Savedrecs

FN Clarivate Analytics Web of Science
VR 1.0
PT J
AU Kusuma, H.
Ayumardani, A.
TI THE CORPORATE GOVERNANCE EFFICIENCY AND ISLAMIC BANK PERFORMANCE : AN
INDONESIAN EVIDENCE
SO POLISH JOURNAL OF MANAGEMENT STUDIES
VL 13
IS 1
BP 111
EP 120
DI 10.17512/pjms.2016.13.1.11
PD 2016
PY 2016
AB The objective of this study is to investigate the effect of the
corporate governance efficiency consisting of variables board director's
size, board commissioner's size and sharia supervisory board's size on
the Islamic bank performance in Indonesia. The study of the corporate
governance structure in the banking sector is an important component
within the enhancement of banks' efficiency and performance. Using
purposive sampling, 11 Islamic banks were selected as the sample for the
period of the year 2010 to 2014. The data were from the financial
statements and annual reports of the Islamic banks. The measurement of
the corporate governance efficiency employed the Data Envelopment
Analysis with the help of the EMS software. Regression using panel data
were employed to analyze the relationship between the efficiency and
bank's performance. The findings show that the efficiency level of
corporate governance of Indonesian Islamic banks improved significantly
during the period of research. In addition, the corporate governance
efficiency significantly corelated to the Islamic bank performance. The
study results draw some implications for policy that helps to improve
performance of the banking sector.
RI Kusuma, Hadri/AAS-2629-2020
OI Kusuma, Hadri/0000-0002-0224-686X
ZR 0
Z8 0
ZB 0
ZA 0
TC 8
ZS 0
Z9 8
U1 0
U2 8
SN 2081-7452
UT WOS:000394798500011
ER
PT J
AU Mokni, Rim Ben Selma
Rajhi, Mohamed Tahar
Rachdi, Houssem
TI Bank risk-taking in the MENA region A comparison between Islamic banks
and conventional banks
SO INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS
VL 43
IS 12
BP 1367
EP 1385
DI 10.1108/IJSE-03-2015-0050
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to investigate determinants of
risk-taking in Islamic banks and conventional banks located in the MENA
region.
Design/methodology/approach - The empirical study covers a sample of 15
conventional and 15 Islamic banks for the period 2002-2009. The authors
estimate models using both generalized least square random effect and
generalized method of moments system approaches.
Findings - The results of the empirical analysis show that the
determinants' risk-taking significance varies between Islamic and
conventional banks.
Originality/value - The main aim is to develop a comprehensive model
that integrates macroeconomic determinants, industry-specific
determinants, and bank-specific determinants. This paper performs a
comparison of the risk-taking between two different banking systems in
the MENA region.
ZR 0
TC 2
ZA 0
Z8 0
ZS 0
ZB 0
Z9 2
U1 1
U2 10
SN 0306-8293
EI 1758-6712
UT WOS:000392170500014
ER
PT J
AU Elmontaser, Mohamed Abubaker
Alhabshi, Syed Musa Bin Syed Jaafar
TI THE IMPACT OF SERVICE QUALITY ON MALAYSIAN MUSLIM ISLAMIC BANK
CUSTOMERS: SATISFACTION, LOYALTY AND RETENTION
SO AL-SHAJARAH
SI SI
BP 183
EP 215
PD 2016
PY 2016
AB With increasing competition in terms of better services and recent
specific requirements for shari'ah compliance, the Islamic banking
sector is not only expected to provide a higher standard of quality
service, but also to be Shari'ah compliant. Hence it is timely to
examine the impact of service quality on customer satisfaction as well
as customer loyalty and retention in Islamic banks in Malaysia with the
increase emphasis of shariah governance and compliance in the banking
industry.
A purposive sample of 339 Islamic bank customers with Islamic bank
accounts was selected for the purpose of this study. Due to the
institutional impediments in direct distribution of survey
questionnaires, an online survey to selected respondents was
administered. The survey sample includes respondents who are customers
with banking accounts of several prominent Islamic banks in Malaysia.
The service quality dimensions examined are tangibility, reliability,
empathy and responsiveness and analysis of the significant effects of
these dimensions on customer satisfaction, customer loyalty and customer
retention. Among all these, except tangibility dimension, show
significant impact on customer satisfaction and higher impact on
customer loyalty and customer retention. In addition, this is an attempt
to analyze the impact of service quality on customer satisfaction,
customer loyalty and customer retention. This implies that customer
utility experience is expected to result in a longer term relationship
with Islamic banks.
The findings of this research conclude the significance of service
quality as well as its positive significant influence on customer
satisfaction as well as higher impact on customer loyalty and customer
retention. Hence the study contributes to the further development of
studies on service quality, customer satisfaction with loyalty and
retention. The social change implication for this research is to
increase customer satisfaction and improve services in Malaysian Islamic
banks.
TC 0
ZR 0
ZB 0
ZS 0
Z8 0
Z9 0
U1 0
U2 9
SN 1394-6870
UT WOS:000390985200009
ER
PT J
AU Ali, Mohammad Mahbubi
Hassan, Rusni
TI DETERMINANTS OF SHARIAH NON-COMPLIANT EVENTS IN ISLAMIC BANKS IN
MALAYSIA: WITH SPECIAL REFERENCE TO TAWARRUQ-BASED FINANCING
SO AL-SHAJARAH
SI SI
BP 217
EP 242
PD 2016
PY 2016
AB Tawarruq is a new phenomenon in the Islamic financial landscape. It has
gained wide acceptance from the market due to its inherent
characteristics that can offer similar features as the conventional
structure. Nevertheless, tawarruq is exposed to a high degree of
shari'ah non-compliant risk mainly because it involves a series of sale
contracts in succession. The present study investigates the determinants
of shari'ah non-compliant events (SNEs) in tawarruq-based financing as
practiced by Islamic banks in Malaysia. The study adopts the Analytic
Network Process (ANP) gathering different views of experts from
practitioners, regulators, shari'ah scholars/advisors and
researchers/academicians. The study found that lack of understanding and
knowledge, inadequate control mechanism and reporting, ineffective
functional structure, incompatibility of system to the execution of
Islamic products, improper document execution and sequence, and
inadequate internal policies and governing rules are the key
determinants of SNEs in tawarruq-based financing in Islamic banks in
Malaysia.
RI Hassan, Rusni/S-8001-2019
Z8 0
ZB 0
ZR 0
TC 0
ZS 0
Z9 0
U1 0
U2 1
SN 1394-6870
UT WOS:000390985200010
ER
PT J
AU Ahmed, Saad Mateen
Ahmad, Khaliq
Jan, Muhammad Tahir
TI THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION AND CUSTOMER
LOYALTY: AN EMPIRICAL STUDY ON ISLAMIC BANKS IN BAHRAIN
SO AL-SHAJARAH
SI SI
BP 261
EP 281
PD 2016
PY 2016
AB The quality of service plays a vital role in any service-related
economic sector, including in the banking services industry. While the
service sector is a major contributor to economic activity, in-depth
study on service quality and its impact on customer satisfaction have
been largely overlooked. Moreover, all organizations seek quality,
particularly those in the service sector, and this holds true in the
banking sector. The role of service quality in the survival and success
of Bahraini banks have failed to acknowledge its significant impact on
the industry's competitiveness. In service organizations, enhancing
service quality is now considered as the most important step in gaining
a competitive edge in the market.
Bahraini Islamic banking services quality is the focus of this study. To
measure Islamic banks services quality, as perceived by market followed
by customer satisfaction and loyalty, eventual increased market share
and increase in potential customers, enhanced productivity, increased
profitability in Islamic banking business in Bahrain, are inevitable.
Hence the objectives for this study would be to examine the impact of
service quality on customer satisfaction and customer loyalty.
The present research is expected to acknowledge achievement of customer
satisfaction and customer loyalty through the measurement of service
quality and to provide recommendations in developing an effective
Islamic banking service quality. Therefore, any research effort
undertaken to enhance the service quality of the Islamic Banks in
Bahrain should be considered as an important attempt to signficantly
contribute and support the Islamic banking institution. This study will
also provide practitioners innovative ideas for refining quality of
services with the purpose of achieving a competitive advantage in the
Islamic Retail Banking sector in Bahrain.
RI Ahmad, Khaliq/; Jan, Muhammad Tahir/D-4316-2016
OI Ahmad, Khaliq/0000-0001-8129-5178; Jan, Muhammad
Tahir/0000-0001-5680-8496
ZR 0
Z8 0
ZB 0
ZA 0
TC 0
ZS 0
Z9 0
U1 0
U2 9
SN 1394-6870
UT WOS:000390985200012
ER
PT J
AU Azrak, Tawfik
Saiti, Buerhan
Ali, Engku Rabiah Adawiah Engku
TI AN ANALYSIS OF REPUTATIONAL RISKS IN ISLAMIC BANKS IN MALAYSIA WITH A
PROPOSED CONCEPTUAL FRAMEWORK
SO AL-SHAJARAH
SI SI
BP 331
EP 360
PD 2016
PY 2016
AB The most critical intangible asset that a bank possesses is its
reputation. The reputation reflects a bank's relative success in
fulfilling the expectations of multiple stakeholders. Establishing a
great reputation is a key element of organizational strategy, especially
for banks. In case of Islamic banks, this is more important due to the
nature of its business which is reputed to be defined by shariah
principles. Any significant issues with regard to the operations of
Islamic banks either in terms of shariah non-compliant financial
products or customer complaints may damage the reputations of Islamic
banks, thereby driving away customers, investors, shareholders and
counterparties. As such, it is expected that Islamic banks pay more
attention to managing reputational risks. This paper provides a review
on the annual reports and financial statements of local and Islamic
banks in Malaysia in order to assess the transparency of reporting and
disclosing their reputational risk management framework It is found that
local domestic Islamic banks in Malaysia are more transparent compared
to the locally incorporated foreign Islamic banks. Finally, we propose a
framework for Islamic banks to manage reputational risks.
RI SAITI, BUERHAN/C-8168-2017
OI SAITI, BUERHAN/0000-0002-9984-489X
ZB 0
ZA 0
TC 0
Z8 0
ZR 0
ZS 0
Z9 0
U1 0
U2 4
SN 1394-6870
UT WOS:000390985200015
ER
PT J
AU Maulan, Suharni
TI CONSUMERS' LOYALTY TOWARD ISLAMIC BANKING SYSTEM: DOES HALAL BRAND
AWARENESS MATTER?
SO INTERNATIONAL JOURNAL OF ECONOMICS MANAGEMENT AND ACCOUNTING
VL 24
IS 2
BP 209
EP 226
PD 2016
PY 2016
AB In a competitive market structure, brand awareness helps to create a
basis of trust and acceptance. Brand awareness is the first step to
creating brand equity, an asset that provides companies with sustainable
competitive advantages. However, in the Islamic banking context, the
majority of consumers are still unable to distinguish between Islamic
and conventional banks despite their awareness of the Islamic banking
existence. This concern is critical to be addressed particularly in a
dual banking environment such as in Malaysia, where consumers have
choices between the Islamic and the conventional banking systems.
Accordingly, this paper aims at investigating the influence of halal
brand awareness on consumer loyalty toward the Islamic banking system.
The model also includes brand loyalty as it is the core asset of brand
equity. Using survey method, data of 454 respondents have been analyzed
using PLS-SEM. The findings reveal that halal brand awareness shows
greater influence on consumer loyalty toward the Islamic banking system
than brand loyalty. Thus, Islamic bank managers must operationalize
effective marketing communication strategies by promoting the Islamic
banking products with simplicity to facilitate greater consumer
understanding. This is not merely for enhancing organizational
competitiveness, but more importantly is to ensure long term Islamic
banking industry resilience.
OI Maulan, Suharni/0000-0002-9449-3840
ZR 0
TC 4
ZS 0
ZB 0
Z8 0
ZA 0
Z9 4
U1 0
U2 4
SN 1394-7680
UT WOS:000391048200004
ER
PT J
AU Julia, Taslima
Rahman, Maya Puspa
Kassim, Salina
TI Shariah compliance of green banking policy in Bangladesh
SO HUMANOMICS
VL 32
IS 4
BP 390
EP 404
DI 10.1108/H-02-2016-0015
PD 2016
PY 2016
AB Purpose - This paper aims to critically evaluate whether the policies of
green banking set by Bangladesh Bank are Shariah compliant; according to
the main sources of the Shariah - Quran and Sunnah.
Design/methodology/approach - Green policy and guidelines have been
divided into different categories such as environment protection,
conservation of resources, risk management, educating people about green
financing, transparency and disclosure and investing in green projects
according to the common measures as stated in three different phases of
the policy and guidelines. Subsequently, these major aspects of the
green policy and guidelines are linked to the main references of the
Shariah, i.e. the holy Quran and Sunnah of Prophet [peace be upon him
(pbuh)].
Findings - Various verses of the holy Quran and teachings of Prophet
(pbuh) related to the major categories of Green policy and guidelines
are being presented to show the compliance with Shariah.
Practical implications - The Green policy and guidelines are very much
in-line with Shariah. Though all types of banks in Bangladesh are bound
to implement the green banking policy, however, Shariah compliance of
green banking policy will be encouraging for all Islamic Banks of
Bangladesh for their further and profounder involvement in it.
Social implications - As green policies are found to be Shariah
complaint, the Islamic banks are expected to contribute more to the
sustainable economic growth of the country by successfully implementing
the green financing policies compare to their conventional counterpart.
Originality/value - Verses of holy Quran and authentic Hadiths related
to environmental sustainability concept show that Islam is a green
religion as well as green banking policy is Islamic.
RI Kassim, Salina/Q-7008-2019; Rahman, Maya Puspa/
OI Kassim, Salina/0000-0002-7514-8750; Rahman, Maya
Puspa/0000-0003-2227-3774
Z8 0
ZA 0
ZS 0
ZR 0
ZB 0
TC 6
Z9 6
U1 2
U2 5
SN 0828-8666
EI 1758-7174
UT WOS:000390698100001
ER
PT J
AU Sapuan, Noraina Mazuin
Sanusi, Nur Azura
Ismail, Abdul Ghafar
Wibowo, Antoni
TI Social learning and principal-agent problems in profit sharing contract
SO HUMANOMICS
VL 32
IS 4
BP 498
EP 515
DI 10.1108/H-08-2016-0064
PD 2016
PY 2016
AB Purpose - The purposes of this study are twofold. First, to
theoretically examine the profit-sharing (mudarabah) contract that
produces an optimal distribution of return in the presence of social
learning (shuratic process) within the environment of asymmetric
information. Second, to empirically investigate the optimal condition of
profit-sharing ratio (PSR) and social learning for profit-sharing
(mudarabah) contract in Islamic banking.
Design/methodology/approach - Data from one of the biggest and earliest
Islamic banks in Malaysia were taken as a proxy of an Islamic bank. The
data are collected from the period of 2009 to 2013, and these will be
used for the simulation process by using the genetic algorithm (GA)
technique.
Findings - The empirical results discovered that Islamic banks had used
social learning in their daily activities, especially in the asset side.
The results also showed that the trend of social learning has a positive
relationship with the trend of Islamic banks' net profit. Additionally,
the results also indicated that the Islamic banks' net profit has a
positive relationship with its PSR from the profit-sharing (mudarabah)
financing and securities investment.
Originality/value - This study is the first of its kind that
investigates the implementation of the social learning process in
Islamic banking operation. This study also used the latest technique
from artificial intelligence system, i.e. a GA, to attain an optimal
value for PSR and social learning process.
RI Sanusi, Nur Azura/I-1906-2018; Ismail, Abdul Ghafar/E-7190-2016
OI Sanusi, Nur Azura/0000-0003-1656-0320; Ismail, Abdul
Ghafar/0000-0003-2450-0168
ZA 0
ZS 0
ZB 0
Z8 0
TC 2
ZR 0
Z9 2
U1 1
U2 8
SN 0828-8666
EI 1758-7174
UT WOS:000390698100007
ER
PT J
AU Louati, Salma
Louhichi, Awatef
Boujelbene, Younes
TI The risk-capital-efficiency trilogy A comparative study between Islamic
and conventional banks
SO MANAGERIAL FINANCE
VL 42
IS 12
BP 1226
EP 1252
DI 10.1108/MF-01-2016-0009
PD 2016
PY 2016
AB Purpose - Based on a matched sample of 34 Islamic banks and 89
conventional ones, the purpose of this paper is to analyze and compare
the risk-capital-efficiency interconnection.
Design/methodology/approach - Based on the triple square model (3SLS),
two major risk measures have been accounted for, namely, the ratio of
non-performing loans to total loans (credit risk) and the z-score
indicator (risk insolvency). In addition, certain bank-specific factors
as well as macroeconomic ones have also been considered in the model.
Findings - The reached results appear to reveal that the best
capitalized Western banks turn out to be more engaged in an excessive
risk-taking behavior, resulting in increased toxic-loan ratios and,
simultaneously, a rather shaken stability. Concerning Islamic banks,
cost efficiency has proven to have a negative and significant effect on
NPLs. However, the capital, technical efficiency, competitiveness and
macroeconomic factors turn out to have a significant and positive effect
on Islamic banks' insolvency risk, thus helping promote these banks'
stability.
Originality/value - In addition to the enrichment of literature
regarding dual-banking systems, the authors hope the present work would
provide a modest contribution to the regulators belonging to the MENA
region and Asia with useful results. In particular, the authors
recommend developing some management and monitoring tools whereby the
risk-taking behavior of highly capitalized conventional banks could be
moderated. As a matter of fact, special attention should be paid to the
agency problems prevalent within Islamic financial institutions,
particularly the best capitalized ones.
RI Louhichi, Awatef/N-5103-2019
OI Louhichi, Awatef/0000-0002-7254-6905
Z8 0
ZA 0
ZS 0
ZR 0
ZB 0
TC 6
Z9 6
U1 1
U2 6
SN 0307-4358
EI 1758-7743
UT WOS:000390718400006
ER
PT J
AU Di Bella, Venere
Al-Fayoumi, Nedal
TI Perception of stakeholders on corporate social responsibility of Islamic
Banks in Jordan
SO EUROMED JOURNAL OF BUSINESS
VL 11
IS 1
BP 30
EP 56
DI 10.1108/EMJB-01-2015-0003
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to explore the various
perceptions of stakeholders on corporate social responsibility (CSR) of
Islamic Banks in Jordan.
Design/methodology/approach - The data are collected from multiple
stakeholder groups of two Islamic Banks in particular: Jordan Islamic
Bank for Finance and Investment and Islamic International Arab Bank. The
methods adopted to examine the data are the descriptive analysis and
analysis of variance. With regard to the purpose of this research, the
concept of Islamic CSR and its dimensions have been considered as:
rooted in the Islamic ethical system, represented through the profit and
loss arrangements, embedded within the principles behind financial
services provided by Islamic Banks, and benchmarked by the Accounting
and Auditing Organization of Islamic Financial Institutions' (AAOIFI)
corporate governance standard.
Findings - The results indicate that stakeholders have expressed a
positive attitude toward the concept of CSR. Proving that the issue of
CSR is an important factor in Islamic banking and to the perception of
various stakeholders' groups, the focus shifted into identifying the
dimensions which shape the Islamic CSR. In reference to previous
research results, the Islamic banking sector in Jordan has an in-built
dimension that promotes social responsibility.
Practical implications - The study recommends that Islamic Banks improve
CSR activities in order to better exploit this commitment with a
cultural identity yet again. This identity has a direct influence on the
branding of Islamic finance in local markets. The structure of offered
products reflects regional beliefs and provides a suite of services. In
terms of services, the services provided are geared toward specific
market segments within local communities. This as a result directs a
number of strategic decisionsmade by Islamic Banks, which are based on
the structure of their offerings, brand identity and customer service
levels.
Originality/value - In Jordan, studies about the perception of
stakeholders on CSR from an Islamic perspective are almost non-existent.
Thus, providing solutions for study questions and presenting empirical
evidence regarding CSR issues will certainly add a new dimension to the
literature. Moreover, the conclusions and recommendations may help
regulators and decision makers in enhancing the competitiveness and the
sustainability of the Islamic banking sector in Jordan.
ZS 0
ZR 0
ZB 0
TC 14
ZA 0
Z8 0
Z9 14
U1 1
U2 16
SN 1450-2194
EI 1758-888X
UT WOS:000389345700002
ER
PT J
AU AlShattarat, Wasim K.
Atmeh, Muhannad A.
TI Profit-sharing investment accounts in islamic banks or mutualization,
accounting perspective
SO JOURNAL OF FINANCIAL REPORTING AND ACCOUNTING
VL 14
IS 1
BP 30
EP 48
DI 10.1108/JFRA-07-2014-0056
PD 2016
PY 2016
AB Purpose - Islamic banks use Mudarabah contract to replace the
interest-bearing deposits with profit-sharing investment accounts. The
purpose of this paper is to explore the challenges and problems
associated with the employment of Mudarabah contract by Islamic banks.
Design/methodology/approach - The study critically analyzes the
Mudarabah contract used by Islamic banks. It reviews the evolution of
the contract from its traditional type to more complicated types such as
compound, unrestricted, commingled and continuous Mudarabah. The paper
investigates the problems that have emerged from implementing such types
in current business settings.
Findings - The paper proves that implementing the Mudarabah contract by
banks imposes several problems among which are the following: difficulty
in the determination of total profit resulting from Mudarabah and in
allocating this profit to the multiple parties involved in Mudarabah;
usage of reserves to cater against future losses may undermine the
concept of Mudarabah profit-loss sharing and lead to earnings
management; corporate governance is also a major problem in Mudarabah
contract, as the depositors are exposed to risks but have no governance
rights; and Mudarabah may also lessen the fair presentation of financial
reporting.
Research limitations/implications - The paper examines the evolving
Mudarabah contract and its implementation challenges, based on available
literature (no empirical analysis was conducted).
Practical implications - The implications are significant for the future
development of Islamic contracts and Islamic accounting treatments.
Originality/value - Many studies explored the Mudarabah contract from a
Shariah or law perspective. However, this paper investigates the
Mudarabah contract with a focus on the implication on accounting and
financial reporting because of the lack of studies in this area.
Furthermore, it demonstrates the persistent flaws in the Mudarabah
contract, and it proposes a new model for mobilizing funds, i.e. mutual
fund.
RI atmeh, muhannad a/B-6757-2015
TC 3
ZS 0
Z8 0
ZA 0
ZR 0
ZB 0
Z9 3
U1 0
U2 7
SN 1985-2517
EI 2042-5856
UT WOS:000388977200002
ER
PT J
AU Chen, Naiwei
Liang, Hsin-yu
Yu, Min-teh
TI Control of corruption, diversification and asset quality of Islamic and
conventional banks
SO ECONOMICS BULLETIN
VL 36
IS 3
BP 1280
EP +
PD 2016
PY 2016
AB The study examines whether and how control of corruption (CC) influences
asset quality of banks directly and indirectly through diversification.
A review of banks in three Islamic countries (Indonesia, Malaysia, and
Pakistan) from 2006 to 2012 reveals that CC has a positive effect on
asset quality of Islamic banks only. In addition, diversification
typically has a negative effect on asset quality, but such a negative
effect weakens as CC becomes more effective, particularly for Islamic
banks. Furthermore, the modifying effect of CC is particularly found in
more corrupt countries (Indonesia and Pakistan) as opposed to a less
corrupt country (Malaysia).
OI YU, Min-Teh/0000-0003-4686-1327
ZB 0
TC 0
Z8 0
ZS 0
ZA 0
ZR 0
Z9 0
U1 0
U2 1
SN 1545-2921
UT WOS:000386011900004
ER
PT J
AU Amin, Hanudin
Abdul-Rahman, Abdul-Rahim
Abdul-Razak, Dzuljastri
TI Malaysian consumers' willingness to choose Islamic mortgage products An
extension of the theory of interpersonal behaviour
SO INTERNATIONAL JOURNAL OF BANK MARKETING
VL 34
IS 6
BP 868
EP 884
DI 10.1108/IJBM-06-2015-0099
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to understand consumers'
willingness to choose Islamic mortgage products as a way to help Islamic
banks tap into the Islamic mortgage sector in Malaysia.
Design/methodology/approach - Using the Theory of Interpersonal
Behaviour as a point of departure, this study proposes a framework that
examines factors influencing consumers' willingness to choose Islamic
mortgage products. A total of 282 usable surveys are obtained from
customers of Islamic banks and the data were analysed using partial
least squares.
Findings - The results indicate that affect, social factors, and
facilitating conditions influence willingness to choose Islamic
mortgages. Besides these factors, the added factors, namely, perceived
risk and perceived financial benefit, significantly influence consumers'
willingness to choose Islamic mortgages.
Research limitations/implications - This study is confined to two public
universities in Malaysia. Further testing of the proposed model across
different population groups is necessary to determine the
generalisability of this study's findings. This study applies consumer
factors such as affect, social factors, facilitating conditions,
perceived risk and perceived financial benefit. Further testing on other
factors is needed to expand the findings in this area.
Practical implications - The results could help bank managers make
improved decisions about the factors which they need to effectively
market Islamic mortgage products. This study provides insights and
guidance for bank managers to manage Islamic mortgage products.
Originality/value - The main contribution of this paper is a proposed
framework of consumers' willingness to choose Islamic mortgage products
which takes into account the key factors necessary to predict consumers'
demand.
RI Amin, Hanudin/I-1176-2017
OI Amin, Hanudin/0000-0003-3645-287X
ZR 0
Z8 0
TC 11
ZB 0
ZS 0
ZA 0
Z9 11
U1 0
U2 7
SN 0265-2323
EI 1758-5937
UT WOS:000386032000004
ER
PT J
AU Mostafa, Rania B.
ElSahn, Farid
TI Exploring the mechanism of consumer responses to CSR activities of
Islamic banks The mediating role of Islamic ethics fit
VL 34
IS 6
BP 940
EP 962
DI 10.1108/IJBM-11-2015-0179
PD 2016
PY 2016
AB Purpose - Drawing on social identity theory, the purpose of this paper
is to propose and test a conceptual framework of the mechanism of
customer response toward corporate social responsibility (CSR)
initiatives of Islamic banks.
Design/methodology/approach - A survey was completed by 203 customers of
Islamic banks in Bahrain. Structural equation modeling, was used to test
the hypotheses.
Findings - Islamic ethics fit partially mediates the relationship
between CSR initiatives and consumer-bank identification (CBI) which in
turn contributes positively to customer advocacy. These findings
emphasize the importance of CSR practices compliance with Islamic ethics
principles for customers to identify with and advocate Islamic bank.
Research limitations/implications - Understanding the mechanism of
customers' responses toward CSR initiatives of Islamic banks provides
insights into the complexities of Islamic bank customers' perceptions of
CSR initiatives. The successful introduction of a mediating variable,
namely, Islamic ethics fit suggests future research opportunities.
Originality/value - Much of the value of the present work is because of
the findings regarding the relationship between CSR and customer
responses. The originality of this study lies in being the first
research examining the mediating role of Islamic ethics fit to the
relationship between CSR initiatives and CBI which in turn enhances
Islamic banks' advocacy.
Z8 0
ZA 0
ZS 0
TC 11
ZR 0
ZB 0
Z9 11
U1 0
U2 14
SN 0265-2323
EI 1758-5937
UT WOS:000386032000008
ER
PT J
AU Kaabachi, Souheila
Obeid, Hassan
TI Determinants of Islamic banking adoption in Tunisia: empirical analysis
VL 34
IS 7
BP 1069
EP 1091
DI 10.1108/IJBM-02-2015-0020
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to identify the main factors
influencing the adoption of Islamic banking services in Tunisia.
Design/methodology/approach - The paper presents primary data collected
by self-administered questionnaires involving a sample of 239
respondents located in Tunis city. Respondents were conventional banks'
customers who were actually non-users of Islamic banking. A descriptive
statistical analysis was conducted to determine consumers' awareness of
Islamic banking.
Findings - The results revealed that Islamic bank reputation, relative
advantage of Islamic banking and its compatibility with consumer
religious beliefs, values, lifestyle and banking habits influence
positively the intention to use it. However, it seems that perceived
complexity and risk impact negatively the consumer intention to adopt
this new financing system. The major finding of this study is that there
is a general lack of consumer awareness about Islamic banking in
Tunisia.
Practical implications - By identifying the drivers and inhibitors of
Islamic banking acceptance among potential adopters, this research aim
to help banks' managers to target their actions and strategies more
effectively.
Originality/value - This study is one of the earliest to be conducted on
customers' perception and willingness to adopt Islamic banking services
in Tunisia. It makes a contribution to the Islamic banking adoption
literature by extending and testing the diffusion innovation theory
(Rogers, 2003) in the context of Tunisia.
Z8 0
ZA 0
ZR 0
ZS 0
ZB 0
TC 17
Z9 17
U1 0
U2 15
SN 0265-2323
EI 1758-5937
UT WOS:000386033000006
ER
PT J
AU Daly, Saida
Frikha, Mohamed
TI Banks and economic growth in developing countries: What about Islamic
banks?
SO COGENT ECONOMICS & FINANCE
VL 4
AR UNSP 1168728
DI 10.1080/23322039.2016.1168728
PD 2016
PY 2016
AB Islamic banks (IBs) have a significant role in the growth of gross
domestic product of the developing countries. The Islamic participatory
schemes integrate the assets of lenders and borrowers. They allow enable
IBs to lend on a longer term basis to create projects with higher
risk-return profiles and, thus, to support economic growth. Our
investigation examines the contribution of Islamic finance in economic
growth. Using a panel data-set, we compare between IBs and conventional
banks in their adding to economic growth. We studied a sample of 120
banks between 2005 and 2012. By means of three ordinary least-square
regressions, our empirical investigation reveals that the development of
non-usurious banks supports economic growth. Moreover, the cooperation
between the two financing modes improves economic growth. The
integration of this new funding never neglected the role of the
conventional method of financing. The practice of IBs is also away from
their theoretical mode in terms of participation results.
ZR 0
Z8 0
ZA 0
TC 1
ZS 0
ZB 0
Z9 1
U1 0
U2 10
SN 2332-2039
UT WOS:000385662400001
ER
PT J
AU Jebarajakirthy, Charles
Thaichon, Paramaporn
TI Marketing microcredit to bottom of the pyramid market Investigating
determinants and the role of self-identity: the case of youth in
post-war context
VL 34
IS 2
BP 191
EP 215
DI 10.1108/IJBM-12-2014-0176
PD 2016
PY 2016
AB Purpose - The leading multinational companies tend to expand their
marketing activities to bottom of pyramid (BOP) market. The BOP market
comprises many segments, however, little is known about the purchase
behaviour of BOP market or segments therein. Microcredit provides credit
access to customers in BOP market. The purpose of this paper is to
investigate youth's intentions of obtaining microcredit in the post-war
era, which could be a segment of BOP market.
Design/methodology/approach - The sample comprised 1,250 youth aged
18-27 selected from the Northern Province of Sri Lanka. Surveys were
administered for data collection. After testing measurement model, two
structural models - full model and non-mediated model (direct effects
model) were run to test hypotheses.
Findings - Positive affect, subjective norms, entrepreneurial desire and
self-identity enhanced intentions of obtaining microcredit, whereas
perceived deterrents reduced those intentions. Additionally,
self-identity mediated the association between positive affect,
entrepreneurial desire, perceived behavioural control and knowledge of
microcredit, and intentions of obtaining microcredit.
Research limitations/implications - This study was conducted amongst
youth in one country. Also, the data were cross-sectional. Hence, the
model needs testing with youth and adults in other post-war contexts and
with longitudinal data.
Practical implications - The findings of this study inform how
effectively microcredit can be marketed to youth in post-war contexts
and to the other segments of BOP market.
Originality/value - A unique purchase behavioural model is suggested
with the mediating role of self-identity, to enhance intentions of
obtaining microcredit in BOP markets, such as youth in post-war
contexts. This study contributes to literature relating to purchase
behaviour and self-identity, with particular reference to BOP market.
RI Thaichon, Park/Y-7675-2019
OI Thaichon, Park/0000-0001-7512-7362
ZR 0
ZS 0
ZB 0
ZA 0
Z8 0
TC 4
Z9 4
U1 1
U2 16
SN 0265-2323
EI 1758-5937
UT WOS:000383971500005
ER
PT J
AU Ltifi, Moez
Hikkerova, Lubica
Aliouat, Boualem
Gharbi, Jameleddine
TI The determinants of the choice of Islamic banks in Tunisia
VL 34
IS 5
BP 710
EP 730
DI 10.1108/IJBM-11-2014-0170
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to determine the explanatory
factors for the selection of Islamic banks and evaluate the moderating
role of demographic characteristics. This study seeks to better
understand these determinants in Tunisia, a country with a developing
Islamic finance system and a culture different from those in other
Muslim countries studied in the literature.
Design/methodology/approach - The authors developed a two-sided
approach: a quantitative survey and 12 semi-structured interviews based
on four customer segments identified by the quantitative study. For the
survey, data were collected from 180 Islamic bank clients in Tunisia.
The factors adopted for the selection of an Islamic bank are service
quality, trust, and compliance with Sharia (Islamic) law. The authors
identified and measured the selection criteria using a factor analysis,
regression analysis, and demographic characteristics analysis.
Findings - Customers consider several factors while choosing an Islamic
bank: the quality of service offered by the financial institutions,
trust, and (especially) compliance with Sharia law. Moreover, gender and
age appear to be the only moderators between the selection of an Islamic
bank and these determinants.
Practical implications - This study offers Islamic banks a better
understanding of how Tunisian customers select financial institutions.
These banks must consider the different determinants of choice in order
to create value for consumers and prepare their marketing strategies.
The authors identify four customer segments based on gender and age by
which the banks may improve their positioning and market share, thus
contributing to the development of Islamic financial institutions in
Tunisia.
Originality/value - This is the first study of its kind in Tunisia,
where the market share of Islamic finance remains low. The study
enriches the Islamic marketing literature on the quality of Islamic
financial institutions' service, trust, and compliance with Sharia law.
It also tests demographic characteristics as moderators. The results and
implications of this research can be applied to countries similar to
Tunisia.
RI Ltifi, Moez/AAH-8286-2019
OI Ltifi, Moez/0000-0003-3210-1845
Z8 0
ZB 0
ZR 0
ZA 0
TC 17
ZS 0
Z9 17
U1 0
U2 8
SN 0265-2323
EI 1758-5937
UT WOS:000383972400006
ER
PT J
AU Mohamad, Muslim Har Sani
Ali, Muhammad Ahmar
Sharif, Ros Aniza Mohd
TI DETERMINANTS OF MAQASID AL-SHARI'AH-BASED PERFORMANCE MEASUREMENT
PRACTICES: THE CASE OF MALAYSIAN ISLAMIC BANKS
VL 24
IS 1
BP 49
EP 81
PD 2016
PY 2016
AB This study aims at investigating the practice of Maqasid al-Shari'ah
based performance measures, determinants of its successful
implementation and its impact on Islamic bank performance. Understanding
the extent that Islamic banks are institutionalizing Maqasid al-Shari ah
based performance measures (Maqasid PMs) will provide greater insights
into the development of Islamic banking in achieving the Islamic
financial system objectives. A total of 146 questionnaires were
distributed to all business units of all 16 Islamic commercial banks in
Malaysia. The study found that contrary to the contemporary scepticism,
Islamic banks in Malaysia are indeed promoting and committed to
achieving Maqasid al-Shari ah with the relevant performance measures in
place. Specifically, the study found that performance measures for
public interest and fairness are widely used by the Islamic banks. With
communication technology and regulatory compliance, use of Maqasid
al-Shari ah based performance measures as Islamic banks' performance
driver becomes more potent.
ZA 0
TC 3
ZB 0
Z8 0
ZS 0
ZR 0
Z9 3
U1 0
U2 0
SN 1394-7680
UT WOS:000383251200003
ER
PT J
AU Abdullah, Siti Nabihah
Hassan, Siti Hasnah
Masron, Tajul Ariffin
TI SWITCHING INTENTION OF MUSLIM DEPOSITORS IN ISLAMIC DEPOSIT ACCOUNT
VL 24
IS 1
BP 83
EP 106
PD 2016
PY 2016
AB Islamic finance has achieved remarkable growth all over the world.
Without exception, Malaysia has also been enjoying rapid and robust
development in Islamic finance. Despite the encouraging growth and the
great acceptance of Islamic financial products, one controversy may
reverse the perception about Islamic finance. The issue is that recently
several Islamic banks introduced the concept of bai' al-inah to be
applied on deposit account which allows them to promise return to
depositors. This strategy may encourage more Muslims to keep their money
in Islamic banks. The use of this contract is in principle permissible
in Malaysia, albeit admitted as controversial. Therefore, this study
attempts to examine the switching intention of Muslim depositors if
return on Islamic deposit account is not promised or guaranteed by
Islamic banks. The Theory of Reasoned Action, in which intention could
be the best determinant of individual behavior, is used as the basis of
the study with a 375 participant sample. The findings showed that Muslim
depositors do not really care about a promised return for deposit
account practiced by several Islamic banks. For that reason, Islamic
banks should not worry about introducing a promised-return based product
for deposit accounts.
ZS 0
ZB 0
ZR 0
ZA 0
Z8 0
TC 4
Z9 4
U1 0
U2 3
SN 1394-7680
UT WOS:000383251200004
ER
PT J
AU Hussan, Subithabhanu Mohd
Sulaiman, Maliah
TI BETWEEN INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSS) AND
FINANCIAL ACCOUNTING STANDARDS (FASS): THE DEBATE CONTINUES
VL 24
IS 1
BP 107
EP 123
PD 2016
PY 2016
AB This article continues the on-going debate on what would be the more
relevant accounting standards for Islamic banks. It addresses this
important issue by first examining the differences between IFRSs and
FASs in light of their objectives, scope, and suitability for adoption
by Islamic banks in reporting their shari ah-compliant transactions.
Specifically, the study approaches the issue from the ethics of
reporting, that is on the possibility of misreporting leading to shari
ah non-compliance. Most importantly, in reviewing selected standards of
IFRSs and FASs, the study finds that the over-emphasis on
'comparability' may potentially lead to misreporting. Thus, it views
shari ah a compliance from a broader perspective instead of only
limiting it to the execution of underlying transactions. Finally, it
calls for collaboration between the International Accounting Standards
Board (IASB) and the Accounting and Auditing Organization of Islamic
Financial Institutions (AAOIFI).
ZB 0
Z8 0
ZS 0
ZR 0
TC 1
ZA 0
Z9 1
U1 0
U2 4
SN 1394-7680
UT WOS:000383251200005
ER
PT J
AU Jawadi, Fredj
Cheffou, Abdoulkarim Idi
Jawadi, Nabila
TI Can the Islamic bank be an emerging leader? A panel data causality
analysis
SO APPLIED ECONOMICS LETTERS
VL 23
IS 14
BP 991
EP 994
DI 10.1080/13504851.2015.1125426
PD 2016
PY 2016
AB This short note investigates the ability of Islamic banks (IBs) to play
a leading role in revamping and driving conventional banking. To this
end, we used a panel of 10 major conventional banks (CBs) and 10 IBs
over the period 2006-2013. We applied panel regression tests and carried
out a panel causality analysis. Our findings identified no significant
causality effect from IBs to CBs and indicated that IBs are not able to
play a role of leader.
ZB 0
TC 5
ZS 0
ZR 0
ZA 0
Z8 0
Z9 5
U1 0
U2 7
SN 1350-4851
EI 1466-4291
UT WOS:000382546400003
ER
PT J
AU Abbas, Muhammad
Azid, Toseef
Besar, Mohd Hairul Azrin Hj
TI Efficiency, effectiveness and performance profile of Islamic and
conventional banks in Pakistan
SO HUMANOMICS
VL 32
IS 1
BP 2
EP 18
DI 10.1108/H-09-2015-0058
PD 2016
PY 2016
AB Purpose - Although there exists a huge pile of literature on the
performance of banking sector, a gap exists in developing countries like
Pakistan where only limited work has been previously done to evaluate
the performance of banking sector. In fact, most of the previous studies
are based on traditional ratio analysis. Other studies not only have
applied modern techniques of frontier approach like data envelopment
analysis (DEA) but also are limited to the measurement and comparison of
efficiency scores of various groups of banks. The purpose of this study
is to find out the determinant of variation in the performance of banks.
Design/methodology/approach - This study computes various elements of
performance, including efficiency and effectiveness, and finds out the
factors of variation in each component of performance by using the Tobit
regression.
Findings - Overall performance of Islamic banks was influenced
positively by age, capitalization, size, non-markup expenditure, minimum
capital requirement and gross domestic product (GDP) growth rate,
whereas profitability, concentration and inflation had a negative
relationship.
Research limitations/implications - Islamic financial institutions are
in their infancy stage. With the passage of time, one can find the exact
trend in the performance and efficiency of these institutions.
Practical implications - This study guides the investors in the process
of their decision-making.
Social implications - Society can also take the advantage of the moral
steps which are taken by these institutions.
Originality/value - This is an original study.
