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
How Large Are Productivity Differences between Islamic and Conventional Banks
Wahida Ahmad,David Prentice +1 more
TL;DR: In this paper, the authors take advantage of recent improvements in the direct estimation of production functions by Olley-Pakes and Ackerberg-Caves-Frazer (ACF) to develop fresh evidence on this question.
Journal ArticleDOI
Legal rules, information transparency and Islamic bank capital decisions
TL;DR: In this paper, the authors assess the effect of the legal rule index on a sample of 100 Islamic banks' capital decisions and find that the formal institutional environment influence Islamic bank capital decisions.
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The Determinants of Islamic Banking Capital Structure in Indonesia
TL;DR: In this paper, the authors analyzed and explained the factors that influence capital structure in Islamic banking companies and found that only risks did not affect the capital structure, while other independent variables had a significant temporary effect on conventional banks.
Journal ArticleDOI
How do banks' capital regulation and risk-taking respond to COVID-19? Empirical insights of ownership structure
Syed Moudud-Ul-Huq,Kawsar Ahmed,Mohammad Ashraful Ferdous Chowdhury,Hafiz M. Sohail,Tanmay Biswas,Faisal Abbas +5 more
TL;DR: In this article, the authors investigated the relationship between capital regulation and risk-taking behavior (financial stability) concerning the impacts of the recent global (COVID-19) crisis and diverse ownership structure.
Journal ArticleDOI
CEO’s social capital and performance of zakat institutions: Cross-country evidence
TL;DR: In this article, the authors investigate whether the performance of zakat institutions is affected by the social capital of their CEO and empirically find a positive association between CEO's social capital and institutions' performance.
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.