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
More filters
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
More filters
Diversification in banking: is non-interest income the answer? The case of Taiwan banking industry
TL;DR: In this paper, the authors investigated how non-interest income, which includes commission earned, trustee fee, and exchange gains, affects the mean and variation of bank profits in Taiwan's banking industry.
Journal Article
Islamic banking : issues in prudential regulations and supervision
TL;DR: In this paper, the implications of Islamic precepts on banks' structure and activities, focusing on banking supervision issues, are discussed in the context of a paradigm version of Islamic banking, as well as in frameworks that fall between the paradigm version and conventional banking.
Journal ArticleDOI
Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey
TL;DR: In this paper, the authors study a representative dataset from Turkey that identifies firm-bank connections and find that banks in Turkey differ not only in size and nationality, but also in ownership and orientation (non-Islamic versus Islamic), resulting in at least six distinct bank types.
Posted Content
Debt Maturity and the Global Financial Architecture
TL;DR: In this article, the authors propose a model in which the maturity of a country's external sovereign debt is the solution to an incentives problem, which may lead to reliance on short-term debt and vulnerability to runs.
Journal ArticleDOI
Learning from a rival bank and lending boom
TL;DR: In this paper, the authors observe a rival winning in the interbank competition for lending to a firm, and infer that the firm may be more promising than they had thought, from this consideration, they loosen their creditworthiness tests and lower the interest rates they offer in the next lending competition for the firm.