OI Haji Besar, Mohd Hairul Azrin/0000-0002-1680-6848
Z8 0
ZS 0
ZR 0
TC 2
ZB 0
ZA 0
Z9 2
U1 1
U2 12
SN 0828-8666
EI 1758-7174
UT WOS:000382546700001
ER
PT J
AU Majeed, Muhammad Tariq
Zanib, Abida
TI Efficiency analysis of Islamic banks in Pakistan
SO HUMANOMICS
VL 32
IS 1
BP 19
EP 32
DI 10.1108/H-07-2015-0054
PD 2016
PY 2016
AB Purpose - This paper aims to empirically analyze the efficiency of
full-fledged Islamic banks, Islamic branches of conventional banks and
conventional banks in Pakistan.
Design/methodology/approach - The paper uses data envelopment analysis
to measure and compare the efficiency of banks. Three measures of
efficiencies such as total technical efficiency, pure technical
efficiency and scale efficiency are computed to achieve the objective of
the paper.
Findings - Overall, full-fledged Islamic banks are less efficient in
terms of total technical efficiency and pure technical efficiency than
conventional banks. However, Islamic branches of conventional banks are
highly scale-efficient than their counterparts.
Research limitations/implications - The findings need to be supported by
considering production function and risk exposure factors.
Originality/value - This paper evaluates and compares the efficiency of
Islamic and conventional banks by utilizing the largest available data
set during 2007-2014.
Z8 0
ZR 0
ZS 0
ZA 0
TC 5
ZB 0
Z9 5
U1 0
U2 5
SN 0828-8666
EI 1758-7174
UT WOS:000382546700002
ER
PT J
AU Pratiwi, Ari
TI Islamic banking contribution in sustainable socioeconomic development in
Indonesia An epistemological approach
SO HUMANOMICS
VL 32
IS 2
BP 98
EP 120
DI 10.1108/H-12-2015-0085
PD 2016
PY 2016
AB Purpose - As a prominent actor in terms of achieving sustainable
socioeconomic development, especially in rural areas, Islamic banks are
urged to pursue their main objective. It is required to set the
objective accordingly from time-to-time to continuously make a positive
contribution to the sustainable socioeconomic development. Hence, the
integration of the external factors such as government's economic target
(macro) into Islamic banking's objectives (micro) is needed.
Design/methodology/approach - This research attempts to identify factors
that might prevent the sustainable economic development activities
within the micro-macro circular causal model established by Tawhidi
String Relation (TSR) methodology.
Findings - The research clearly found that the existing Islamic
banking's business and directions had an uncorrelated connection with
Indonesia's economic objective. Nevertheless, the Islamic banking's
Musharakah and Mudharabah contract for Usaha Mikro Kecil Menengah
[(UMKM) (Micro, Small Medium Enterprises)] was showing the positive
correlation to their financial performance indicator. Hence, Islamic
banking is strongly suggested to be more focused on these two types of
partnership financing contract to UMKM. Furthermore, its value and
volume is needed to be expanded to build Indonesia's sustainable
socioeconomic foundation. Then the positive gross domestic product (GDP)
growth will be achieved.
Originality/value - The existing research covering the sustainability
index is mainly only based on the macro perspective, while in this
research, the integration between the micro and macro perspectives
between government objectives and Islamic banking objectives is needed.
This interaction and integration between the two are in line with the
concept of the TSR methodology.
Z8 0
ZB 0
ZS 0
TC 3
ZR 0
ZA 0
Z9 3
U1 0
U2 7
SN 0828-8666
EI 1758-7174
UT WOS:000381936900001
ER
PT J
AU Abdelhedi-Zouch, Mouna
Ghorbel, Achraf
TI Islamic and conventional bank market value: Manager behavior and
investor sentiment
SO COGENT BUSINESS & MANAGEMENT
VL 3
AR 1164010
DI 10.1080/23311975.2016.1164010
PD 2016
PY 2016
AB This paper studies the effect of bank manager behavior and investor
behavior on market value of Islamic and conventional banks in the Middle
East and North Africa region. Firstly, our analysis denoted the positive
effect of discretionary behavior of manager on both types of banks on
share prices since discretionary behavior transmits to investor a
positive signal of future earnings' prospects. Also, we find that the
conventional bank stock prices response is very high to negative signal
compared with positive signal. This result is explained by prospect
theory and loss aversion bias which specified that individuals are more
sensitive to losses than gains of same magnitude. In particular, we
discover that the negative effect of non-discretionary behavior is much
lower on Islamic bank value since investors give more confidence to
Islamic bank because they are motivated by the idea that Islamic banks
are safer than conventional banks. Secondly, the results show that
investor sentiment affects significantly both bank market prices. Thus,
both Islamic and conventional banks' market value depends similarly on
manager and investor behavior. The implication of this paper is that
Islamic bank concentrations reveal a positive effect on their price
values because of the recently increased investments in Islamic banks.
ZA 0
ZB 0
ZS 0
TC 0
ZR 0
Z8 0
Z9 0
U1 0
U2 9
SN 2331-1975
UT WOS:000377789200001
ER
PT J
AU Kurpad, Meenakshi Ramesh
TI Making a case for Islamic finance in India
SO LAW AND FINANCIAL MARKETS REVIEW
VL 10
IS 1
BP 38
EP 45
DI 10.1080/17521440.2016.1154295
PD 2016
PY 2016
AB In light of India's growing Muslim population, which is projected to
become the largest in the world by 2050, and the subsequent need to
address their financial integration, this paper argues for the
establishment of a comprehensive legal and regulatory framework for
Islamic Banking and Finance (IBF) in India. It examines the two major
reasons for the need for IBF in India. First, a significant proportion
of Indian Muslims are unable to make investments because their
investments are not adequately supported by banks and second, this has
deepened their financial exclusion. It also identifies the barriers to
the growth of IBF in India, which prevents investments from Muslims
abroad as well. It also looks at past efforts to incorporate IBF into
the financial system. This paper seeks to make certain suggestions for
reform in the legal framework so as to accommodate IBF. It examines the
two approaches towards the integration of IBF. The first is that of a
dual banking system, where IBF operates under a specialised parallel
legislation alongside the conventional banking system. The second
approach is a piecemeal approach where additions and amendments are made
to existing legislation, which also govern the conventional banking
system. This paper argues that a dual banking system would be most
workable as India's financial system is otherwise largely drawn on the
conventional banking system based on deposits and interest; a
specialised system enables better regulation of Islamic Financial
Institutions.
ZA 0
ZR 0
ZS 0
TC 2
ZB 0
Z8 0
Z9 2
U1 0
U2 6
SN 1752-1440
EI 1752-1459
UT WOS:000377980100005
ER
PT J
AU Sairally, Beebee Salma
Muhammad, Marjan
Mustafa, Madaa Munjid
TI Additional Tier 1 Capital Instruments under Basel III: A Shariah
Viewpoint
SO ARAB LAW QUARTERLY
VL 30
IS 2
BP 138
EP 162
DI 10.1163/15730255-12341314
PD 2016
PY 2016
AB This research aims to compare the regulatory capital instruments for
Islamic banking institutions (IBIs)-in particular the qualifying
Additional Tier 1 (AT1) capital instruments- as defined by Basel III,
Bank Negara Malaysia (BNM) and IFSB-15 (issued by the Islamic Financial
Services Board). Principally, the research examines the Shariah issues,
especially related to subordination, arising in equity-based contracts
when used for structuring AT1 capital instruments. In particular, it
examines the muarabah sukuk issued by the Abu Dhabi Islamic Bank (ADIB)
in 2012. The study finds that the most appropriate Shariah contract that
would be suitable for structuring AT1 capital instruments would be
musharakah. The present study is considered an original attempt in
examining an under-researched topic relating to Basel III and its
Shariah perspective. The study will be an important reference point to
Islamic banks when structuring AT1 capital instruments.
ZB 0
ZS 0
ZA 0
Z8 0
TC 0
ZR 0
Z9 0
U1 0
U2 6
SN 0268-0556
EI 1573-0255
UT WOS:000376537900002
ER
PT J
AU Ebrahim, Muhammed Shahid
Sheikh, Mustapha
TI Debt Instruments in Islamic Finance: A Critique
VL 30
IS 2
BP 185
EP 198
DI 10.1163/15730255-12341317
PD 2016
PY 2016
AB This article assesses the employment of traditional Islamic debt
instruments by contemporary Islamic banks from an economic efficiency
perspective. We highlight the fact that the performance of the bulk of
the instruments pales in front of the modern facility of participating
preferred ijara. Thus, the shortcomings of the traditional instruments
illustrate that the future does not augur well for either the Islamic
banking industry or the emerging Muslim economies. For the Muslim world
to move beyond its current malaise, it is necessary to scientifically
restructure its financial intermediation system in such a way as to meet
the challenges of the modern age also conforming to the spirit of the
Sharia.
ZS 0
Z8 0
TC 2
ZA 0
ZR 0
ZB 0
Z9 2
U1 0
U2 13
SN 0268-0556
EI 1573-0255
UT WOS:000376537900004
ER
PT J
AU Kamarudin, Fakarudin
Sufian, Fadzlan
Nassir, Annuar Md.
TI Does country governance foster revenue efficiency of Islamic and
conventional banks in GCC countries?
VL 11
IS 2
BP 181
EP 211
DI 10.1108/EMJB-06-2015-0026
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to provide new empirical evidence
on the impact of country governance on the revenue efficiency of Islamic
and conventional banks. The empirical analysis is confined to Islamic
and conventional banks operating in the Gulf Cooperation Council (GCC)
countries banking sectors during the period of 2007-2011.
Design/methodology/approach - The analysis comprises two main stages. In
the first stage, the authors employ the data envelopment analysis (DEA)
method to compute the revenue efficiency of Islamic and conventional
banks. The authors then used the multivariate panel regression analysis
with the ordinary least square and generalized method of moments as an
estimation method to investigate the potential determinants and the
effect of country governance on the revenue efficiency.
Findings - The empirical findings indicate that greater voice and
accountability, government effectiveness, and rule of law enhance the
revenue efficiency of both Islamic and conventional banks. The authors
find that regulatory quality exerts positive influence on Islamic banks,
while the impact of political stability and control of corruption
enhances the revenue efficiency of conventional banks.
Originality/value - The study on the specific revenue efficiency concept
of Islamic and conventional banking is still in its formative stage. In
regards, majority of the studies that examined the effect of governance
on bank efficiency have focused more on the corporate or bank governance
that affects the governance within the institution. Thus, to the best of
the knowledge, no study has been done to address the effect of country
governance on the revenue efficiency of Islamic and conventional banks
specifically on the GCC countries.
RI Kamarudin, Fakarudin/AAL-8942-2020; Kamarudin, Fakarudin/
OI Kamarudin, Fakarudin/0000-0001-8180-1173
Z8 0
ZB 0
ZR 0
ZS 0
ZA 0
TC 9
Z9 9
U1 2
U2 10
SN 1450-2194
EI 1758-888X
UT WOS:000393374300002
ER
PT J
AU Ahmed, Ishfaq
TI Aspirations of an Islamic bank: an exploration from stakeholders'
perspective
SO INTERNATIONAL JOURNAL OF ISLAMIC AND MIDDLE EASTERN FINANCE AND
MANAGEMENT
VL 9
IS 1
BP 24
EP 45
DI 10.1108/IMEFM-10-2014-0104
PD 2016
PY 2016
AB Purpose - It is believed that Islamic banks are aimed at the welfare of
its stakeholders (Dusuki, 2008). The major stakeholders consist of
customers, employees, competitors and management. But whether the
Islamic banks are really able to communicate and convey their mission to
their stakeholders is an area which has not be given due importance.
This paper aims to attempt to unveil this issue.
Design/methodology/approach - This study comprised two distinctive
methodological stances, where mission statements of selected (five)
Islamic banks were analyzed using content analysis, readability and
understandability in first instance. In second step, various
stakeholders responded for their perception of objectives of
stakeholders through personally administrated questionnaires. In all,
370 respondents recorded their responses in this stage.
Findings - Findings of the study show that Islamic banks are not well in
communication to their objectives through their missions statements.
Moreover, most of the stakeholders are not clear about the objectives of
Islamic banks.
Originality/value - This study is first of its type which covers content
analysis, mission statement readability and understandability and
perception of stakeholders in one study.
RI Ahmed, Ishfaq/AAH-9130-2019
OI Ahmed, Ishfaq/0000-0003-1980-5872
TC 1
ZR 0
ZA 0
ZB 0
Z8 0
ZS 0
Z9 1
U1 0
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000387744100002
ER
PT J
AU Zarrouk, Hajer
Ben Jedidia, Khoutem
Moualhi, Mouna
TI Is Islamic bank profitability driven by same forces as conventional
banks?
MANAGEMENT
VL 9
IS 1
BP 46
EP 66
DI 10.1108/IMEFM-12-2014-0120
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to ascertain whether Islamic bank
profitability is driven by same forces as those driving conventional
banking in the Middle East and North Africa (MENA) region. Distinguished
by its principles in conformity with sharia, Islamic banking is
different from conventional banking, which is likely to affect
profitability.
Design/methodology/approach - The paper builds on a dynamic panel data
model to identify the banks' specific determinants and the macroeconomic
factors influencing the profitability of a large sample of 51 Islamic
banks operating in the MENA region from 1994 to 2012. The
system-generalized method of moment estimators are applied.
Findings - The findings reveal that profitability is positively affected
by banks' cost-effectiveness, asset quality and level of capitalization.
The results also indicate that non-financing activities allow Islamic
banks to earn higher profits. Islamic banks perform better in
environments where the gross domestic product and investment are high.
There is evidence of several elements of similarities between
determinants of the profitability for Islamic and conventional banks.
The inflation rate, however, is negatively associated with Islamic bank
profitability.
Practical Implications - The authors conclude that profitability
determinants did not differ significantly between Islamic and
conventional banks. Many factors are deemed the same in explaining the
profitability of conventional as well as Islamic banks. The findings
reported in the current paper might be of interest for policy makers. It
is recommended to better implement non-financing activities to improve
Islamic bank profitability.
Originality/value - Unlike the previous empirical research, this
empirical investigation assesses the issue whether Islamic banks
profitability is influenced by same factors as conventional model. It
enriches the literature in this regard by considering the specificities
of Islamic banking to identify the determinants of profitability.
Moreover, this study considers a large sample (51 Islamic banks) through
a different selection of countries/banks than previous studies. In
addition, the period of study considers the subprime crisis insofar it
ranges from 1994 to 2012. Hence, this broader study allows the authors
to draw more consistent conclusions.
TC 17
Z8 0
ZS 0
ZR 0
ZB 0
ZA 0
Z9 17
U1 2
U2 15
SN 1753-8394
EI 1753-8408
UT WOS:000387744100003
ER
PT J
AU Ergec, Etem Hakan
Kaytanci, Bengul Gulumser
Toprak, Metin
TI Reconciliation or polarization in Islamic bank preference?
Socio-political, socio-economic and demographic aspects Eskisehir case
in Turkey
MANAGEMENT
VL 9
IS 1
BP 67
EP 86
DI 10.1108/IMEFM-07-2013-0082
PD 2016
PY 2016
AB Purpose - The reasons for Islamic bank preferences have been extensively
covered in the literature where religion has been depicted as a strong
factor. In the limited number of accounts on this subject in Turkey, it
was found that religiosity is a major factor in the selection of Islamic
banks.
Design/methodology/approach - This study evaluates the findings of a
major field work performed in the period between March and May 2011 in
Eskisehir with the participation of Islamic bank customers. In the
study, a sample of 500 respondents was used and a semi-structured survey
was conducted.
Findings - According to the findings, religiosity is not the most
significant and leading factor in Islamic bank preference; instead, it
was found as the fourth most important factor. The study finds that
recommendation by friends and relatives is the most significant factor
for the people in preferring Islamic banks. The nationalist-
conservative people make stronger reference to the religiosity as a
factor than the secular-modernist and leftist-social democrat people do.
Socioeconomic status is not found as a significant factor in the Islamic
bank preference. People in advanced age, men, people with lower income
and businessmen/artisan rely on the religiosity in Islamic bank
preference as a factor stronger than people from other backgrounds.
Practical implications - In conclusion, it could be said that there is a
strong relation of substitution between Islamic banks and conventional
banks in Turkey and that the Islamic banks play significant role in
inclusion of the people staying out of the banking system due to
religious concerns and considerations in the financial system.
Originality/value - It is very comprehensive, both politically and
economically, to handle the issue of Islamic banking.
RI TOPRAK, Metin/G-3879-2013; TOPRAK, Metin/N-7866-2013; onalan, ebru/C-6463-2016
OI TOPRAK, Metin/0000-0001-9217-6318; onalan, ebru/0000-0001-9968-8201
ZB 0
ZS 0
ZR 0
TC 1
Z8 0
ZA 0
Z9 1
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000387744100004
ER
PT J
AU Hikmany, Abdul-Nasser H. R.
Oseni, Umar A.
TI Dispute resolution in the Islamic banking industry of Tanzania: learning
from other jurisdictions
MANAGEMENT
VL 9
IS 1
BP 125
EP 142
DI 10.1108/IMEFM-09-2014-0093
PD 2016
PY 2016
AB Purpose - This paper aims to examine the prospects of a dispute
resolution framework for the Islamic banking industry in Tanzania under
the existing legal framework.
Design/methodology/approach - This paper is based on comparative study
by drawing significant lessons from other jurisdictions, and argues that
to avoid some of the initial drawbacks in the dispute resolution
framework for Islamic banking transactions in more advanced
jurisdictions like Malaysia and United Kingdom, it is important for
Tanzania to get it right from the onset to effectively manage Islamic
banking disputes.
Findings - The study finds that apart from the court system which
provides the main avenue for Islamic finance litigation, other processes
such as arbitration and mediation which are deemed to be more
sustainable could also be developed for effective dispute management.
Research limitations/implications - The study focuses on Tanzania
banking system with comparison to other jurisdictions.
Practical implications - An increase of Shari'ah-compliant products in
Tanzania has led to the establishment of a number of Islamic banks. This
study demonstrates the need for Tanzania to make use and/or make
adjustment of its laws for effective dispute settlement of
banking-related disputes.
Originality/value - This study appears to be the first paper to draw
significant experiences from other jurisdictions to resolve Islamic
banking disputes in Tanzania. It is expected to provide a good policy
framework for the stakeholders in the Islamic banking industry in
Tanzania.
TC 2
ZB 0
Z8 0
ZS 0
ZA 0
ZR 0
Z9 2
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000387744100007
ER
PT J
AU El-Halaby, Sherif
Hussainey, Khaled
TI Determinants of compliance with AAOIFI standards by Islamic banks
MANAGEMENT
VL 9
IS 1
BP 143
EP 168
DI 10.1108/IMEFM-06-2015-0074
PD 2016
PY 2016
AB Purpose - The authors explore the level and determinants of compliance
with Accounting and Auditing Organization for Islamic Financial
Institution's (AAOIFI) financial and governance standards by Islamic
banks (IBs).
Design/methodology/approach - The sample consists of 43 IBs across eight
countries. The authors use ordinary least squares regression analyses to
examine the impact of bank-specific characteristics and corporate
governance (CG) mechanisms concerned with Board of Directors (BOD) and
Sharia Supervisory Board (SSB) on the levels of compliance with AAOIFI
standards.
Findings - The paper finds that the average compliance level based on
AAOIFI standards concerning the SSB is 68 per cent; corporate social
responsibility (CSR) is 27 per cent; and presentation of financial
statements (FSs) is 73 per cent. The aggregate disclosure based on the
three indices is 56 per cent. The analysis also shows that size,
existing Sharia-auditing department, age and CG of SSB are the main
determinants of compliance levels.
Originality/value - The determinants of compliance with AAOIFI standards
for IBs around the world have not been explored before, and therefore,
this paper is the first of its kind to this issue.
OI El-Halaby, Sherif/0000-0003-4716-4208
ZS 0
ZR 0
Z8 0
TC 13
ZB 0
ZA 0
Z9 13
U1 1
U2 13
SN 1753-8394
EI 1753-8408
UT WOS:000387744100008
ER
PT J
AU Wulandari, Permata
Putri, Niken Iwani Surya
Kassim, Salina
Sulung, Liyu Adikasari
TI Contract agreement model for murabahah financing in Indonesia Islamic
banking
MANAGEMENT
VL 9
IS 2
BP 190
EP 204
DI 10.1108/IMEFM-01-2015-0001
PD 2016
PY 2016
AB Purpose - The purpose of this paper is to measure the pattern of
contract agreement process to map various banks' position in perceiving
Sharia conduct. This is done by incorporating the dynamics of culture,
market demand and Sharia literacy in different banks. Finding of this
research will serve as the formula to map the latent degree of Islamic
bank's commitment to their strategic vision and identity as an
Islamic-based financial institution.
Design/methodology/approach - This research develops its theoretical
background in classical and contemporary literature review on murabahah
contract in Islamic perspective. Focus group discussion (FGD) and
in-depth interview are conducted on 32 bankers (in 14 Islamic banks),
two National Sharia Council, five academicians and three central bank
representatives as an input for qualitative analysis. Content analysis
is utilized in this paper to emphasize the process of discovering the
relationship between dynamic factors affecting contract agreement
process in murabahah scheme in Indonesian banking.
Findings - There are four dimensions affecting the contract agreement:
fairness to customer, country regulation, perceived business
practicality and product characteristic. The four dimensions are assumed
to be influenced with categories proposed, as the category item is
mostly repeated and is perceived to be significant in the participant's
perspective.
Originality/value - This research will be beneficial in mapping the
determinant of degree of Sharia compliance in Sharia banking in
Indonesia, focusing on the contract agreement process.
RI Kassim, Salina/Q-7008-2019
OI Kassim, Salina/0000-0002-7514-8750
Z8 0
ZA 0
ZS 0
TC 3
ZR 0
ZB 0
Z9 3
U1 0
U2 5
SN 1753-8394
EI 1753-8408
UT WOS:000387744200002
ER
PT J
AU Abozaid, Abdulazeem
TI The internal challenges facing Islamic finance industry
MANAGEMENT
VL 9
IS 2
BP 222
EP 235
DI 10.1108/IMEFM-05-2015-0056
PD 2016
PY 2016
AB Purpose - The paper aims to highlight the challenges facing Islamic
finance industry and outline the prospectus of what constitutes a sound
Islamic banking product in terms of both its Shariah control and product
development methodology.
Design/methodology/approach - The paper analytically addresses the
internal challenges facing Islamic finance industry by highlighting,
first, the deficiencies in the existing Shariah supervisory work and,
then, the deficiencies in the product development methodology followed
in Islamic banks.
Findings - Islamic banking and finance is facing some internal
challenges which require immediate action. Although facing the external
challenges may be beyond the capacity of the industry players, Islamic
banks have no excuse to overlook or turn a blind eye to their internal
challenges which can be overcome by enacting Shariah governance for both
products and Shariah control and reforming the methodology of product
development.
Originality/value - This paper highlights an issue that has not received
the needed attention, and it proposes the necessary solutions to the
problems it identifies.
RI Abozaid, Abdulazeem/AAF-4374-2019
TC 4
ZR 0
Z8 0
ZS 0
ZB 0
ZA 0
Z9 4
U1 0
U2 8
SN 1753-8394
EI 1753-8408
UT WOS:000387744200004
ER
PT J
AU Hardianto, Dimas Satria
Wulandari, Permata
TI Islamic bank vs conventional bank: intermediation, fee based service
activity and efficiency
MANAGEMENT
VL 9
IS 2
BP 296
EP 311
DI 10.1108/IMEFM-01-2015-0003
PD 2016
PY 2016
AB Purpose - The aim of this research is to compare the differences of
intermediation, fee-based service activity and efficiency of
conventional banks vs Islamic banks in Indonesia for the 2011-2013
period. Moreover, this study also includes some control variables to
find their effect on the dependent variables.
Design/methodology/approach - This research uses two methods, namely,
stochastic frontier approach and panel data regression.
Findings - The result indicates that Islamic banks have a higher
intermediation ratio, have higher proportion on fee income-to-total
operating income and are less efficient. The control variable that has a
positively significant effect on intermediation ratio is size;
meanwhile, inefficiency and non-loan-earning asset are negatively
affecting the intermediation ratio. The control variable that show a
positively significant effect on the proportion of fee income-to-total
operating income is size; meanwhile, the credit risk variable has no
significant effect on the proportion of fee income-to-total operating
income. Size and credit risk are the control variables that have a
negative relation to efficiency.
Originality/value - This study has significantly contributed to
Indonesian Islamic banking based on which the Islamic banking manager
should recognize that the intermediation level, fee-based service
activity and efficiency are crucially important in establishing
competition and maintaining sustainable Islamic banking.
ZS 0
TC 6
ZA 0
Z8 0
ZR 0
ZB 0
Z9 6
U1 0
U2 9
SN 1753-8394
EI 1753-8408
UT WOS:000387744200008
ER
PT J
AU Ismail, Abdul Ghafar
Ghani, Nik Abdul Rahim Nik Abdul
Zain, Mat Nor Mat
TI Tawarruq time deposit with wakalah principle: an option that triggers
new issues
MANAGEMENT
VL 9
IS 3
BP 388
EP 396
DI 10.1108/IMEFM-05-2014-0048
PD 2016
PY 2016
AB Purpose - This paper aims to make an attempt to analyze the adoption of
wakalah in the tawarruq deposit that may trigger new issue.
Design/methodology/approach - This paper provides a review on the
underlying contracts for deposit-taking activities.
Findings - There are two mains findings from this paper - first, the
current deposit taking activities are characterized by principal
guaranteed, it deems contrary to the nature of mudarabah. Second, we
suggest the presence of wakalah in tawarruq term deposits and we argue
that the application of the concept of bay al-wakillinafsihi would not
affect the validity of wakalah.
Originality/value - This paper is considered to have its own originality
in the sense that the introduction of tawarruq-based deposit product by
Islamic banks could be the best alternative to the current deposit
products.
RI Ismail, Abdul Ghafar/E-7190-2016
OI Ismail, Abdul Ghafar/0000-0003-2450-0168
Z8 0
ZA 0
ZR 0
TC 0
ZS 0
ZB 0
Z9 0
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000395794400005
ER
PT J
AU Yusof, Rosylin Bt Mohd
Mahfudz, Akhmad Affandi
Arif, Ahmad Suki Che Mohamed
Ahmad, Nor Hayati
TI Rental index rate as an alternative to interest rate in Musharakah
Mutanaqisah home financing A simulation approach
MANAGEMENT
VL 9
IS 3
BP 397
EP 416
DI 10.1108/IMEFM-11-2015-0141
PD 2016
PY 2016
AB Purpose - This paper aims to propose a new pricing alternative called
Rental Rate Index (RR-I) that captures the true value of property to be
used by Islamic banks in Musharakah Mutanaqisah (MM) contract for home
financing.
Design/methodology/approach - By formulating a profit rate based on
Rental Index (RI) and House Price Index (HPI), the proposed rate
eliminates conventional profit rate benchmarking, and, at the same time,
suggests a fair, equitable and sustainable financing. This new RR-I
(measured by RPI/HPI) enables computerization of the MM system in home
financing to be easily implemented. A financial simulation is developed
to demonstrate the feasibility of this newly proposed rate.
Findings - This newly proposed RR-I is found to be more stable, having
less fluctuations, resilient to macroeconomic conditions and yet
comparable to the conventional interest rates, without depending on
them. It can also be regarded as a rate that is fair and sustainable to
both the customer and the bank, as it measures the actual rate of return
to both parties in MM contract.
Research limitations/implications - The paper confines one contract,
namely, MM, as it is claimed to be more Shariah-compliant than others.
Practical implications - The finding also sheds some light on the
recommendation by Bank Negara Malaysia, which is to consider RR that is
more indicative of the actual rental price while taking into account the
competitiveness of the product. (BNM, 2007).
Social implications - This paper wreaks customer patronage in selecting
the contract of home financing.
Originality/value - This paper attempts to resolve the issue of
benchmarking RR to the conventional interest rate in the MM contract.
Studies conducted on this issue via simulation approach are meager.
OI Mahfudz, Akhmad Affandi/0000-0002-0806-8347
TC 5
ZB 0
ZS 0
Z8 0
ZA 0
ZR 0
Z9 5
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000395794400006
ER
PT J
AU Lujja, Sulaiman
Mohammad, Mustafa Omar
Hassan, Rusni Bt.
Oseni, Umar A.
TI The feasibility of adopting Islamic Banking system under the existing
laws in Uganda
MANAGEMENT
VL 9
IS 3
BP 417
EP 434
DI 10.1108/IMEFM-09-2014-0084
PD 2016
PY 2016
AB Purpose - In 2014, Islamic finance assets are estimated to have exceeded
US$2 trillion with over 100 products and an annual growth of over 20.7
per cent, across more than 76 countries, most of which are members of
the Organization of Islamic Cooperation (OIC).
Despite this remarkable market expansion, numerous OIC members such as
Uganda are yet to fully adopt this unique financial system because of
regulatory constraints. Thus, the purpose of this paper is to examine
the extent to which Uganda can benchmark the Malaysian experience and
best practices to overcome the regulatory challenges in introducing
Islamic Banking. Design/methodology/approach - This exploratory study
adopts qualitative research methods through documentary review to elicit
relevant information from the existing laws in Uganda that would
accommodate the Islamic Banking system. Interpretive analysis and
analytical methods are used to analyze data.
Findings - The Malaysian experience and best practices of Islamic
Banking regulation need to be benchmarked by regulators. Relevant laws
which require some amendments include section 37(a) and 38(1) of the
Financial Institutions Act 2004 and section 29(3)(a) of the Bank of
Uganda Act 2000. Similarly, tax legislation needs amendments to ensure a
level playing field for Islamic finance and conventional finance
products.
Originality/value - This is one of the earliest studies on models of
Islamic Banking regulation suitable for adoption in Uganda. This study
contributes to literature on how other jurisdictions (especially those
with less regulatory prudence) could regulate Islamic Banking in a dual
banking system jurisdiction.
TC 3
ZS 0
ZR 0
ZB 0
ZA 1
Z8 0
Z9 4
U1 0
U2 6
SN 1753-8394
EI 1753-8408
UT WOS:000395794400007
ER
PT J
AU Khir, Mohamed Fairooz Abdul
TI Bilateral rebate (ibra' mutabadal) in Islamic banking operation: a
critical appraisal
MANAGEMENT
VL 9
IS 3
BP 435
EP 452
DI 10.1108/IMEFM-07-2015-0085
PD 2016
PY 2016
AB Purpose - This study aims to examine the scholars' views on the legality
of bilateral rebate in Islamic financial transactions. It also aims to
evaluate the contemporary application of bilateral rebate in Islamic
banking operation as an alternative to the conventional mechanism in
handling the events of early settlement of debt, early termination of
debt facility and early withdrawal of term deposit.
Design/methodology/approach - The study used deductive and inductive
methods to analyze the juristic literature of all the major schools of
law on the legality of both bilateral and unilateral rebate in a
financial transaction.
Findings - The study found bilateral rebate (ibra' mutabadal), instead
of unilateral rebate, to be the best and fairest Islamic mechanism to
overcome injustice in several events that may impact the bank's
liquidity such as that of early settlement of debt facility and early
withdrawal of term deposit in the sense that the interest (maslahah) of
both transacting parties is equally secured.
Research limitations/implications - This study has its limitation, as it
only covers the applicability of bilateral rebate in Islamic banking
operation. It does not include the applicability of bilateral rebate in
other segments of Islamic finance such as Islamic capital markets and
Islamic insurance (Takaful business).
Practical implications - This paper has practical implication for
Islamic banking industry particularly with regard to its liquidity
management in the event of early settlement of a debt facility, early
termination of an Islamic facility and early withdrawal of Islamic term
deposit. It may also assume policy implication in the event that the
regulator adopts the legality of bilateral rebate in its Islamic banking
policy and guidelines.
Originality/value - This paper offers an Islamic alternative to the
conventional mechanism in handling the event of early settlement of a
debt facility, early termination of an Islamic facility and early
withdrawal of Islamic term deposit. Under conventional banking, there
are certain fees and charges imposed on customers in the above events
like early settlement charge and early withdrawal charge. Unlike its
conventional counterpart, Islamic banks cannot opt for the conventional
method that seems unjust to the customers as the charge is imposed
without Shariah basis. In this case, bilateral rebate serves as a fair
mechanism to manage the bank's liquidity in the aforementioned events.
ZB 0
Z8 0
ZR 0
ZA 0
ZS 0
TC 2
Z9 2
U1 0
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000395794400008
ER
PT J
AU Khasawneh, Ahmad Y.
TI Vulnerability and profitability of MENA banking system: Islamic versus
commercial banks
MANAGEMENT
VL 9
IS 4
BP 454
EP 473
DI 10.1108/IMEFM-09-2015-0106
PD 2016
PY 2016
AB Purpose - This paper aims to compare Islamic and commercial banks in the
region of Middle East and North Africa (MENA) in terms of profitability
and stability.
Design/methodology/approach - The study combines both the descriptive
and analytical approaches. It considers panel data sets and adopts panel
data econometric techniques.
Findings - The determinants of banks profitability and stability are
different according to bank's type. The results show that Islamic banks
are more profitable than commercial banks, while on the other hand,
commercial banks are more stable than Islamic banks. It is also
concluded that banks profitability and stability are determined through
some bank's characteristics variables and macroeconomic variables in
addition to the financial crises. MENA commercial and Islamic banking
was affected by the financial crises in terms of profitability and
stability. Additionally, larger banks are more stable than smaller
banks, and off-balance sheet activities increase banks' vulnerability
for both commercial and Islamic MENA banks.
Research limitations/implications - The most prominent limitation is the
lack of data, as we had to exclude some variables because of missing
observations. As a result, the authors could not use data envelopment
approach and stochastic frontier approach to evaluate banks efficiency
in MENA countries rather than the financial ratios.
Practical implications - Commercial banks need to enhance their
capitalization to improve their profitability. Additionally, Islamic
banks need to improve the risk assessment and adopt some of the
available risk management tools. Moreover, the banking system should
take advantage of relatively higher Islamic banks profitability and use
the unexploited profit opportunities through spreading into those
countries with limited availability, such as the North African
countries.
Originality/value - This study address both banks profitability and
stability in an emerging region that includes banks of different types
(Islamic and commercial) which are located in different counties that
allows accounting for operational and institutional differences.
RI Khasawneh, Ahmad/T-8327-2018
OI Khasawneh, Ahmad/0000-0001-6057-3482
TC 2
ZB 0
Z8 0
ZR 0
ZA 0
ZS 0
Z9 2
U1 1
U2 6
SN 1753-8394
EI 1753-8408
UT WOS:000395794600001
ER
PT J
AU Tas, Oktay
Tokmakcioglu, Kaya
Ugurlu, Umut
Isiker, Murat
TI Comparison of ethical and conventional portfolios with second-order
stochastic dominance efficiency test
MANAGEMENT
VL 9
IS 4
BP 492
EP 511
DI 10.1108/IMEFM-11-2015-0133
PD 2016
PY 2016
AB Purpose - This paper aims to compare two groups of stocks to analyze the
efficiency of an ethical portfolio in comparison with a conventional
portfolio.
Design/methodology/approach - Efficiency test by second-order stochastic
dominance (SSD) approach is applied on two groups, which consist of 12
stocks. Ethical portfolio is chosen from the stocks complying with the
participation banking rules. Conventional portfolio is selected from
Borsa Istanbul (BIST) with choosing the corresponding stocks for each
ethical stock according to the sector and market capitalization. All the
stocks of both groups are pairwise SSD compared.
Findings - Both groups of 12 stocks are inefficient portfolios; however,
a group of 7 stocks constitute an efficient ethical portfolio with the
total weight of 50.82 per cent among the set of 12 ethical stocks. On
the other hand, a group of 6 stocks constitute an efficient conventional
portfolio, with the total weight of 45.16 per cent among the set of 12
conventional stocks. By pairwise SSD comparison of corresponding stocks
from both groups, despite none of the conventional stocks dominate
ethical stocks, four ethical stocks dominated the conventional ones.
Originality/value - Back-testing and comparison with benchmark BIST 100
Index have been done for the selected portfolios. According to
back-testing results, groups of SSD efficient stocks outperformed the
groups, from which they were selected. Furthermore, both SSD efficient
portfolios have higher returns than benchmark index, BIST 100.
OI Tas, Oktay/0000-0002-7570-549X; /0000-0002-6183-969X
ZB 0
ZS 0
TC 2
Z8 0
ZR 0
ZA 0
Z9 2
U1 2
U2 7
SN 1753-8394
EI 1753-8408
UT WOS:000395794600003
ER
PT J
AU Lebdaoui, Hind
Wild, Joerg
TI Islamic banking presence and economic growth in Southeast Asia
MANAGEMENT
VL 9
IS 4
BP 551
EP 569
DI 10.1108/IMEFM-03-2015-0037
PD 2016
PY 2016
AB Purpose - The purpose of this study is to empirically assess the
relationship between Islamic banking presence in Southeast Asian
countries and the economic growth.
Design/methodology/approach - The presence of Islamic banks is measured
by the ratio of Islamic to conventional banking assets as well as the
ratio of deposits of Islamic to conventional banking. This study starts
by checking the presence of cointegration using Pedroni's and
Westerlund's specifications; short- and long-run dynamics are further
analyzed with the panel autoregressive distributed lag model
(ARDL)-based estimators: pooled mean group (PMG), mean group (MG) and
dynamic fixed effect (DFE). Furthermore, a two-stage regression
[two-stage least squares (2SLS)] was constructed to measure the
sensitivity of economic growth to the Islamic banking presence.
Quarterly data from Southeast Asian countries cover the period between
2000Q1 and 2012Q4.
Findings - A long-run relationship is evident between economic growth
and the Islamic banking presence in the selected region, but not in the
short run. Furthermore, the Muslim population share in a given country
plays a positive and statistically significant role in fueling the
contribution of Islamic banking share in the financial sector on the
economic growth.
Social implications - The results of this study show that
Sharia-compliant banks succeeded in mobilizing additional resources for
the financial sector, which may increase the stability of the banking
system and the efficiency of the whole banking sector. The authors
believe that the inclusion of Islamic banking products in the financial
systems will, along with the diversification effect, stimulate financial
deepening and, therefore, improve the financial stability in the
countries under investigation in particular, and all countries with
significant Muslim population in general.
Originality/value - This study empirically assesses the contribution of
Islamic banking presence on the economic growth with a focus on
Southeast Asia, as this region encompasses the most developed and
experienced institutions in the field of Islamic finance. Error
correction-based models such as PMG, MG and DFE lend itself to the
analysis of the panel data. This study also uses the instrument-based
2SLS to cope with the endogeneity problem between the real and financial
sectors.
Z8 0
ZA 1
ZS 0
ZB 0
ZR 0
TC 5
Z9 6
U1 1
U2 11
SN 1753-8394
EI 1753-8408
UT WOS:000395794600006
ER
PT B
AU Mohammed, Mustafa Omar
Taib, Fauziah Mohammad
BA Choudhury, MA
TI The Performance Measurement of Islamic Banking Based on the Maqasid
Framework
SO ISLAMIC FINANCIAL ECONOMY AND ISLAMIC BANKING
SE Islamic Business and Finance Series
BP 94
EP 113
PD 2016
PY 2016
AB It has been taken for granted that Islamic banking (IB) is only about
avoiding interest, riba. The objectives of Islamic banking have not been
formally addressed. As such, the present conventional performance
yardsticks being used by IB have focused largely on financial measures.
Hence there is a need to develop other performance measurements that
would complement the financial objectives of IB. This chapter,
therefore, proposes the objectives of IB from the theory of maqasid
as-shari'ah and derives a model of IB performance measurement based on
these objectives. A behavioral approach operationalization method
(Sekaran, 2000) is used to quantify the maqasid into measurable IB
performance indicators that are later used for testing on a sample of
six Islamic banks. The banks are evaluated and ranked at three levels
based on their: (1) performance ratios, (2) performance indicators and
(3) the overall Maqasid Index.
TC 0
ZS 0
Z8 0
ZA 0
ZB 0
ZR 0
Z9 0
U1 0
U2 0
BN 978-1-315-59001-1; 978-1-4724-3877-5
UT WOS:000442121500008
ER
PT B
AU Choudhury, Masudul Alam
BA Choudhury, MA
TI The Possibility of Islamic Financial Economics and Islamic Banking A
Post-Orthodoxy Criticism
SO ISLAMIC FINANCIAL ECONOMY AND ISLAMIC BANKING
SE Islamic Business and Finance Series
BP 221
EP 251
PD 2016
PY 2016
AB This chapter investigates the current status of intellection in Islamic
economics and finance and current practice by Islamic banks to discover
whether this field as it has developed in contemporary times has any
epistemological basis that can provide a revolutionary contribution to
academia. An extensive review of the field of economic orthodoxy and,
within that, Islamic financial economics, reveals that the latter is
still contained within mainstream reasoning. Islamic financial economics
has thereby failed to project its distinctively new methodology.
