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Journal ArticleDOI

Risk in Islamic Banking

Pejman Abedifar, +2 more
- 01 Nov 2013 - 
- Vol. 17, Iss: 6, pp 2035-2096
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.

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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

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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Journal ArticleDOI

The impact of changes in bank ownership structure on the allocation of capital: International evidence

TL;DR: In this article, the authors explore how bank privatizations affect the allocation of capital within countries and find evidence that foreign presence improves capital allocation efficiency by increasing lending to more productive industries, primarily in common law countries.
Book

Comparative economics of some islamic financing techniques

M. Fahim Khan
TL;DR: In this article, the authors present some economic dimensions of the major Islamic financing techniques in a comparative perspective, and discuss the comparative economics of these techniques with respect to their distinctive economic features, role of these features in economic decision making, and macroeconomic consequences.
Journal ArticleDOI

Islamic Banking : Issues in Prudential Regulation and Supervision@@@النظام المصرفي الإسلامي : قضايا مطروحة بشأن قواعد الاحتراز والمراقبة

TL;DR: In this article, the authors proposed a new approach to deal with the problem of gender inequality in the context of the Middle East: the concept of gender equality in the field of health care.
Journal ArticleDOI

Branch banking, economic diversity and bank risk

TL;DR: In this article, the authors examined the effect of geographic diversity and economic diversity on commercial bank risk and found that economic diversity reduces bank risk, and that branching also reduces bank risks, and used a measure of economic diversity to analyze the impact of branching on bank risk.
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What are the challenges of sustainability in Islamic banks?

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