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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Return and volatility spillovers in the presence of structural breaks: evidence from GCC Islamic and conventional banks
Noureddine Benlagha,Slim Mseddi +1 more
TL;DR: In this article, the authors investigated the dynamics of return and volatility spillover indices to reveal the strength and direction of transmission that occurred during a financial crisis and found that the spillover index was highly sensitive to various economic events.
Journal ArticleDOI
Low-frequency volatility and macroeconomic dynamics: conventional versus islamic stock markets
Hong-Bae Kim,A. S. M. Sohel Azad +1 more
TL;DR: In this paper, the relationship between macroeconomic risk and low-frequency volatility of conventional and Islamic stock markets from around the world was investigated using a panel of 36 countries, using a data set from the World Wide Web.
Journal ArticleDOI
Relationship among cost of financial intermediation, risk, and efficiency: Empirical evidence from Bangladeshi commercial banks
TL;DR: In this paper, the authors examine the global financial crisis and stiff market competition enhance risk exposures that raise debate on the cost of financial intermediation and the supremacy of banks' efficiency.
Determinants of Islamic Bank Financing in Malaysia: An Empirical Study Using Linear and Nonlinear ARDL Model
TL;DR: In this article, the authors examined the dynamics relationship between the Islamic bank financing and selected macroeconomic variables in Malaysia using monthly data covering the period of January 2007 to June 2016, and the results showed that there is no long-run relationship among the variables.
Journal ArticleDOI
Ethical Commitments and Credit Market Regulations
Saad Azmat,Hira Ghaffar +1 more
TL;DR: In this paper, the authors examine the economic and ethical consequences of different credit market regulations, including usury laws, complete prohibition of interest and providing ease to the borrower upon default (bankruptcy laws).
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.
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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.