Mainstream economics comprising neoclassical, Keynesian, monetarist,
Austrian, and evolutionary institutional paradigms are examined against
the backdrop of a freshly new heterodox economic structure that Islamic
financial economics has the potential to provide if premised on its true
epistemological foundations. However, this is not what has happened. Yet
the predicament of Islamic financial economics is true only as it
presently stands without an explained episteme. If Islamic financial
economics were to be studied on the basis of its foundational
epistemology of the monotheistic worldview and the methodical formalism
that arises from it, then it has tremendous potential in the field of a
truly socio-scientific revolution. Islamic financial economics then
becomes a fresh socio-scientific thinking with profound applications. It
can then find its place in the intellectual annals by its universality
and uniqueness.
TC 0
ZS 0
Z8 0
ZB 0
ZR 0
Z9 0
U1 0
U2 0
BN 978-1-315-59001-1; 978-1-4724-3877-5
UT WOS:000442121500014
ER
PT J
AU Wanke, Peter
Azad, Abul Kalam
Barros, C. P.
TI Predicting efficiency in Malaysian Islamic banks: A two-stage TOPSIS and
neural networks approach
SO RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
VL 36
BP 485
EP 498
DI 10.1016/j.ribaf.2015.10.002
PD JAN 2016
PY 2016
AB This paper presents an efficiency assessment of the Malaysian Islamic
banks using TOPSIS. In this research, this technique is applied first in
a two-stage approach to assess the relative efficiency of Malaysian
Islamic banks using the most frequent indicators found in the banking
literature. Besides, in the second stage, neural networks are combined
with TOPSIS results as part of an attempt to produce a model for banking
performance with effective predictive ability. The results reveal that
variables related to cost structure have a prominent negative impact on
efficiency levels, although some parsimony in equity leveraging derived
from Islamic finance principles maybe helpful in achieving higher
efficiency levels. Findings also indicate that the Malaysian Islamic
banking market also imposes cultural and regulatory barriers to foreign
banks, so that their efficiency levels are lower when compared to their
national counterparts. Learning curves (trend impact) are relevant in
predicting efficiency levels. (C) 2015 Elsevier B.V. All rights
reserved.
RI Wanke, Peter/G-3184-2010; Azad, Abul Kalam/E-2814-2016
OI Wanke, Peter/0000-0003-1395-8907; Azad, Abul Kalam/0000-0003-3463-2738
ZR 0
ZB 0
TC 31
Z8 0
ZS 0
ZA 0
Z9 31
U1 2
U2 7
SN 0275-5319
EI 1878-3384
UT WOS:000386009400037
ER
PT J
AU Doumpos, Michael
Gaganis, Chrysovalantis
Pasiouras, Fotios
TI Central bank independence, financial supervision structure and bank
soundness: An empirical analysis around the crisis
SO JOURNAL OF BANKING & FINANCE
VL 61
SI SI
BP S69
EP S83
DI 10.1016/j.jbankfin.2015.04.017
SU 1
PD DEC 2015
PY 2015
AB Over the last fifteen years, many countries introduced reforms into the
supervisory architecture of their financial sector. However, there is no
evidence on whether specific supervisory arrangements were more
successful than others during the crisis. Empirical evidence on the
topic is in general scarce and there are reasonable theoretical
arguments for and against alternative approaches. Similarly, while the
effect of central bank independence on price stability has attracted a
lot of attention, our knowledge with regards to its effect on bank
soundness remains limited. Using a large sample of commercial banks
operating in various countries over the period 2000-2011, this paper
investigates whether and how bank soundness is influenced by central
bank independence, central bank involvement in prudential regulation,
and supervisory unification. We find that central bank independence
exercises a positive impact on bank soundness, which in the case of
smaller banks is enhanced during the crisis. Supervisory unification and
the central bank involvement appear to mitigate the adverse effects of
the crisis. The power of the supervisory authorities and bank size also
appear to be conditional factors. (C) 2015 Elsevier B.V. All rights
reserved.
RI Pasiouras, Fotios/AAK-6582-2020
ZS 0
ZR 1
ZA 0
ZB 0
TC 22
Z8 0
Z9 22
U1 1
U2 27
SN 0378-4266
EI 1872-6372
UT WOS:000368206500007
ER
PT J
AU Javed, Adeel
Fida, Bashir A.
TI Islamic Project Financing in Pakistan: Current Challenges and
Opportunities Ahead
SO IRANIAN JOURNAL OF MANAGEMENT STUDIES
VL 8
IS 1
BP 47
EP 71
PD WIN 2015
PY 2015
AB This study is related to an Islamic project financing with a major focus
on investigating the role of Islamic finance in financing
infrastructural development projects (toll roads, power plants,
airports, and plants, as well as natural resource exploitation projects,
such as hydroelectric dams, mining projects, oil and gas assets, and
paper mills), especially in the context of Pakistan. Infrastructural
development being a significant indicator of stability and growth, most
countries attempt to develop their infrastructure to a competitive level
in their respective regions. Considering this critical aspect of
economic development, Islamic project financing can be beneficial to
developing economies like Pakistan as it would be able to compensate for
a lack of domestic infrastructural development. New and innovative
financial solutions are required to cater to the needs of
infrastructural investment. Islamic project is an area which can open
new channels for this purpose and this area is also under-explored.
Islamic banks in Pakistan and across the globe need to be involved in
huge infrastructural financing. 1 However, their growth rate and
efficiency is higher than in conventional financing. Focusing on this
aspect, this research study is based on a review of project financing in
Pakistan. The study portrayed the current scene of project financing in
Pakistan, and investigated the involvement and challenges faced by
Islamic modes of financing in infrastructural projects in Pakistan.
Fourteen in depth interviews were conducted with public and private
sector professionals to investigate the issues and prospects. The main
challenges faced by Islamic financial institutions (IFIs) are a lack of
regulation and investment avenues, and non-coherent standards and
practices. However, these IFIs have opportunities with respect to the
Islamic market and fund development.
ZR 0
ZB 0
TC 1
Z8 0
ZA 0
ZS 0
Z9 1
U1 0
U2 4
SN 2008-7055
EI 2345-3745
UT WOS:000367744000004
ER
PT J
AU Shawtari, Fekri Ali
Saiti, Buerhan
Razak, Shaikh Hamzah Abdul
Ariff, Mohamed
TI The impact of efficiency on discretionary loans/finance loss provision:
A comparative study of Islamic and conventional banks
SO BORSA ISTANBUL REVIEW
VL 15
IS 4
BP 272
EP 282
DI 10.1016/j.bir.2015.06.002
PD DEC 2015
PY 2015
AB The paper investigates whether there is a significance difference
between the practices of discretionary loan/finance loss provisions
between Islamic and conventional banks. Same time, the paper tests
whether the efficiency may influence the behaviour of discretionary
loans/finance loss provisions, taken into consideration other micro and
macro variables. The study utilizes panel data runs over 1996-2011 with
unbalanced observations for 16 banks, of which 4 Islamic banks. In order
to achieve research objectives, the two-stage approach is adopted to
examine the factors that may influence the behaviour of discretionary
loan/finance loss provisions with specific emphasize on the efficiency.
Furthermore, efficiency scores are estimated using Data Envelopment
Windows Analysis. The findings of the research show that Islamic banks
employ the discretionary loans/finance loss provisions to manage their
earnings. However, the magnitude of discretion of accruals is
significantly lower than conventional banks with exception for foreign
banks which have reported lower discretionary loans/finance loss
provisions than Islamic banks. Moreover, the analysis showed that
efficiency affects the overall discretionary loans/finance loss
provision positively, although this impact is shaped differently for
Islamic and conventional banks. Copyright (C) 2015, Borsa Istanbul
Anonim Sirketi. Production and hosting by Elsevier B.V.
RI SAITI, BUERHAN/C-8168-2017; shawtari, Fekri Ali/J-3458-2019
OI SAITI, BUERHAN/0000-0002-9984-489X; shawtari, Fekri
Ali/0000-0003-0194-9464
ZB 0
Z8 0
TC 16
ZS 0
ZR 0
ZA 0
Z9 16
U1 0
U2 2
SN 2214-8450
EI 2214-8469
UT WOS:000430255300005
ER
PT J
AU Bougatef, Khemaies
TI The impact of corruption on the soundness of Islamic banks
VL 15
IS 4
BP 283
EP 295
DI 10.1016/j.bir.2015.08.001
PD DEC 2015
PY 2015
AB Islamic banking is developing rapidly around the world and is
increasingly recognized as a viable alternative mode of financing
especially these last years when capitalism has shown its limits and
weaknesses. However, this astronomical growth of banking and Islamic
finance was associated with a high level of corruption that plagues many
Muslim countries. This ailment of corruption can deter Islamic banking
to be a better effective and meaningful pathway for poverty reduction
and economic development. The purpose of this paper is to investigate
the impact of corruption on the soundness of Islamic banks (IBs). Using
a panel of 69 IBs over the period 2008-2010, we provide robust evidence
that the corruption level aggravates the problem of impaired financing.
Copyright (C) 2015, Borsa Istanbul Anonim Sirketi. Production and
hosting by Elsevier B.V.
ZS 0
TC 17
Z8 0
ZB 0
ZA 0
ZR 0
Z9 17
U1 0
U2 0
SN 2214-8450
EI 2214-8469
UT WOS:000430255300006
ER
PT J
AU Khan, Zareen
TI 9/11 and Islamic Banks
SO BUSINESS PEACE AND SUSTAINABLE DEVELOPMENT
IS 6
BP 49
EP 72
DI 10.9774/GLEAF.8757.2015.de.00005
PD DEC 2015
PY 2015
AB Islamic banks are a product of modern day finance designed to cater to
the sensitivities of Muslims. Like conventional banks, their goal is
profit maximization. They achieve it while creatively complying with
Shariah. The growth profile of Islamic banks has caught the attention of
many established conventional banks and is an inspiration for businesses
trying to reach a niche market. However, the reputation of Islamic banks
received a dip in the wake of 9/11 when a few notable Islamic financial
institutions came under scrutiny for linkages to terrorists. This paper
will explore the salient features of Islamic banking and dispel their
linkage with terrorism by: 1) sharing the results of the 9/11 Commission
investigation; and 2) outlining how similar Islamic banks are to
conventional banks.
Z8 0
ZR 0
ZB 0
TC 0
ZA 0
ZS 0
Z9 0
U1 0
U2 2
SN 2051-8757
UT WOS:000389149800004
ER
PT J
AU Mehtab, Humna
Zaheer, Zafar
Ali, Shahid
TI Knowledge, Attitudes and Practices (KAP) Survey: A Case Study on Islamic
Banking at Peshawar, Pakistan
SO FWU JOURNAL OF SOCIAL SCIENCES
VL 9
IS 2
BP 1
EP 13
PD WIN 2015
PY 2015
AB This study utilizes the knowledge-attitude-practice (KAP) survey on
Islamic banking to identify the knowledge, attitude and practice of
Islamic and conventional bank account holders in Peshawar, Pakistan. The
study attempts to identify whether a relationship exists between the
knowledge and practice of Islamic banking. This study also tries to
identify the motivating factors that affect the moderating variable
(attitude) and ascertains how attitude (positive, negative and neutral)
affects the relationship between the knowledge and practice of Islamic
banking. For this purpose, two hundred questionnaires each were
distributed among Islamic and conventional bank account holders in
Peshawar. Data analysis revealed that a significant relationship existed
between the knowledge and practice of Islamic banking. Furthermore,
results indicated that most of the motivating factors were equally
valued by Islamic and conventional account holders but some were valued
more by Islamic bank holders. The study also found that a neutral
attitude did not affect the relationship between the knowledge and
practice of Islamic banking. However, a negative attitude dissuaded bank
account customers from adopting Islamic banking even if they had
knowledge of Riba (interest), Hibah (gift), Wadiah (safekeeping), Ijarah
(lease, rent or wage), deposit products, investment products, financing
products (debt based), financing products (equity based), trade finance,
Takaful (Islamic Insurance), Musharakah (joint venture) and Bai Bithaman
Ajil (deferred payment sale). Furthermore, individuals who had a
positive attitude were more inclined towards practicing Islamic banking
with respect to Shariah (Islamic law), Riba, Takaful, Ijarah, Qard
Hassan (interest free loan) and trade finance.
ZR 0
ZA 0
ZB 0
TC 4
Z8 0
ZS 0
Z9 4
U1 0
U2 2
SN 1995-1272
UT WOS:000453179000001
ER
PT J
AU Majid, Muhammad Fakhirin Che
Hussain, Muhammad Nasri Md.
Ahmad, Nor Hayati
Ali, Muhammad Ahmar
TI Product Disclosure Sheet of Islamic Bank in Malaysia: Home Financing
SO GLOBAL JOURNAL AL-THAQAFAH
VL 5
IS 2
BP 53
EP 62
PD DEC 2015
PY 2015
AB The diversity of financial products offered by the financial service
providers along with the upwards trend of home financing in Malaysia has
significant relationship with information disclosure about the products.
Consistency in disclosing essential information is aimed at minimizing
the mis-selling of financial products to avoid gharar (ambiguity).
Therefore, the purpose of this study is to highlight the practice of
disclosing information of the home financing products by five major
commercial banks in Malaysia which are Maybank Islamic Berhad, CIMB
Islamic Bank Berhad, Bank Islam Malaysia Berhad, Public Islamic Bank
Berhad, and AmIslamic Bank Berhad. The study employs qualitative method
whereby secondary data were gathered from selected Islamic Financial
Institutions (IFIs) websites. It reports the evaluation of the types of
information which have been disclosed in the Product Disclosure Sheet of
each product and the comparison between all five banks. Data gathered
were analysed using frequencies via SPSS version 20. The findings show
that four out of five banks have published the Product Disclosure Sheets
(PDSs) in their respective websites. The types of information disclosed
by all banks slightly vary from each other. However, AmIslarnic Bank
Berhad appears to be a highly disclosed institution that relates to home
financing facility, while Bank Islam Malaysia Berhad disclosed the least
information in the PDSs. Besides, CIMB Islamic Bank Berhad is the only
bank which did not make the PDSs available in their website.
ZB 0
ZS 0
TC 0
ZR 0
Z8 0
Z9 0
U1 0
U2 0
SN 2232-0474
EI 2232-0482
UT WOS:000435241400005
ER
PT J
AU Bilal, Muhammad
Amin, Hanudin
TI Financial Performance of Islamic and Conventional Banks During and After
US Sub-prime Crisis in Pakistan: A Comparative Study
VL 5
IS 2
BP 73
EP 87
PD DEC 2015
PY 2015
AB Islamic banking system that is based on Shariah principles is considered
more resilient to the financial shocks due to its interest free nature.
This study is aimed to compare the financial performances and
investigate whether Islamic banks are more profitable, liquid, less
risky and operationally efficient compared to conventional banks during
and after US Sub-prime crisis in Pakistan. The time span used for the
study was from 2007 to 2012. Thirteen financial ratios composed of five
Islamic and five conventional banks to measure the financial performance
in terms of profitability, risk and solvency, liquidity and capital
adequacy. Independent sample t-test is used to determine the
significance of mean differences of selected ratios. The results of
profitability measures indicate that Islamic banks remained less
profitable; however, liquidity performances of Islamic banks were better
than conventional banks. However, overall operational efficiency
measures are not in favour of Islamic banks. The study concluded that
conventional banks performed more efficiently and profitably as compared
to Islamic banks. The opportunity of future empirical study is
recommended at the end of this paper.
RI Amin, Hanudin/I-1176-2017; Bilal, Muhammad/P-8924-2019
OI Amin, Hanudin/0000-0003-3645-287X;
Z8 0
ZR 0
ZB 0
ZS 0
TC 1
ZA 0
Z9 1
U1 0
U2 1
SN 2232-0474
EI 2232-0482
UT WOS:000435241400007
ER
PT J
AU Moudud-Ul-Huq, Syed
TI Linkage between corporate governance and corporate social responsibility
in banking sector of Bangladesh
SO INTERNATIONAL JOURNAL OF FINANCIAL ENGINEERING
VL 2
IS 4
AR 1550036
DI 10.1142/S242478631550036X
PD DEC 2015
PY 2015
AB This paper has been made to analyze the linkage between corporate
governance and corporate social responsibility. From analysis, it is
found that Eastern Bank Ltd. (EBL) performs better than other selected
banks but not enough in practicing corporate social responsibility.
While, conventional banks are more imperative than Islamic banks as all
the indicators cover its benchmark apart from return on total assets. It
has proved that there is a significant relationship among return on
equity, earnings per share, corporate governance and corporate social
responsibility but corporate social responsibility has shown little
impact on corporate performance.
OI Moudud-Ul-Huq, Syed/0000-0002-9226-5131
TC 3
ZA 0
ZB 0
Z8 0
ZS 0
ZR 0
Z9 3
U1 0
U2 1
SN 2424-7863
EI 2424-7944
UT WOS:000216778200004
ER
PT J
AU Ahmed, Habib
TI Basel III liquidity requirement ratios and Islamic banking
SO JOURNAL OF BANKING REGULATION
VL 16
IS 4
BP 251
EP 264
DI 10.1057/jbr.2014.20
PD NOV 2015
PY 2015
AB Basel III was initiated after the recent global financial crisis to
strengthen the regulatory regime for the banking sector. As liquidity
problems faced by banks were a key feature of the crisis, Basel III has
added liquidity requirement ratios in addition to reinforcing the
capital requirements. Specifically, the Liquidity Coverage Ratio (LCR)
has been introduced to ensure liquidity in banks in the short term, and
a Net Stable Funding Ratio (NSFR) is proposed to promote medium-and
long-term resilience against liquidity shocks. Islamic banking has been
growing rapidly in different parts of the world and forms a significant
part of the financial sector in many countries. This article examines
the implications of the new Basel III liquidity requirement ratios for
Islamic banks. Given the short history of its development and the
restrictions imposed by Shari'ah principles, the Islamic banking sector
faces several restrictions that will constrain its adoption of the Basel
III liquidity requirements. After presenting the basic principles of
Islamic finance, the article identifies the challenges that Islamic
banks will face in meeting their liquidity needs and outlines certain
practices in which these are being resolved.
TC 4
Z8 0
ZR 0
ZS 0
ZB 0
ZA 1
Z9 5
U1 3
U2 14
SN 1745-6452
EI 1750-2071
UT WOS:000377445200001
ER
PT J
AU Cokgezen, Murat
Kuran, Timur
TI Between consumer demand and Islamic law: The evolution of Islamic credit
cards in Turkey
SO JOURNAL OF COMPARATIVE ECONOMICS
VL 43
IS 4
BP 862
EP 882
DI 10.1016/j.jce.2015.07.005
PD NOV 2015
PY 2015
AB The elimination of interest from financial transactions has been a
salient goal of Islamization movements around the world. Its proponents
have had to balance this objective, which they claim to draw from
Islamic law (Sharia), against consumer demand for convenient products.
In general they have opted to accommodate consumer demand, but
surreptitiously, using legal ruses to disguise their compromises.
Turkey's experience with credit cards offers a revealing case of the
obfuscation in question. Having denounced credit cards as un-Islamic,
Turkey's Islamic banks have all proceeded to issue credit cards of their
own in order to remain competitive with their openly interest-friendly,
conventional rivals. With local variations, the Turkish pattern
resembles that of other markets where Islamic credit cards have made
inroads. In Malaysia and the United Arab Emirates, too, Islamic credit
cards function like those of the conventional banks with which they
compete for customers. The "Islamic" features of Islamic credit cards
amount to branding. Contrary to the claims of their proponents, they do
not involve fundamental financial innovations. Journal of Comparative
Economics 43 (4) (2015) 862-883. Marmara University, Turkey; Duke
University, USA. (C) 2015 Association for Comparative Economic Studies.
Published by Elsevier Inc. All rights reserved.
OI COKGEZEN, MURAT/0000-0003-4329-2093
TC 4
ZS 0
ZA 0
Z8 0
ZR 0
ZB 0
Z9 4
U1 0
U2 16
SN 0147-5967
EI 1095-7227
UT WOS:000368305900003
ER
PT J
AU Iriani, Latifah Dian
Yuliadi, Imamudin
TI The effect of macroeconomic variables on non performance financing of
Islamic Banks in Indonesia
SO ECONOMIC JOURNAL OF EMERGING MARKETS
VL 7
IS 2
BP 120
EP 134
DI 10.20885/ejem.vol7.iss2.art5
PD OCT 2015
PY 2015
AB This research is going to discuss about the determinant macro variables
and bank's behavior determinant credit risk on Islamic rural bank in
Indonesia. It could be seen on macro variables such as inflation,
exchange rate, Jakarta Islamic index (JII) and money supply (M2), and
bank's behavior such as financing. Research methodology used at this
study is Vector Error Correction Model (VECM). Following these
procedures, it applies Unit Roots Test, Augmented Dickey Fuller Test,
Lag Length Criteria Test, Correlation Matrix - Johansen Julius
Co-integration Test, VECM Estimation, Impulse Response and Variance
Decomposition Test. The result show that both bank behaviors and
macroeconomic variables are significant affecting non-performing
financing (NPF). The banking need more careful to manage internal and
external factors that influence non-performing financing (NPF).
ZR 0
Z8 0
ZA 0
TC 0
ZB 0
ZS 0
Z9 0
U1 0
U2 0
SN 2086-3128
EI 2502-180X
UT WOS:000447311700005
ER
PT J
AU Sufian, Fadzlan
Zulkhibri, Muhamed
TI The Nexus between Economic Freedom and Islamic Bank Profitability in the
MENA Banking Sectors
SO GLOBAL BUSINESS REVIEW
VL 16
BP 58S
EP 81S
DI 10.1177/0972150915601256
SU 5
PD OCT 2015
PY 2015
AB The study examines the impact of economic freedom on Islamic banks'
profitability in the Middle East and North Africa (MENA) banking sectors
during the period 2000-2010 using dynamic panel model. The findings
suggest that greater financial freedom positively influences the
profitability of Islamic banks in the MENA banking sectors, implying
that lower intervention in the system increases Islamic banks'
profitability. Furthermore, the larger, more diversified and
better-capitalized Islamic banks are relatively more profitable, while
credit risk and expenses preference behaviour negatively impact on
Islamic bank profitability as expected.
RI Zulkhibri, Muhamed/E-5974-2019
OI Zulkhibri, Muhamed/0000-0003-4136-1411
Z8 0
ZR 0
ZB 0
ZS 0
TC 1
Z9 1
U1 0
U2 1
SN 0972-1509
EI 0973-0664
UT WOS:000435823500006
ER
PT J
AU Alsmadi, Izzat
Zarour, Mohammad
TI Building an Islamic financial information system based on policy
managements
SO JOURNAL OF KING SAUD UNIVERSITY-COMPUTER AND INFORMATION SCIENCES
VL 27
IS 4
BP 364
EP 375
DI 10.1016/j.jksuci.2014.11.001
PD OCT 2015
PY 2015
AB For many banks and customers in the Middle East and Islamic world, the
availability and the ability to apply Islamic Shariah rules on financial
activities is very important. In some cases, business and technical
barriers can limit the ability to apply and offer financial services
that are implemented according to Shariah rules.
In this paper, we discuss enforcing Shariah rules from information
technology viewpoint and show how such rules can be implemented and
enforced in a financial establishment. Security authorization standard
XACML is extended to consider Shariah rules. In this research XACML
architecture, that is used and applied in many tools and system
architectures, is used to enforce Shariah rules in the banking sector
rather than its original goal of enforcing security rules where policy
management systems such as XACML are usually used.
We developed a model based on XACML policy management to show how an
Islamic financial information system can be used to make decisions for
day to day bank activities. Such a system is required by all Islamic
banks around the world. Currently, most Islamic banks use advisory
boards to provide opinions on general activities. The gap between those
high level general rules and decision for each customer business process
is to be filled by Islamic financial information systems.
The flexible design of the architecture can also be effective where
rules can be screened and revisited often without the need to
restructure the authorization system implemented. Authorization rules
described here are not necessarily the perfect reflection of Shariah
opinions. They are only shown as a proof of concept and a demonstration
of how such rules can be written and implemented. (C) 2015 The Authors.
Production and hosting by Elsevier B.V. on behalf of King Saud
University. This is an open access article under the CC BY-NC-ND
license.
RI Zarour, Mohammad I./D-5253-2009; Alsmadi, Izzat/F-5669-2011
OI Zarour, Mohammad I./0000-0002-1169-9502; Alsmadi,
Izzat/0000-0001-7832-5081
ZB 0
Z8 0
ZR 0
TC 1
ZS 0
ZA 0
Z9 1
U1 0
U2 0
SN 1319-1578
EI 2213-1248
UT WOS:000216700400002
ER
PT J
AU Mullah, Sabur
Zaman, Mahbub
TI Shari'ah supervision, corporate governance and performance: Conventional
vs. Islamic banks
VL 58
BP 418
EP 435
DI 10.1016/j.jbankfin.2015.04.030
PD SEP 2015
PY 2015
AB The performance and accountability of boards of directors and
effectiveness of governance mechanisms continue to be a matter of
concern. Focusing on differences between conventional banks and Islamic
banks, we examine the effect of (i) Shari'ah supervision boards, (ii)
board structure and (iii) CEO-power on performance during the period
2005-2011. We find Shari'ah supervision boards positively impact on
Islamic banks' performance when they perform a supervisory role, but the
impact is negligible when they have only an advisory role. The effect of
board structure (board size and board independence) and CEO power
(CEO-chair duality and internally recruited CEO) on the performance of
Islamic banks is overall negative. Our findings provide support for the
positive contribution of Shari'ah supervision boards but also emphasize
the need for enforcement and regulatory mechanism for them to be more
effective. (C) 2015 Elsevier B.V. All rights reserved.
RI Zaman, Mahbub/F-3278-2013
OI Zaman, Mahbub/0000-0003-4880-123X
ZA 0
Z8 0
TC 93
ZS 0
ZB 0
ZR 0
Z9 93
U1 4
U2 63
SN 0378-4266
EI 1872-6372
UT WOS:000360510300028
ER
PT J
AU Louati, Salma
Abida, Ilhem Gargouri
Boujelbene, Younes
TI Capital adequacy implications on Islamic and non-Islamic bank's
behavior: Does market power matter?
VL 15
IS 3
BP 192
EP 204
DI 10.1016/j.bir.2015.04.001
PD SEP 2015
PY 2015
AB After each crisis, reforms are carried out to prevent a new episode of
financial crises. In this context, our objective in this study is to
examine and simultaneously compare the behavior of Islamic and
conventional banks in relation to the ratio of the capital adequacy in
different competitive circumstances. We used data from 12 MENA and South
East Asian countries characterized by the coexistence of Islamic and
conventional banks. We concluded that the funding ratio has a
significant impact on the behavior of 70 conventional banks and 47
Islamic banks. However, competitive conditions have no significant
effect on the relationship between the weighted assets ratio and Islamic
bank behavior, which means that this type of banks is applying
theoretical models based on the prohibition of the interest. Copyright
(C) 2015, Borsa Istanbul Anonim Sirketi. Production and hosting by
Elsevier B.V.
ZB 0
ZA 0
ZR 0
TC 9
Z8 0
ZS 0
Z9 9
U1 0
U2 0
SN 2214-8450
EI 2214-8469
UT WOS:000434507900004
ER
PT J
AU Diallo, Ousmane
Fitrijanti, Tettet
Tanzil, Nanny Dewi
TI Analysis of The Influence of Liquidity, Credit and Operational Risk, in
Indonesian Islamic Bank's Financing for The Period 2007-2013
SO GADJAH MADA INTERNATIONAL JOURNAL OF BUSINESS
VL 17
IS 3
BP 279
EP 294
DI 10.22146/gamaijb.8402
PD SEP-DEC 2015
PY 2015
AB The purpose of this paper is to analyze the influence of credit,
liquidity and operational risks in six Indonesian's islamic banking
financing products namely mudharabah, musyarakah, murabahah, istishna,
ijarah and qardh, in order to try to discover whether or not Indonesian
islamic banking is based on the "risk-sharing" system. This paper relies
on a fixed effect model test based on the panel data analysis method,
focusing on the period from 2007 to 2013. The research is an exploratory
and descriptive study of all the Indonesian islamic banks that were
operating in 2013. The results of this study show that the Islamic
banking system in Indonesia truly has banking products based on
"risk-sharing." We found out that credit, operational and liquidity
risks as a whole, have significant influence on mudarabah, musyarakah,
murabahah, istishna, ijarah and qardh based financing. There is a
correlation between the credit risk and mudarabah based financing, and
no causal relationship between the credit risk and musharaka, murabahah,
ijarah, istishna and qardh based financing. There is also correlation
between the operational risk and mudarabah and murabahah based
financing, and no causal relationship between the operational risk and
musharaka, istishna, ijarah and qardh based financing. There is
correlation between the liquidity risk and istishna based financing, and
no causal relationship between the liquidity risk and musharaka,
mudarabah, murabahah, ijarah and qardh based financing. A major
implication of this study is the fact that there is no causal
relationship between the credit risk and musharakah based financing,
which is the mode of financing where the islamic bank shares the risk
with its clients, but there is an influence of credit risk toward
mudarabah mode financing, a financing mode where the Islamic bank bears
all the risk. These findings can lead us to conclude that the Indonesian
Islamic banking sector is based on the "risk sharing" system.
ZB 0
ZA 0
ZR 0
ZS 0
TC 2
Z8 0
Z9 2
U1 0
U2 5
SN 1411-1128
EI 2338-7238
UT WOS:000412777900005
ER
PT J
AU Abedifar, Pejman
Ebrahim, Shahid M.
Molyneux, Philip
Tarazi, Amine
TI ISLAMIC BANKING AND FINANCE: RECENT EMPIRICAL LITERATURE AND DIRECTIONS
FOR FUTURE RESEARCH
SO JOURNAL OF ECONOMIC SURVEYS
VL 29
IS 4
BP 637
EP 670
DI 10.1111/joes.12113
PD SEP 2015
PY 2015
AB This paper examines the recent empirical literature in Islamic banking
and finance, highlights the main findings and provides a guide for
future research. Early studies focus on the efficiency, production
technology and general performance features of Islamic versus
conventional banks, whereas more recent work looks at profit-sharing and
loss-bearing behaviour, competition, risks as well as other dimensions
such as small business lending and financial inclusion. Apart from key
exceptions, the empirical literature suggests no major differences
between Islamic and conventional banks in terms of their efficiency,
competition and risk features (although small Islamic banks are found to
be less risky than their conventional counterparts). There is some
evidence that Islamic finance aids inclusion and financial sector
development. Results from the empirical finance literature, dominated by
studies that focus on the risk/return features of mutual funds, finds
that Islamic funds perform as well, if not better, than conventional
funds - there is little evidence that they perform worse than standard
industry benchmarks.
OI Molyneux, Philip/0000-0001-6210-7418; Tarazi, Amine/0000-0001-8385-2994;
Abedifar, Pejman/0000-0002-7648-7201
ZA 0
ZR 0
TC 37
Z8 0
ZB 0
ZS 0
Z9 37
U1 1
U2 85
SN 0950-0804
EI 1467-6419
UT WOS:000359858600004
ER
PT J
AU Ibrahim, Mansor H.
TI Issues in Islamic banking and finance: Islamic banks, Shari'ah-compliant
investment and sukuk
SO PACIFIC-BASIN FINANCE JOURNAL
VL 34
BP 185
EP 191
DI 10.1016/j.pacfin.2015.06.002
PD SEP 2015
PY 2015
AB This introductory article of the special issue "Islamic Banking and
Finance II" highlights various studies on fast-growing Islamic finance
industry. It focuses specifically on Islamic banking and Islamic capital
market research. To date, scholarly research on Islamic finance is
mainly confined to empirical verification of its performance on the
argument that the Islamic finance is distinct from conventional finance.
While more works need to be done to soundly and concretely justify the
viability of Islamic finance, future works should aim at placing the
Islamic foundations of the industry in proper theoretical settings
beyond the statement that it is different. In addition, theoretically
and empirically, demonstration of its bearings on economic well-beings
and policies such as economic stability, financial inclusion, economic
development, and stabilization policies is needed. (C) 2015 Elsevier
B.V. All rights reserved.
RI Ibrahim, Mansor/AAU-6887-2020; Ibrahim, Mansor/
OI Ibrahim, Mansor/0000-0003-0413-0075
ZA 0
Z8 0
TC 23
ZB 0
ZS 0
ZR 0
Z9 23
U1 0
U2 17
SN 0927-538X
EI 1879-0585
UT WOS:000415031400001
ER
PT J
AU Azmat, Saad
Skully, Michael
Brown, Kym
TI Can Islamic banking ever become Islamic?
VL 34
BP 253
EP 272
DI 10.1016/j.pacfin.2015.03.001
PD SEP 2015
PY 2015
AB This paper attempts to explain the dominance of asset side debt
contracts in Islamic banks, even though many consider alternative
Islamic joint venture (IJV) contracts to be the ideal Islamic financing
mode. Theoretical models based on asymmetric information are used to
argue that adverse selection and moral hazard alone cannot explain this
phenomenon. The model is augmented with risk averse depositors to show
that the emergence of asset side IJV could be deterred by Islamic banks'
liability side. This paper suggests that for IJV, affiliated venture
capital and private equity might prove more successful institutions than
banking. Crown Copyright (C) 2015 Published by Elsevier B.V. All rights
reserved.
OI Brown, Kym/0000-0003-2725-6236; Skully, Michael/0000-0002-4904-9003
ZR 0
ZS 0
Z8 0
TC 21
ZA 0
ZB 0
Z9 21
U1 0
U2 5
SN 0927-538X
EI 1879-0585
UT WOS:000415031400005
ER
PT J
AU Kabir, Md. Nurul
Worthington, Andrew
Gupta, Rakesh
TI Comparative credit risk in Islamic and conventional bank
VL 34
BP 327
EP 353
DI 10.1016/j.pacfin.2015.06.001
PD SEP 2015
PY 2015
AB In this paper, we consider the levels of credit risk in Islamic and
conventional banks. One problem with existing studies is the use of
accounting information alone to assess credit risk, and this could be
especially misleading with Islamic banking. Using a market-based credit
risk measure, Merton's distance-to-default (DD) model, we evaluate the
credit risk of 156 conventional banks and 37 Islamic banks across 13
countries between 2000 and 2012. We also calculate the accounting
information based Z-score and nonperforming loan (NPL) ratio for the
purpose of comparison. Our results show that Islamic banks have
significantly lower credit risk than conventional banks as based on DD.
In contrast, and as expected, Islamic banks display much higher credit
risk using the Z-score and NPL ratio. These findings suggest that the
measure chosen plays a significant role in assessing the actual credit
risk of Islamic banks. (C) 2015 Elsevier B.V. All rights reserved.
RI Gupta, Rakesh/J-2793-2013
OI Gupta, Rakesh/0000-0001-6334-3420
Z8 0
ZB 0
ZR 0
ZS 1
ZA 0
TC 36
Z9 37
U1 0
U2 10
SN 0927-538X
EI 1879-0585
UT WOS:000415031400009
ER
PT J
AU Surifah
TI Expropriation Risk Through Real Earnings Management on Islamic Banking
SO INDONESIAN CAPITAL MARKET REVIEW
VL 7
IS 2
BP 74
EP 91
PD JUL 2015
PY 2015
AB This study develops a model of expropriation through real earnings
management ( REM) in the Indonesian Islamic banking industry. The
purpose of this study is to test a new model by examining the
relationship between REM, bank ownership types, and performance of
Islamic banks in Indonesia in the period of 2006 - 2013. This study
finds that there are significant differences in REM and performance
scores in banks with different ownership types. The REM and performance
scores for family-owned banks and private-owned banks are relatively
similar. However, Islamic banks with government as the controlling
shareholder have the highest REM scores and the lowest performance
scores. In contrast, foreign-owned banks have the lowest REM scores and
the highest performance scores. The indications of expropriation can be
seen from the magnitude of REM. A high REM can lower profitability and
efficiency while increasing the risks faced by Islamic banks in
Indonesia.
ZR 0
Z8 0
TC 0
ZS 0
ZB 0
Z9 0
U1 0
U2 0
SN 1979-8997
EI 2356-3818
UT WOS:000373022000002
ER
PT J
AU Belal, Ataur Rahman
Abdelsalam, Omneya
Nizamee, Sardar Sadek
TI Ethical Reporting in Islami Bank Bangladesh Limited (1983-2010)
SO JOURNAL OF BUSINESS ETHICS
VL 129
IS 4
SI SI
BP 769
EP 784
DI 10.1007/s10551-014-2133-8
PD JUL 2015
PY 2015
AB The main aim of this study is to undertake a critical examination of the
ethical and developmental performance of an Islamic bank as communicated
in its annual reports over a period of 28 years (1983-2010). Islami Bank
Bangladesh Limited's (IBBL hereafter) ethical performance and
disclosures are further analyzed through interviews conducted with the
bank's senior management. The key findings include an overall increase
in ethical disclosures during the study period. However, the focus on
various stakeholders' needs has varied over time reflecting the evolving
nature of the Islamic finance industry over the last three decades.
Based on a secular economy, IBBL focused in the first two decades on the
"Particular" Shariah compliance disclosure as a way of establishing its
reputation and differentiating itself from conventional banks in a dual
banking system. Post 2005, the ethical performance and disclosure
shifted to more "Universal" disclosures such as sustainability, charity,
employees, and community related disclosures signaling responsible
conduct and the bank's adoption of a "wider stakeholder approach."
However the bank is still failing to provide full disclosure on certain
significant categories such as sources and uses of disposable income,
thereby contradicting the principles of full and comprehensive
disclosure and accountability. In addition, the structure of IBBL's
investment portfolio reveals an overreliance on debt-based financial
instruments and a shortcoming in fulfilling the developmental and social
objectives of Islamic finance. This is evidenced by the "qualified"
Shariah Supervisory Board reports that the bank consistently received.
This research provides further evidence that Islamic banking and Finance
in its current practices reflect the "global" and the "local" influences
in an era dominated by global conventional finance.
OI BELAL, ATAUR/0000-0001-6144-8907
TC 27
ZB 0
ZS 1
ZA 0
ZR 0
Z8 0
Z9 27
U1 0
U2 27
SN 0167-4544
EI 1573-0697
UT WOS:000357039800002
ER
PT J
AU Ashraf, Samreen
Robson, Julie
Sekhon, Yasmin
TI Consumer trust and confidence in the compliance of Islamic banks
SO JOURNAL OF FINANCIAL SERVICES MARKETING
VL 20
IS 2
SI SI
BP 133
EP 144
DI 10.1057/fsm.2015.8
PD JUN 2015
PY 2015
AB Islamic banks compete with traditional (non-Islamic) banks for
customers. This article aims to provide insight into why some Muslims
choose to bank with Islamic banks in Pakistan, while others do not.
Specifically, it addresses the questions: to what extent are trust and
confidence active influencers in the decision-making process, are they
differentiated or are they one of the same? Also how does the Pakistani
collective cultural context further complicate the application of these
concepts? For the purposes of this article trust refers to people and
their interpersonal or social relations whereas confidence concerns
institutions such as banks. Drawing on interviews with Muslim consumers
in Pakistan, this study provides further insight into consumer behaviour
within financial services and specifically Islamic banking and
contributes to our theoretical understanding of the concepts of trust
and confidence.
RI Robson, Julie/V-8857-2019; Ashraf, Samreen/
OI Robson, Julie/0000-0003-1966-6470; Ashraf, Samreen/0000-0003-0070-7957
ZR 0
ZA 0
ZB 0
TC 12
Z8 0
ZS 0
Z9 12
U1 0
U2 12
SN 1363-0539
EI 1479-1846
UT WOS:000363402000005
ER
PT J
AU Gheeraert, Laurent
Weill, Laurent
TI Does Islamic banking development favor macroeconomic efficiency?
Evidence on the Islamic finance-growth nexus
SO ECONOMIC MODELLING
VL 47
BP 32
EP 39
DI 10.1016/j.econmod.2015.02.012
PD JUN 2015
PY 2015
AB This study evaluates whether the development of Islamic banking
influences macroeconomic efficiency. Thus, we contribute to the analysis
of the relation between Islamic finance and economic growth by applying
the stochastic frontier approach to estimate technical efficiency at the
country level for a sample of 70 countries. We use a unique
hand-collected database that covers Islamic banks worldwide over the
period of 2000 to 2005, identifying evidence that Islamic banking
development favors macroeconomic efficiency. Furthermore, we provide
support for a non-linear relation between efficiency and Islamic banking
development, which is measured by credit or by deposits. Although
increasing the development of Islamic banking enhances efficiency up to
a certain point, the expansion of Islamic banking becomes detrimental to
efficiency beyond this point. (C) 2015 Elsevier B.V. All rights
reserved.
