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
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Muḍārabah and mushārakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs
Reazul Islam,Rubi Ahmad +1 more
TL;DR: In this article, a survey was carried out in the rural area of Selangor district in Malaysia by administering a self-generated structured questionnaire to gain the perception of disadvantaged women on the Sharīʿah (Islamic law) rules on two micro-equity financing instruments.
Journal ArticleDOI
Competition in dual markets: Implications for banking system stability
TL;DR: In this article, the impact of market competition on the stability of Islamic and conventional banks in countries where these banks operate alongside one another is examined, and the authors find that competition can be beneficial for banks, especially at a low to medium competition level.
Journal ArticleDOI
Expanding the Frontiers of Economics: Some Insights from the Qur’anic Revelation
TL;DR: The main argument of the paper as discussed by the authors is that by integrating human understanding of the divine revelation with conventional economics, existing frontiers of the subject can be expanded, and the paper enumerates, by way of example, six problem areas where the Qur'anic revelation can give a lead.
Posted Content
The Measurement of the Displaced Commercial Risk in Islamic Banks
TL;DR: In this paper, the authors provide a measurement of the displaced commercial risk that results from the management of the profit distribution on the unrestricted profit sharing investment accounts PSIAU in Islamic banks.
Journal ArticleDOI
Security design, incentives, and Islamic microfinance : Cross country evidence
TL;DR: In this paper, the support from Institute of Belt and Road Studies, Sun Yat-sen University has been used to support the study of road networks in China and the Middle East.
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.
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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.
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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.
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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.