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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How Does Bank Competition Affect Solvency, Liquidity and Credit Risk? Evidence from the MENA Countries
TL;DR: The authors analyzes the relationship between bank competition and stability, with a specific focus on the Middle East and North Africa, and suggests policy reforms designed to improve market contestability and to increase the quality and independence of prudential supervision.
Journal ArticleDOI
Banking Governance, Performance and Risk-Taking (Conventional Banks versus Islamic Banks) by Faten Ben Bouheni, Chantal Ammi and Aldo Levy (2016)
Journal ArticleDOI
Behavioral Aspects of Religiosity in Finance: A Brief Survey on Conventional versus Islamic Finance
TL;DR: The authors provided a brief review on how religiosity might affect financial behavior by the inclusion of recent studies and discussed the differences in different geographies and finance schemes with respect to religiosity.
Journal ArticleDOI
The effect of Islamic finance on trade in insurance services in selected countries in the Middle East region
Alya Al-Fori,Azmat Gani +1 more
TL;DR: In this paper , the authors adopt the gravity modeling framework and the panel data estimation procedure to understand the effects of Islamic finance on trade in insurance services and reveal a statistically significant positive correlation of Islamic money with the exports and imports of insurance services.
Book ChapterDOI
Constant Market Share Analysis of the Competitiveness of Islamic Car Financing and Conventional Car Loan in Malaysia
TL;DR: In this article, the performance or competitiveness of Islamic car financing compared to conventional car loan, namely, hire purchase, in Malaysia was evaluated using the constant market share analysis (CMSA) to decompose the change in loan into two aspects.
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.