TC 35
ZB 0
ZS 0
ZA 0
ZR 0
Z8 0
Z9 35
U1 1
U2 32
SN 0264-9993
EI 1873-6122
UT WOS:000357139400005
ER
PT J
AU Belanes, Amel
Ftiti, Zied
Regaieg, Rym
TI What can we learn about Islamic banks efficiency under the subprime
crisis? Evidence from GCC Region
VL 33
BP 81
EP 92
DI 10.1016/j.pacfin.2015.02.012
PD JUN 2015
PY 2015
AB The study investigates the influence of subprime crisis on the
efficiency of Islamic banks in the GCC region using data envelopment
analysis for the period spanning from 2005 to 2011. We focus on three
aspects of efficiency, namely overall technical efficiency, pure
technical efficiency and scale efficiency. Empirical findings highlight
a slight decline in Islamic bank efficiency further to the subprime
crisis just like their conventional peers all over the world. However,
most Islamic banks have remained efficient whereas some of them
witnessed a relatively minor decrease in their efficiency level. The
most acute intensity of drop in efficiency was recorded on average in
2009 for all categories of efficiency; that is two years after the
subprime crisis occurrence. (C) 2015 Elsevier B.V. All rights reserved.
RI Ftiti, Zied/J-6533-2019; Belanes, Amel/
OI Ftiti, Zied/0000-0002-6216-1104; Belanes, Amel/0000-0002-5745-0243
ZR 0
ZB 0
TC 28
ZA 0
Z8 0
ZS 0
Z9 28
U1 0
U2 16
SN 0927-538X
EI 1879-0585
UT WOS:000356737600005
ER
PT J
AU El-Halaby, Sherif
Hussainey, Khaled
TI The Determinants of Social Accountability Disclosure: Evidence from
Islamic Banks around the World
SO INTERNATIONAL JOURNAL OF BUSINESS
VL 20
IS 3
BP 202
EP 223
PD SUM 2015
PY 2015
AB We examine the determinants of Corporate Social Responsibility
Disclosure (CSRD) in Islamic Banks (IBs). We content-analyse annual
reports of 138 IBs across 25 countries to identify levels of CSRD. We
use a regression analysis to identify the factors affecting CSRD in IBs.
We find a very low disclosure level for CSRD (26%). We also find a
positive association between CSRD levels and accounting standards;
auditor type; bank size and the existence of a Sharia auditing
department. We offer an original contribution to Islamic accounting
literature by being the first to investigate CSRD in IBs around the
world. We are the first to link CSRD based on AAOIFI standards with bank
-specific and country-specific characteristics.
OI El-Halaby, Sherif/0000-0003-4716-4208
ZA 0
TC 12
ZB 0
ZR 0
Z8 0
ZS 0
Z9 12
U1 0
U2 4
SN 1083-4346
UT WOS:000378852600003
ER
PT J
AU Ben Amar, Amine
Hachicha, Nejib
Saadallah, Ridha
TI The Effectiveness of Monetary Policy Transmission Channels in the
Presence of Islamic Banks: The Case of Saudi Arabia
VL 20
IS 3
BP 237
EP 260
PD SUM 2015
PY 2015
AB Using a structural vector autoregressive models, this paper empirically
investigates the effectiveness of monetary policy transmission in Saudi
Arabia in the presence of Islamic banks over the period 1990 Q4 - 2013
Q3. The results indicate that bank lending channel is relatively
effective in influencing non-oil private output, but less effective in
influencing consumer prices. Indeed, a positive shock on bank financing
extended by Islamic banks or on loans granted by conventional banks
results in an improvement of the economic activity. While the empirical
result show that conventional and Islamic banks react to each other, the
reaction of conventional banks to a shock on the financing provided by
Islamic banks seems to be more significant than the reaction of Islamic
banks to a shock on the conventional banks credit.
Z8 0
ZR 0
ZA 0
ZS 0
TC 4
ZB 0
Z9 4
U1 0
U2 2
SN 1083-4346
UT WOS:000378852600005
ER
PT J
Echchabi, Abdelghani
Rajhi, Mohamed Taher
TI Risk Management Practiced Tools in the MENA Region: A Comparative Study
between Islamic and Conventional Banks
VL 20
IS 3
BP 261
EP 277
PD SUM 2015
PY 2015
AB The purpose of the study is to investigate the current risk management
practices of Islamic and conventional banks in the MENA region. The
study is based on a survey of 47 banks, including 24 conventional and 23
Islamic banks. The collected data were analysed using descriptive
statistics and t-tests. The findings indicate that banks in MENA region
have effective risk strategies and effective risk management frameworks
in place. Furthermore, the findings reveal that credit risk is
considered the most important for both conventional and Islamic banks
followed by liquidity risk. Finally, both conventional and Islamic banks
continue to rely on traditional credit risk mitigation tools. These
findings have significant contributions to the literature by
comprehensively clarifying and critically analysing the current state of
risk management among the Islamic banks and conventional banks located
in the MENA region.
RI Echchabi, Abdelghani/Y-3220-2019; Echchabi, Abdelghani/AAU-4710-2020
OI Echchabi, Abdelghani/0000-0001-7526-6418
Z8 0
ZS 0
ZB 0
ZR 0
ZA 0
TC 2
Z9 2
U1 0
U2 0
SN 1083-4346
UT WOS:000378852600006
ER
PT J
AU Noor, Nur Syamilah Md
Omar, Hydzulkifli Hashim
TI THE RELATIONSHIP MARKETING AS A DETERMINANT OF CUSTOMER SATISFACTION IN
ISLAMIC BANKING SERVICES MANAGEMENT
SO INTERNATIONAL JOURNAL OF MANAGEMENT STUDIES
VL 22
IS 1
BP 1
EP 22
PD JUN 2015
PY 2015
AB The purpose of this study is to identify the dimensions that determine
whether customer satisfaction in Islamic banking services has been
conducted at the Institusi Pengajian Tinggi Awam (IPTA) in Perlis
involving two institutions, namely Universiti Malaysia Perlis (UNIMAP)
and Universiti Teknologi Mara (UITM) Perlis. The collection of the
principal data was accomplished by using a survey paper to answer the
study's research questions. It involved 224 customers using the Islamic
banking services. This study was analysed using the Statistical Packages
for Social Science (SPSS) by applying descriptive analysis and
inferential analysis (Independent T-test, One Way Analysis of Variance
(ANOVA) and Correlation Pearson). This study finds that there are some
different relationships in terms of position at the university level of
education in the demographic characteristics analysis towards customer
satisfaction. Most of the dimensions related to customer satisfaction in
the Islamic banking services are positively correlated with each other
(commitment, product knowledge, competence, service encounter). This
study proves that this research is useful to academicians by providing
new empirical evidence of relationship marketing with customer
satisfaction in the Islamic banking industry. The results of this study
can encourage bank managers to learn how to improve commitment, product
knowledge, competence and service encounter in Islamic banks' services
to customers.
ZA 0
ZB 0
ZS 0
TC 1
ZR 0
Z8 0
Z9 1
U1 0
U2 1
SN 0127-8983
EI 2180-2467
UT WOS:000409070900001
ER
PT J
AU Daher, Hassan
Masih, Mansur
Ibrahim, Mansor
TI The unique risk exposures of Islamic banks' capital buffers: A dynamic
panel data analysis
SO JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY
VL 36
BP 36
EP 52
DI 10.1016/j.intfin.2015.02.012
PD MAY 2015
PY 2015
AB The growing relevance of Islamic banking from a prudential perspective
warrants the need to investigate the susceptibilities of Islamic banks'
capital buffers to unique risks emanating from their operating
environments. We employ a panel model using two-step dynamic Generalized
Method of Moments (GMM) on a data set comprising 128 conventional and
Islamic banks. Our results tend to indicate privately owned Islamic
banks, unlike their state owned counterparts, attempt to safeguard
shareholders by independently mitigating the effects of displaced
commercial risk through higher capital buffers. The relation between
equity investment risk and bank capital buffers also seems to vary by
region. (C) 2015 Elsevier B.V. All rights reserved.
ZR 0
TC 40
ZA 0
ZB 0
Z8 0
ZS 0
Z9 40
U1 1
U2 28
SN 1042-4431
UT WOS:000352232100003
ER
PT J
AU Mirza, Nawazish
Rahat, Birjees
Reddy, Krishna
TI Business dynamics, efficiency, asset quality and stability: The case of
financial intermediaries in Pakistan
SO ECONOMIC MODELLING
VL 46
BP 358
EP 363
DI 10.1016/j.econmod.2015.02.006
PD APR 2015
PY 2015
AB This research is aimed at assessing the possible differences in business
dynamics, cost efficiency, asset quality and financial stability of
conventional, Shariah compliant banks and non-banking financial
institutions (NBFIs) in Pakistan, using an unbalanced panel between 2005
and 2013. Theoretically, these three financial intermediaries should
demonstrate differences in various business attributes. However, we
observe fewer than expected differences between conventional and Islamic
banks. We report that Islamic banks have superior asset quality and
financial stability than conventional banks. However, certain
similarities are present in their respective business models. On the
contrary, NBFIs demonstrate differences in business dynamics, with high
fee based income and non-deposit funding, as compared to conventional
banks. Due to higher business risk and variance in profitability, we
find that NBFIs are financially more fragile, irrespective of their
stronger capitalization, as compared to commercial banks. (c) 2015
Elsevier B.V. All rights reserved.
RI Reddy, Krishna/S-2704-2019; Mirza, Nawazish/F-9388-2010; Rahat, Birjees/
OI Reddy, Krishna/0000-0002-7812-9141; Mirza, Nawazish/0000-0003-4265-9519;
Rahat, Birjees/0000-0001-9746-4837
ZS 0
ZB 0
ZA 0
TC 8
Z8 0
ZR 0
Z9 8
U1 0
U2 26
SN 0264-9993
EI 1873-6122
UT WOS:000351974700031
ER
PT J
AU Demiralp, Seda
Demiralp, Selva
TI The rational Islamic actor? Evidence from Islamic banking
SO NEW PERSPECTIVES ON TURKEY
IS 52
BP 3
EP 27
DI 10.1017/npt.2014.1
PD SPR 2015
PY 2015
AB Islamic banks create an interest in their own right as a rising branch
in financial intermediation, particularly in the post-crisis era. In
addition, they also deserve the attention of students of Islamism due to
their possible connection with Islamic movements. Through a comparison
of Islamic and conventional banking, we analyze the motivations and
behavior of Islamic economic actors who determine the cash flow to
Islamic banks. Our findings suggest that, in contrast to popular views
that portray these actors as ideologues or financiers of radical Islam,
they have pragmatic motivations and may adapt to liberal systems in
order to seize economic incentives.
RI Demiralp, Selva/L-6650-2016
OI Demiralp, Selva/0000-0003-4087-168X
ZA 0
ZR 0
ZS 0
TC 4
ZB 0
Z8 0
Z9 4
U1 1
U2 17
SN 0896-6346
EI 1305-3299
UT WOS:000362591500002
ER
PT J
AU Mili, Mehdi
Sahut, Jean-Michel
Trimeche, Eryj
TI The Role of Islamic Banks in the Transmission of Liquidity Shocks Across
Countries
SO JOURNAL OF ECONOMIC ISSUES
VL 49
IS 1
BP 197
EP 225
DI 10.1080/00213624.2015.1013887
PD MAR 2015
PY 2015
AB We study the international transmission of bank liquidity shocks from
multinational, Islamic, bank-holding companies to their subsidiaries.
Based on a total sample of 120 Islamic and conventional bank
subsidiaries, we test whether foreign bank lending for Islamic and
conventional banks is determined by different factors. We estimate a
model that includes subsidiary and parent bank characteristics as well
as host and home country variables. Our empirical findings show that
lending is negatively affected by the fragility of conventional parent
banks' subsidiaries. Nevertheless, we show that parent Islamic banks do
not significantly affect lending by subsidiaries. Finally, we examine
the market discipline regarding the transmission of liquidity shocks. We
also find that reduction in foreign Islamic bank lending is stronger for
those that are dependent on the interbank market. We establish that the
depositors react to a deterioration of bank performance and punish their
institutions by withdrawing their money. We show that market discipline
has a more important role for Islamic banks, whereas liquidity needs
determine the change in conventional banks.
RI Deziel, Eric/A-7678-2008
OI Deziel, Eric/0000-0002-4609-0115
ZA 0
TC 1
ZB 0
ZR 0
ZS 0
Z8 0
Z9 1
U1 0
U2 15
SN 0021-3624
EI 1946-326X
UT WOS:000353470200011
ER
PT J
AU Aysan, Ahmet F.
Disli, Mustafa
Ozturk, Huseyin
Turhan, Ibrahim M.
TI ARE ISLAMIC BANKS SUBJECT TO DEPOSITOR DISCIPLINE?
SO SINGAPORE ECONOMIC REVIEW
VL 60
IS 1
SI SI
AR 1550007
DI 10.1142/S0217590815500071
PD MAR 2015
PY 2015
AB We look at market discipline in the Islamic deposit market of Turkey for
the period after the 2000 crisis. We find support for quantity based
disciplining of Islamic banks through the capital ratio. The evidence
for price disciplining is, however, less convincing. In addition, we
also look at the effect of the deposit insurance reform in which the
dual deposit insurance was revised and all banks were put under the same
deposit insurance company in December 2005. We observe that the reform
increased quantity based disciplining in the Turkish Islamic deposit
market.
OI Disli, Mustafa/0000-0003-0584-0060
ZR 0
Z8 0
ZB 0
ZA 0
TC 1
ZS 0
Z9 1
U1 0
U2 20
SN 0217-5908
EI 1793-6837
UT WOS:000351351600008
ER
PT J
AU Mansour, Walid
Ben Jedidia, Khoutem
Majdoub, Jihed
TI HOW ETHICAL IS ISLAMIC BANKING IN THE LIGHT OF THE OBJECTIVES OF ISLAMIC
LAW?
SO JOURNAL OF RELIGIOUS ETHICS
VL 43
IS 1
BP 51
EP 77
DI 10.1111/jore.12086
PD MAR 2015
PY 2015
AB Islamic banking is based on moral foundations that make it distinct from
conventional banking. Some argue that because of its foundation in
Islam, Islamic banking may represent a more morally appealing
alternative. Yet, evidence shows that this is not the case. Indeed, the
current practice of Islamic banking has not been able to achieve its
goals which are based on Islam's moral values: to enhance justice,
equitability, and social well-being. This essay examines the extent to
which Islamic banking is ethical and concludes that the practice of the
industry does not seem to be de facto ethical from the Islamic
perspective of ethical values. It only consists in trading the same
instruments of conventional banks without genuinely enforcing Islam's
ethical vision. The practice of Islamic banking misrepresents Islam and
does not contribute to solving social problems. The interaction between
maqasid al-shari?a (objectives of Islamic law) and qiys (deductive
analogy) provides a supplementary tool for interpreting the failure of
the prior in terms of the practical misuse of the latter by Islamic
banks. This essay provides an interpretive approach to the current
debate about why Islamic banking has failed and suggests ways to move
cautiously in the future.
ZA 1
ZB 0
ZR 0
ZS 0
Z8 0
TC 22
Z9 23
U1 1
U2 33
SN 0384-9694
EI 1467-9795
UT WOS:000348865000004
ER
PT J
AU Farooq, Moazzam
Zaheer, Sajjad
TI ARE ISLAMIC BANKS MORE RESILIENT DURING FINANCIAL PANICS?
SO PACIFIC ECONOMIC REVIEW
VL 20
IS 1
BP 101
EP 124
DI 10.1111/1468-0106.12096
PD FEB 2015
PY 2015
AB Islamic banking is one of the fastest growing segments of the financial
sector in developing countries. Rapid growth of this segment is
accompanied with claims about its relative resilience to financial
crises as compared to conventional banking. However, little empirical
evidence is available to support such claims. Using data from Pakistan,
where Islamic and conventional banks co-exist, we compare the behaviour
of Islamic and conventional banks during a financial panic. Our results
show that Islamic bank branches are less prone to deposit withdrawals
during financial panics, both unconditionally and after controlling for
bank characteristics. The Islamic branches of banks that have both
Islamic and conventional operations tend to attract (rather than lose)
deposits during panics, which suggests a role for religious branding. We
also find that Islamic bank branches grant more loans during financial
panics and that their lending decisions are less sensitive to changes in
deposits. Our findings suggest that greater financial inclusion of
faith-based groups may enhance the stability of the banking system.
ZB 0
TC 34
Z8 0
ZR 0
ZS 0
ZA 0
Z9 34
U1 0
U2 31
SN 1361-374X
EI 1468-0106
UT WOS:000350202700006
ER
PT J
AU Usman, Hardius
TI Customers Trust on Islamic Banks in Indonesia
SO JOURNAL OF ASIAN FINANCE ECONOMICS AND BUSINESS
VL 2
IS 1
BP 5
EP 13
DI 10.13106/jafeb.2015.vol2.no1.5.
PD FEB 2015
PY 2015
AB This paper aims to provide an overview of customer trust toward Islamic
banks, and to study the effect of trust on the selection of Islamic
banks services. A total 375 questionnaires were distributed to the three
groups of bank customers, i.e. Islamic banks customers, conventional
banks customers, and customers of both banks (125 respondents in each
group). Trust is measured based on three constructs, namely Ability,
Integrity, and Benevolence. To test the hypothesis this study employs
Analysis of Variance and Tukey Test. The results show that bank
customers have degree of trust towards Islamic banks relatively high
enough, although among the respondents had never become customers of
Islamic banks. Benevolence as the dimension with the lowest average
score revealed the Islamic banks are more believed as a competent and
honest bank in carrying out the business than the bank that will work
for the benefit of customers. Other findings suggest that degree of
trust have significant affects on the decision for using the Islamic
banks services. The positive values that embedded in the concepts and
systems of the Islamic is the key to improving the competitiveness of
Islamic banks.
ZS 0
ZB 0
Z8 0
ZR 0
ZA 0
TC 2
Z9 2
U1 0
U2 0
SN 2288-4637
EI 2288-4645
UT WOS:000449474700001
ER
PT B
AU Zakariyah, Luqman
BE Ali, AJ
TI Ethical considerations in 'Islamic' marketing and promotion: a spotlight
on the Islamic Bank of Britain
SO HANDBOOK OF RESEARCH ON ISLAMIC BUSINESS ETHICS
BP 162
EP 182
PD 2015
PY 2015
RI zakariyah, luqman/P-6063-2019; ZAKARIYAH, LUQMAN/
OI ZAKARIYAH, LUQMAN/0000-0002-3769-6916
ZS 0
ZR 0
TC 0
ZB 0
Z8 0
Z9 0
U1 0
U2 1
BN 978-1-78100-945-1; 978-1-78100-944-4
UT WOS:000385140000008
D2 10.4337/9781781009451
ER
PT B
AU Yaseen, Saad G.
Dajani, Dima
Al-Taee, Sama Mazen
BE Ali, AJ
TI Islamic work ethics and organizational commitment: a case of Jordanian
Islamic banks
SO HANDBOOK OF RESEARCH ON ISLAMIC BUSINESS ETHICS
BP 287
EP 303
PD 2015
PY 2015
TC 0
ZB 0
ZS 0
ZR 0
Z8 0
Z9 0
U1 0
U2 0
BN 978-1-78100-945-1; 978-1-78100-944-4
UT WOS:000385140000015
D2 10.4337/9781781009451
ER
PT B
AU Wahyudi, Imam
Rosmanita, Fenny
Prasetyo, Muhammad Budi
BA Wahyudi, I
Rosmanita, F
Prasetyo, MB
Putri, NIS
TI The Islamic Bank and Risk Management
SO RISK MANAGEMENT FOR ISLAMIC BANKS: RECENT DEVELOPMENTS FROM ASIA AND THE
MIDDLE EAST
SE Wiley Finance Series
BP 9
EP 29
PD 2015
PY 2015
TC 0
Z8 0
ZR 0
ZB 0
ZS 0
ZA 0
Z9 0
U1 0
U2 0
BN 978-1-118-73443-8; 978-1-118-73442-1
UT WOS:000383998700003
D2 10.1002/9781118809211
ER
PT B
AU Wahyudi, Imam
Rosmanita, Fenny
Prasetyo, Muhammad Budi
BA Wahyudi, I
Rosmanita, F
Prasetyo, MB
Putri, NIS
TI Pathways of Risk Management in Islamic Banks
SO RISK MANAGEMENT FOR ISLAMIC BANKS: RECENT DEVELOPMENTS FROM ASIA AND THE
MIDDLE EAST
BP 315
EP 327
PD 2015
PY 2015
ZS 0
TC 0
ZB 0
Z8 0
ZR 0
ZA 0
Z9 0
U1 0
U2 0
BN 978-1-118-73443-8; 978-1-118-73442-1
UT WOS:000383998700016
D2 10.1002/9781118809211
ER
PT J
AU Widana, Gusti Oka
Wiryono, Sudarso Kaderi
Purwanegara, Mustika Sufiati
Toha, Mohamad
TI EXPLORING THE IMPACT OF ISLAMIC BUSINESS ETHICS AND RELATIONSHIP
MARKETING ORIENTATION ON BUSINESS PERFORMANCE: THE ISLAMIC BANKING
EXPERIENCE
SO ASIAN ACADEMY OF MANAGEMENT JOURNAL
VL 20
IS 1
BP 1
EP 25
PD 2015
PY 2015
AB Relationship marketing emphasises the importance of building and
maintaining long-term relationships with customers. Relationship
marketing is strategic for banking institutions to have a better
position in the market and to secure continuous banking relationships.
Relationship marketing has inherently strong ethical roots. There is a
positive relationship between ethics and relationship marketing because
ethical principles constitute a precondition for creating the climate of
collaboration necessary for successful relationship marketing. Islamic
banking is created under Islamic law and is frequently considered
ethical banking. To succeed in competition with conventional banks,
Islamic banks must offer unique services and products differentiated by
the implementation of Islamic business ethics. There is an opportunity
for future empirical research to understand the relationship of Islamic
business ethics to relationship marketing in creating the superior
performance of Islamic banking. This study offers a conceptual model for
this empirical research.
ZA 0
Z8 0
TC 3
ZB 0
ZR 0
ZS 0
Z9 3
U1 0
U2 8
SN 1394-2603
EI 1985-8280
UT WOS:000381393600001
ER
PT J
AU Mohammed, Mustafa Omar
Tarique, Kazi Md.
Islam, Rafikul
TI Measuring the performance of Islamic banks using maqasid-based model
SO INTELLECTUAL DISCOURSE
VL 23
SI SI
BP 401
EP 424
PD 2015
PY 2015
AB The vision and mission of Islamic banks were supposed to reflect the
adherence of their activities and aspiration to Maqasid al-Shari'ah.
However, there are contentions that Islamic banks have been converging
towards conventional banking system. Efforts have been expended to
reverse the tide and harmonise Islamic banking to its Shari'ah
objectives. Hitherto, the existing conventional yardsticks have failed
to measure the impact of the harmonisation exercise on Islamic banks'
performance. Therefore, using maqasid based yardstick to measure the
performance of Islamic banks becomes imperative. This study has made use
of al-Imam al-Ghazali's theory of Maqasid al-Shari'ah and Ibn 'Ashur's
reinterpretation, adopting content analysis and Sekaran (2000)
behavioral science methods to develop a Maqasid Based Performance
Evaluation Model (MPEM) to measure the performance of Islamic banks.
Experts' opinions have validated the model and its acceptability.
Suggestions are provided to policy makers and future research.
RI Tarique, Kazi Md./N-2205-2017; Islam, Rafikul/K-2948-2016; Islam, Rafikul/
OI Islam, Rafikul/0000-0002-4272-3085
ZB 0
TC 6
ZA 0
ZR 0
Z8 0
ZS 0
Z9 6
U1 0
U2 3
SN 0128-4878
EI 2289-5639
UT WOS:000376457900005
ER
PT J
AU Adeyemi, Adewale Abideen
Zare, Ibrahim
TI An empirical investigation of banking customers' perception of the
viability of Islamic banking in Cote d'Ivoire
VL 23
SI SI
BP 425
EP 451
PD 2015
PY 2015
AB This study empirically examines the perceptions of bank customers in
Cote d'Ivoire on the viability of Islamic banking in the country.
Specifically, the study investigates the level of awareness of the bank
customer respondents about Islamic banking as well as the factors that
motivate their patronage. A sample of 274 respondents residing in
Abidjan, Cote d'Ivoire took part in this research. The data elicited via
an adapted research instrument is subjected to both descriptive and
inferential statistics using IBM SPSS AMoS software version 21. The
results reveal that most of the Ivorian bank customers are aware of
Islamic banking but lack knowledge about its operation. Moreover, the
customers indicate commendable willingness to patronize the Islamic
banks when established in Cote d'Ivoire as long as it is not relatively
costlier to do so. The likely patronage-influencing factors include
religion, banking-related and customer-related factors, and societal
norms. Recommendations based on research findings are also offered.
ZR 0
ZB 0
ZA 0
TC 0
ZS 0
Z8 0
Z9 0
U1 0
U2 0
SN 0128-4878
EI 2289-5639
UT WOS:000376457900006
ER
PT J
AU Amanullah, Muhammad
TI Criteria of Shari'ah supervisory committee: A comparative study between
guidelines of Bangladesh Bank and Bank Negara Malaysia
VL 23
SI SI
BP 453
EP 473
PD 2015
PY 2015
AB Islamic banking and finance differs from conventional banking and
finance in that it follows the rules of Shari'ah. In order to ensure
that Islamic banking and finance follows the Shari'ah rulings, it is
essential for it to have a Shari'ah supervisory board. An important duty
of this board is to determine that the products, services, policies,
guidelines and all other activities performed by the Islamic bank, are
in compliance with the Shari'ah rulings. To perform their duty properly,
the members of this board should possess certain criteria. Bangladesh
Bank has spelled out some guidelines for these criteria briefly.
Likewise, Bank Negara Malaysia has provided some guidelines. The main
objectives of this research paper are to highlight the guidelines of
these two banks on these criteria, compare them and evaluate them in
light of Shari'ah guidelines on these criteria spelled out by
contemporary Muslim jurists.
OI Amanullah, Muhammad/0000-0001-8392-2243
ZA 0
ZS 0
ZR 0
Z8 0
TC 2
ZB 0
Z9 2
U1 0
U2 1
SN 0128-4878
EI 2289-5639
UT WOS:000376457900007
ER
PT J
AU Guney, Necmeddin
TI Murabahah financing revisited: The contemporary debate on its use in
Islamic banks
VL 23
SI SI
BP 495
EP 506
PD 2015
PY 2015
AB The murabahah contract, an ordinary contract in classical Islamic law,
has played a significant role in the emergence and development of modern
Islamic Banking and Finance. This contract which is basically a "resale
with a stated profit" contract was introduced into the modern literature
in the late 70's in a totally redesigned form as an alternative to the
conventional modes of credit. This modern financing tool has become the
subject of intense debates since then and has been subject to criticism
by some scholars. This paper aims at portraying the juristic discussion
and debate on this modern contract and its application by Islamic banks.
The first part of the paper introduces the subject and gives a summary
of the Islamic injunctions on the murabahah contract in its original
form based on the primary sources of Islamic law. The second part, which
is the substantial part of the paper, portrays the profound
transformation that the murabahah contract has undergone to make mark-up
financing possible and summarizes the discussions related to the modern
use of murabahah by Islamic banks.
RI Guney, Necmeddin/D-6946-2012
OI Guney, Necmeddin/0000-0002-3578-3231
ZR 0
ZA 0
ZB 0
Z8 0
ZS 0
TC 1
Z9 1
U1 0
U2 1
SN 0128-4878
EI 2289-5639
UT WOS:000376457900009
ER
PT J
AU Ahmad, Nassr Saleh Mohamad
Ben Daw, Abdu Samia Daw
TI Compliance with AAOIFI guidelines in general presentation and disclosure
by Libyan Islamic banks Evidence from Gumhouria Bank
SO WORLD JOURNAL OF ENTREPRENEURSHIP MANAGEMENT AND SUSTAINABLE DEVELOPMENT
VL 11
IS 2
BP 90
EP 99
DI 10.1108/WJEMSD-06-2014-0015
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to reveal the level of compliance
with Accounting and Auditing Organisation for Islamic Financial
Institutions (AAOIFI) guidelines in general presentation and disclosure
in the financial statements of Fashlowm Islamic branch of the Gumhouria
Bank as the biggest bank in Libya.
Design/methodology/approach - The study used two-dimensional analysis,
which combines a questionnaire with content analysis. It allowed a
better understanding of the picture than would have been provided by the
questionnaire alone.
Findings - The results of this study indicate that the level of
compliance with AAOIFI guidelines regarding general presentation and
disclosure in the financial statements is low. Many reasons were
identified as being behind such a low level. The lack of training
programmes on AAOIFI standards was at the forefront of these reasons.
Research limitations/implications - The sample is limited to the
Fashlowm Islamic branch of Gumhouria Bank. This is may not be true for
other branches and banks. Further research is needed in this area.
Originality/value - The AAOIFI has existed for over 20 years, but little
empirical research has been conducted into compliance with the standards
developed by this body in the Libyan context. This paper helps to
address this gap and provide a foundation for future research and
development in this area. Moreover, the findings of this study may be
useful to policy makers and legislators.
ZR 0
TC 4
ZS 0
ZA 0
Z8 0
ZB 0
Z9 4
U1 0
U2 8
SN 2042-5961
EI 2042-597X
UT WOS:000372537800002
ER
PT J
AU Sulaiman, Maliah
Abd Majid, Norakma
Arifin, Noraini Mohd
TI Corporate Governance of Islamic Financial Institutions in Malaysia
SO ASIAN JOURNAL OF BUSINESS AND ACCOUNTING
VL 8
IS 1
BP 65
EP 93
PD 2015
PY 2015
AB Given the phenomenal increase in Islamic banking activities globally, it
is important that there exists good governance practices of Islamic
financial institutions (IFIs). This is primarily to ensure its
sustainability in the long run. More importantly, in order for Islamic
banks to play an optimum role in the development of Islamic countries,
it is imperative to develop regulatory structures which can help to
control fraud, exploitation, and un-Islamic behaviour in banking
practices. Additionally, the development of strong governance practices
will win public confidence, thereby promoting trust amongst equity
holders, investors and other parties dealing with these IFIs. However,
promulgating and developing standards and guidelines on corporate
governance (CG) may not be adequate. Thus, this paper examines the
extent IFIs are adhering to such guidelines. There are two stages to
this study. First a disclosure index was developed using the guidelines
issued by the Central Bank of Malaysia (BNM), the standard on CG
promulgated by the Accounting and Auditing Organization of Islamic
Financial Institutions (AAOIFI) and the framework introduced by the
Islamic Financial Services Board (IFSB). The index developed in the
first stage was then used to assess the annual reports of all the 16
IFIs operating in Malaysia. It was found that on a scale of 0 to 100,
the CG disclosure index ranges from a low of 42.28 to a high of 68.29,
with the average score of 51.42. This shows that IFIs are not
particularly motivated to disclose specific-governance related
information. On the basis of the stewardship theory, however, these
elements reflect the accountability of IFIs towards their stakeholders.
RI Majid, Norakma Abd/O-2027-2019
OI Majid, Norakma Abd/0000-0001-7703-6720
Z8 0
ZR 0
ZS 0
TC 4
ZB 0
ZA 0
Z9 4
U1 0
U2 7
SN 1985-4064
EI 2180-3137
UT WOS:000372013100004
ER
PT J
AU Lee, Siew-Peng
Moghavvemi, Andsedigheh
TI The Dimension of Service Quality and Its Impact on Customer
Satisfaction, Trust, and Loyalty: A Case of Malaysian Banks
VL 8
IS 2
BP 91
EP 121
PD 2015
PY 2015
AB Banking is an important industry in a nation but with the intense
competition of various banks available, it is the services provided that
crucially distinguishes the banks. Previous studies have examined the
relationship between service quality, customer satisfaction, perceived
value, loyalty, trust and image. These studies adopted the SERVQUAL
model to measure service quality in banks which may be five dimensional.
This study proposes to measure service quality by applying six
dimensions: tangibles, empathy, reliability and security, price, online
banking and convenience. These six dimensions are used to examine the
relationship between service quality, perceived value, customer
satisfaction, bank image, customer loyalty and customer trust among bank
customers in the Klang Valley, Malaysia. Data were analysed by
structural equation modelling (SEM) in order to test all the
relationships between the variables in the model. The findings support
the proposed hypotheses, which are consistent with the theoretical
framework. The results indicate that the dimensions of tangibles,
empathy, reliability and security, and online banking have a significant
positive relationship with perceived value. The analyses show that
service quality, customer satisfaction, bank image and trust are
important determinants of loyalty.
RI Moghavvemi, Sedigheh/AAU-1969-2020
TC 13
ZS 0
Z8 0
ZA 1
ZB 0
ZR 0
Z9 14
U1 0
U2 10
SN 1985-4064
EI 2180-3137
UT WOS:000372013800004
ER
PT J
AU Hassan, Rusni
TI SHARI'AH RISK MANAGEMENT FRAMEWORK FOR ISLAMIC FINANCIAL INSTITUTIONS
SO AL-SHAJARAH
SI SI
BP 67
EP 85
PD 2015
PY 2015
AB In addition to systematic and unsystematic risks faced by traditional
financial institutions, Islamic banks are widely exposed to Shari'ah
risks with regards to the needs for ensuring Shari'ah compliance of its
operational activities and financial products. In order to mitigate
these additional risks, IFIs are urged to establish a comprehensive
Shari'ah risks management tool that can help them to monitor their
banking, financing and investment activities in conformity with Shari'ah
principles and hence enhance their sustainability in the long run.
Therefore, the objective of this paper is to contribute to discussion on
the development of the Shari'ah risk management framework for IFIs. This
paper refers to Islamic primary sources of knowledge, the Quran and
hadith in scrutinizing the permissibility of risk management practices
by IFIs. The processes that take place in Shari'ah risk management; (i)
risk identification; (ii) risk measurement and; (iii) risk
monitoring/controlling are then thoroughly discussed. This paper hopes
to shed some light on the importance of having a comprehensive standard
of procedures in performing Shari'ah risk management function.
ZR 0
ZB 0
Z8 0
ZS 0
TC 0
ZA 0
Z9 0
U1 0
U2 4
SN 1394-6870
UT WOS:000367500700004
ER
PT J
AU Gonsalves, Richard Gerald
Kassim, Salina Hj.
TI ISLAMIC COOPERATIVE: AN ALTERNATIVE TO COMMERCIAL ISLAMIC BANKING
SO AL-SHAJARAH
SI SI
BP 273
EP 292
PD 2015
PY 2015
AB The current Islamic banking model which is based on the concept of
commercial banking has been criticized as too rigid and not conducive
towards achieving the objectives of an Islamic economy. This paper aims
to evaluate the suitability of the cooperative model as an alternative
to the commercial banking model and to discern whether the values of
cooperative would be more compatible to the ideals of Islam. We find
that cooperative shares many of the social and economic values found in
the teachings of Islam. When the essence of Islamic finance principles
such as free from interest, transparency, and application of profit and
loss sharing is combined with the values and principles of the
cooperative model, what is created is an efficient, fast growing
organization with the potential to greatly benefit its members as well
as the society in general.
OI Kassim, Salina/0000-0002-7514-8750
ZR 0
Z8 0
ZB 0
TC 0
ZS 0
Z9 0
U1 0
U2 4
SN 1394-6870
UT WOS:000367500700011
ER
PT J
AU Salami, Oladipupo Luqman
Adeyemi, Adewale Abideen
TI MALAYSIAN ISLAMIC BANKS' EFFICIENCY: AN INTRA-BANK COMPARATIVE ANALYSIS
OF ISLAMIC WINDOWS AND FULL-FLEDGED SUBSIDIARIES
SO INTERNATIONAL JOURNAL OF BUSINESS AND SOCIETY
VL 16
IS 1
BP 19
EP 38
PD JAN 2015
PY 2015
AB This paper aims to fill an apparent dearth of empirical studies that
compare the efficiency of Islamic banks in Malaysia during their
operation as Islamic windows and later transformation to full-fledged
Islamic banks. Data obtained from the annual financial reports of the
sampled banks is analyzed using the Data Envelopment Analysis (DEA) via
DEAP 2.1 software to assess both the technical and scale efficiency of
the banks under sample. Results obtained indicate that the banks have
improved over the years in terms of both scale and technical efficiency
although the former takes prominence. In general, the banks were found
to be more efficient as Islamic windows compared to being full-fledged
subsidiaries. This augurs well for the current disposition where, as per
the Islamic Financial Service Act 2013, Islamic banks in Malaysia may
now operate as full-fledged banks from their hitherto Islamic banking
window status.
TC 1
Z8 0
ZS 0
ZB 0
ZR 0
ZA 0
Z9 1
U1 0
U2 3
SN 1511-6670
UT WOS:000366500300002
ER
PT J
AU Yusof, R. M.
Usman, F. H.
TI ISLAMIC HOME FINANCING AND THE REAL SECTORS IN MALAYSIA: AN ARDL BOUND
TESTING APPROACH TO COINTEGRATION
VL 23
IS 1
BP 79
EP 107
PD 2015
PY 2015
AB This study examines the dynamic relationship between macroeconomic
variables (i.e., gross domestic product, house prices, stock prices, and
interest rate) and home financing provided by Islamic banks in Malaysia.
Using quarterly data from 2007 to 2014, this study employs
autoregressive distributed lag (ARDL) bound testing cointegration
approach, impulse response function (IRF), and forecast error variance
decomposition (FEVD) to analyze the long-run and short-run relationships
between selected macroeconomic variables and amount of Islamic home
financing. This study finds that macroeconomic variables have distinct
long-run and short-run influence on Islamic home financing. Our findings
reveal that policy intervention to stimulate or dampen home financing
provided by Islamic banks, in the long run, can focus on GDP, house
prices, and monetary policy. This further underscores the link between
the real sector of the economy and bank lending by Islamic banks. In
addition, this study documents evidence that Islamic home financing in
Malaysia, at least in the short run, is not dependent on interest rate
and hence, calls for a potential alternative rate, possibly rental rate,
that can be used as a benchmark rather than the current conventional
interest rate. To a certain extent, the findings suggest that Islamic
banks are non interest based and have managed to live up to their ideals
in achieving the objectives of Shari. ah (maqasid al-Shari'ah) by
promoting real sectors to increase Islamic home financing. This study is
among the very few studies that empirically examine the nexus between
Islamic home financing and real sector of the economy.
ZA 0
TC 4
ZS 0
ZB 0
Z8 0
ZR 0
Z9 4
U1 0
U2 4
SN 1394-7680
UT WOS:000366679500004
ER
PT J
AU Ariffin, Noraini Mohd.
Kassim, Salina H. J.
Razak, Dzuljastri Abdul
TI EXPLORING APPLICATION OF EQUITY-BASED FINANCING THROUGH MUSHARAKAH
MUTANAQISAH IN ISLAMIC BANKS IN MALAYSIA: PERSPECTIVE FROM THE INDUSTRY
PLAYERS
VL 23
IS 2
BP 241
EP 261
PD 2015
PY 2015
AB Due to the prohibition of interest in Islamic financial transactions as
well as the nature of the Islamic banks which is based on the profit and
loss sharing concept, the equity-based financing should be widely
adopted rather than debt-based financing which is similar to that of the
conventional banks. As such, financing instruments such as Mudarabah and
Musharakah are supposedly the major financing instruments offered by the
Islamic banks. However, as argued in previous studies, the Islamic banks
today are concentrating more on debt-based financing, particularly
Murabahah and Ijarah contracts. Based on survey questionnaires on
sixteen Islamic banks in Malaysia, this study examines the perceptions
of the Islamic bankers with regard to issues on concept, pricing and
compliance to Shari'ah of equity-based financing in Islamic banks in
Malaysia. It also investigates the challenges faced by Islamic banks in
adopting equity-based financing, and examines the current practice of
Musharakah Mutanaqisah principle that has been applied by a few Islamic
banks in Malaysia. Based on the findings of this study, the respondents
generally agree that the principle of profit and loss sharing element
under equity-based financing represents the true spirit of Islamic
banking practices. However, due to constraints arising from the complex
nature of equity financing products compared to conventional debt-based
products, the Islamic banks are hesitant in applying the true concept of
equity financing. Several recommendations on the possible ways to
gradually shift from debt-based financing to equity-based financing are
suggested, particularly on the needed financial infrastructure to
support adoption of the equity-based financing by the Islamic banks.
ZA 0
ZS 0
ZR 0
ZB 0
Z8 0
TC 3
Z9 3
U1 1
U2 6
SN 1394-7680
UT WOS:000366679600005
ER
PT J
AU Sobol, Iwona
TI Islamic Banking in the European Union Countries
SO EUROPEAN INTEGRATION STUDIES
IS 9
BP 184
EP 197
DI 10.5755/j01.eis.0.9.12806
PD 2015
PY 2015
AB In the 1970s Islamic financial system based on religious belief emerged
in some of Muslim countries. The purpose of the Islamic financial system
is just like in the case of the conventional one, to facilitate the
smooth flow of funds between savers and investors. However, what is
distinguishable about the Islamic financial system is that it is based
on principles of sharia, which is a religious law of Muslims. With the
share of around 80% in total assets of Islamic financial institutions,
Islamic banks play a dominant role in the Islamic financial industry.
They operate in over 75 countries, not only Muslim ones, but also those,
where Muslim minority live. The aim of the paper is to analyse the
opportunities and challenges for development of Islamic banking in the
European Union countries. The analysis should give an answer to the
question whether Islamic banks can have more significant presence in the
European financial market in the future, than they have today.
