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
Retraction: Confidence level and credit risk analysis in Russian banks
TL;DR: Lavrushin et al. as mentioned in this paper analyzed the confidence level and credit risks in Russian banks after the 2014 sanction in terms of the economic behavior theory, and showed that the problem of credit risk management in the Russian banking system is not so strong.
Journal ArticleDOI
Financial technology and bank stability in an emerging market economy
TL;DR: In this paper , the impact of financial technology (FinTech) firms on bank stability was investigated using a sample of 141 banks in Indonesia during the 2004-2018 period, and the authors found that more FinTech firms tend to enhance bank stability regardless of types of Fintech firms and the measurement of bank stability.
Journal ArticleDOI
Fintech and Islamic banking growth: new evidence
TL;DR: In this article , the authors evaluate the global developments in the area of fintech solutions by analyzing Islamic and Conventional banks core accounting and market analysis IFIs and their impact on financial inclusion within its core markets.
Journal ArticleDOI
Does corporate governance affect the performance and stability of Islamic banks?
Emmanuel Mamatzakis,Christos Alexakis,Khamis Al Yahyaee,Vasileios Pappas,Asma Mobarek,Sabur Mollah +5 more
TL;DR: In this article , the authors investigated the impact of corporate governance practices on cost efficiency and financial stability for a sample of Islamic and conventional banks and concluded that Islamic banks may suffer a loss in their value since the adoption of the third layer of binding practices, over and above the already existing ones imposed by the Sharia Board and the Board of Directors, may lead to cumbersome business operations.
Book ChapterDOI
Determinants of the Asset Structure of Malaysian Islamic Banks: A Panel Study
TL;DR: In this paper, the authors investigated the management of asset structures in Malaysia's commercial banking sector and found that asset management structure is significant for total financing, total deposits, money supply, gross domestic product (GDP), and composite indices.
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.