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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ERM Implementation and Non-Performing Loans Performance: Comparison between Islamic Bank and Conventional Bank
TL;DR: In this article, the authors investigated the effect of ERM implementation on NPL performance on islamic banking and conventional banking and found that ERM has a significant negative effect both on the Islamic banking and on conventional banking, this could be due to the maturity level of both types of banks.
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Risk, Competition and Efficiency in the Chinese Banking Industry: Evidence from Stochastic Frontier Analysis and Three-Stage Least Square Estimator
TL;DR: In this paper, the authors examined the interrelationships between risk, competition and efficiency in Chinese banking industry under a three-stage least square estimator and found that higher levels of competition lead to lower cost and revenue efficiencies and a significant and positive impact of credit risk on bank competition.
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The regulators’ dilemma and the global banking regulation: the case of the dual financial systems
TL;DR: A taxonomy of Islamic financial systems considering the banking regulation as a driver for the classification and a more detailed definition of dual financial systems is provided in this article . But the taxonomy is limited to two types of financial systems.
Journal ArticleDOI
Islamic Financial Stability Factors: An Econometric Evidence
TL;DR: In this article , the authors empirically examined the internal and external factors of Islamic banks' financial stability during the time frame from 2006 to 2017 in the Middle Eastern and North African (MENA) region.
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.