The article consists of four parts, not counting introduction and
concluding remarks. The first part of the paper is a descriptive
analysis of the main principles of sharia, which have impact on
operations of Islamic banks. They include: prohibition of interest
(riba), avoidance of uncertainty (gharar) and prohibition of trading in
illegal (haram) products. Because of the necessity to comply with those
principles, the instruments offered by Islamic banks must be constructed
differently than conventional ones. Islamic financial instruments are
briefly described in the second part of the paper. In the third section
of the article the evolution and the current state of Islamic banking in
the EU countries is presented. The main focus is put on the United
Kingdom, since in this country Islamic banking sector is the most
developed. In the fourth part prospects for development of Islamic
banking in the EU are discussed. First the factors that should
contribute to the development are presented. Then challenges faced by
Islamic banking industry in the EU are analysed.
The key results show that Islamic banking in the European Union
countries is at a very early stage of development. Even in the United
Kingdom, which is the European Islamic finance leader, assets of Islamic
banks account for less than 1% of total assets of British banking
sector. However, there is a potential for the development Islamic
banking market in the EU, which mainly lies in large and increasing
population of Muslims in Europe. Moreover, after the global financial
crisis, which severely affected European banking industry, there is a
higher demand for ethical investments among Europeans, which could
translate into higher demand for Islamic financial services. On the
other hand, there are still a lot of challenges faced by the Islamic
banking industry in the EU, which cannot be easily solved. They include:
lack of suitable legislation in majority of EU countries, especially
with regard to tax and supervision issues, problems with risk
management, high costs of Islamic banking products and hostility towards
Islam, and thus Islamic banking among the European society.
The article uses descriptive and analytical method of analysis, based
mainly on scientific literature, market reports and statistical data.
ZB 0
ZA 0
ZS 0
TC 2
Z8 0
ZR 1
Z9 2
U1 0
U2 27
SN 1822-8402
EI 2335-8831
UT WOS:000366086200016
ER
PT B
AU Khan, Tariqullah
BA Ginena, K
Hamid, A
TI Corporate and Shari'ah Governance of Islamic Banks
SO FOUNDATIONS OF SHARI'AH GOVERNANCE OF ISLAMIC BANKS
BP 57
EP 102
PD 2015
PY 2015
ZB 0
ZA 0
ZR 0
TC 0
ZS 0
Z8 0
Z9 0
U1 0
U2 3
BN 978-1-119-05350-7; 978-1-118-46077-1
UT WOS:000362193400004
D2 10.1002/9781119053507
ER
PT J
AU Baldwin, Kenneth
TI The management of refinancing risk in Islamic banks
SO JOURNAL OF RISK
VL 17
IS 5
BP 1
EP 20
PD 2015
PY 2015
AB Islamic banks have access to only short-dated funding sources resulting
in asset liability mismatches when financing assets with longer
maturities. Maturity mismatches give rise to a risk that an unexpected
increase in the cost of refinancing liabilities as they mature will not
be offset by corresponding asset returns. Exposure to refinancing risk
is exacerbated by paying returns to providers of off balance sheet funds
which do not covary with the returns of corresponding assets as they
would from a stricter application of sharia principles underlying these
funding structures. The active hedging of refinancing risk by Islamic
banks is also challenged due to a lack of suitable hedging instruments
as well as differing sharia opinions concerning their permissibility. As
an alternative to risk transference through hedging, this paper develops
a framework to quantify a reserve to instead absorb refinancing risk
which is distinguished from reserves already in use by Islamic banks,
namely the investment risk and profit equalization reserves.
ZS 0
TC 0
ZA 0
Z8 0
ZB 0
ZR 0
Z9 0
U1 1
U2 7
SN 1465-1211
EI 1755-2842
UT WOS:000363277200002
ER
PT J
AU Seyadi, Reyadh Mohamed
TI Legal Aspect of Islamic Finance
VL 29
IS 3
BP 285
EP 295
DI 10.1163/15730255-12341302
PD 2015
PY 2015
AB Nowadays, a number of Islamic banks look forward to compete with
contemporary conventional financial institutions. However, conventional
transactions, which are not recognized by the Shari. ah (Islamic law),
are totally rejected when relying on riba (usury). Therefore, although
in principle it would not necessarily be inappropriate to compete with
conventional institutions, Islamic institutions should carefully uphold
the spirit and purposes of the Shari. ah. Transactions should not simply
be designed to meet all Islamic requirements while at the same time
deviate from the substance and spirit of the Shari'ah.
ZR 0
TC 0
ZA 0
ZS 0
ZB 0
Z8 0
Z9 0
U1 0
U2 7
SN 0268-0556
EI 1573-0255
UT WOS:000359437300005
ER
PT J
AU Dalwai, Tamanna Abdul Rahman
Basiruddin, Rohaida
Rasid, Siti Zaleha Abdul
TI A critical review of relationship between corporate governance and firm
performance: GCC banking sector perspective
SO CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY
VL 15
IS 1
BP 18
EP 30
DI 10.1108/CG-04-2013-0048
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to evaluate existing studies on
the relationship of corporate governance with firm performance in
different regions and address the need for similar analysis for the Gulf
Coperation Council (GCC) sector. The banking sector comprises the
conventional and Islamic banks in the GCC sector and is important due to
their ability to bring stability to this region. Existing studies that
measure the relationship of GCC sector conventional banks and firm
performance are limited. This study proposes a need for future research
on corporate governance in the GCC region.
Design/methodology/approach - This paper will review and analyze the
different empirical and theoretical contributions in establishing the
relationship between corporate governance and firm performance.
Findings - This paper will create a focus for future research of
measuring the impact of corporate governance mechanism on firm
performance. The regulators will be encouraged to focus on more research
studies for the GCC sector development in the field of corporate
governance of the banking sector.
Research limitations/implications - The existing studies are valid and
practicable for the region under study, and the results need not be
applicable for other business environments. In addition, the evolving
business and economic environment have always brought about inconsistent
conclusions; thus, the period of study can always give varied results.
Practical implications - The analysis undertaken in this paper will
address the literature gaps for the GCC banking sector and play an
instrumental role for future studies by theoreticians and regulators.
Originality/value - This paper identifies the literature gaps for the
GCC region and analyses the most applicable existing studies that can be
useful for the banking sector corporate governance improvement. This
paper will create opportunities for the future researchers.
RI BASIRUDDIN, ROHAIDA/D-8631-2018; Dalwai, Tamanna/M-1176-2018; Rasid, Siti Zaleha
Abdul/AAP-9283-2020
OI BASIRUDDIN, ROHAIDA/0000-0002-3743-2427; Dalwai,
Tamanna/0000-0001-5754-5384; Rasid, Siti Zaleha
Abdul/0000-0001-7200-6899
ZR 0
ZS 0
Z8 0
ZB 0
TC 12
ZA 0
Z9 12
U1 3
U2 14
SN 1472-0701
EI 1758-6054
UT WOS:000355629100002
ER
PT B
AU Farag, Hisham
BE Boubaker, S
Nguyen, DK
TI Corporate Governance and Corporate Social Responsibility in Financial
Institutions: Evidence from Islamic Banks
SO CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY: EMERGING
MARKETS FOCUS
BP 405
EP 436
PD 2015
PY 2015
AB Islamic banks play a significant role in the financial sector in a
number of emerging markets especially countries with a large Muslim
population. The objectives of Islamic banks are fundamentally different
from those of conventional banks. While conventional banks seek to
maximize their shareholders wealth, Islamic banks primarily strive to
achieve a balance between providing sufficient Shari'ah compliant
returns and their social responsibilities to various stakeholders.
Moreover, Islamic banks are characterized by multiple agency
relationships. I analyze the corporate governance characteristics of a
sample of Islamic banks in six emerging countries and their corporate
social responsibility (CSR) as these two aspects are increasingly
related. I identify areas of interest through mini case studies and
examples. Finally, I conclude by considering the likely future
development of corporate governance and CSR in Islamic banks in emerging
markets.
ZR 0
ZB 0
TC 0
Z8 0
ZS 0
Z9 0
U1 0
U2 3
BN 978-981-4520-37-9
UT WOS:000349291300017
ER
PT J
AU Sarac, Mehmet
Zeren, Feyyaz
TI The dependency of Islamic bank rates on conventional bank interest
rates: further evidence from Turkey
SO APPLIED ECONOMICS
VL 47
IS 7
BP 669
EP 679
DI 10.1080/00036846.2014.978076
PD 2015
PY 2015
AB The nexus between Islamic banks' returns on term deposits (participation
accounts) and conventional banks' (CBs) interest rates on term deposits
is one of the controversies with regard to Islamic finance. The obvious
correlation between two sides is considered a convergence of Islamic
banking to the conventional mode and the breach of the 'risk sharing',
the underlying principle of Islamic finance. The aim of this study is to
econometrically investigate the long-term relationship between CBs'
term-deposit rates (TDRs) and participation banks' (PBs) TDR in Turkey.
We undertake an elaborate analysis of the dependency of each PBs in
Turkey on interest rates utilizing the most recent econometric
techniques including Maki cointegration tests with multiple breaks and
frequency domain causality tests. Findings show that TDRs of three PBs
are significantly cointegrated with those of CBs, while one is not. In
addition, permanent causality is found from CBs to all PBs.
RI SARAC, Mehmet/AAE-4697-2020
ZS 1
TC 8
ZB 0
ZR 0
Z8 0
ZA 2
Z9 11
U1 0
U2 22
SN 0003-6846
EI 1466-4283
UT WOS:000348712600003
ER
PT J
AU Muhamad, Rusnah
Alwi, Sharifah
TI Explicating consumer segmentation and brand positioning in the Islamic
financial services industry A Malaysian perspective
SO ASIA-PACIFIC JOURNAL OF BUSINESS ADMINISTRATION
VL 7
IS 3
SI SI
BP 253
EP 274
DI 10.1108/APJBA-12-2014-0136
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to discuss how the current
research on the Islamic financial services industry attempts to classify
its consumers and provide a fresh and critical insight into the retail
Islamic banking market segmentation to harness and enhance
understanding, as well as provide a guideline for a better segmentation
to bank marketers.
Design/methodology/approach - This study is conceptual in nature. Based
on Qur'anic verses and previous literature, the authors aim to propose
an applicable model of market segmentation for the retail Islamic
banking market in Malaysia. Consumer segmentation in the conventional
financial service industry is analysed, and prior studies on the
selection criteria of Islamic banks are evaluated.
Findings - In moving forward, taking cue from the classification of
people in classical doctrinal and historical literature and the initial
exploratory study conducted from the managerial perspective, the authors
propose five cluster groups of consumers for the retail Islamic banking
market in Malaysia, namely, religious conviction, religious and economic
rationality, economic rationality, ethical observant and economic
rationality and ethical observant. A discussion linking consumer
segmentation to the branding in the retail Islamic banking market is
discussed.
Research limitations/implications - The five cluster groups of consumers
for the retail Islamic banking market in Malaysia proposed in this study
pave the way for embarking on promising and relevant future research,
which is needed to substantiate and enrich the academic understanding
and managerial practice of linking market segmentation and brand
positioning for Islamic banking market in Malaysia. Future research
should focus on verifying the five proposed segments by conducting
empirical studies on a larger scale among the retail banking consumers
in Malaysia and globally.
Practical implications - The study provides an initial bases or
dimensions of consumers of the retail Islamic banking market in
Malaysia. The proposed consumers segments are useful in guiding the
management of Islamic bank in Malaysia in making decisions relating to
the promotion strategy as well as product and brand positioning
strategy.
Originality/value - For both academia and the Islamic banking industry,
this study provides useful knowledge in strategically using market
segmentation to position Islamic banking products and services in
Malaysia and the global market.
RI Muhamad, Rusnah/B-9643-2010
OI Muhamad, Rusnah/0000-0002-9395-8562
ZS 0
ZB 0
ZA 0
TC 5
Z8 0
ZR 0
Z9 5
U1 0
U2 5
SN 1757-4323
EI 1757-4331
UT WOS:000214127800007
ER
PT J
AU Shawtari, Fekri Ali
Ariff, Mohamed
Razak, Shaikh Hamzah Abdul
TI Efficiency assessment of banking sector in Yemen using data envelopment
window analysis A comparative analysis of Islamic and conventional banks
SO BENCHMARKING-AN INTERNATIONAL JOURNAL
VL 22
IS 6
BP 1115
EP 1139
DI 10.1108/BIJ-10-2014-0097
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to examine the banking industry's
efficiency using the case of Yemen.
Design/methodology/approach - The paper utilises two-stage analysis to
evaluate the efficiency adopting Data Envelopment Window Analysis (DEWA)
in the first stage for the period 1996-2011. Furthermore, the paper
addresses, in two-dimensional matrix, the stability and efficiency of
the banking sector in order to assess their ability for survival. In the
second stage, panel data analysis is applied to regress a set of
bank-specific and macro-economic variables on the efficiency of the
banking sector in Yemen in a comparative fashion between Islamic and
conventional banks.
Findings - The findings of the investigation indicate that the Yemeni
banking industry in general was on a declining efficiency's trend with
increased instability during the later period of the investigation. In
addition, the study shows that most conventional banks were relatively
stable, though inefficient, while Islamic banks were more efficient over
the time. The results of panel data regression further suggest that
efficiency is related to a number of determinants. Loan/financing, and
profitability are the common key determinants of efficiency for both
Islamic and conventional banks. However, other determinants have
impacted differently for Islamic and conventional banks, which could
reflect the uniqueness of their operation and structure.
Research limitations/implications - The present study provides a basis
for the regulators and bankers to assess the viability of the banking
sector and proposes policies to restructure the industry in order to
enhance the performance of the whole industry.
Originality/value - The paper presents new empirical findings on the
efficiency of Islamic and conventional banks in Yemen.
RI shawtari, Fekri Ali/J-3458-2019
OI shawtari, Fekri Ali/0000-0003-0194-9464
ZB 0
ZA 0
TC 8
ZS 0
ZR 0
Z8 0
Z9 8
U1 0
U2 5
SN 1463-5771
EI 1758-4094
UT WOS:000213342400008
ER
PT J
AU Apaydin, Fulya
TI Financialization and the Push for Non-state Social Service Provision:
Philanthropic Activities of Islamic and Conventional Banks in Turkey
SO FORUM FOR DEVELOPMENT STUDIES
VL 42
IS 3
BP 441
EP 465
DI 10.1080/08039410.2015.1033453
PD 2015
PY 2015
AB Over the past decade, Islamic Financial Institutions substantially
increased their market share in Turkey, and demonstrated an impressive
growth rate. In promoting this sector, Turkish entrepreneurs also make a
moral claim, suggesting that their profit motivations are justified by a
religious concern because wealth generated through halal means
indirectly helps out the poor and the needy. Yet, though these
entrepreneurs frequently invoke religious morals to justify their
strategies, Islamic banks appear only occasionally engaged in systematic
acts of charitable giving. Why do conventional banks in Turkey engage
more systematically with social welfare-related philanthropy projects
while their Islamic counterparts seem less interested in similar
activities? The article brings state back in and finds that this
variation is an unintended consequence of the current government's
social policy reforms. After election into office in 2002, Adalet ve
Kalkinma Partisi (AKP, Justice and Development Party) promoted greater
private involvement in public goods provision in return for offering
economic privileges to partisan business groups -including Islamic
banks. During this process, the government encouraged religious business
groups to work with faith-based NGOs and local government agencies,
capitalizing on existing partisan and solidarity networks to increase
political returns. Consequently, while Islamic banks rely on religious
associations and channel their contribution through Islamic charity NGOs
that command a broader geographic outreach in collaboration with local
government actors, conventional banks that are not part of similar
societal networks either carry out independent corporate philanthropy
schemes or collaborate with national government agencies.
OI Apaydin, Fulya/0000-0001-7208-5857
ZA 0
TC 2
Z8 0
ZS 0
ZR 0
ZB 0
Z9 2
U1 0
U2 3
SN 0803-9410
EI 1891-1765
UT WOS:000210818800003
ER
PT J
AU Abbas, Muhammad
Hammad, Rayan
Elshahat, Mohamed
Azid, Toseef
TI Efficiency, productivity and Islamic banks: an application of DEA and
Malmquist index
SO HUMANOMICS
VL 31
IS 1
SI SI
BP 118
EP 131
DI 10.1108/H-03-2013-0022
PD 2015
PY 2015
AB Purpose - This paper aims to compute the Malmquist Index of Islamic and
conventional banks to compare their performance in the sample period of
2005-2009. Islamic banks have been showing tremendous growth throughout
the world in recent past. Their progress is exceptional in Islamic
countries on account of patronization for religious reasons. There
existed vacuum in research of their productivity change over the years.
Design/methodology/approach - This study tries to apply the Malmquist
Index. The Malmquist Total Factor Productivity Index has been further
divided into Efficiency Change Index, Technological Change Index, Pure
Efficiency Change Index and Scale Efficiency Change Index to obtain an
insight about the reasons for the change in productivity.
Findings - Results indicate that the productivity of Islamic banks
decreased in 2007 but it increased in 2008 to 2009. Islamic banks had
higher productivity growth from 2005 to 2006, but they experienced lower
growth in subsequent years as compared to their conventional
counterparts.
Research limitations/implications - Data were not available before 2005
in Pakistan.
Practical implications - This study is helpful for the investors and
bankers for formulating the future policy.
Social implications - This study also provides a guideline for
establishing the ethical financial institutions.
Originality/value - This is an original attempt.
ZR 0
ZS 0
TC 2
Z8 0
ZB 0
Z9 2
U1 0
U2 2
SN 0828-8666
EI 1758-7174
UT WOS:000210903500007
ER
PT J
AU Javaid, Omar
TI Methodology of institutional analysis and its implication for
contemporary framework of Islamic banks
SO HUMANOMICS
VL 31
IS 2
SI SI
BP 183
EP 200
DI 10.1108/H-07-2013-0051
PD 2015
PY 2015
AB Purpose - This paper aims to investigate the possibility of a
methodological error made by the concerned scholars and academics of
Islamic finance& economics to understand and study the modern framework
of financial institutions, where they intend to practice Islamic law of
contract. This error has led them to expect something which the
institutional modern framework of banks, adopted by Islamic banks (for
e.g.), wasn't designed to accomplish, hence the disappointment.
Design/methodology/approach - This study reviews the literature on
history of evolution of banking industry and the corresponding
ideological and cultural changes in the European society which drove
this evolution; this is followed by a conceptual analysis to identify
the institutional components inconsistent with ethos of Islamic norms
and ethos.
Findings - After review of history and evolution of modern banking
framework, in the light of Hollingsworth frame of institutional
analysis, it is inferred that the said framework was designed for a
secular, liberal and capitalist society to efficiently and effectively
enhance freedom and accumulate capital and wealth, without much regard
for equitable distribution of wealth and economic justice. These goals
are very much in contrast with the normative premise of Islamic
Economics, which cannot be efficiently used to achieve the related
objective. This indicates that framework of banking was narrowly
understood by the concerned scholars and academics, without considering
its history of evolution and intended objectives, before adopting for
IBs.
Practical implications - The disconnect between the Western
institutional framework and ethos of Islam implies that the concerned
need to look deeper and holistically while adapting Western
institutions, so that necessary alteration is done in advance, if such
an adoption is inevitable.
Originality/value - This study introduces a new dimension for the
concerned scholars, academics and practitioners to reanalyze the
institutional framework adopted from the West, so that necessary
adjustments can be worked out to make the said framework compatible with
the ethos of Islamic economics.
RI Javaid, Omar/C-6395-2018
ZS 0
ZB 0
ZR 0
TC 0
ZA 0
Z8 0
Z9 0
U1 1
U2 2
SN 0828-8666
EI 1758-7174
UT WOS:000210905300003
ER
PT J
AU Jamshidi, Dariyoush
Hussin, Nazimah
Wan, Hooi
TI Islamic banking services adoption as a new banking restructure Examining
its adoption from the perspective of DOI theory and trust in Malaysia
SO HUMANOMICS
VL 31
IS 2
SI SI
BP 214
EP 223
DI 10.1108/H-07-2013-0042
PD 2015
PY 2015
AB Purpose - This study aims to identify the main influential factors of
Islamic banking services adoption in Malaysia. Islamic banking as a new
banking method represents its multiple services around the world.
Different groups of bank customers use these services in their daily
financing and banking activities. However, the usage and adoption rate
of these services in Malaysia seems to be under expected level.
Design/methodology/approach - Therefore, this study attempts to discover
the main influential factors of Islamic banking services adoption in
Malaysia as a country with the dual banking system.
Findings - The study concluded that perceived attributes of innovation,
namely, relative advantage, compatibility, complexity, trialability and
finally observability of Islamic banking services with customers' desire
will influence them to use these novel banking services.
Originality/value - As discussed in the previous part of this study, the
usage rate of Islamic banking services has not achieved the expected
rate by customers. Consequently, it is crucial to focus on finding the
determinant factors that are able to increase the acceptance as well as
usage of these services among bank consumers. This information would
afford researchers as well as banking service providers a better
understanding of how to facilitate future adoption of this Islamic
facility.
RI Hussin, Nazimah/Q-2840-2019; HUSSIN, NAZIMAH/A-9398-2016
ZB 0
TC 8
Z8 0
ZS 0
ZR 0
ZA 0
Z9 8
U1 0
U2 5
SN 0828-8666
EI 1758-7174
UT WOS:000210905300005
ER
PT J
AU Wahyudi, Imam
TI Realizing knowledge sharing in strategic alliance: case in Islamic
microfinance
SO HUMANOMICS
VL 31
IS 3
BP 260
EP 271
DI 10.1108/H-10-2013-0067
PD 2015
PY 2015
AB Purpose -The purpose of this paper is to understand the influence of
social capital, trust and commitment in fusing the various elements in a
strategic alliance through the knowledge-sharing process. The unit of
analysis is the relationship between Islamic banks and baitul maal wa
tamwil (BMT), where each carries with it a back-ground of differing
institutional culture and management style. The theory regarding
knowledge sharing and interdependence will be developed in the model and
tested with structural equation modelling (SEM) to evaluate the direct
and indirect effects of the connection between relationship bonding
(social capital) and trust and commitment in a formed alliance.
Design/methodology/approach -In this study, we have used a confirmatory
approach through survey using a structured questionnaire distributed to
131 BMT throughout the region of Central Java and Yogyakarta. The
sampling criteria used are: has operated for a minimum of two years and
does not experience any financial problems in those two years; has been
in a financing contract with an Islamic bank; has channelled a part of
their funds to micro, small and medium enterprises; and is in the form
of a cooperative and not micro financial institution. The data treatment
used is list-wise deletion. From the initial sample, 89 BMT were found
that fulfilled the sampling criteria. Data are analyzed using SEM with
linear structural relations (LISREL) software version 8.80. To validate
the data analysis result, we have also run a focus group discussion
(FGD) with the Directorate of Islamic Banking -Bank Indonesia, as well
as in-depth interview (IDI) with the BMT parent cluster (Inkopsyah).
Findings -Empirically, conflict, coordination and trust are a positive
and significant contributor in the success of transfer of knowledge. A
strategic alliance relationship between Islamic banks and BMT is still
contractual in character, where trust is tied down by a contractual
agreement. Other than that, trust and transfer of knowledge is
significantly influenced positively by the building of coordination,
agreement, interdependence and social capital.
Originality/value -The unit of analysis is the relationship between
Islamic banks and BMT, where each carries with it a background of
differing institutional culture and management style. The theory
regarding knowledge sharing and interdependence will be developed in the
model and tested with SEM to evaluate the direct and indirect effects of
the connection between relationship bonding (social capital) and trust
and commitment in a formed alliance.
TC 0
ZB 0
ZR 0
ZA 0
ZS 0
Z8 0
Z9 0
U1 1
U2 5
SN 0828-8666
EI 1758-7174
UT WOS:000210905500002
ER
PT J
AU Sadique, Muhammad Abdurrahman
TI APPLICATION OF PROFIT AND LOSS SHARING MODES IN TRADE FINANCING FOR
SMALL-SCALE BUSINESSES: AN ALTERNATIVE TO DEBT BASED FINANCINGd
SO IIUM LAW JOURNAL
VL 23
IS 1
BP 171
EP 185
PD 2015
PY 2015
AB The current article analyses the application of Islamic financing modes
based on equity participation for small and medium scale enterprises in
short-term trade financing. In lieu of debt based modes such as
murabahah favoured by Islamic banks in trade financing, the application
of musharakah based alternatives is explored, with especial attention to
practical aspects of relevance from a shari'ah perspective arising in
their implementation. Financing goods ready for sale, and financing
purchase of stock are examined, comparing the joint-equity based
structure with the debt-based structures, and identifying issues of
importance. The equity based approach being applied as an all-embracing
scheme encompassing purchase of raw material or trade goods to their
final sale could be a viable and fairer alternative to debt based
financing methods in vogue currently. Adopting suitable equity based
structures, especially in the context of short-term financing for
small-scale businesses, may provide considerable efficiency and
convenience without the involvement of the drawbacks inherent to debt
financing structures. Eliminating elements of debt financing from the
equity-based modes so as to reveal their full potential and to realise
their socio-economic objectives requires further study and continuous
fine-tuning of the modes proposed.
ZR 0
Z8 0
ZS 0
TC 0
ZB 0
Z9 0
U1 0
U2 0
SN 0128-2530
EI 2289-7852
UT WOS:000422497000008
ER
PT J
AU Kashif, Muahmmad
Shukran, Sharifah Suzana Wan
Rehman, Mohsin Abdul
Sarifuddin, Syamsulang
TI Customer satisfaction and loyalty in Malaysian Islamic banks: a PAKSERV
investigation
VL 33
IS 1
BP 23
EP 40
DI 10.1108/IJBM-08-2013-0084
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to examine the impact of PAKSERV
measures on customer satisfaction and loyalty in the Malaysian Islamic
banking context.
Design/methodology/approach - The dimensionality of the PAKSERV scale is
examined with confirmatory factor analysis. A survey approach is adopted
to collect data from 300 Islamic banking customers in Kuching, Malaysia.
Findings - Results reveal an excellent model fit for the PAKSERV scale
in collectivist cultural context of Malaysia. All dimensions of PAKSERV
are validated except reliability. The issue of non-validity of the
reliability dimension in an Islamic banking context is explained by
extant literature.
Practical implications - Islamic banks are recommended to focus on all
the PAKSERV scale dimensions to impart service quality. Given a
collectivist cultural setting, a "network marketing" approach is
recommended to maintain a desirable level of customer satisfaction and
loyalty.
Originality/value - The PAKSERV scale has been employed for the first
time to investigate the service quality-loyalty path in a collectivist
cultural context. The validity of the PAKSERV scale has been
operationalized for the first time in a collectivist cultural context.
RI sarifuddin, syamsulang/K-8107-2019
ZR 0
ZS 1
ZA 0
ZB 0
Z8 0
TC 37
Z9 37
U1 0
U2 5
SN 0265-2323
EI 1758-5937
UT WOS:000216515900003
ER
PT J
AU Souiden, Nizar
Rani, Marzouki
TI Consumer attitudes and purchase intentions toward Islamic banks: the
influence of religiosity
VL 33
IS 2
BP 143
EP 161
DI 10.1108/IJBM-10-2013-0115
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to investigate the impact of
religiosity on consumer attitudes and purchase intentions toward Islamic
banks.
Design/methodology/approach - The study takes place in the Tunisian
context. Even though Tunisia is a Muslim country, the culture is
considerably different from those of the Middle East or Malaysia
(countries where the majority of studies on Islamic banks have taken
place). Consequently, an adapted religiosity scale was developed to fit
the study's context. Then, the scale was pre-tested on a sample of 188
respondents. In order to test the research hypotheses, a second data
collection, based on a convenience sampling technique, was undertaken,
yielding a sample of 217 respondents.
Findings - The religiosity variable was found to be tridimensional.
Results show that the more a person fears divine punishment, the more
he/she will develop a favorable attitude towards Islamic banks. Also,
the more a person believes in Islamic laws, the more favorable his/her
attitude towards Islamic banks. However, the relationship between
religious involvement (practice and interest) and attitude toward
Islamic banks is found to be insignificant. Other alternative models
were tested and the results indicate that neither fear, nor beliefs, nor
religious involvement has a direct effect on purchase intention. Thus,
religiosity has an indirect effect on purchase intentions of Islamic
bank services through attitude towards these banks.
Practical implications - It is suggested that a communication strategy
focusing on the compatibility of Islamic banks with Islamic beliefs and
eliminating any doubt that Islamic bank operations are suspicious (from
a religious point of view) could attract a segment of consumers who wish
to be in harmony with the prescriptions of their religion. Islamic banks
can better position their offers compared to conventional banks and
improve the perception of actual or potential clients. The study offers
some implications to managers of conventional banks as well.
Originality/value - Previous studies have reported the strong impact of
religion on Muslims' attitude towards Islamic banks. The main
contribution of this study is to show which dimension of religiosity has
the most important impact on attitude and purchase intention toward
Islamic banks.
TC 51
ZB 0
Z8 0
ZA 0
ZR 0
ZS 0
Z9 51
U1 2
U2 9
SN 0265-2323
EI 1758-5937
UT WOS:000216516300004
ER
PT J
AU Sayani, Hameedah
TI Customer satisfaction and loyalty in the United Arab Emirates banking
industry
VL 33
IS 3
BP 351
EP 375
DI 10.1108/IJBM-12-2013-0148
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to identify the determinants of
consumer loyalty in Islamic and conventional banks in the United Arab
Emirates (UAE). The study has relevance and importance in a country with
a dual banking system. Since the products and services offered by the
banks are largely homogenous, customer loyalty is mostly associated with
the quality of certain tangible and intangible dimensions of service. It
is important for the banks to understand the factors that lead to higher
satisfaction and subsequent loyalty among consumers in the context of
the UAE.
Design/methodology/approach - More than 300 respondents were surveyed to
understand the factors that lead to continuing a relationship with
Islamic and conventional banks. The data were analyzed using ANOVA and
stepwise regression.
Findings - The findings of the study indicate that Islamic banks'
customers are satisfied with the Shariah Advisory Board,
convenience-related factors such as number of branches, and
efficiency-related factors like handling issues on the phone. However,
an inverse relationship is found between advice by the personnel and
length of association with the bank. On the other hand, the importance
of reputation and efficient handling of issues on the phone is
highlighted with respect to conventional banks.
Research limitations/implications - The study focusses only on consumers
that bank either with Islamic or conventional banks and excludes those
who deal with both Islamic and conventional banks simultaneously.
Practical implications - The research has several managerial
implications, as the findings of the study not only highlight the
factors that banking consumers value the most in the UAE banking sector,
but also provide insight into the factors which need immediate
attention. These decisions have strategic and resource-related
implications for banks. This knowledge will allow banks to align
services with their long-term objectives and invest into resources and
capabilities that will provide them competitive advantage.
Originality/value - The study allows identification of factors that are
valued the most by banking consumers in a culturally and religiously
diverse country with a dual banking system.
OI Sayani, Hameedah/0000-0002-5195-597X
ZS 0
Z8 0
ZA 0
ZR 0
TC 19
ZB 0
Z9 19
U1 0
U2 6
SN 0265-2323
EI 1758-5937
UT WOS:000216516600010
ER
PT J
AU Abou-Youssef, Mariam Mourad Hussein
Kortam, Wael
Abou-Aish, Ehab
El-Bassiouny, Noha
TI Effects of religiosity on consumer attitudes toward Islamic banking in
Egypt
VL 33
IS 6
BP 786
EP 807
DI 10.1108/IJBM-02-2015-0024
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to explore the effect of Islamic
religiosity on consumer attitudes toward Islamic banking in Egypt.
Design/methodology/approach - The study utilizes a mixed-methods
approach, employing both qualitative in-depth interviews and
quantitative surveys.
Findings - The main findings of the study show that religiosity has an
impact on consumer attitudes toward Islamic banking in Egypt. Major
religiosity clusters were identified from the sample and these were
associated with attitudes toward Islamic banking.
Practical implications - The findings of this research are of practical
importance for marketers in Islamic banks, as they reflect on the likely
role religiosity would play in shaping the attitudes of potential
customers toward their products. Thus, marketers can use the religiosity
scale in measuring intention to use their banking services.
Originality/value - The study was implemented in Egypt, where the volume
of research on this topic is very limited; thus the context of the study
is of value to researchers and practitioners and it can serve as a base
for future studies in the Middle East region.
RI El-Bassiouny, Noha M/N-2239-2018
ZB 0
ZA 0
Z8 0
ZS 0
ZR 0
TC 31
Z9 31
U1 1
U2 7
SN 0265-2323
EI 1758-5937
UT WOS:000216517800007
ER
PT J
AU Mangundjaya, Wustari L. H.
Wulandari, Permata
Wardhani, Citra
TI Adding value for customers by providing service quality training (study
at Islamic bank in Indonesia)
SO INTERNATIONAL JOURNAL OF BUSINESS PERFORMANCE MANAGEMENT
VL 16
IS 2-3
BP 230
EP 245
DI 10.1504/IJBPM.2015.068734
PD 2015
PY 2015
AB The present demand of customers is not merely focusing on the product
itself, but also on the process delivering it, as a source of value for
the customers. As a result, delivering service quality is important in
order to gain customer satisfaction. In the past five years, Islamic
Bank in Indonesia has been growing extremely fast. However, there were
still some low perceptions about the qualities of services of Islamic
bank compares to conventional bank. The study was done in many Islamic
banks in Jakarta areas in Indonesia, with 432 respondents, consists of
216 customers and 216 employees, using service quality inventory,
customer satisfaction inventory and training needs questionnaires. The
results show that: 1) there is a positive and significant correlation
between service quality and customer satisfaction; 2) there is a
difference perception about the training needs between employees and
customers. The implications of the study can be used for Islamic bank
management to enhance their services to customers by developing their
employees through service quality trainings.
ZB 0
ZR 0
ZS 0
TC 0
Z8 0
Z9 0
U1 0
U2 1
SN 1368-4892
EI 1741-5039
UT WOS:000445694500008
ER
PT J
AU Sufian, Fadzlan
Kamarudin, Fakarudin
TI Determinants of revenue efficiency of Islamic banks Empirical evidence
from the Southeast Asian countries
MANAGEMENT
VL 8
IS 1
BP 36
EP 63
DI 10.1108/IMEFM-12-2012-0114
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to examine the revenue efficiency
of Islamic banks in the Southeast Asian countries. Specifically, the
empirical analysis comprises Islamic banks operating in Malaysia,
Indonesia and Brunei. This paper also seeks to investigate the potential
internal (bank-specific) and external (macroeconomic and
industry-specific) factors which influence the revenue efficiency of
Islamic banks operating in Southeast Asian countries.
Design/methodology/approach - This paper used a whole gamut of domestic
and foreign Islamic banks operating in Southeast Asian countries,
namely, Malaysia, Indonesia and Brunei during the period of 2006-2011.
The level of revenue efficiency is computed by using the data
envelopment analysis (DEA) method. Following the procedure set in Banker
and Natarajan (2008) and Gujarati (2002), this paper use a panel
regression analysis framework based on the ordinary least square and
generalized least square methods to examine the potential determinants
of revenue efficiency of the Islamic banks in the sample. In addition,
this paper also use a battery of parametric (t-test) and non-parametric
(Mann- Whitney [Wilcoxon] and Kruskall-Wallis) tests to examine the
difference in the revenue efficiency of the domestic and foreign Islamic
banks.
Findings - The results indicate that the level of revenue efficiency on
the domestic Islamic banks is higher compared to that of their foreign
Islamic bank counterparts. The empirical findings seem to suggest that
revenue efficiency has greater influence on the profit efficiency
levels. It was found that the bank size, asset quality, capitalization,
liquidity and management quality significantly influence the revenue
efficiency of domestic Islamic banks operating in Malaysia, Indonesia
and Brunei during the period under study.
Research limitations/implications - Due to its limitations, the present
study may be extended in variety of ways. First, if information on input
prices is available, further analysis could be performed to investigate
the cost, technical and allocative efficiency. Second, interested
researchers may apply the Malmquist Productivity Index method to examine
the sources of total factor productivity changes of Islamic banks
operating in the ASEAN countries. Third, to obtain more robust results,
empirical findings from the present study could be compared to the
results derived from improved statistical methods, i.e. Bootstrap DEA.
Practical implications - The empirical findings of this paper clearly
call for regulators and decision-makers to review the revenue efficiency
of banks operating in Malaysia, Indonesia and Brunei Islamic banking
sectors. The results could also provide better information and guidance
to the managers of Islamic banks, as they need to have a clear
understanding on the impact of revenue efficiency on the performance of
their banks. The empirical findings of this paper may also have
implications for investors whose main focus is to gain higher profit
from their investments.
Originality/value - The paper is the first to provide empirical evidence
on the determinants of revenue, cost and profit efficiency of Islamic
banks operating in Southeast Asian countries.
ZS 1
ZB 0
ZA 0
ZR 0
TC 18
Z8 0
Z9 19
U1 1
U2 9
SN 1753-8394
EI 1753-8408
UT WOS:000214406300003
ER
PT J
AU Omar, Rafik Fakhry
Jones, Eleri
TI Critical evaluation of the compliance of online Islamic FOREX trading
with Islamic principles
MANAGEMENT
VL 8
IS 1
BP 64
EP 84
DI 10.1108/IMEFM-06-2014-0059
PD 2015
PY 2015
AB Purpose - This study aims to evaluate the compliance of online Islamic
FOREX products with Islamic jurisprudence principles and determines the
degree of similarity or difference between Islamic and conventional
FOREX products.
Design/methodology/approach - This study involves the collection and
analysis of secondary data from online sources (i.e. four Islamic FOREX
Web sites selected on the basis that they appeared on two Islamic FOREX
Web site lists) It also undertakes content analysis of the rulings of
jurisprudence scholars on one of the Web sites.
Findings - There is no evidence to suggest that the technical processes
underpinning current Islamic FOREX products are any different to those
underpinning conventional FOREX products. Also there are major
contradiction and ambiguities in the rulings offered by the
jurisprudence scholars about the permissibility of the products.
Research limitations/implications - The study relies on the analysis of
secondary data. Further research that will involve interviews with
banking industry employees in both conventional and Islamic banking
sectors would provide a better understanding of: how financial products
are created and managed and the role of bank regulations in creating and
managing different financial products.
Practical implications - It would seem that Islamic FOREX is simply
rebranding of conventional FOREX. The paper calls for a modern-day
definition of usury (riba).
Social implications - The way Islamic FOREX is marketed today to online
users as synonymous with gambling, and, although branded as Islamic, the
actual technical processes that underpin Islamic FOREX products are the
same as conventional FOREX products and therefore not compliant with
Islamic principles.
Originality/value - This research explores the marketing of Islamic
FOREX products.
ZR 0
ZA 0
ZS 0
TC 2
Z8 0
ZB 0
Z9 2
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214406300004
ER
PT J
AU Gilani, Hasan
TI Exploring the ethical aspects of Islamic banking
MANAGEMENT
VL 8
IS 1
BP 85
EP 98
DI 10.1108/IMEFM-09-2012-0087
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to look into the ethical
practices of a profit-driven financial institution that is currently
adopting Islamic banking and whether it can actually be ethical from an
Islamic perspective. The recent decade has seen an upsurge of the
increasingly integration of ethical management into operational
strategies by businesses across the globe. Like any other religion,
Islam wants its followers to be truthful and honest and to be compliant
with its teachings and especially in a business transaction. This
research paper explores the ethical factors of Islamic banking and how
it is perceived by its stakeholders.
Design/methodology/approach - Due to the exploratory nature of the
research and the fact that it involves in-depth theoretical analysis, a
qualitative research method was adopted to explore the details of ethics
in Islamic banking sector. The aim of this research was to explore the
ethical options of an Islamic bank. This was done by carrying out
in-depth interviews with the managers and executives of Islamic banks
having authority over the subject of Islamic banking and Shariah
finance. Furthermore, a detailed session of interviews was also carried
out with the customers of Islamic banking to take their views on the
subject issues. The data are analysed through thematic content analysis
and matched with the existing theory with the objective of coming up
with detailed findings that would contribute to knowledge on the subject
of ethical Islamic banking.
Findings - The paper provides empirical insights about ethical
management as a vital part of Islamic banking modus operandi. The
findings highlight the involvement of ethics in different procedures,
operations and approaches of Islamic banking and how it is perceived by
its many stakeholders.
Practical implications - The motivation of this thesis comes from
literature review to explore the ethics of Islamic banking and how it
Islamic banking is perceived by stakeholders at an ethical banking
practice. This research aims to aid bankers in identifying what
practices they can enhance and what practices should be dropped to bring
about a more ethical banking system. This research was prompted as a
result of the gaps identified in the literature review followed by the
observations made of the market by the researcher. It was evident that
further research on this topic was required to aid the subject.
Originality/value - The research is original in its nature, as there
have not been many instances where the ethical management theory has
been explored within the Islamic banking sector. Given the new
literature on corporate branding and customer perception, this research
can contribute very positively towards the subject area. This research
would pave new research avenues to be explored and enhance academic
contribution on the common subjects.
