by the central bank's asset purchases induces banks to take more risks, captured by the traditional Z-score and two alternative measures of credit risk.
Journal ArticleDOI
Bank capital, lending and financing behaviour of dual banking systems
TL;DR: In this article, 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, and the sample period 2005-2014 helps highlight the effects of the 2008 Global Financial Crisis and differentiate between bad time intervals and good ones.
Journal ArticleDOI
The Efficiency Patterns of Islamic Banks During the Global Financial Crisis: The Case of Bangladesh
TL;DR: In this paper, the authors apply Multi-directional Efficiency Analysis (MEA) to identify the differences in inefficiency patterns for a set of banks in Bangladesh from 2001 to 2015.
References
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Journal ArticleDOI
Financial Intermediation and Delegated Monitoring
TL;DR: In this paper, the authors developed a theory of financial intermediation based on minimizing the cost of monitoring information which is useful for resolving incentive problems between borrowers and lenders, and presented a characterization of the costs of providing incentives for delegated monitoring by a financial intermediary.
Journal ArticleDOI
Bank governance, regulation and risk taking
TL;DR: In this paper, the authors conduct an empirical assessment of theories concerning risk taking by banks, their ownership structures, and national bank regulations, and show that bank risk taking varies positively with the comparative power of shareholders within the corporate governance structure of each bank.
Journal ArticleDOI
Government Ownership of Banks
TL;DR: In this paper, the authors show that government ownership is large and pervasive and higher in countries with low levels of per capita income, backward financial systems, interventionist and inefficient governments, and poor protection of property rights.
Journal ArticleDOI
Capital Regulation, Risk-Taking and Monetary Policy: A Missing Link in the Transmission Mechanism?
Claudio Borio,Haibin Zhu +1 more
TL;DR: In this paper, the authors argue that insufficient attention has so far been paid to the link between monetary policy and the perception and pricing of risk by economic agents - what might be termed the "risk-taking channel" of monetary policy.
Journal ArticleDOI
Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking
TL;DR: In this paper, a bank with a fragile capital structure, subject to runs, is identified as a potential source of illiquidity in a bank relationship lender, where the relationship lender may demand to liquidate early or require a return premium when she lends directly.