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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The impact of information and communication technology on financial inclusion-based on a global perspective
TL;DR: In this paper , the effect of information and communication technology (ICT) level on financial inclusion has been evaluated using the Euclidean distance method and a linear regression model, and the mediating effect model is employed to explore the impact mechanism of the ICT level on the financial inclusion.
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Does religiosity affect financing activity? Evidence from Indonesia
TL;DR: In this article , the authors examined the role of religiosity on the financing activities in both Islamic and conventional banks in Indonesian provinces by using five different measures of faith: number of Islamic schools, hajj application, number of seminary schools, Mosques, and certified halal products.
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Capital, risk and efficiency tradeoffs in Cameroonian banking
TL;DR: In this article , the relationship between capital, risk and efficiency for a sample of 10 Cameroonian banks between 2014 and 2020 was analyzed using the two stage least squares panel data estimator technique.
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Exploring the dynamics of bank liquidity holding in Islamic and conventional banks
TL;DR: In this article , the authors used the partial adjustment model (PAM) on a sample of 445 banks from 17 Organisation of Islamic Cooperation countries over the period 2010-2018, and found that despite Islamic banks' placement of higher short-term liquidity buffer, they experience lower net stable fund ratio (NSFR) in the long term, relative to CBs.
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Islamic Banking Products: Home Country Bias and Majority Out-Group Consumption
TL;DR: In this paper, the authors provide an overview of the incentives for Muslims and non-Muslims to adopt Islamic Banking (IB) products in a non-Muslim developing country by collecting data from a sample of 1,128 Mauri...
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.