ZR 0
ZA 0
ZS 0
ZB 0
Z8 0
TC 9
Z9 9
U1 0
U2 9
SN 1753-8394
EI 1753-8408
UT WOS:000214406300005
ER
PT J
AU Maali, Bassam Mohammad
Atmeh, Muhannad Ahmad
TI Using social welfare concepts to guarantee Islamic banks' deposits
MANAGEMENT
VL 8
IS 2
BP 134
EP 149
DI 10.1108/IMEFM-12-2013-0125
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to examine the use of the social
welfare concepts of Takaful and Tabarru' (donations) as tools to
guarantee deposits in the Islamic banking industry, and the effect of
such practice on the concept of risk sharing in Islamic finance.
Design/methodology/approach - The study critically analyzes the Mudaraba
contract used by Islamic banks to mobilize funds, the use of Profit
Equalization Reserves and Investment Risk Reserves, the use of other
income smoothing techniques and the insurance of Islamic banks' by
regulatory agencies in some countries based on the Takaful and Tabarru'
concepts.
Findings - This paper shows that Islamic banks are increasingly using
the concepts of Takaful and Tabarru', which are intended originally for
social welfare, as tools to justify the move to more
guaranteed-in-substance type of deposits, and hence, more risk shifting
rather than risk sharing in the Mudaraba contract. This use, is argued,
moves Islamic banking towards more market-oriented, but less
Shariaa-compliant in substance.
Research limitations/implications - This papers examined the behaviour
of Islamic financial institutions and Islamic scholars based on the
available literature. No empirical analysis was conducted.
Originality/value - This paper contributes to the ongoing debate about
the substance of Islamic banking transactions and the risk shifting
inherent in such transactions. Furthermore, it is the first study that
examines the extent of utilizing different social welfare concepts to
legalize - from Shariaa perspective - Islamic banking transactions.
RI Maali, Bassam/AAG-6757-2019; atmeh, muhannad a/B-6757-2015
OI Maali, Bassam/0000-0001-7000-8874;
ZB 0
ZA 0
TC 3
ZR 0
Z8 0
ZS 0
Z9 3
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214406900001
ER
PT J
AU Miah, Md. Dulal
Sharmeen, Kashfia
TI Relationship between capital, risk and efficiency A comparative study
between Islamic and conventional banks of Bangladesh
MANAGEMENT
VL 8
IS 2
BP 203
EP 221
DI 10.1108/IMEFM-03-2014-0027
PD 2015
PY 2015
AB Purpose - This paper aims to investigate the relationship between
capital risk and efficiency of Islamic and conventional banks operating
in Bangladesh. In this pursuit, the research attempts to answer these
questions: do inefficient banks assume more risk? Is there any major
difference between Islamic and conventional banks in terms of efficiency
and risk taking behavior?
Design/methodology/approach - The study collects various bank-level data
from the audited financial statements of Islamic and conventional banks
for the period of 2001 to 2011. Collected data are analyzed using
Stochastic Frontier Analysis for efficiency estimation and Seemingly
Unrelated Regression (SUR) approach for assessing the relationship
between capital, risk, and efficiency.
Findings - Analysis of data shows that conventional banks are more
efficient in managing cost than Islamic banks. Moreover, the SUR results
show that the relation between capital and efficiency are bidirectional
and negative, whereas the relation between capital and risk is also
bidirectional but positive for Islamic banks. On the other hand, risk
and efficiency are positively related, and the result is bidirectional
for conventional banks.
Research limitations/implications - The research concentrates on
private-commercial banks as proxy for conventional banks. State-owned
banks including specialized banks and foreign commercial banks are
excluded from the sample due to various anomalies in reporting of
financial data.
Practical implications - There is a lot of room for Islamic banks to
increase productive efficiency because cost efficiency of Islamic banks
is less than that of the conventional banks. This can be attributed to
the relative small size of Islamic banks in Bangladesh. Because there
exists a positive relationship between size and efficiency for Islamic
banks, they can concentrate on increasing their size to capitalize on
economies of scale. Moreover, the analysis shows that inefficient
conventional banks assume higher risk which conforms to moral hazard
hypothesis. Therefore, regulatory authorities should discourage banks
from exercising such practice for the greater stability of the overall
banking system in Bangladesh.
Originality/value - A good number of studies is available in the
existing literature that compares the performance of Islamic and
conventional banks in the case of Bangladesh. However, very few studies
are found that examine the relationship between capital, risk and
efficiency. Therefore, the research is new for the selected area. As a
result, the research is expected to contribute to the existing
literature by providing new information.
RI Miah, Mohammad Dulal/O-9033-2019
OI Miah, Mohammad Dulal/0000-0001-9545-837X
Z8 0
ZA 0
ZS 0
ZB 0
ZR 0
TC 25
Z9 25
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000214406900005
ER
PT J
AU Ho, Catherine S. F.
TI International comparison of Shari'ah compliance screening standards
MANAGEMENT
VL 8
IS 2
BP 222
EP 245
DI 10.1108/IMEFM-07-2014-0065
PD 2015
PY 2015
AB Purpose - This paper aims to review the Shari'ah investment screening
methodologies of 34 prominent global Islamic finance users, including
index providers, Shari'ah service providers, Islamic banks, a regulator,
an association body and fund managers.
Design/methodology/approach - A comparative analysis is performed to
highlight the variances of the Shari'ah-compliant methods and principles
practiced by these renowned institutions with the latest compiled data.
Findings - The two sets of business screens and financial screens are
profiled separately to clearly examine the similarities and differences
between the different methodologies. Some of these practitioners are
more specific in their listing of Shari'ah-impermissible activities,
while some are more general in allowing more businesses to be included
as permissible. The majority of these users practice a two-tier method
of screening: qualitative and quantitative. Under quantitative screen,
the range of allowable threshold ratios on non-permissible criteria
differs slightly between them.
Research limitations/implications - With the wide divergence in
screening methodologies applied by practitioners, there is a general
consensus in the acceptance of compliant assets from various countries
and practice. Standardization is, therefore, seen as a need not only to
make understanding of Shari'ah investments clear to investors but also
to discourage misunderstandings between scholars and investors.
Practical implications - The suggestion, therefore, is to set globally
acceptable universal Shari'ah standard methodologies which are
applicable by the world Islamic financial market. These standards which
are relevant and logical to global ethical investing would further
stimulate investments in Islamic finance.
Social implications - With Shari'ah-compliant asset growing
exponentially relative to the world's financial assets, it is alleged
that greater harmonization of the global screening methods would prevent
misunderstanding and provide a clearer insight on Shari'ah investing,
which could further accelerate growth of the Islamic finance sector
worldwide.
Originality/value - To provide a more transparent regulatory environment
and build local and regional regulatory framework through establishment
of standards, there should be more consistency with minimum barriers
that prevent the industry from achieving its full potential. The paper
also contributes to existing literature by documenting and analyzing the
qualitative and quantitative screening procedures as practiced by a
comprehensive set of global Islamic finance users. It is, therefore,
important to share this knowledge as an effort toward greater
understanding and harmonization of the practices at the global level to
accelerate growth in the industry.
RI Ho, Catherine S F/F-9805-2018
ZR 0
ZB 0
ZS 0
TC 15
ZA 0
Z8 0
Z9 15
U1 0
U2 2
SN 1753-8394
EI 1753-8408
UT WOS:000214406900006
ER
PT J
AU Bukair, Abdullah Awadh
Rahman, Azhar Abdul
TI Bank performance and board of directors attributes by Islamic banks
MANAGEMENT
VL 8
IS 3
BP 291
EP 309
DI 10.1108/IMEFM-10-2013-0111
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to examine the relationship
between board structure (consisting of board size, board composition,
CEO role duality and chairman composition), investment account holders
(IAHs) and social contribution and the bank performance in one of the
fastest-growing industries, Islamic banking.
Design/methodology/approach - A generalized least square (GLS)
regression model was used to investigate such relationship applying data
from a sample of 40 Islamic banks operating in Gulf Cooperation Council
(GCC) countries over the period of 2008 until 2011.
Findings - The results show that both size and composition of the board
have a negative effect on bank performance. On the other hand, the
separation of CEO and chairman roles and the IAHs have no effect, while
the chairman independence has a positive impact. As for the control
variables, bank size positively influences bank performance whereas
leverage has a negative effect. Zakah and gross domestic product produce
no significant effect on bank performance.
Research limitations/implications - Even though the model has explained
the significant part of the variation in performance, there are other
factors considered as noise in the model which are unexplained due to
the lack of data. As such, other mechanisms of corporate governance (CG)
comprising attributes of the remuneration and nominating committees and
ownership structure may be used in future research. The sample size is
also limited; thus, in future research, the sample size could be
increased by including Islamic banks operating in all Middle East
countries.
Practical implications - The results suggest that to yield a better bank
performance, Islamic banks should enhance the effectiveness of CG
through the board of directors (BODs), whereby any decisions made by the
BODs would lead to greater investors' confidence in the market. The
results suggest that policymakers should impose new mechanisms that
could impact the effectiveness and compliance of BODs on the code of CG
and guidelines of micro-finance, in general, and among Islamic banks, in
particular. The community also has the right to know up to what extent
are the Islamic banks are in compliance with Shariah principles and
rules and the impact of their transactions on the society's welfare.
Originality/value - BODs' failures are the primary reason for the recent
financial collapses, and Islamic banks are not spared from these events.
Even though many studies have examined the influence of BODs
effectiveness on the performance of conventional banking industry over
time, studies on the Islamic financial institutions are quite scarce. In
addition, the results obtained by the studies on conventional banks may
not be applicable to Islamic banks. This is because the BODs of Islamic
banks discharge their responsibilities and duties along with the
existence of the Shariah supervisory board (a multi-layer structure),
which is quite different from the CG structure in conventional banks
that is dependent on the BODs (a single-layer). Therefore, this research
attempts to fill the gap in the literature by addressing this issue in
the Islamic banking industry by using a stakeholder theory based on
Islamic perspective which has not been used yet in previous studies.
ZR 0
ZB 0
ZA 0
Z8 0
TC 17
ZS 0
Z9 17
U1 2
U2 9
SN 1753-8394
EI 1753-8408
UT WOS:000214407800002
ER
PT J
AU Abdullah, Md. Faruk
Ab Rahman, Asmak
TI Is Wa'dan any different to Muwa'adah? Empirical evidence from Malaysia
MANAGEMENT
VL 8
IS 3
BP 310
EP 328
DI 10.1108/IMEFM-11-2014-0113
PD 2015
PY 2015
AB Purpose - The study aims to consider wa'dan-based products in Islamic
banks in Malaysia and discuss the validity of wa'dan in those products
from the perspective of Shari'ah.
Design/methodology/approach - Case studies were conducted of three
Islamic banks in Malaysia. Semi-structured interviews were carried out
with bankers as well as Shari'ah scholars. The document analysis method
was adopted to strengthen the findings.
Findings - The study shows that three Islamic banking products:
Musyarakah Mutanaqisah (MM) home and property financing; Al-Ijarah
Thumma Al-Bai' (AITAB) vehicle financing; and Ijarah rental swap (IRS)
use wa'dan in their product structures. After discussing the different
views of the scholars, the study concludes that wa'dan should be allowed
in the above-mentioned products because it is different from muwa'adah.
In wa'dan, every single wa'd is separate from each other, as every one
of them is related to different types of events. With regard to the
issue of Shari'ah in MM home and property financing, it was concluded
that wa'd from the customer to purchase the bank's share is not a
capital guarantee. Moreover, IRS is not a form of gambling but is in
line with Maqasid al-Shari'ah.
Research limitations/implications - The study is limited to three
Islamic banks in Malaysia that focus on retail and commercial banking
products. Therefore, the study excludes application of wa'dan in sukuk
and some other Islamic derivatives that are not the practice of these
three banks.
Originality/value - This empirical study adds new knowledge by
developing the concept and practice of wa'dan. Wa'dan as an innovative
tool for product development to overcome Shari'ah issues in conventional
banking may be of interest to practitioners all around the world.
RI rahman, asmak ab/Q-8208-2019; Abdullah, Faruk/P-8496-2015
OI rahman, asmak ab/0000-0003-1406-3099; Abdullah,
Faruk/0000-0002-9111-1755
ZR 0
TC 0
ZB 0
Z8 0
ZA 0
ZS 0
Z9 0
U1 0
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000214407800003
ER
PT J
AU Boumediene, Aniss
TI Financing government budget deficit as a liquidity risk mitigation tool
for Islamic Banks A dynamic approach
MANAGEMENT
VL 8
IS 3
BP 329
EP 348
DI 10.1108/IMEFM-04-2014-0038
PD 2015
PY 2015
AB Purpose - The purpose of the paper is to construct a framework
constituting a link between Islamic banks' excess liquidity and states'
financing needs, in an Islamic way. evel0.
Design/methodology/approach - The framework, constituting a linkage
between Islamic banks' funding capacity and governments' financing
needs, is constructed using a money market approach. Later on, the
volatility of existing sovereign Sukuk is compared to corporate Sukuk,
using generalized autoregressive conditional heteroskedasticity (GARCH)
(1, 1) model, to assess the stability of the secondary market for
Islamic government securities.
Findings - The volatility is weak for the Sukuk studied; this means that
there is stability of the secondary market for Sukuk (sovereign and
corporate).
Originality/value - This is the first paper that presents a framework
dealing directly with Muslim states' budget deficit and debt. The
framework includes Islamic banks, public companies, the central bank,
Ministry of Finance and the government.
ZB 0
ZR 0
TC 3
ZS 0
Z8 0
ZA 0
Z9 3
U1 0
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000214407800004
ER
PT J
AU Hachicha, Nejib
Ben Amar, Amine
TI Does Islamic bank financing contribute to economic growth? The Malaysian
case
MANAGEMENT
VL 8
IS 3
BP 349
EP 368
DI 10.1108/IMEFM-07-2014-0063
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to investigate empirically the
impact of the Islamic Bank Financing on Malaysia's economic growth over
the period 2000Q1-2011Q4.
Design/methodology/approach - A neoclassical production function
augmented by some indicators of Islamic bank finance has been the
theoretical framework for this paper's empirical investigation. The unit
root tests show that all the variables are integrated of order 1. The
test of Johansen and Juselius ( 1990) has shown the existence of a
single cointegrating relationship between the gross domestic product
(GDP), the investment, the labor force and the indicator of Islamic bank
finance. Hence, an error correction model has been constructed to
estimate the economic growth elasticity with respect to the different
Islamic bank finance indicators.
Findings - The estimated elasticities show that, in the long run, the
GDP in Malaysia is not sensitive to the Islamic financing. The
estimation of an error correction model shows that the elasticity of the
Malaysian output with respect to the different Islamic financing
indicators in the short run turn around 0.35. Thus, the effect of the
different Islamic finance indicators on the economic growth in the long
run is less important than their effect in the short run. This economic
result can be explained by the structure of the Islamic bank financing
that marginalizes the profit-and-loss sharing (PLS)-based instruments.
This turns out to be consistent with the economic reality in Malaysia,
as the Islamic banks engage much more in non-participatory activities
whose impact is, generally, of short term.
Social implications - To improve the efficiency of the Malaysian Islamic
banks as financial inter-mediaries that facilitate the capital
accumulation and the economic growth, the paper suggests to strengthen
the weight of the PLS-based instruments in the loan portfolios of the
Malaysian Islamic banks. This may reduce inequalities and improve
economic opportunities for people who have a high potential to
contribute to the capital accumulation and the creation of the
value-added.
Originality/value - The contribution of this paper is two-fold. On the
one hand, it provides a further contribution to the rare empirical
literature relative to the impact of the Islamic finance on growth by
determining the elasticity of economic growth with respect to Islamic
bank financing in Malaysia. On the other hand, and to the best of the
authors' knowledge, this paper remains the first to correctly resort to
the error correction model in determining this elasticity.
OI Ben Amar, Amine/0000-0002-5234-6420
TC 6
Z8 0
ZA 0
ZR 0
ZB 0
ZS 0
Z9 6
U1 0
U2 6
SN 1753-8394
EI 1753-8408
UT WOS:000214407800005
ER
PT J
AU Gupta, Namrata
TI Differences in accounting treatment of Ijarah: a case study of UAE
Islamic banks
MANAGEMENT
VL 8
IS 3
BP 369
EP 379
DI 10.1108/IMEFM-01-2015-0009
PD 2015
PY 2015
AB Purpose - This paper aims to discuss the accounting treatment of one of
the most popular instruments of financing in Islamic banks, which is
Islamic leasing or Ijarah. This research undertakes an empirical
investigation of the accounting practices of Ijarah followed by UAE's
Islamic banks. The main objective of this paper is to compare the
accounting practices followed by UAE Islamic banks and accounting
practices recommended by Accounting and Auditing Organization for
Islamic Financial Institutions (AAOIFI) for the accounting treatment of
Ijarah.
Design/methodology/approach - This study also aims to examine the
justification and explanation behind this practice and clarify the
accounting treatment of Ijarah as defined in the regulatory framework
and standards.
Findings - The author has found that the accounting treatment of Ijarah
practiced by four UAE Islamic banks, it is clear that all of them are
following IAS-17 and not FAS-8 of AAOIFI. The main difference is: FAS-8
issued by AAOIFI suggests that the accounting treatment for both Ijarah
and Ijarah Muntahia Bittamleek be similar to operating lease
transactions with certain exceptions. On the other hand, these Islamic
banks are accounting for Ijarah as a financing transaction, just like
finance lease in accordance with IAS-17.
Research limitations/implications - Taking out the right information
from banks officials regarding Ijarah was a big hassle.
Practical implications - After considering the above-mentioned points,
according to the researcher, Western accounting standards are not
appropriate to be applied in Islamic financial institution because of
their different nature and treatment of financial instruments.
Therefore, Islamic banks and other Islamic finance professionals should
consider making the standards of AAOIFI mandatory, and they should stick
to these standards for information disclosure, building investors'
confidence, monitoring and surveillance. These standards would also
ensure the integration of Islamic financial markets with international
markets.
Social implications - This study also aims to examine the justification
and explanation behind this practice of bankers when the researcher
approached these four banks, their officials mentioned that Ijarah
contracts are similar to conventional form of financing, and it does not
involve the central tenet of Islamic capitalism, i.e. to share risk and
profit; therefore, they are justified and convinced to adopt IAS-17 in
accounting for Ijarah transactions.
Originality/value - It is an original case study based on secondary
research data.
OI gupta, namrata/0000-0002-1145-4230; gupta, namrata/0000-0003-4564-9586
Z8 0
ZR 0
ZS 0
ZB 0
TC 2
ZA 0
Z9 2
U1 1
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000214407800006
ER
PT J
AU Mukhlisin, Murniati
Hudaib, Mohammad
Azid, Toseef
TI The need for Shariah harmonization in financial reporting
standardization The case of Indonesia
MANAGEMENT
VL 8
IS 4
BP 455
EP 471
DI 10.1108/IMEFM-10-2013-0110
PD 2015
PY 2015
AB Purpose - This study aims to analyze IFIs' stakeholders' perception on
Shariah harmonization for financial reporting standards in Indonesia as
a part of the development effort of linking the emerging global Islamic
banking to Indonesian financial and industrial markets.
Design/methodology/approach - A sample of 160 respondents, who were
stakeholders of Islamic banks, was taken from Jakarta, the capital city
of Indonesia and its surrounding major districts to examine the
stakeholders' perception on Shariah harmonization effort toward the
implementation of a uniformed financial reporting standard for Islamic
financial institutions. Data for this study were collected using a
structured questionnaire.
Findings - Through this study, the authors found several measures to be
taken to ensure Shariah harmonization efforts in Indonesia such as deep
understanding on the fatawa brought into practices and strict monitoring
on the Islamic banks in applying the financial reporting standards that
imply practicing the fatawa, both de jure and de facto. However, the
respondents differ in their opinion on the possibility of Shariah
harmonization, both de jure and de facto. The role of various actors
involved in the financial reporting standardization may impede Shariah
harmonization to take place.
Research limitations/implications - The study is only looking at one
case study, which is Indonesia. Therefore, future studies should
consider more countries and significant number of respondents. Different
research instruments to measure the perception can also be an
interesting research exploration. In addition, adopting deep Islamic
political economy of accounting theory may support better analysis on
the issue of financial reporting standardization for Islamic financial
institutions.
Originality/value - This paper has practical significance for financial
reporting standard setters for Islamic banks and policy-makers to
understand the key behavioral and demographical dimensions of their
stakeholders and using these dimensions to effectively position
important aspects in financial reporting standards setting.
OI Mukhlisin, Murniati/0000-0002-7807-7628
ZA 0
ZS 0
Z8 0
ZR 0
ZB 0
TC 2
Z9 2
U1 0
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000214408700004
ER
PT J
AU Louati, Salma
Boujelbene, Younes
TI Banks' stability-efficiency within dual banking system: a stochastic
frontier analysis
MANAGEMENT
VL 8
IS 4
BP 472
EP 490
DI 10.1108/IMEFM-12-2014-0121
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to examine and compare the market
power and the efficiency-stability of Islamic and conventional banks in
the MENA zone and South East Asia during the 2005-2012 period.
Design/methodology/approach - The author applied an empirical approach
in two steps. First, the author estimates the Lerner indicator, which is
a measure of competition. Then, this measure is regressed and other
explanatory variables on the banking "stability-efficiency" are derived
simultaneously from the estimation of a stability stochastic frontier.
Findings - The author concludes that increased competition in the
Islamic banking sector promotes the overall banking stability. Besides,
whether there is a low or high competitiveness, the size of an Islamic
bank is positively related to financial stability. However, large
conventional banks operating in market with limited competitiveness
become more involved in the risk behavior. The author concludes that
capitalization has a positive effect on stability only in case of low
competitiveness.
Originality/value - The originality of this research lies in the
application of the stochastic frontier approach (SFA) on the Z-score
indicator. This methodology enables to take into account the differences
between the current and the optimum stability that each bank can
achieve, thus creating a new measure of financial stability called
"efficiency-stability".
Z8 0
ZA 0
ZR 0
TC 11
ZS 0
ZB 0
Z9 11
U1 0
U2 4
SN 1753-8394
EI 1753-8408
UT WOS:000214408700005
ER
PT J
AU Bahrini, Raef
TI Productivity of MENA Islamic banks: a bootstrapped Malmquist index
approach
MANAGEMENT
VL 8
IS 4
BP 508
EP 528
DI 10.1108/IMEFM-11-2014-0114
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to analyze the total factor
productivity (TFP)[1] change and to investigate its determinants in the
case of MENA Islamic banks.
Design/methodology/approach - In the first stage, bootstrapped Malmquist
index approach is used to provide a robust analysis of the changes in
the productivity of 33 Islamic banks operating in 10 MENA countries
during the period 2006-2011. In the second stage, panel data models are
used to investigate the determinants of TFP change.
Findings - The results of the first stage show that Gulf Cooperation
Council (GCC) banks have known a productivity decline between 2006 and
2011 due to technical regress and scale inefficiency. In contrast,
non-GCC banks have improved their productivity by benefiting from scale
economies. The results of the second stage show that the productivity
growth of MENA Islamic banks was mainly determined by bank-specific
factors and that TFP indices decreased in the period of global financial
crisis. Practical implications - This paper provides relevant
recommendations for improving the productivity of Islamic banks
operating in the MENA countries.
Originality/value - This paper attempts to fill a demanding gap in the
literature by examining productivity change and investigating its
determinants using cross-country data of MENA Islamic banks. In
addition, it is one of the few studies that have applied the
bootstrapped Malmquist index approach in the case of Islamic banking.
RI Bahrini, Raef/C-7627-2017
OI Bahrini, Raef/0000-0002-0358-414X
Z8 0
ZS 1
TC 2
ZA 0
ZB 0
ZR 0
Z9 3
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214408700007
ER
PT J
AU Abdullah, Nik Safiah Nik
Abd Wahab, Norazlina
TI INVESTIGATING FACTORS AFFECTING THE INTENTION TO USE ISLAMIC PERSONAL
FINANCING
SO INTERNATIONAL JOURNAL OF MANAGEMENT STUDIES
VL 22
SI SI
BP 47
EP 60
PD 2015
PY 2015
AB The purpose of this paper was to examine the main factors that influence
consumers' intention to use Islamic personal financing. A sample of 308
employees from Universiti Utara Malaysia was surveyed. Attitude, social
influence, perceived behavioral control, religious obligation and
religiosity were examined towards the intention to use Islamic personal
financing. The results show that perceived behavioral control proved to
be a strong predictor. The findings of this study provide key inputs to
an Islamic bank for better planning of Islamic personal financing
facilities.
ZB 0
ZS 0
ZR 0
Z8 0
TC 0
Z9 0
U1 0
U2 1
SN 0127-8983
EI 2180-2467
UT WOS:000409077900004
ER
PT J
AU Shahari, Farihana
Zakaria, Roza Hazli
Rahman, Md Saifur
TI Investigation of the expected loss of sharia credit instruments in
global Islamic banks
SO INTERNATIONAL JOURNAL OF MANAGERIAL FINANCE
VL 11
IS 4
BP 503
EP +
DI 10.1108/IJMF-12-2014-0196
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to investigate the expected
outcomes, both of positive and negative returns occurred by sharia
credit instruments in global Islamic banks. The annual panel data from
2005 to 2012 is collected from 40 Islamic banks from 12 countries and
value at risk (VaR) technique is employed in the investigation process.
The findings of this study indicate several outcomes: first, majority of
Islamic banks use debt-based financing (DBF) and avoid asset-based
financing (ABF) due to the lack of secured rate of fixed returns and
collateral. Second, the ABF financing shows the positive returns. Third,
interestingly, DBF financing faces higher credit risk compared to ABF
even DBF secures its financing through tight policy implementation.
Finally, this paper comes up with policy recommendations for the further
reduction of credit risks and improvement of bankers' confidence level
in implementing the ABF financing policy.
Design/methodology/approach - VaR on panel data.
Findings - Sharia credit instruments play an important role.
Research limitations/implications - Data findings.
Originality/value - Fully original.
RI ZAKARIA, ROZA HAZLI/B-9624-2010; Rahman, Mohammad Sohelur/AAJ-7376-2020; Rahman,
Md. Saifur/; Farihana, Shahari/
OI Rahman, Mohammad Sohelur/0000-0002-4489-2202; Rahman, Md.
Saifur/0000-0001-5489-1783; Farihana, Shahari/0000-0003-3964-1959
ZA 0
ZS 0
TC 4
ZB 0
Z8 0
ZR 0
Z9 4
U1 0
U2 0
SN 1743-9132
EI 1758-6569
UT WOS:000212467800006
ER
PT J
AU Saqib, Lutfullah
Zafar, Mueen Aizaz
Khan, Khurram
Roberts, Kellie W.
Zafar, Aliya Mueen
TI Local agricultural financing and Islamic banks: is Qard-al-Hassan a
possible solution?
SO JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
VL 6
IS 1
BP 122
EP 147
DI 10.1108/JIABR-04-2012-0018
PD 2015
PY 2015
AB Purpose - This paper aims to study Qard-al-Hasan (QH) (good loan) from
the stand point of its possible application to agricultural farming with
a view to augmenting the sources of Riba (interest)-free agricultural
financing for Muslim farmers of Islamic countries like Pakistan.
Design/methodology/approach - This paper is a study of QH (good loan)
from the stand point of its possible application to agricultural farming
with a view to augmenting the sources of Riba (interest)-free
agricultural financing for Muslim farmers of Islamic countries like
Pakistan.
Findings - The study reports that Riba-free financing is essentially
needed by poor Muslim farmers who, owing to prohibition of Riba, do not
rely on interest (Riba)-based financing. The study also shows that QHis
a viable option for fulfilling this need and is beneficial for the
farmers as well as for the Islamic banks or financial institutions.
Research limitations/implications - The case of QH as a potential mode
of agricultural financing, as presented in this paper, is based on a
theoretical or conceptual framework. The findings need to be further
substantiated with empirical evidence. A future study, based on reliable
empirical data would certainly add value to the subject.
Originality/value - Islamic banks and financial institutions typically
rely on Musharakah (partnership), Murabaha (sale with profit), Ijarah
(leasing), Salam (advance payment sale), Istisna' (manufacturing
contract), etc., and they rarely use QH as a mode of financing. Despite
its huge utility, QH is practically non-existent in its application as
an agricultural financing instrument. This paper presents a case for QH
that can be adopted by Islamic banks or financial institutions for
provision of the much needed financing for the small farmers of Islamic
countries, as well as those living in non-Islamic countries.
TC 4
Z8 0
ZR 0
ZS 0
ZB 0
ZA 0
Z9 4
U1 1
U2 7
SN 1759-0817
EI 1759-0825
UT WOS:000214889000008
ER
PT J
AU Rosman, Romzie
Rahman, Abdul Rahim Abdul
TI The practice of IFSB guiding principles of risk management by Islamic
banks International evidence
VL 6
IS 2
BP 150
EP 172
DI 10.1108/JIABR-09-2012-0058
PD 2015
PY 2015
AB Purpose - The purpose of this study is to examine the nature of the risk
management practices of Islamic banks as recommended by the Islamic
Financial Services Board (IFSB) in managing their unique risks. This
study also explores the differences in risk management practices based
on the country, size, type and age of the bank.
Design/methodology/approach - A questionnaire was developed to
investigate the risk management practices. The main reference for the
questionnaire was the IFSB Guiding Principles of Risk Management and the
respondents were either the chief risk officers or holders of other
senior positions involved in risk management in the Islamic banks. A
non-parametric test was then conducted to explain the difference in mean
scores for the unique risk management practices by the Islamic banks.
Findings - A lack of effective risk management practices was found in
relation to liquidity risk, displaced commercial risk and equity
investment risk by Islamic banks. However, Islamic banks were
comparatively good in managing operational risk/Shari'ah non-compliance
risk. The study found that there was a significant difference in the
practice of equity investment risk management based on the size, type
and age of the Islamic bank. In addition, a significant difference was
found between the Islamic banks in the Middle Eastern and North African
(MENA) and Asian countries concerning the practice of both displaced
commercial risk and operational risk/Shari'ah non-compliance risk
management.
Research limitations/implications - In spite of the limitations in
non-parametric analysis, this analysis was preferred inasmuch as the
data were measured on an ordinal scale with a small sample size.
Originality/value - This study is among the few studies that examine and
explore the risk management practices of Islamic banks internationally
by explaining the unique risks encountered in Islamic finance.
ZS 0
ZR 0
TC 6
ZB 0
ZA 0
Z8 0
Z9 6
U1 0
U2 2
SN 1759-0817
EI 1759-0825
UT WOS:000214890200001
ER
PT J
AU Abbas, Kausar
Shirazi, Nasim
TI The key players' perception on the role of Islamic microfinance in
poverty alleviation The case of Pakistan
VL 6
IS 2
BP 244
EP 267
DI 10.1108/JIABR-06-2013-0017
PD 2015
PY 2015
AB Purpose - This study aims to know the present structure and move of the
Islamic banks of Pakistan as well as current issues and challenges for
Islamic microfinance. However, this is based on perceptions of the
Islamic bankers, regulators and micro-entrepreneurs and petty traders,
as they are the key players in the credit market.
Design/methodology/approach - The study gathered relevant information
through conducting field survey. Two questionnaires were designed for
the survey. One questionnaire was administered to survey 270
micro-entrepreneurs and petty traders in three major cities of Pakistan.
Another survey deals with the perceptions of Islamic bankers. In total,
100 people from middle and top management were surveyed from five
full-fledged Islamic banks of Pakistan. The SPSS software, version 16,
was used for questionnaire reliability and descriptive analysis to
analyse the data.
Findings - In general, the study found the strong opinions of the
respondents speak in favour of Islamic microfinance under a system of
profit and loss sharing. Conversely, the majority of the clients also
feel that Islamic banks do not encourage lower-income
micro-entrepreneurs. In addition, the study found that Islamic
microfinance is constrained by lack of knowledge, experience and
professionalism of the supporting staff; however, Islamic bankers have
shown great consensus that Islamic banks should offer Islamic
microfinance products and instruments to respond to the needs of the
poor for poverty alleviation.
Research limitations/implications - The first limitation of the study is
the meagre interest of micro-entrepreneurs and petty traders to
participate in the survey. The second limitation of this work concerns
the extremely busy schedule of top management and administrative
impediment to approach and fix an appointment. Despite these
limitations, the findings of this study provide insights to Islamic
banks in diversifying their products by offering Islamic microfinance to
the low-income entrepreneurs but with proper guidelines and policies.
Practical implications - There is a need to educate the community
towards the merits of Islamic banking system by developing a good
information system using good visuals and professionally presented
seminars, banners and arranging regular sessions with the business
community. The growth and development of Islamic banking in the country
largely depend on its customers' enhanced knowledge and awareness about
its products and services.
Social implications - It is the responsibility of the community as well
as of government to change the mindset of the poor that banks are meant
to serve the interest of everybody, regardless of social, economic and
political status.
Originality/value - Theoretically, this study contributes to the
existing body of knowledge in the area of Islamic microfinance by
examining the perceptions of Islamic bankers and micro-entrepreneurs.
This can help Islamic banks of Pakistan to design and formulate new
administrative as well as operational procedures to serve the interest
of the poor with commitment towards Islamic values.
TC 2
ZB 0
Z8 0
ZR 0
ZS 0
ZA 0
Z9 2
U1 1
U2 8
SN 1759-0817
EI 1759-0825
UT WOS:000214890200006
ER
PT J
AU Setyobudi, Wahyu Tri
Nasution, Reza Ashari
TI Exploring implicit and explicit attitude toward saving at Islamic bank
SO JOURNAL OF ISLAMIC MARKETING
VL 6
IS 3
BP 314
EP 330
DI 10.1108/JIMA-08-2014-0055
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to explore the implicit and
explicit attitude toward Islamic bank and how it influences desire to
saving at an Islamic bank. Although the Islamic bank system has been
experiencing rocket growth worldwide, but the development in Indonesia
is still unsatisfying. The penetration is very low compared to the
conventional bank system. Consumer attitude is one of the most important
variables that need to be understood to develop effective intervention.
Although extensive research has been carried out on consumer attitude in
the Islamic bank context, no single study adequately elaborates on
implicit attitude.
Design/methodology/approach - A sample of 423 respondents was taken to
represent the middle-class employee segment. A set of questionnaires
consisting of four sections was administered to respondents. The first
section is a paper-based implicit attitude test, which collected data
using a face-to-face interview, and the rest was self-reported. Data
were analyzed using descriptive, analysis of variance and multiple
regression analysis.
Findings - Analysis of the data shows that the implicit attitude toward
Islamic banks in Indonesia is relatively lower than the explicit
attitude. In addition, Islamic bank usage pattern and religion have a
significant relationship with implicit attitude. While implicit attitude
is relatively stable, explicit attitude significantly differs according
to age and marital status variables. Finally, this study shows that
implicit and explicit attitude simultaneously determine desire to saving
at an Islamic bank.
Originality/value - The paper extends the literature by exploring and
highlighting the importance of implicit attitude in the study of Islamic
consumer behavior. It also gives deeper understanding to Indonesian
middle-class employee saving behavior, which has huge potentials, and
helps Islamic bank practitioners to develop a set of strategies to tap
the market.
Z8 0
ZS 0
ZA 0
ZR 0
ZB 0
TC 6
Z9 6
U1 0
U2 2
SN 1759-0833
EI 1759-0841
UT WOS:000214162000002
ER
PT J
AU Ahmed, Muhammad
Jan, Muhammad Tahir
TI An extension of Aaker's brand personality model from Islamic
perspective: a conceptual study
VL 6
IS 3
BP 388
EP 405
DI 10.1108/JIMA-10-2014-0068
PD 2015
PY 2015
AB Purpose - The purpose of this paper is to browse literature based on
Aaker's brand personality modal and highlight criticism on it.
Furthermore, the study proposes an Islamic brand personality modal based
on Islamic teachings.
Design/methodology/approach - Extensive research on Muslim
characteristics based on Qur'an, hadith and scholarly work of
traditional and modern scholars has been used to assess Aaker's model.
Expert opinions of faculty members from relevant field are also taken
into consideration to propose Islamic brand personality model.
Findings - Aaker's brand personality dimensions have been revised in the
light of Islamic teachings. As a result, few pre-existing dimensions
have been re-named and several new dimensions such as moral character
and trustworthiness are also included.
Research limitations/implications - Considering the gap found in
literature, the need to conduct brand personality research in the
service industry such as Islamic banks is highlighted.
Practical implications - Islamic brand personality model may help
marketers effectively differentiate Islamic brands such as Islamic
banks. It may also reinforce advertising techniques/tools to attract a
large Muslim consumer market.
Originality/value - This paper is one of the early attempts to see brand
personality from Islamic perspective.
RI Jan, Muhammad Tahir Jan/D-4316-2016
OI Jan, Muhammad Tahir Jan/0000-0001-5680-8496
Z8 0
ZS 1
TC 6
ZA 0
ZB 0
ZR 0
Z9 6
U1 0
U2 2
SN 1759-0833
EI 1759-0841
UT WOS:000214162000006
ER
PT J
AU Sumaedi, Sik
Juniarti, Rosa P.
Bakti, I. Gede Mahatma Yuda
TI Understanding trust & commitment of individual saving customers in
Islamic banking The role of ego involvement
VL 6
IS 3
BP 406
EP 428
DI 10.1108/JIMA-06-2013-0045
PD 2015
PY 2015
AB Purpose - This paper aims to examine the relationship among trust,
commitment and ego involvement and their impacts on word-of-mouth
communication (WOM) for individual saving customers in Islamic banking.
Design/methodology/approach - The conceptual model and the hypotheses
are formulated based on trust and commitment theory, organizational
commitment theory, social judgment theory and the results of previous
empirical studies on buyer-seller marketing relationship in
business-to-customer (B2C) markets. Quantitative research methodology
was performed to examine the model and the hypotheses. The data were
collected using survey with questionnaire. The respondents of the survey
are 100 Islamic banking individual saving customers. Multiple regression
analysis was used to test the proposed model and the hypotheses.
Findings - The research results show that affective commitment has a
positive and significant impact on WOM, while normative commitment and
calculative commitment have no significant impact on WOM. Ego
involvement has a positive and significant impact on trust, normative
commitment, calculative commitment and affective commitment. However,
trust does not have a significant impact on calculative commitment,
normative commitment and affective commitment.
Research limitations/implications - This research was only conducted in
one Islamic bank in Indonesia. The data collection using the convenience
sampling method as well as the use of a small sample size caused the
limitation of the research results in representing across the retail
customer of the bank. This study can be replicated with a larger sample
size and by involving more Islamic banks to examine the stability of the
findings.
Practical implications - The research results indicate that ego
involvement has an important role in shaping trust and commitment of
Islamic banking individual saving customers. Given this, the managements
of Islamic banks need to ensure that the banks they have managed are
relevant, important and appropriate with the values espoused by their
individual customers.
Originality/value - This study is important because of the limited
literature which discusses relationship marketing in the context of
Islamic banking. Furthermore, this research has a novelty on the
inclusion of ego involvement in explaining trust and commitment. The use
of commitment as a multi-attribute construct also enriches the
literature on buyer-seller marketing relationship in B2C markets due to
the limited literature that addresses commitment as a multi-attribute
construct.
RI Juniarti, Rosa Prafitri/R-9597-2016
OI Juniarti, Rosa Prafitri/0000-0003-1132-1582
ZA 0
ZR 0
Z8 0
ZS 0
TC 12
ZB 0
Z9 12
U1 0
U2 1
SN 1759-0833
EI 1759-0841
UT WOS:000214162000007
ER
PT J
AU Asbeig, Hussam, I
Kassim, Salina H.
TI Monetary transmission during low interest rate environment in a dual
banking system: evidence from Malaysia
SO MACROECONOMICS AND FINANCE IN EMERGING MARKET ECONOMIES
VL 8
IS 3
BP 275
EP 285
DI 10.1080/17520843.2015.1060248
PD 2015
PY 2015
AB This study aims to determine the role of bank loans in the transmission
of monetary policy in an environment of low interest rate in the context
of a dual banking system in Malaysia. By adopting a balanced panel data
approach applied on data covering the period from 2000 to 2011, the
study finds that changes in the monetary policy have no significant
impact on the level of financing extended by the Islamic and
conventional banks. However, bank-specific factors, namely size and
liquidity play an important role in influencing the lending behaviour of
both the Islamic and conventional banks, whereas capitalization is
relevant only for the Islamic banks. Findings of the study provide
important input for effective monetary policy implementation in
countries with increasing presence of the Islamic banks.
OI Kassim, Salina/0000-0002-7514-8750
Z8 0
ZB 0
ZS 0
ZR 0
ZA 0
TC 3
Z9 3
U1 0
U2 1
SN 1752-0843
EI 1752-0851
UT WOS:000450839400004
ER
PT J
AU Ayedh, Abdullah Mohammed
TI Shari'ah supervision in the Yemeni Islamic banks: a qualitative survey
SO QUALITATIVE RESEARCH IN FINANCIAL MARKETS
VL 7
IS 2
BP 159
EP 172
DI 10.1108/QRFM-06-2014-0017
PD 2015
PY 2015
AB Purpose - The purpose of this study is mainly to comprehensively
investigate the current practices of Islamic banks' Shari'ah supervisory
boards in the specific context of Yemen.
