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
The governance, risk-taking, and performance of Islamic banks
TL;DR: In this paper, the authors examined whether the difference in governance structures influenced the risk taking and performance of Islamic banks compared to conventional banks and concluded that the governance structure in Islamic banks plays a crucial role in risk taking as well as financial performance that is distinct from conventional banks.
Journal ArticleDOI
Of Religion and Redemption: Evidence from Default on Islamic Loans
TL;DR: In this article, the authors compare default rates on conventional and Islamic loans using a comprehensive monthly dataset from Pakistan that follows more than 150,000 loans over the period 2006:04 to 2008:12.
Journal ArticleDOI
Sukuk vs. conventional bonds: A stock market perspective
TL;DR: In this paper, the authors investigate whether stock market investors react differently to the announcements of sukuk and conventional bond issues, and they find that the stock market is neutral to announcements of conventional bonds issues, but it reacts negatively to announcement of SUkuk issues.
Journal ArticleDOI
A contemporary survey of islamic banking literature
M. Kabir Hassan,Sirajo Aliyu +1 more
TL;DR: This article reviewed empirical studies on Islamic banking and concentrates on their main findings while highlighting future research directions, and discusses scholars' concerns that have led to a paradigm shift in the system and highlight practitioners' disquiet about recent practices.
Journal ArticleDOI
Islamic Banking and Finance: Recent Empirical Literature and Directions for Future Research
TL;DR: In this article, the authors examine the recent empirical literature in Islamic banking and finance, highlight the main findings and provide a guide for future research, concluding that there are no major differences between Islamic and conventional banks in terms of their efficiency, competition and risk features.
References
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Posted Content
Risk and profitability measures in Islamic banks: The case of two Sudanese banks
TL;DR: In this article, the authors examined the effects of scale on the performance of Islamic banks in the context of agency and financial intermediation theories, using data from two Sudanese banks.
Journal ArticleDOI
Cooperative Banks and Financial Stability
Martin Cihak,Heiko Hesse +1 more
TL;DR: In this paper, the role of cooperative banks in financial stability was empirically analyzed and the overall impact of a higher cooperative presence on bank stability is positive on average but insignificant in some specifications.
Posted Content
Are Scale Economies in Banking Elusive or Illusive
TL;DR: In this article, the authors explored how to incorporate banks' capital structure and risk-taking into models of production, and found that when the bank's objective is defined as value maximization, the expected risk and expected cash flow are incorporated into managers' ranking and choice of production plans.
BookDOI
The Oxford Handbook of Banking
TL;DR: In this article, the authors discuss the theory of bank performance and the differences in bank structures and environments, as well as the international differences in banks' structure and environment in different countries.
Journal ArticleDOI
The integrated impact of credit and interest rate risk on banks: A dynamic framework and stress testing application
TL;DR: In this article, the authors derive a consistent and comprehensive framework to measure the integrated impact of credit and interest rate risk on banks' economic value and capital adequacy by taking account of the repricing characteristics of assets, liabilities and off-balance sheet items.