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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COVID-19 pandemic impact on banking sector: A cross-country analysis
TL;DR: In this paper , the authors examined the effects of the COVID-19 outbreak on the performance and stability of the banking sector and found that the adverse impact depends on the characteristics of the bank and market structure, while a better regulatory environment, institutional quality and financial development have significantly increased the strength and resilience of banks.
Journal ArticleDOI
Performance in the Insurance Industry (Islamic versus Conventional) and Risk Management
Amina Aouini,Chokri Abdennadher +1 more
TL;DR: In this paper , the authors compare the performance of Islamic and conventional insurance, and find that risk premiums and size explain the difference between two insurance industries, and that these two variables have a more favorable effect on the performance compared to conventional insurance.
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Islamic bank margins in Indonesia: The role of market power and bank-specific variables
TL;DR: In this article , the determinants of bank margins consist of market and bank-specific variables, such as income diversification, risk-averse, financing, and financing risk, and the effect of market power on Islamic bank margins is more pronounced in Islamic bank subsidiaries.
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Implementation of Islamic Elements as a Parameter for Credit Evaluation Process: Exploring Shariah Adviser’s Perceptions
TL;DR: In this paper, the authors explore the Shariah adviser's perceptions on credit evaluation process in commercial financing activities in Islamic banks and explore the credit management (during and after the lifetime).
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.