Design/methodology/approach - The study uses a qualitative approach in
the form of in-depth interviews of a number of Shari'ah scholars active
within the Yemeni Islamic banks.
Findings - The findings support the notion that Islamic banking still
lacks regulations and standards, as the Yemeni Islamic banks are still
following the minimum requirements and only apply the compulsory
standards. Another key finding is that Islamic banks in Yemen apply
similar principles in Fatwa issuance and Shari'ah compliance assurance,
especially in referring to the different Madzhabs' and scholars'
opinions because of the sensitivity of Yemeni community with regards to
the Shari'ah compliance aspect. Finally, the procedure of Shari'ah
review of the Islamic banks' operations varied from the typical set of
procedures to the loose ones in terms of the number of staff in the
Shari'ah audit department and the application of a comprehensive survey
or sampling to review the banks' transactions.
Originality/value - This study provides some valuable recommendations to
further enhance the Shari'ah supervisory practices not only in Yemen but
also in similar settings.
RI Echchabi, Abdelghani/Y-3220-2019; Echchabi, Abdelghani/AAU-4710-2020; Ahmed,
Abdullah/AAP-8235-2020
OI Echchabi, Abdelghani/0000-0001-7526-6418; Ahmed,
Abdullah/0000-0002-4894-1569
TC 4
Z8 0
ZR 0
ZS 0
ZB 0
ZA 0
Z9 4
U1 0
U2 2
SN 1755-4179
UT WOS:000214342200004
ER
PT J
AU Ben Khediri, Karim
Charfeddine, Lanouar
Ben Youssef, Slah
TI Islamic versus conventional banks in the GCC countries: A comparative
study using classification techniques
SO RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
VL 33
BP 75
EP 98
DI 10.1016/j.ribaf.2014.07.002
PD JAN 2015
PY 2015
AB This paper contributes to the empirical literature on Islamic finance by
investigating the feature of Islamic and conventional banks in Gulf
Cooperation Council (GCC) countries over the period 2003-2010. We use
parametric and non-parametric classification models (Linear discriminant
analysis, Logistic regression, Tree of classification and Neural
network) to examine whether financial ratios can be used to distinguish
between Islamic and conventional banks. Univariate results show that
Islamic banks are, on average, more profitable, more liquid, better
capitalized, and have lower credit risk than conventional banks. We also
find that Islamic banks are, on average, less involved in off-balance
sheet activities and have more operating leverage than their
conventional peers. Results from classification models show that the two
types of banks may be differentiated in terms of credit and insolvency
risk, operating leverage and off-balance sheet activities, but not in
terms of profitability and liquidity. More interestingly, we find that
the recent global financial crisis has a negative impact on the
profitability for both Islamic and conventional banks, but time shifted.
Finally, results show that Logit regression obtained slightly higher
classification accuracies than other models. (C) 2014 Elsevier B.V. All
rights reserved.
RI Charfeddine, Lanouar/F-2781-2014; Ben Khediri, Karim/
OI Charfeddine, Lanouar/0000-0003-4324-6644; Ben Khediri,
Karim/0000-0002-1629-7019
ZA 0
ZB 0
Z8 0
ZR 0
TC 37
ZS 0
Z9 37
U1 2
U2 7
SN 0275-5319
EI 1878-3384
UT WOS:000213221900006
ER
PT J
AU Derbali, Abdelkader
TI ISLAMIC BANKING DURING THE FINANCIAL CRISIS OF 2007
SO SERBIAN JOURNAL OF MANAGEMENT
VL 10
IS 1
BP 89
EP 108
DI 10.5937/sjm10-6402
PD 2015
PY 2015
AB The purpose of this paper is to initially contribute to the literature
linking the global financial crisis and performance of Islamic banks.
Thus, it is important for everyone's future to study the current crisis
in order to develop sustainable financial practices and in quest of a
new business model based on sharing the profit and loss. This
sustainable financial practice is based on non-interest-based
transactions but profit and loss sharing, which should be in practice at
the financial system. In this paper, the performance of the Islamic
banks in a period of crisis, were tested. The sample of 29 Islamic banks
from 7 countries and from a period of study of 7 years (2006-2012), was
used. According to the empirical results, it was concluded that the
Islamic banks are not affected by the financial crisis of 2007.
RI Derbali, Abdelkader/O-1287-2019
OI Derbali, Abdelkader/0000-0003-4098-3120
ZS 0
TC 0
ZR 0
ZB 0
ZA 0
Z8 0
Z9 0
U1 0
U2 0
SN 1452-4864
UT WOS:000443468500007
ER
PT J
AU Pok, Wee Ching
Omar, Normah
Sathye, Milind
TI An Evaluation of the Effectiveness of Anti-money Laundering and
Anti-terrorism Financing Legislation: Perceptions of Bank Compliance
Officers in Malaysia
SO AUSTRALIAN ACCOUNTING REVIEW
VL 24
IS 4
BP 394
EP 401
DI 10.1111/auar.12054
PD DEC 2014
PY 2014
AB The present study sought to ascertain the perceptions of anti-money
laundering and counter-financing of terrorism (AML/CFT) compliance
officers of banks in Malaysia in order to develop an understanding of
how well they understand the risks and how well they have implemented
the obligations imposed by the regime. We examine these issues for the
first time in the literature via the theory of crying wolf. A structured
questionnaire survey of compliance officers of banks in Malaysia was
followed by focus group discussions held at the Malaysian Institute of
Bankers. We expect that the industry would consider suitable steps to
improve the compliance culture, particularly in Islamic banks, and the
regulators would watch such banks more diligently. Banks considered
avoiding penalties, improving brand image and improving customer
perceptions to be the rationale for implementing the AML/CFT
legislation. Most conventional bank officers considered their
organisations' compliance culture to be high or very high, while this
was not found to be the case in Islamic banks.
OI Pok, Wee Ching/0000-0002-4792-8792; omar, normah/0000-0001-9393-9057
ZA 0
ZR 0
ZS 0
Z8 0
ZB 0
TC 4
Z9 4
U1 1
U2 42
SN 1035-6908
EI 1835-2561
UT WOS:000346470100008
ER
PT J
AU Zaki, Ahmad
Sholihin, Mahfud
Barokah, Zuni
TI The association of Islamic bank ethical identity and financial
performance: evidence from Asia
SO ASIAN JOURNAL OF BUSINESS ETHICS
VL 3
IS 2
BP 97
EP 110
DI 10.1007/s13520-014-0034-7
PD DEC 2014
PY 2014
AB This study aims to explore whether a discrepancy exists between the
ideal and communicated (disclosed) ethical identity of Islamic banks in
Asia and, further, whether there is any association of communicated
ethical identity with financial performance. To achieve the objectives,
the study analyses data derived from annual reports of Islamic banks in
Asia for the period 2006-2010. The results suggest that out of the seven
banks studied, three of them are above average and the rest suffer from
disparity between the ideal and communicated ethical identities.
Further, the study shows that the disclosure of a vision and mission
statement; board of directors and top management; zakah, charity, and
benevolent loans; and Shari'ah supervisory boards are negatively
associated with performance, while the disclosure of products and
services and commitment toward employees are positively associated with
performance.
ZA 0
ZR 0
ZB 0
TC 5
ZS 0
Z8 0
Z9 5
U1 0
U2 0
SN 2210-6723
EI 2210-6731
UT WOS:000218721700001
ER
PT J
AU Widana, Gusti Ngurah Oka
Toha, Mohamad
TI Measuring Islamic Business Ethics Within Indonesia Islamic Banks
VL 4
IS 2
BP 5
EP 15
PD DEC 2014
PY 2014
AB The business characteristic of Islamic banks is the implementation of
Islamic business ethics. Parallel with the trend of increasing
preference to ethical institution, Islamic banks should put this as its
competitive edge toward its competitor conventional competitor banks.
However, only few previous studies discussed about the implementation of
Islamic business ethics within Islamic banks and none suggested how to
measure such implementation. This paper is a study of the literature on
ethics and Islamic business ethics as the first step in developing a
measurement tool of Islamic business ethics implementation within
Islamic banks. This paper synthesizes the dimensions of Islamic business
ethics that is excavated from the Quran and Sunna, being proposed by
previous studies. There are seven dimensions, namely unity of God,
benevolence, justice and equity, sincere, equilibrium, trusteeship and
responsibility. Subsequently, this paper outlines these dimensions into
21 items. The opportunity of future empirical study is recommended at
the end of this paper.
Z8 0
TC 1
ZB 0
ZR 0
ZS 0
Z9 1
U1 0
U2 0
SN 2232-0474
EI 2232-0482
UT WOS:000435239700001
ER
PT J
AU Panah, Hadi Ghafoorian Yavar
Ahmadanuar, Melati
Norhan, Nik Intan
TI Inputs and Outputs in Islamic Banking System
SO IRANIAN JOURNAL OF MANAGEMENT STUDIES
VL 7
IS 1
BP 175
EP 188
DI 10.22059/ijms.2014.36207
PD WIN 2014
PY 2014
AB Evaluation of performance and productivity is among the fundamental
concepts in management. In order to achieve their goals, organizations
must evaluate their performance. One of the important stages of
performance appraisal is evaluation of organization's efficiency. Banks,
financial and credit institutions are among the most important
organizations of every economic system, because every activity which
entails asset acquisition and financial resources undoubtedly requires
mediation of banks and financial organizations. One of the most vital
issues in banks' efficiency evaluation is identification of input and
output variables. Identification of these variables helps to create an
appropriate model in order to evaluate the efficiency. The purpose of
this paper is clarifying of the importance of the input and output in
Islamic banking with the use of the content analysis method. In this
paper various approaches that were selected by researchers are reviewed
and classified. Then the input and output variables in the Islamic
banking is analyzed. The result show that the intermediation approach is
the acceptable approach among scholars furthermore, labors and deposits
are best inputs while, loans and investment are best outputs.
Z8 0
TC 1
ZR 0
ZB 0
ZA 0
ZS 0
Z9 1
U1 0
U2 0
SN 2008-7055
UT WOS:000215290200008
ER
PT J
AU Hussain, Mareem
TI Performance and Potential of Islamic Finance: A Contextual Study in the
UK
SO JOURNAL OF SHIA ISLAMIC STUDIES
VL 7
IS 4
BP 441
EP 510
DI 10.1353/isl.2014.0038
PD FAL 2014
PY 2014
AB During the last twenty years there has been increased global awareness
of Islamic finance and extraordinary growth worldwide. Even in the wake
of the global unrest currently experienced by financial markets, Islamic
financial institutions maintained their stability and showed resistance.
Additionally, they are reported to be gaining significant momentum even
in non-Muslim countries, with the United Kingdom leading the way. This
research paper highlights the performance of Islamic banks in the UK and
examines individual customer views towards Islamic finance in order to
place in context its future prospects. These twin research aims were met
by means of an extensive review of relevant literature, a financial
ratio analysis, and a survey questionnaire. The findings underline that
Islamic banks slightly underperformed conventional banks, but were
nonetheless growing at a faster rate. Additionally, customers showed
considerable acceptance towards Islamic Banking, particularly those with
an Islamic background. The main conclusion to be drawn is that Islamic
finance displays positive future prospects, positing a suitable
alternative to the conventional system, particularly during times of
financial crisis.
ZA 0
Z8 0
ZS 0
ZR 0
TC 2
ZB 0
Z9 2
U1 0
U2 23
SN 1748-9423
UT WOS:000349584300003
ER
PT J
AU Ghosh, Saibal
TI Risk, capital and financial crisis: Evidence for GCC banks
VL 14
IS 3
BP 145
EP 157
DI 10.1016/j.bir.2014.06.003
PD SEP 2014
PY 2014
AB Employing data on over 100 GCC banks for 1996-2011, we test the relation
between risk and capital. Given the interlinkage between these two
variables, the model employs a 3SLS estimation that takes on board this
simultaneity. Consistent with the literature, risk is measured by the
Z-score, while capital is computed as the ratio of equity to asset. The
findings indicate that banks generally increase capital in response to
an increase in risk, and not vice versa. Second, there is an uneven
impact of regulatory pressure and market discipline on banks attitude
toward risk and capital. Additionally, Islamic banks increased their
capital as compared to conventional banks. Besides, the evidence
testifies to the fact that banks with higher dependence on wholesale
funds and less diversified income profile have higher risk. Copyright
(C) 2014, Borsa Istanbul Anonim Sirketi. Production and hosting by
Elsevier B.V.
RI Ghosh, Saibal/M-2476-2019
TC 26
ZB 0
Z8 0
ZR 0
ZA 0
ZS 1
Z9 27
U1 0
U2 0
SN 2214-8450
EI 2214-8469
UT WOS:000434507000002
ER
PT J
AU Berg, Nathan
Kim, Jeong-Yoo
TI Prohibition of Riba and Gharar: A signaling and screening explanation?
SO JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
VL 103
SI SI
BP S146
EP S159
DI 10.1016/j.jebo.2014.02.016
PD JUL 2014
PY 2014
AB The emergence of Islamic Banks (IBs) with Sharia boards that restrict
the set of permissible products and enforce prohibition of riba and
gharar raises basic questions about how IB clients benefit when choosing
from a restricted menu of possibly higher-cost cash flows. Norms that
restrict choice sets, or impose otherwise harsh requirements, would seem
to act as a barrier to religious identification by raising costs for IB
clients. Contrary to this intuition, our model demonstrates that premium
costs associated with restrictions on the set of financing options
considered to be Sharia-compliant provide a signaling and screening
technology that benefits IB clients who are highly pious. By revealing
what would otherwise remain private information about the intensity of
religious piety, this signaling technology simultaneously provides a
screening service that enables high-piety types to separate themselves
and concentrate both social and commercial interactions with others who
are similarly pious. Iannaccone (1992) demonstrates a rationale for
harsh norms as a mechanism for reducing free-riding in the supply of
club goods. In contrast, our model shows that piety can be signaled by
the act of choosing to become an IB client and bearing the costs of its
restricted choice set and premium pricing for otherwise identical cash
flows. Signaling and screening provide a new rationalization for
prohibition of riba and gharar as a stable institution. Signaling piety
is especially valuable in environments where piety is uncertain and
otherwise difficult for others to observe. The model predicts that IBs'
Sharia-compliance criteria will tend to be stricter and IB premiums
larger in places where the proportion of highly pious Muslims is small.
(C) 2014 Elsevier B.V. All rights reserved.
ZB 0
ZR 0
ZA 0
ZS 0
TC 8
Z8 0
Z9 8
U1 1
U2 25
SN 0167-2681
EI 1879-1751
UT WOS:000340017900010
ER
PT J
AU Elnahass, Marwa
Izzeldin, Marwan
Abdelsalam, Omneya
TI Loan loss provisions, bank valuations and discretion: A comparative
study between conventional and Islamic banks
VL 103
SI SI
BP S160
EP S173
DI 10.1016/j.jebo.2013.08.018
PD JUL 2014
PY 2014
AB This study investigates the use of reported loan loss provisions (LLP)
by investors in their valuations of banks within the Middle East and
North Africa region between the years 2006 and 2011. We decompose LLP
into discretionary and non-discretionary components to test for
differential valuations in the two banking sectors. We use alternative
criteria to define the components of LLP in banks: loan quality/size and
earnings management/manipulation incentives. We employ a price-level
valuation model estimated using two-stage analyses. We find that LLP has
positive value relevance to investors in both banking sectors. Investors
in Islamic banks price the discretionary component relatively lower than
their conventional counterparts. We attribute this result to differences
in product and governance structures as well as to the religious
perception of Islamic banking. In both banking sectors, investors
construe an increase in the non-discretionary component as irrelevant
valuation information. Our results are relevant to bank regulators in
showing the signalling effect of LLP to bank value and stability. (C)
2013 Elsevier B.V. All rights reserved.
OI Elnahass, Marwa/0000-0002-8809-4165
Z8 0
ZS 0
ZA 0
TC 32
ZB 0
ZR 0
Z9 32
U1 2
U2 45
SN 0167-2681
EI 1879-1751
UT WOS:000340017900011
ER
PT J
AU Johnes, Jill
Izzeldin, Marwan
Pappas, Vasileios
TI A comparison of performance of Islamic and conventional banks 2004-2009
VL 103
SI SI
BP S93
EP S107
DI 10.1016/j.jebo.2013.07.016
PD JUL 2014
PY 2014
AB We compare the efficiency of Islamic and conventional banks during the
period 2004-2009 using data envelopment analysis (DEA) and meta-frontier
analysis (MFA). The use of the non-parametric MFA allows for the
decomposition of gross efficiency (i.e. the efficiency of banks when
measured relative to a common frontier) into 2 components: net
efficiency (the efficiency of banks measured relative to their own bank
type frontier) and type efficiency (the efficiency which relates to
modus operandi). This approach is new to the Islamic banking literature.
The analysis is performed in two stages. The first stage employs DEA and
MFA to compare banks on the basis of gross efficiency and its components
(net and type). We find that Islamic banks are typically on a par with
conventional ones in terms of gross efficiency, significantly higher on
net efficiency and significantly lower on type efficiency. Second stage
analyses, which account for banking environment and bank-level
characteristics, confirm these results. The low type efficiency of
Islamic banks could be attributed to lack of product standardization
whereas high net efficiency reflects high managerial capability in
Islamic banks. These findings are relevant to both policy-makers and
regulators. In particular, Islamic banks should explore the benefits of
moving to a more standardized system of banking, while the
underperformance of conventional bank managers could be examined in the
context of the on-going remuneration culture. (C) 2013 Elsevier B.V. All
rights reserved.
OI Pappas, Vasileios/0000-0003-1885-4832; Johnes, Jill/0000-0002-1607-1810
ZS 2
Z8 0
ZB 2
ZR 1
TC 91
ZA 0
Z9 93
U1 8
U2 62
SN 0167-2681
EI 1879-1751
UT WOS:000340017900007
ER
PT J
AU Mallin, Christine
Farag, Hisham
Ow-Yong, Kean
TI Corporate social responsibility and financial performance in Islamic
banks
VL 103
SI SI
BP S21
EP S38
DI 10.1016/j.jebo.2014.03.001
PD JUL 2014
PY 2014
AB This paper examines the relationship between corporate social
responsibility (CSR) and financial performance in Islamic banks. Using a
comprehensive CSR index covering ten dimensions, we analyse the CSR
disclosures in a sample of 90 Islamic banks across 13 countries. The CSR
disclosure index shows that Islamic banks engage across the range of
social activities, both as individual banks and as countries. However
Islamic banks seem to show more commitment to the vision and mission,
the board and top management, and the financial product/services
dimensions, whilst least attention is paid to the environment dimension.
Islamic banks also show a considerable awareness of the mandatory
disclosure recommendations of the Accounting and Auditing Organisation
for Islamic Financial Institutions (AAOIFI) however, they pay less
attention to the voluntary CSR disclosure. Moreover, we find a
pronounced emphasis in Islamic banks strategy towards more universal
disclosures, suggesting the legitimacy of these banks is reinforced
through disclosure to the wider stakeholder community. The empirical
analysis highlights a positive association between CSR disclosure and
financial performance. We also find a positive and highly significant
association between the Shari'ah supervisory board (SSB) size and CSR
disclosure index. Finally, the results of the three-stage least squares
estimation show that the causality between the two endogenous variables
runs from financial performance to CSR disclosure. Thus CSR disclosure
is determined by financial performance. (C) 2014 Elsevier B.V. All
rights reserved.
ZS 1
ZA 2
Z8 1
TC 81
ZB 1
ZR 0
Z9 85
U1 6
U2 95
SN 0167-2681
EI 1879-1751
UT WOS:000340017900003
ER
PT J
AU Shaban, Mohamed
Duygun, Meryem
Anwar, Mokhamad
Akbar, Bahrullah
TI Diversification and banks' willingness to lend to small businesses:
Evidence from Islamic and conventional banks in Indonesia
VL 103
SI SI
BP S39
EP S55
DI 10.1016/j.jebo.2014.03.021
PD JUL 2014
PY 2014
AB This is the first study to provide a comprehensive analysis of banks'
willingness to lend to small businesses (SBs) by differentiating between
conventional and Islamic banks' behaviour in Indonesia. In our initial
analysis we examine the determinants of banks' willingness to lend to
SBs and in the second part we investigate the Granger-causes of
diversification towards SB lending and banks' efficiency and ex-post
risk. Our results reveal that large banks are less interested in SB
lending compared to small banks. Profitability is an important
determinant for Indonesian banks to lend to SBs. Islamic banks, however,
benefit more from lending to SBs given the substantial improvement in
their net interest margin and lower capital compared to conventional
banks. Our findings signal overpricing behaviour by Islamic banks,
represented by a relatively high unadjusted rate of return given the
risk exposure of their products. It is also evident that Islamic banks'
managers seem to hold less capital, counting on the benefits of
portfolio diversification towards SBs lending. As expected the moral
hazard hypothesis is only evident for Islamic banks in terms of loan and
income portfolio diversification. (C) 2014 Elsevier B.V. All rights
reserved.
OI Anwar, Mokhamad/0000-0003-2641-7667; Duygun, Meryem/0000-0002-1112-0898;
Shaban, Mohamed/0000-0002-6939-113X
ZS 0
TC 31
ZB 0
Z8 0
ZA 0
ZR 0
Z9 31
U1 0
U2 23
SN 0167-2681
EI 1879-1751
UT WOS:000340017900004
ER
PT J
AU Karim, Mastura Abdul
Hassan, M. Kabir
Hassan, Taufiq
Mohamad, Shamsher
TI Capital adequacy and lending and deposit behaviors of conventional and
Islamic banks
VL 28
SI SI
BP 58
EP 75
DI 10.1016/j.pacfin.2013.11.002
PD JUN 2014
PY 2014
AB Capital adequacy plays an important role in determining banking
activities. A bank must hold a minimum level of capital to ensure
sufficient funds to buffer against unexpected losses or adverse shocks.
This study analyzes and compares Islamic and conventional banks in 14
Organization of Islamic Conference (OIC) countries from 1999 to 2009.
The empirical evidence suggests that capital requirements have a
significant impact on the deposit and lending behaviors of the 52
Islamic banks (IBs) and 186 conventional banks (CBs) in the sample.
There is a strong positive relationship between capital requirements and
deposit and loan growth for both IBs and CBs. (C) 2013 Published by
Elsevier B.V.
Z8 0
ZR 0
TC 24
ZB 0
ZS 0
ZA 0
Z9 24
U1 1
U2 28
SN 0927-538X
EI 1879-0585
UT WOS:000338394600005
ER
PT J
AU Rosman, Romzie
Abd Wahab, Norazlina
Zainol, Zairy
TI Efficiency of Islamic banks during the financial crisis: An analysis of
Middle Eastern and Asian countries
VL 28
SI SI
BP 76
EP 90
DI 10.1016/j.pacfin.2013.11.001
PD JUN 2014
PY 2014
AB The world economy is still suffering from the severe global financial
crisis that caused the failure of several banks. This has encouraged
economists worldwide to consider alternative financial solutions and
attention has been focused on Islamic banking and finance as an
alternative model. Hence, this study examines the efficiency level of
Islamic banks during the financial crisis specifically in Middle Eastern
and Asian countries from 2007 to 2010. Moreover, bank-specific and risk
factors were examined to understand the determinants of efficiency. The
efficiency of Islamic banks is measured using data envelopment analysis
by adopting the intermediation approach. The financial information is
extracted from BankScope database for a four year period (2007-2010)
which includes 79 Islamic banks across a number of countries. The study
also critically analyses pure technical efficiency and scale efficiency
of the Islamic banks in Middle Eastern and Asian countries and estimates
their return to scale. The findings explain that Islamic banks were able
to sustain operations through the crisis. However, the study also shows
that the majority of these Islamic banks were scale inefficient. Most of
the scale inefficient banks were operating at decreasing returns to
scale. This study also found that both profitability and capitalisation
were the main determinants of Islamic banking efficiency. Hence, the
findings of this study have policy implications and make a contribution
to policy-making by providing empirical evidence on the performance of
the Islamic banks and their efficiency levels. (C) 2013 Elsevier B.V.
All rights reserved.
OI ZAINOL, ZAIRY/0000-0002-4025-166X
TC 59
Z8 0
ZA 0
ZS 0
ZB 0
ZR 0
Z9 59
U1 1
U2 42
SN 0927-538X
EI 1879-0585
UT WOS:000338394600006
ER
PT J
AU Farook, Sayd
Hassan, M. Kabir
Clinch, Gregory
TI Islamic bank incentives and discretionary loan loss provisions
VL 28
SI SI
BP 152
EP 174
DI 10.1016/j.pacfin.2013.12.006
PD JUN 2014
PY 2014
AB The objective of this paper is to ascertain whether there are
significant differences in the loan loss provisioning behaviour of
Islamic banks as compared to conventional banks. We proposed that loan
loss provisioning will be linked to the extent of profit distribution
management The results suggest that Islamic banks consistently record
lower loan loss provisions. However, the association between profit
distribution management and loan loss provisioning is mixed. The overall
results tend to suggest that there is an inverse relationship between
profit distribution management and loan loss provisions. The results
also suggest that there are differential effects depending on whether
the profit distribution management is for the benefit or the detriment
of investment depositors. If there is a surplus of asset returns over
profit distributions (positive profit distribution management), it is
observed that Islamic banks increase their loan loss provisions.
However, this result does not extend to the full sample containing both
Islamic and conventional banks. Further, there is no effect where the
profit distribution management is for the benefit of investment
depositors. (C) 2013 Elsevier B.V. All rights reserved.
RI Clinch, Greg/J-4402-2014
OI Clinch, Greg/0000-0002-8698-7517
Z8 0
ZS 0
ZR 0
ZA 0
ZB 0
TC 15
Z9 15
U1 1
U2 16
SN 0927-538X
EI 1879-0585
UT WOS:000338394600011
ER
PT J
AU Abdul-Rahman, Aisyah
Latif, Radziah Abdul
Muda, Ruhaini
Abdullah, Muhammad Azmi
TI Failure and potential of profit-loss sharing contracts: A perspective of
New Institutional, Economic (NIE) Theory
VL 28
SI SI
BP 136
EP 151
DI 10.1016/j.pacfin.2014.01.004
PD JUN 2014
PY 2014
AB This paper theoretically evaluates why profit-loss sharing (PLS)
contracts in Islamic banking fails and its potential for improvement
within the scope of the New Institutional Economic Theory (NIE). The
objective of the evaluation is to draw conclusive theoretical arguments
of whether Islamic banking institutions in Malaysia should act as either
financial intermediaries or entrepreneurs. Further, we analyze this
issue from the perspective of agency theory, financial intermediation
theory and entrepreneurship theory with four economic agents in the
Islamic banking sector, namely entrepreneurs, depositors, shareholders,
and the Islamic banks. Specifically, the first three economic agents
represent the asset (equity-based financing), liability, and equity of
the Islamic banks, respectively; while the latter is the Islamic banks,
which act as a separate legal entity. Finally, we suggest that PLS
contracts would best be positioned if Islamic banks play the role of
genuine entrepreneurs. (C) 2014 Elsevier B.V. All rights reserved.
RI Abdul-Rahman, Aisyah/H-7345-2016; MUDA, RUHAINI/
OI Abdul-Rahman, Aisyah/0000-0001-8347-2705; MUDA,
RUHAINI/0000-0002-2329-609X
ZR 0
TC 23
ZS 0
ZB 0
ZA 0
Z8 0
Z9 23
U1 1
U2 24
SN 0927-538X
EI 1879-0585
UT WOS:000338394600010
ER
PT J
AU Basov, Suren
Bhatti, M. Ishaq
TI On Sharia'a-compliance, positive assortative matching, and return to
investment banking
SO JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY
VL 30
BP 191
EP 195
DI 10.1016/j.intfin.2013.12.010
PD MAY 2014
PY 2014
AB In their recent paper Derigs and Marzban (2009) argued that
Sharia'a-compliant strategies result in much lower portfolio performance
than the conventional strategies. The main reason for their argument is
of Sharia'a-compliance limits on the set of admissible investments.
However, in the world of imperfect financial markets such a limitation
may also have some beneficial consequences. We therefore, assume that a
net disadvantage caused by such limitations is relatively small, but is
magnified by equilibrium hiring strategies, which match Islamic banks
with employees who have a lower average level of human capital. (C) 2014
Elsevier B.V. All rights reserved.
RI Bhatti, M.Ishaq/B-5489-2015
OI Bhatti, M.Ishaq/0000-0002-5027-7871
ZR 0
ZB 0
Z8 0
ZA 0
ZS 0
TC 11
Z9 11
U1 0
U2 15
SN 1042-4431
UT WOS:000334301500010
ER
PT J
AU Abd Majid, M. Shabri
Musnadi, Said
Putra, Indra Yadi
TI A Comparative Analysis of the Quality of Islamic and Conventional Banks'
Asset Management in Indonesia
VL 16
IS 2
BP 185
EP 200
DI 10.22146/gamaijb.5463
PD MAY-AUG 2014
PY 2014
AB This research empirically and comparatively examines the quality of
conventional and Islamic banks' asset management in Indonesia during the
period 2009-2011. Four general conventional banks [i.e., Bank Mandiri
Indonesia (BMI), Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA),
and Bank Nasional Indonesia (BNI)] and four Islamic banks (Bank
Muamalat, Bank Syariah Mandiri, Bank Syariah Mega Indonesia, and Bank
Syariah BRI) were, respectively, explored. Specifically, the purpose of
this study is to compare the quality of the Islamic and conventional
banks' asset management with the CAMEL (capital, asset, management,
earning, and liquidity) method. It also attempts to analyse the
influences of the ROA (Return on Asset), TLTA (Total Loan to Total
Assets), and OITL (Operating Income to Total Liabilities) on the quality
of the banks' asset management. The CAMEL method was used to evaluate
the quality level of the banks' asset management, while the multiple
regression analysis was then adopted to explore the determinants of the
quality of the banks' asset management. The study documented that Bank
Syariah BRI was the best performing bank, with the highest CAMEL score
of 50.33, while Bank Mandiri Indonesia was the worst performer with the
lowest CAMEL score of 26.33. As a group, the Islamic banks were found to
have better rankings, i.e., positions 1, 2, 3, and 6, while the
conventional banks were found in 4, 5, 7, and 8, respectively. The study
proved that the Islamic banks have a better asset management quality
compared to their conventional counterparts. The Islamic banks were also
proved to be better able to withstand the risks, particularly the
financing risk.
RI Majid, M. Shabri Abd./S-9038-2016
OI Majid, M. Shabri Abd./0000-0003-3558-8783
ZS 0
ZA 0
ZR 0
TC 2
ZB 0
Z8 0
Z9 2
U1 0
U2 0
SN 1411-1128
EI 2338-7238
UT WOS:000436745000005
ER
PT J
AU Ullah, Shakir
Jamali, Dima
Harwood, Ian A.
TI Socially responsible investment: insights from Shari'a departments in
Islamic financial institutions
SO BUSINESS ETHICS-A EUROPEAN REVIEW
VL 23
IS 2
BP 218
EP 233
DI 10.1111/beer.12045
PD APR 2014
PY 2014
AB Islamic financial institutions (IFIs) are emerging as prominent players
in the financial world and are increasingly known for their conservative
socially responsible investment (SRI). Being the Shari'a regulators and
monitors of IFIs, the Shari'a departments are expected to implement the
Islamic perspective of SRI - drawn from Shari'a principles - in their
respective institutions. The purpose of this paper is to develop an SRI
framework applicable to IFIs and other Shari'a compliant entities and
assess its applicability within Shari'a departments of two Islamic
banks. This paper involves cross-case analysis based on interviews with
Shari'a department officials in two settings differentiated by their
respective independence. The proposed framework consists of required,
expected and desired SRI aspects as applicable to IFIs. The findings
reveal that the required aspects are uniformly observed by the two
cases. There are, however, variations when it comes to observing the
expected and desired ethical SRI aspects that may be driven by the
independence of the Shari'a boards. This inconsistency and non-adherence
of expected and desired aspects may lead to reputational risks in the
long run.
RI Harwood, Ian/O-9917-2016; Ullah, Shakir/AAD-9337-2019
OI Harwood, Ian/0000-0002-8647-2169;
ZR 0
ZS 0
ZA 0
Z8 0
ZB 0
TC 28
Z9 28
U1 0
U2 38
SN 0962-8770
EI 1467-8608
UT WOS:000332148400007
ER
PT J
AU Alam, Nafis
TI Regulations and bank risk taking in dual banking countries
VL 15
IS 2
BP 105
EP 116
DI 10.1057/jbr.2012.15
PD APR 2014
PY 2014
AB This study investigates the linkages between the banking regulatory and
supervisory structures associated with the pillars of Basel III and the
risk taking of banks. Given a well-established set of theoretical
priors, the regulations considered in this study are official
supervisory power, capital requirements, private monitoring and
restrictions on bank activities. The analysis focuses on the dual
banking system over the period 2006-2010. Our results suggest that
higher capital requirements induce a lower level of risk behaviours for
both conventional and Islamic banks. We observed the opposite effect in
the case of restrictions on bank activities; higher restrictions had a
positive influence on the risk-taking behaviour of conventional banks,
whereas they reduced the level of riskiness of Islamic banks. Finally,
official supervisory power has an insignificant negative impact on the
risk-taking behaviour of both Islamic banks and conventional banks.
RI Alam, Nafis/D-5071-2014
OI Alam, Nafis/0000-0002-7096-3692
ZB 0
ZR 0
ZA 0
TC 2
Z8 0
ZS 0
Z9 2
U1 0
U2 0
SN 1745-6452
EI 1750-2071
UT WOS:000213051700001
ER
PT J
AU Aldohni, Abdul Karim
TI Soft law, self-regulation and cultural sensitivity: The case of
regulating Islamic banking in the UK
VL 15
IS 2
BP 164
EP 179
DI 10.1057/jbr.2013.18
PD APR 2014
PY 2014
AB The Islamic banking sector has grown significantly over the last three
decades and reached many international financial markets. As their name
suggests Islamic banks are governed by the rules of Islamic law
(Sharia). The Sharia compliance requirement has its implication on the
nature of Islamic banks' operations. The prohibition of interest
prevents Islamic banks from using conventional financial products.
Instead, Islamic financial products are based on the principle of
profit-loss sharing. Therefore, the Islamic feature of these banks has
brought certain regulatory challenges. This article is concerned with
the UK Islamic retail banking market and it focuses on the role of soft
law and self-regulation in minimising these regulatory challenges.
TC 0
ZB 0
ZS 0
ZR 0
Z8 0
ZA 0
Z9 0
U1 0
U2 0
SN 1745-6452
EI 1750-2071
UT WOS:000213051700005
ER
PT J
AU Gaither, T. Kenn
Al-Kandari, Ali Jamal
TI The cultural-economic model and public relations in the Middle East: An
examination of the Islamic banking system in Kuwait
SO PUBLIC RELATIONS REVIEW
VL 40
IS 1
BP 33
EP 41
DI 10.1016/j.pubrev.2013.11.003
PD MAR 2014
PY 2014
AB This article adopts the cultural-economic model of public relations
practice to analyze the communications through the websites of three
prominent Islamic banks in Kuwait. The analysis extrapolates Islamic
value orientations including respect for religious authority, affinity
with the past, fatalism, communal kinship, attachment to the eternal
life and spirituality and idealism. The orientations are then examined
relative to public relations practice in the Middle East. The study
advances the understanding of Islam and public relations in the Middle
East, an understudied region in public relations literature, and
illuminates the relationship between religion and public relations. It
concludes with observations to guide public relations projects directed
toward Muslims in the Middle East for professionals and scholars. (C)
2013 Elsevier Inc. All rights reserved.
ZR 0
ZA 0
Z8 0
ZB 0
TC 11
ZS 0
Z9 11
U1 0
U2 21
SN 0363-8111
EI 1873-4537
UT WOS:000331506400005
ER
PT J
AU Weill, Laurent
Godlewski, Christophe
TI Why Do Large Firms Opt for Islamic Loans?
SO COMPARATIVE ECONOMIC STUDIES
VL 56
IS 1
BP 132
EP 153
DI 10.1057/ces.2013.26
PD MAR 2014
PY 2014
AB This paper examines the motivations for large firms to choose an Islamic
loan over a conventional loan and the recent expansion of Islamic
finance activities. We employ a dataset of Islamic and conventional
syndicated loans from countries in the Middle East and Southeast Asia
for the period 2001-2009, testing determinants for the choice of an
Islamic loan at the facility, firm, and country level. From the lender's
standpoint, loan characteristics apparently do not influence the
decision to offer Islamic loans nor are they rationed to borrowers in
terms of maturity or amount. Moreover, firms taking Islamic loans do not
appear to differ in terms of default risk from firms taking conventional
loans. We identify three country-level determinants as potential driving
forces expanding the preference for Islamic loans. The strongest
determinant is the share of Muslim population in a country, but the
quality of institutions and level of financial development also play
substantial roles.
RI Godlewski, Christophe/D-1830-2014; Weill, Laurent/
OI Godlewski, Christophe/0000-0002-1391-1108; Weill,
Laurent/0000-0002-8630-1351
ZB 0
ZS 0
ZR 0
Z8 0
ZA 0
TC 1
Z9 1
U1 0
U2 0
SN 0888-7233
EI 1478-3320
UT WOS:000210796700007
ER
PT J
Nordin, Bany Ariffin Amin
Muhammad, Junaina
Hamid, Mohamad Ali Abdul
TI Cost, Revenue and Profit Efficiency of Islamic and Conventional Banking
Sector: Empirical Evidence from Gulf Cooperative Council Countries
VL 15
IS 1
BP 1
EP 24
DI 10.1177/0972150913515579
PD MAR 2014
PY 2014
AB This article examines the cost, revenue and profit efficiency levels of
74 banks (47 conventional and 27 Islamic banks) in Gulf Cooperative
Council (GCC) countries over the periods 2007 to 2011. The level of
efficiencies was measured using Data Envelopment Analysis (DEA) method
which applied the intermediation approach. We find that, revenue
efficiency seems to play the main factor leading to the lower or higher
profit efficiency levels. In essence, the higher revenue efficiency only
affects a higher profit efficiency levels in Islamic banks. However, the
profit efficiency on conventional banks will not be affect by the higher
revenue efficiency levels since the result shows the level of profit
efficiency is lower than cost efficiency due to the higher revenue
efficiency. In addition, the result of this study also shows that they
are statistically significant difference on cost, revenue and profit
efficiency between Islamic and conventional banks in GCC countries. The
findings of this study are expected to contribute significantly to the
existing knowledge on the operating performance of the GCC Islamic and
conventional banking sector, bank's specific management, policy makers
and may also facilitate directions for sustainable competitiveness of
the GCC Islamic and conventional banking sector operations in the
future.
ZB 0
ZS 1
ZA 0
TC 27
ZR 0
Z8 0
Z9 28
U1 0
U2 0
SN 0972-1509
EI 0973-0664
UT WOS:000415437100001
ER
PT J
AU Schottmann, Sven Alexander
TI From duty to choice: marketing Islamic banking in Malaysia
SO SOUTH EAST ASIA RESEARCH
VL 22
IS 1
BP 57
EP 72
DI 10.5367/sear.2014.0189
PD MAR 2014
PY 2014
AB A content analysis of print advertisements and customer websites of
Islamic banks in Malaysia, this paper examines the changing marketing
and branding landscape of Islamic banking products and financial
services. When Islamic banks were first set up in Malaysia in the early
1980s, their advertising material emphasized the religious obligations
of Muslims to save and invest with shari'a-compliant financial products
and services. Amid the ongoing liberalization of Malaysia's Islamic
banking sector since the mid-1990s, a transformation of this marketing
strategy appears to have taken place. Islamic banks no longer emphasize
a priori the religious imperatives or even the ethical principles that
underlie their business model. Rather, they tend to stress that banking
according to the principles of the shari'a is an economically rational
alternative to the conventional system. Islamic banks in Malaysia
portray themselves not simply as Islamic banks, but as better, more
profitable and safer alternatives to the crisis-prone conventional,
interest-based banking sector. This paper examines this transformation,
and seeks to relate the three broad trends it has identified in the
advertisement of Islamic banking services to the wider socio-cultural,
economic and political changes that have been under way in Malaysia
since the late 1960s.
TC 1
Z8 0
ZR 0
ZA 0
ZS 0
ZB 0
Z9 1
U1 0
U2 9
SN 0967-828X
EI 2043-6874
UT WOS:000333618200004
ER
PT J
AU Mobarek, Asma
Kalonov, Alovaddin
TI Comparative performance analysis between conventional and Islamic banks:
empirical evidence from OIC countries
VL 46
IS 3
BP 253
EP 270
DI 10.1080/00036846.2013.839863
PD JAN 22 2014
PY 2014
AB This article investigates the performance of Islamic (IBs) versus
conventional banks (CBs) around the recent financial crisis in 18 OIC
(Organization of Islamic Conference) countries. The study primarily
employs two dominant frontier approaches of efficiency measurement in
banking literature. The study also estimates the soundness score of the
banks by using Z-score methodology and attempts to explore the
relationship between efficiency and financial stability of banks. The
results based on the data envelopment analysis (DEA) and stochastic
frontier analysis (SFA) approaches report that CBs are more efficient
than their Islamic counterparts. On the contrary, Z-score reports that
IBs were financially more stable than CBs. However, the dominance of IBs
has been drastically lost afterwards. This might be originated by the
decrease of Z-score of IBs in Bahrain, Kuwait and UAE, which were found
as main front-runners among IBs in terms of financial stability. To the
best of authors' knowledge, it is the first study that examines the
efficiency of IBs versus CBs using two different frontier efficiency
analyses and collates the result of frontier efficiency methods with
stability indicator. The practical implication of the findings for IBs
is to explore additional investment opportunity and for CBs is to uphold
more financial stability.
ZR 0
TC 21
ZB 0
ZA 0
Z8 0
ZS 0
Z9 21
U1 1
U2 51
SN 0003-6846
EI 1466-4283
UT WOS:000326370000001
ER
PT B
AU Incekara, Ahmet
Tatoglu, Ferda Yerdelen
Ustaoglu, Murat
BE Ustaoglu, M
Incekara, A
TI Modeling Islamic Finance and Inclusive Growth for Emerging Markets:
Evidence and Roadmap of Turkey and
SO ISLAMIC FINANCE ALTERNATIVES FOR EMERGING ECONOMIES: EMPIRICAL EVIDENCE
FROM TURKEY
SE Palgrave Pivot
BP 74
EP 95
DI 10.1057/9781137413307.0011
PD 2014
PY 2014
AB This study evaluates the capacity of Islamic finance to address the
current financial problems and its ability to offer an alternative model
and solutions. Specifically, one primary goal of this study is to offer
a rational answer to whether Islamic finance could play a role in the
global economy and serve as a valuable alternative to the conventional
financial and banking systems in emerging markets like Turkey and
Malaysia. This study analyzes the evolution of participation banks, also
referred to as Islamic banks, in Turkey and the rationality of the
political goals set by the government. The literature on the linkage
between financial development and economic growth will also be
evaluated. The study will finally discuss the contribution of Islamic
finance in Turkey and Malaysia to economic growth.
RI Ustaoglu, Murat/AAC-8012-2020; /AAD-1910-2020; Incekara, Ahmet/AAC-7739-2020;
Incekara, Ahmet/
OI Ustaoglu, Murat/0000-0002-1829-8349; Incekara, Ahmet/0000-0003-0224-2006
Z8 0
ZR 0
ZA 0
ZS 0
ZB 0
TC 0
Z9 0
U1 0
U2 0
BN 978-1-137-41331-4; 978-1-137-41330-7; 978-1-137-41328-4
UT WOS:000343296100006
D2 10.1057/9781137413307
ER
PT B
AU Kumar, Rajesh
BA Kumar, R
TI CASES ON ISLAMIC BANKS
SO STRATEGIES OF BANKS AND OTHER FINANCIAL INSTITUTIONS: THEORIES AND CASES
BP 505
EP 515
PD 2014
PY 2014
Z8 0
ZR 0
TC 0
ZB 0
ZS 0
Z9 0
U1 0
U2 0
BN 978-0-12-417167-1; 978-0-12-416997-5
UT WOS:000341031300021
ER
PT B
AU Abdelhady, Hdeel
BE Cisse, H
Menon, NRM
Segger, MCC
Nmehielle, VO
TI Specialized Insolvency Regimes for Islamic Banks Regulatory Prerogative
and Process Design
SO WORLD BANK LEGAL REVIEW, VOL 5: FOSTERING DEVELOPMENT THROUGH
OPPORTUNITY, INCLUSION, AND EQUITY
BP 127
EP 146
PD 2014
PY 2014
ZB 0
ZA 0
Z8 0
ZR 0
TC 0
ZS 0
Z9 0
U1 0
U2 0
BN 978-1-4648-0038-2; 978-1-4648-0037-5
UT WOS:000339899300009
D2 10.1596/978-1-4648-0037-5
ER
PT B
AU Verbeet, Matthias
BE Ahmed, H
Asutay, M
Wilson, R
TI STABILITY OF ISLAMIC BANKS: A COMPARISON OF CONVENTIONAL AND ISLAMIC
BANKS
SO ISLAMIC BANKING AND FINANCIAL CRISIS: REPUTATION, STABILITY AND RISKS
BP 58
EP 86
PD 2014
PY 2014
ZA 0
ZR 0
ZB 0
Z8 0
TC 0
ZS 0
Z9 0
U1 0
U2 0
BN 978-0-7486-7237-0; 978-0-7486-4761-3
UT WOS:000337025300004
ER
PT B
AU Abu Bakar, Mohd Afandi
Kader, Radiah Abdul
Zakaria, Roza Hazli
BE Ahmed, H
Asutay, M
Wilson, R
TI ISLAMIC BANKS' FINANCING BEHAVIOUR: A PILOT STUDY
BP 87
EP 105
PD 2014
PY 2014
ZR 0
ZA 0
ZB 0
TC 0
Z8 0
ZS 0
Z9 0
U1 0
U2 1
BN 978-0-7486-7237-0; 978-0-7486-4761-3
UT WOS:000337025300005
ER
PT B
AU Ariffin, Noraini Mohd
Kassim, Salina Hj.
BE Ahmed, H
Asutay, M
Wilson, R
TI LIQUIDITY RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF ISLAMIC BANKS:
EMPIRICAL EVIDENCE
BP 124
EP 135
PD 2014
PY 2014
OI kassim, salina/0000-0002-7514-8750
Z8 0
ZB 0
ZR 0
ZS 0
ZA 0
TC 1
Z9 1
U1 0
U2 1
BN 978-0-7486-7237-0; 978-0-7486-4761-3
UT WOS:000337025300007
ER
PT J
AU Saqib, Lutfullah
Roberts, Kellie W.
Zafar, Mueen A.
Khan, Khurram
Zafar, Aliya
TI Musharakah-A Realistic Approach to the Concept in Islamic Finance and
its Application to the Agricultural Sector in Pakistan
VL 28
IS 1
BP 1
EP 39
DI 10.1163/15730255-12341270
PD 2014
PY 2014
AB Food is one of the basic necessities that is imperative for human
survival. The majority of farmers related to agriculture belong to the
lower class and are hence not in a position to fulfil their agricultural
needs. Therefore, they must borrow from various sources, e.g., from
individuals, organizations, and/or banks, using interest-based lending,
which Muslims are prohibited from doing according to the Shari. ah. Here
the concept of musharakah (participatory mode of finance) is the best
option. The present work discusses the application of such transactions
to overcome farmers' financial problems. In this article, the concept of
musharakah is first elaborated in light of classical/contemporary
Islamic law literature referring to its rules and regulations followed
by a discussion on how musharakah can be effectively applied to the
agricultural sector. The concepts of muzara. ah (temporary sharecropping
contract), musaqah, diminishing musharakah (al-musharakah
al-mutanaqisah), and customer agency are critically analyzed in such
away to make these fit and viable for farmers and Islamic financial
institutions.
Z8 0
ZS 0
ZR 0
ZA 0
ZB 0
TC 0
Z9 0
U1 0
U2 0
SN 0268-0556
EI 1573-0255
UT WOS:000217474500001
ER
PT J
AU Billah, Muhammad Masum
TI The Prohibition of Riba and the Use of Hiyal by Islamic Banks to
Overcome the Prohibition
VL 28
IS 4
BP 392
EP 408
DI 10.1163/15730255-12341288
PD 2014
PY 2014
AB This article discusses the meaning of riba according to the opinions
upheld by both the majority as well as minority of Islamic scholars.
Although Islamic scholars are in agreement about the prohibition of
riba, they do differ with regard to its meaning. This divergence of
opinions translates into such questions as whether the interest charged
and paid by today's conventional banks is riba. While the majority of
Islamic scholars are of the opinion that current bank interest is riba,
a small but convincing minority of scholars do not consider bank
interest to be riba. The need for Islamic banks arises from the
majority's interpretation of riba. This article also evaluates the most
popular products provided by Islamic banks and the validity of hiyal
(pl. of hilah) involved in adopting them.
OI Billah, Muhammad/0000-0003-3524-530X
TC 1
Z8 0
ZS 0
ZR 0
ZB 0
ZA 0
Z9 1
U1 0
U2 0
SN 0268-0556
EI 1573-0255
UT WOS:000217478700003
ER
PT J
AU Ginena, Karim
TI Shari'ah risk and corporate governance of Islamic banks
SO CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY
VL 14
IS 1
BP 86
EP +
DI 10.1108/CG-03-2013-0038
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to help directors, senior
management, and stakeholders of Islamic banks understand shari'ah risk,
a crucial consideration in the corporate governance of Islamic banks,
and its impact on these banks.
Design/methodology/approach - This conceptual paper links dispersed
insights drawn from the emerging body of shari'ah governance literature,
and the guidance issued by the Basel Committee on Banking Supervision
(BCBS), the Islamic Financial Services Board (IFSB), and the Accounting
and Auditing Organization for Islamic Financial Institutions (AAOIFI)
with new insights to clarify the shari'ah risk that Islamic banks face.
Findings - Shari'ah risk, an operational risk, poses a credible hazard
to Islamic banks and their stakeholders. Possible consequences of
shari'ah non-compliance include higher costs, financial losses,
liquidity problems, bank runs, bank failure, industry smearing and
financial instability. This study defines shariah risk, identifies
credit, legal, compliance, market, and reputational risk that it may
evoke, and categorizes its causes and events.
Research limitations/implications - Future research could empirically
test the ideas posited. In this paper claims were substantiated by logic
and examples.
Practical implications - The study devises an instrument for assessing
shari'ah risk, and suggests measures for directors, senior management,
and regulators to mitigate this risk.
Originality/value - This is the first study to focus on the implications
of shari'ah risk, delineate examples of events and incorporate them
within the BCBS operational risk causes, and develop a tool for
measuring shari'ah risk.
Z8 0
ZR 0
ZB 0
ZA 0
ZS 0
TC 22
Z9 22
U1 0
U2 0
SN 1472-0701
EI 1758-6054
UT WOS:000212694400007
ER
PT S
AU Beseiso, Fouad H.
BE Beseiso, FH
TI CENTRAL BANKS' ROLE IN SHAPING THE FUTURE OF ISLAMIC BANKING
SO DEVELOPING ROLE OF ISLAMIC BANKING AND FINANCE: FROM LOCAL TO GLOBAL
PERSPECTIVES
SE Contemporary Studies in Economic and Financial Analysis
VL 95
BP 3
EP 30
DI 10.1108/S1569-3759(2014)0000095009
PD 2014
PY 2014
AB Purpose - This chapter's goal is to define the kind of seeds to be
planted for moving forward in the safe and stable drive toward a leading
central banking role directed at achieving a sustained Islamic banking
and finance development within the global financial system. The system
witnessed the input of Islamic banking with its fruitful contribution as
a feasible banking structure in both implementing agreed reforms and
shaping the next steps directed toward crisis prevention and crisis
resolution.
Approach and methodology - The adopted approach is based upon scientific
conceptual basis as well as the practical experience related to the
central banking role and Islamic banking evolution. This chapter will
define the strategic role of Central Banks and highlight the conceptual
basis governing the leading role of central banks as well as the
practical basis derived from our central banking and Islamic banking
experience.
Contribution - In light of the conceptual and practical basis for
enabling an efficient and effective role of Central Banks as a
regulatory body in shaping the future of the Islamic Financial System.
Legal, institutional and managerial strategic determinants for this role
have been defined.
The analytical work of this chapter crystallises in a pioneering
initiative the main determining factors governing the role of central
banks as the main regulatory body for Islamic banking, and how this role
could be effective in affecting the future role to be played by the
Islamic banks in the global financial system. Also, to this end, the
integrated required role by central banks, public policies, multilateral
institutions and Islamic banks are illustrated.
Findings - Energy and cooperative hard work and commitment from all
players, including the regulators of Islamic banks supported by public
policies, international and multilateral institutions and members of the
Islamic banking family is thought to be the main determining factor for
transforming the Islamic banking family into one that will make the
Islamic people and all humanity - through the global financial system -
live with more stability, welfare and happiness.
ZB 0
TC 0
ZR 0
ZS 0
Z8 0
Z9 0
U1 0
U2 0
SN 1569-3759
BN 978-1-78350-818-1; 978-1-78350-817-4
UT WOS:000402604900002
ER
PT J
AU Erol, Cengiz
Baklaci, Hasan F.
Aydogan, Berna
Tunc, Gokce
TI Performance comparison of Islamic (participation) banks and commercial
banks in Turkish banking sector
VL 9
IS 2
BP 114
EP 128
DI 10.1108/EMJB-05-2013-0024
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to attempt to compare the
performance of Islamic banks against conventional banks in Turkey. This
comparison is much more distinctive and significant in Turkey when
compared to other countries, as Turkey stands as a model for the world
in interest-free banking system.
Design/methodology/approach - The comparative performance analysis was
conducted by means of logistic regression method during the period of
2001-2009. The CAMELS approach is utilized to assess the managerial and
financial performance of banks.
Findings - The results signify that Islamic banks operating in Turkey
perform better in profitability and asset management ratios compared to
conventional banks but lag in sensitivity to market risk criterion.
These findings might mainly be ascribed to the fact that these banks
allow lower provisional losses compared to conventional banks and have
some tax advantages. Research limitations/implications - Utilizing a
more recent and consistent data set, the analyses could be replicated to
determine if the results are subject to any sample bias.
Practical implications - These finding reveal significant implications
for potential entrants into Turkish banking sector particularly for
foreign investors. Social implications - The findings from this study
may reinforce the awareness and confidence in participating banks in
Turkey.
Originality/value - Turkey is particularly interesting to conduct this
analysis because Turkey is a Muslim but secular country and both Islamic
and conventional banks are subject to same set of banking regulations
which are based on Western traditional banking system. Furthermore, to
the knowledge, there is not a comprehensive study that compares the
performance of conventional and Islamic banks in a Western banking
system.
Z8 0
ZS 0
ZB 0
TC 6
ZA 0
ZR 0
Z9 6
U1 0
U2 0
SN 1450-2194
EI 1758-888X
UT WOS:000213968100001
ER
PT J
AU Ismal, Rifki
TI An optimal risk - return portfolio of Islamic banks
SO HUMANOMICS
VL 30
IS 4
SI SI
BP 286
EP 303
DI 10.1108/H-08-2013-0055
PN 4
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to analyze individual financing
instruments and portfolios of instruments, and find the location of the
most efficient portfolio financing. The Indonesian Islamic banking
industry is very promising with four dominant financing instruments,
namely, Mudarabah, Musharakah, Murabahah and Istishna. Each instrument
has unique pattern of return, expected return and risk. Moreover, the
variances of two, three and four financing instruments suggest the
importance of identifying the most prospective financing instruments.
Further, the most efficient portion of the most prospective financing is
determined by constructing an efficient portfolio financing frontier.
Design/methodology/approach - Technically, it uses risk and return
theory to compute risk, return and variance of an instrument and set of
financing instruments. In addition, it uses an efficient portfolio
frontier curve to locate all combination of the most progressive
portfolio financing and finds the most efficient portfolio financing.
Findings - It finds some interesting finding with regard to the pattern
of return, characteristics of a financing instrument and groups of
financing instruments. The most essential finding of the paper is the
location of the most efficient portfolio financing.
Research limitations/implications - The information and finding of this
paper benefit the Indonesian Islamic banking industry to optimize the
performance of an individual and groups of financing instruments.
Particularly, for the most progressive financing instruments, it
proposes the combinations of portfolio financing which give optimum
output.
Originality/value - To the best of author's knowledge, this is the first
paper trying to analyze and construct an efficient portfolio financing
frontier of the Indonesian Islamic banking industry.
ZB 0
Z8 0
ZR 0
ZS 0
ZA 0
TC 3
Z9 3
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210902400001
ER
PT J
AU Bizri, Rima M.
TI A study of Islamic banks in the non-GCC MENA region: evidence from
Lebanon
VL 32
IS 2
BP 130
EP 149
DI 10.1108/IJBM-04-2013-0035
PD 2014
PY 2014
AB Purpose - This purpose of this paper is to investigate the status of
Islamic banking in Lebanon, through addressing the perceptions of
existing and potential clients. The study has two objectives: one is to
identify and measure the factors that clients perceive as important in
deciding to patronize an Islamic bank, and the other is to draw a client
profile for Islamic banks operating in Lebanon.
Design/methodology/approach - The literature review provided the
theoretical framework this study builds on. A survey instrument was
developed and the data were analyzed using SPSS (19.0). To draw the
client profile, the researcher conducted cluster analysis followed by
discriminant analysis. To identify and measure the Islamic bank
selection criteria, the researcher used factor analysis followed by
regression analysis.
Findings - Findings show that clients consider five variables in
deciding whether or not to patronize Islamic banks. These variables are
trust in Islamic banks and their true compliance with Sharia, customers'
familiarity with Islamic modes of finance, cost of financing and other
transactions, accessibility of Islamic banks, and the quality of service
offered by those banks. The study was also able to delineate the
significant attributes of IB clients, raising the issue of changing the
target market segment.
Research limitations/implications - This study employed a usable sample
size of 199 questionnaires collected from one MENA region nation,
Lebanon. It may be useful to probe the research questions of this study
using a larger sample size collected from several MENA region nations,
in order to reach a more validated conclusion. In addition, it may be
equally useful to assess other demographic and psychographic variables
as distinguishing factors among client clusters, for the purpose of
reaching a deeper understanding of Islamic bank clientele in this
region.
Practical implications - It is suggested that Islamic banks consider the
five factors identified in this study, while preparing their marketing
strategy, for the purpose of increasing their market share in the
non-GCC MENA region. It is also suggested that Islamic banks approach
the so far neglected market segments, rather than sticking to their
traditional clients.
Originality/value - This paper is the first to investigate the status of
Islamic banks in Lebanon. The findings of this study will help refocus
the marketing strategies of Islamic banks in Lebanon. They may also
apply to other developing non-GCC countries in the MENA region.
Z8 0
TC 16
ZA 0
ZB 0
ZR 0
ZS 0
Z9 16
U1 0
U2 0
SN 0265-2323
EI 1758-5937
UT WOS:000216513500004
ER
PT J
AU Yaacob, Zulnaidi
TI THE LINK BETWEEN QUALITY MANAGEMENT AND MUSLIM CUSTOMER SATISFACTION
VL 15
IS 1
BP 81
EP 96
PD 2014
PY 2014
AB This paper reports the relationship between quality management (QM) and
Muslim customer satisfaction. Data were gathered from 276 respondents
from business and public firms. This study was motivated by claims about
QM as a universally applied strategy having achieved mixed result, as
revealed by previous studies. However the effect of QM on Muslim
customer satisfaction has yet to be empirically reported. From this
study, results indicated the outcome of hypotheses for the relationship
between QM and Muslim customer satisfaction was mixed. Out of three QM
practices tested (management commitment, customer focus, and continuous
improvement), only customer focus was found significant. In addition to
testing the relationship which is relatively unexplored in the
literature, this study also enriches the literature by measuring
customer satisfaction from the Islamic perspective. Although customer
satisfaction has been extensively investigated in the literature, there
are very few studies, if any, that have developed and used the Islamic
perspective in measuring customer satisfaction, what more a study on the
Muslim customer. This paper also discusses about the implications
related to the findings.
ZB 1
TC 2
ZR 0
ZS 0
ZA 0
Z8 0
Z9 2
U1 0
U2 0
SN 1511-6670
UT WOS:000420269600005
ER
PT J
AU Ismail, Shafinar
Azmi, Farah
Thurasamy, Ramayah
TI SELECTION CRITERIA FOR ISLAMIC HOME FINANCING IN MALAYSIA
VL 15
IS 1
BP 97
EP 110
PD 2014
PY 2014
AB Islamic home financing over the ten year period showed an increasing
rate from RM6.8 billion to RM23.3 billion. It is crucial to understand
what are the factors that will determine the satisfaction of both
Muslims and non-Muslims customer towards Islamic home financing.
Therefore, this study investigates the important factors that influence
selection of Islamic home financing among working adults in Malaysia.
Questionnaires were distributed to the 160 employees in one financial
institution. The sampling procedure adopted in this research was
stratified random sampling. The questionnaire was designed in two
sections, one consisting of demographic information and the second
relating to the selection determinants of Islamic home financing. The
result indicates that reputation, service quality, religious, media
advertisement and social influence becomes the important factors that
influence selection of Islamic home financing. Reputation is the best
predictor as most of customers are confidents to select Islamic home
financing because the Islamic bank has a good reputation and image. This
research has been conducted in aggregate form. The study also refers to
the employees in one financial institution. Future research could
account for employees from other financial institution. The analyses
presented in this research can be used by policymakers and managers as a
guide to promote Islamic product and services. The study makes a
contribution to the literature on Islamic banking in Malaysia. It is the
first study to particularly investigate the home selection criteria in
Malaysia. The findings achieved in this research will be of interest for
practitioners and academics concerned with developments of the Malaysian
Islamic banking industry.
RI Ismail, Shafinar/AAD-9139-2019; Ramayah, T./E-4629-2010; Ismail, Shafinar/
OI Ramayah, T./0000-0002-7580-7058; Ismail, Shafinar/0000-0002-0339-0003
TC 8
ZA 0
ZR 0
ZB 0
ZS 0
Z8 0
Z9 8
U1 0
U2 0
SN 1511-6670
UT WOS:000420269600006
ER
PT J
AU Al-Khasawneh, Jamal Ali
Al-Shattarat, Wasim Khalil
TI Efficiency dynamics and distributional snapshots of North African
Islamic banks
SO INTERNATIONAL JOURNAL OF BUSINESS PERFORMANCE MANAGEMENT
VL 15
IS 1
BP 35
EP 63
PD 2014
PY 2014
AB Using non-parametric data envelopment analysis (DEA), this paper
examines the efficiency of Islamic banks and conventional banks
operating in some North African countries in terms of cost, revenue,
profit, and super efficiency during the period from 2000 to 2011. While
a comparison of the cost-efficiency results of both groups of banks at
country level showed closeness to each other, conventional banks had the
advantage of less cost-inefficiency by the end of 2011, compared to
Islamic banks. Revenue efficiency results strengthen the superiority of
conventional banks over Islamic banks in this region. Super efficiency
results similar to those of cost efficiency are indicated, meaning that
conventional banks are not only more efficient in pricing their inputs,
but also in determining the volume of their inputs. Generally, the
findings showed that Islamic banks perform better in mixed banking
systems rather than in pure Islamic systems.
OI Al-Khasawneh, Jamal/0000-0003-3838-5578
ZR 0
ZB 0
TC 0
ZS 0
Z8 0
Z9 0
U1 0
U2 0
SN 1368-4892
EI 1741-5039
UT WOS:000445679900003
ER
PT J
AU Suharto, Ugi
TI ANALYSIS OF THE CONCEPT OF ISLAMIC CHOICE (IKHTIYOR) ON OPPORTUNITY COST
AND TIME VALUE OF MONEY IN ISLAMIC ECONOMICS AND FINANCE
VL 22
IS 2
BP 1
EP 20
PD 2014
PY 2014
AB The paper discusses the concept of Islamic choices (ikhtiyEr) and its
implication on the opportunity cost's concept. In choosing between good
and bad, there is no opportunity cost involved as the good is the only
choice. Opportunity concept only applies when the choice is between two
or more good choices. To forgo investments in interest bearing deposits
is not an opportunity cost. However, to forgo getting a fixed salary in
an employment (ijEr) contract while choosing to work as muIErib has an
opportunity cost. This concept of ikhtiyEr also has an impact on the
conception of time value of money as it is derived from the concept of
opportunity cost. Compensation for time value of money in loan or
receivable is not permitted, while that for credit sale is permissible.
Time alone cannot be the basis for compensation and counter-value
(NiwaI). It must be attached to other factors, such as guarantee,
effort, and risk. Without meeting these requirements in credit sale, the
sale such as murEbaIah would become an invali(bEIil) sale, which must
not be chosen by Islamic banks.
ZB 0
TC 1
ZS 0
ZR 0
Z8 0
Z9 1
U1 0
U2 0
SN 1394-7680
UT WOS:000408994300001
ER
PT J
AU Aliyu, Sirajo
TI SUSTAINABLE ISLAMIC BANKING: A CONCEPTUAL FRAMEWORK FOR NON-INTEREST
BANKS IN NIGERIA
VL 22
IS 1
BP 33
EP 62
PD 2014
PY 2014
AB This research proposes the use of structure, functions, capacities,
Islamic moral economic mode, banking business and accountability as
consolidated framework for Islamic banking sustainability in Nigeria.
The study introduces the framework and assesses its suitability in
Nigeria using content analysis of thematic coding units. Qualitative
analyses of the six documents were carried out in the research, out of
which five of them were issued by the Central Bank of Nigeria (CBN) and
the Nigeria Deposit Insurance Corporation (NDIC) drafted the remainder
document. The paper also uses exhortations from the noble Qur0En and
HadEth on good practice of morality, justice and equity relating to
business and monetary issues. The findings reveal that all themes had
met the criterion of acceptability and supported the framework
applicability and suitability in Nigeria. It is suggested for the
existing Islamic bank (Jaiz) to adopt this proposed framework for its
sustenance in the system. Finally, the paper recommends for method and
data triangulation in further research.
RI Aliyu, Sirajo/N-8154-2019
OI Aliyu, Sirajo/0000-0002-2090-3886
Z8 0
ZS 0
TC 5
ZR 0
ZB 0
ZA 0
Z9 5
U1 0
U2 0
SN 1394-7680
UT WOS:000408993900002
ER
PT J
AU Amin, Hanudin
Razak, Dzuljastri Abdul
TI Consumer acceptance of Islamic home financing
SO INTERNATIONAL JOURNAL OF HOUSING MARKETS AND ANALYSIS
VL 7
IS 3
BP 307
EP 332
DI 10.1108/IJHMA-12-2012-0063
PD 2014
PY 2014
AB Purpose - This study aims to examine the factors influencing the
consumer acceptance on Islamic home financing products amongst clients
of Islamic banks. For the purpose, the study extends the theory of
planned behaviour (TPB) in explaining the Islamic home financing
adoption along. Further, the study also intends to analyze the effects
of "Islamicity of product" and seven demographic factors on the consumer
acceptance of Islamic home financing products.
Design/methodology/approach - Using the TPB model as a baseline theory,
data are collected from bank customers in East Malaysia involving two
cities, namely, Kota Kinabalu and Labuan, using self-administered
questionnaires. A total of 300 questionnaires are distributed; however,
only 278 are found usable. We use ordered probit model to analyze the
effects of attitude, subjective norm, perceived behavioural control,
Islamicity of product and demographic factors.
Findings - Using the ordered probit model, this study finds that
attitude, subjective norm, perceived control and Islamicity of product
are instrumental in determining the consumer acceptance of Islamic home
financing products. Concerned with demographic items, the study finds
that marital status, ethnic, occupation and religion are influential. It
is also discovered, however, that gender, academic qualification and
monthly income have little effects on the consumer acceptance.
Research limitations/implications - Three limitations are available for
future studies. First, the current work does not include the experienced
users who patronize Islamic home financing products. Second, the
contribution of the present study is confined to the analyzed
explanatory variables. Third, this study also has geographical
constraint in which it is conducted in East Malaysia whilst samples from
West-Malaysia are overlooked. These limitations, however, provide
directions for further future research.
Practical implications - Essentially, this study is a pioneering effort
in applying the TPB model to the new context of Islamic home financing
products in Malaysia. The study integrates the effects of Islamicity of
product and demographic factors on the consumer acceptance on Islamic
home financing products. The TPB model is proven valid and is reliable
in predicting the consumer acceptance on Islamic home financing
products.
Originality/value - This study introduces Islamicity of product and
demographic factors in explaining the consumer acceptance on Islamic
home financing products. Most fundamentally, this study proposes a
modified theoretical framework that is of paramount importance to
predict the demand of Islamic home financing products in the future.
OI Amin, Hanudin/0000-0003-3645-287X
TC 28
ZB 0
ZA 0
ZS 0
Z8 0
ZR 0
Z9 28
U1 0
U2 0
SN 1753-8270
EI 1753-8289
UT WOS:000214379300004
ER
PT J
AU Lahrech, Nada
Lahrech, Abdelmounaim
Boulaksil, Youssef
TI Transparency and performance in Islamic banking Implications on profit
distribution
MANAGEMENT
VL 7
IS 1
BP 61
EP 88
DI 10.1108/IMEFM-06-2012-0047
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to assess whether Islamic banks
are transparent regarding profit (and loss) sharing to investment
account holders. Another objective is to appraise whether Islamic banks'
performance affects management incentives to distribute profit (and
loss) to investment account holders.
Design/methodology/approach - To investigate the research issue, the
authors conducted an empirical study. Data of 25 global operating
Islamic banks have been collected and analyzed for the period 2006-2010.
The authors also developed a mathematical model based on the generalized
least-squares principle.
Findings - The research results showed that enhancing transparency will
prevent Islamic banks from shadowing their profit allocation practices
and place investment account holders in a better position to manage
their invested funds. The study also showed that bettering Islamic
banks' performance will induce them to manager profit-sharing investment
account holders' funds under bonafides.
Research limitations/implications - The main limitation is data
availability. The maximum number of Islamic banks that disclose
financial data covering the period of 2006-2010 limited the scope of the
study to 25 banks.
Practical implications - The findings are very valuable for designing
policies and standards as well as for the enforcement of these standards
to improve transparency in Islamic banking.
Originality/value - The study outcome is vital to many parties involved
in the Islamic banking field and can be taken as a strong foundation to
make appropriate actions that would help grow and sustain Islamic
banking development globally.
OI Boulaksil, Youssef/0000-0002-8556-9903
ZB 0
ZS 0
ZR 0
ZA 0
TC 5
Z8 0
Z9 5
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214399900005
ER
PT J
AU Zouari, Sarra Ben Slama
Taktak, Neila Boulila
TI Ownership structure and financial performance in Islamic banks Does bank
ownership matter?
MANAGEMENT
VL 7
IS 2
BP 146
EP 160
DI 10.1108/IMEFM-01-2013-0002
PD 2014
PY 2014
AB Purpose - This study aims to investigate empirically the relationship
between ownership structure (concentration and mix) and Islamic bank
performance, with a special attention to the identity of the block
investor (foreign, family, institutional and state).
Design/methodology/approach - Regression analyses are conducted to test
the impact of the identity of the first shareholders and the degree of
concentration on Islamic bank performance, using a panel data sample of
53 Islamic banks scattered over > 15 countries from 2005 to 2009.
Findings - Results suggest that ownership is concentrated at 49 per
cent, and for 41 banks from the full sample, the ultimate owner is
institutional. State investors come in second place, followed by family
ultimate shareholders. Using return on assets and return on equity as
performance measures, empirical evidence highlights the absence of
correlation between ownership concentration and Islamic bank
performance. It also reveals that the combined effort of family and
state investors is beneficial to bank performance. Results also indicate
that banks with institutional and foreign shareholders do not perform
better. Empirical findings suggest that the financial crisis impacts
negatively Islamic bank performance.
Research limitations/implications - The use of dummy variables to
measure the nature of the largest owner represents the main limitation
of this study. This is due to the lack of information, as the percentage
of the largest capital held referring to owner category was available
only for some banks.
Practical implications - This research has given a brighter insight into
corporate governance and bank performance in selected Islamic banking
institutions. Findings provided useful information to bank managers,
investors and policy makers. Financial performance can be improved by
identifying practices associated with ownership structure. So, it will
have policy implications for Islamic banks as to how to improve their
performance. Finally, different types of bank ownership have had
different concerns about implementing corporate governance practices
among Islamic banks.
Originality/value - This work is the first of its kind for Islamic
banks. It extends previous research by examining whether ownership
structure (concentration and mix) affects performance. It also fills the
gap in the literature by providing empirical evidence on a large sample
involving data from 15 countries. Finally, manual data collection on
ownership structure constitutes a large part of the research for this
paper.
ZR 0
TC 12
ZB 0
Z8 0
ZA 1
ZS 0
Z9 13
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214401800002
ER
PT J
AU Muhammad, Fidlizan
Ab Rahman, Asmak
Sulaiman, Ahmad Azam
TI The roles of domestic and foreign Islamic banks in Malaysian monetary
transmission
MANAGEMENT
VL 7
IS 2
BP 161
EP 169
DI 10.1108/IMEFM-11-2011-0084
PD 2014
PY 2014
AB Purpose - The aim of this paper is to empirically test the presence of
the bank lending channel for the Islamic banking system in Malaysia.
Design/methodology/approach - Distributional effects from monetary
policy changes were analyzed by three bank characteristics such as size,
liquidity and capital. Using the econometric model by Kashyap and Stein
(1995), the implementation of a policy contraction leads to reduction in
loan supply because some banks may not able to offset a reduction in
deposits. The paper explores the response shown between domestic and
foreign Islamic banks in Malaysia using bank-level data from 2005 to
2010.
Findings - The empirical result indicates presence of the bank lending
channel in the Islamic banking system in Malaysia, size and liquidity as
sources of difference response of financing supply in domestic bank and
capital for foreign Islamic bank and Islamic interbank rate as an
efficient tool in conducting monetary policy especially in the Islamic
banking system.
Originality/value - The paper manages to explore the effectiveness of
Islamic the monetary policy tools in the Islamic Banking system in
Malaysia. Using Islamic interbank rate as a policy tool, it provides
valuable view to policy makers, who are analyzing for efficiency of
transmission channel.
RI MUHAMMAD, FIDLIZAN/B-5108-2014
Z8 0
TC 1
ZS 0
ZR 0
ZB 0
ZA 0
Z9 1
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214401800003
ER
PT J
AU Suzuki, Yasushi
Uddin, S. M. Sohrab
TI Islamic bank rent A case study of Islamic banking in Bangladesh
MANAGEMENT
VL 7
IS 2
BP 170
EP 181
DI 10.1108/IMEFM-11-2013-0119
PD 2014
PY 2014
AB Purpose - This paper aims to draw on the bank rent approach to evaluate
the existing pattern of financing of Islamic banks and to propose a
fairly new conceptualization of Islamic bank rent.
Design/methodology/approach - The bank rent theory is adopted to
generate the theoretical underpinnings of the issue. After that,
empirical evidence from the banking sector of Bangladesh is used to
support the arguments.
Findings - Repeated transactions under murabaha are observed in the
Islamic banking sector of Bangladesh. The asset-based financing gives
the Bangladeshi Islamic banks relatively higher Islamic bank rent
opportunity for protecting their "franchise value" as Shari'ah-compliant
lenders, while responding to the periodic volatility in transaction
costs of profit-and-loss sharing.
Research limitations/implications - The bank rent approach suggests that
the murabaha syndrome can be ironically justifiable. On the other hand,
the current profit-and-loss sharing risk provides an idea of the
difficulty in assuming the participatory financing with higher credit
risk in practice. Islamic scholars and the regulatory authority need to
design an appropriate financial architecture which can create different
levels of rent opportunities for Islamic banks to avail the benefit from
the variety of Islamic financing as declared by Islamic Shari'ah.
Originality/value - This paper introduces a fairly new concept of
"Islamic bank rent" to make sense of the murabaha syndrome. This
approach also contributes to clarifying the unique risk and cost to be
compensated with the spreads that Islamic banks are expected to earn. To
draw empirical evidence, as far as it could be ascertained, the data of
both Islamic banks and conventional banks with Islamic banking
windows/branches are used for the first time.
OI Suzuki, Yasushi/0000-0002-3939-6917
TC 6
ZR 0
ZS 0
ZA 0
Z8 0
ZB 0
Z9 6
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214401800004
ER
PT J
AU Ullah, Hafij
TI Shari'ah compliance in Islamic banking An empirical study on selected
Islamic banks in Bangladesh
MANAGEMENT
VL 7
IS 2
BP 182
EP 199
DI 10.1108/IMEFM-06-2012-0051
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to evaluate the Shari'ah
compliance status of the Islamic banks in Bangladesh.
Design/methodology/approach - The research was based on both primary and
secondary materials. The primary data were gathered through sample
questionnaire survey and personal interviews by the researcher; the
secondary data were obtained from Qur'an, Hadiths, different
circulars/letters, manuals, research books and journals, annual reports,
Web sites of the sample banks. Statistical tools and techniques like
weighted average, percentage, SD, variance and correlation between
Shari'ah violation score and bank-specific attributes were used applying
statistical software Statistical Package for Social Science (version
17.0).
Findings - Shari'ah compliance status of the Islamic banks in Bangladesh
is in a vulnerable condition, Shari'ah compliance status highly varies
among the Islamic banks, and Shari'ah violation is high in investing
activities because of lack of knowledge, lack of sincerity in complying
Shari'ah, poor attention in Shari'ah audit and Shari'ah research and
lack of strong Shari'ah supervisory board comprising full-time skillful
members.
Practical implications - Among others, the major policy implications of
this study are as follows: regulatory bodies and Shari'ah board members
are expected to have guidelines from this study to find their
limitations and to determine their future responsibilities; executives
and Employees are expected to get the idea of present state of Shari'ah
compliance and to identify their weaknesses in this regard; clients and
other stakeholders are expected to have guidelines to choose the better
Islamic banks to perform banking transactions; and the researchers in
Islamic banking may usefully use the issues raised in this article for
more comprehensive studies in Islamic banking and Shari'ah compliance.
Originality/value - The paper opens a new avenue in justifying the
status of Shari'ah compliance with a new dataset and correlating
Shari'ah violation score with bank-specific attributes.
RI , Abu Umar Faruq Ahmad/I-4680-2012; Ullah, Md. Hafij/E-6539-2014
OI , Abu Umar Faruq Ahmad/0000-0003-1523-1883; Ullah, Md.
Hafij/0000-0001-8474-6499
TC 11
ZA 0
ZS 0
ZR 0
ZB 0
Z8 0
Z9 11
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214401800005
ER
PT J
AU Ringim, Kabiru Jinjiri
TI Perception of Nigerian Muslim account holders in conventional banks
toward Islamic banking products
MANAGEMENT
VL 7
IS 3
BP 288
EP 304
DI 10.1108/IMEFM-04-2013-0045
PD 2014
PY 2014
AB Purpose - The purpose of this study is to determine the level of
perception of a Muslim account holder in a conventional bank toward
Islamic banking products and to determine the relationship between the
perception levels of Nigerian's account holder's and their decision to
patronize Islamic banking. Personal perception factor is operationalized
as opinion or observations, which are able to influence customer's
decision to patronize Islamic banking products and services.
Design/methodology/approach - A field survey was conducted and samples
drawn using proportionate stratified simple random sampling techniques.
Out of the 500 questionnaires distributed by hand, only 304 were
returned and 286 were usable for the data analysis using SPSS and PLS
Modeling Software.
Findings - First, the means for personal perception variable was 4.91
with standard deviation of 1.007. This indicates the good perception
level of Islamic products by Muslim account holders in a conventional
bank in Kano, Nigeria. The respondents' level of decision to patronize
the Islamic banking products and services was satisfactory. Second, the
results also showed that the research framework model, structural model
and hypothesis were supported. In the measurement model, the convergent,
discriminant validity and reliability/composite reliability of the
perception construct were assessed favorably. The results revealed that
perception was positively associated with a Muslim account holder's
decision to patronize Islamic banking products.
Research limitations/implications - The study is subject to several
shortcomings that limit interpretation of findings. One of the
limitations of this study is the use of cross-sectional design for
survey research and subjective self-reported perceptual measures in
assessing the studies. Hence, the findings of this study cannot be
generalized in a larger context across the cultures of other countries.
Practical implications - The implication of this study is for the
Islamic banking industry to focus on the people's level of perception,
government support, quality and availability of Islamic banking products
and services that would have an impact on customer decision to patronize
Islamic banking products. The necessary suggestions on new area of
research were recommended for future researchers.
Social implications - Islamic banks have the potential to exploit and
market to various segments of customers extending beyond those who are
concerned with the legitimacy of the facility from the Islamic point of
view and those who seek service quality, convenience and efficient
transactions. To the practitioners in search of patronage of Islamic
banking products and services, patronage studies on Islamic banking have
so far largely focused on the combination of various religious,
reputation, commercial, service satisfaction, staff, confidentiality and
convenience factors.
Originality/value - The results of the present study establish the major
problem that requires urgent attention needed to strengthen public
education toward the distinctive characteristics of Islamic banks and
how it may profitably suit the interest of customers in their financial
dealings.
RI Ringim, Kabiru Jinjiri/AAO-9162-2020
OI Ringim, Kabiru Jinjiri/0000-0002-4708-231X
ZB 0
TC 14
ZR 0
Z8 0
ZS 0
ZA 0
Z9 14
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214404400005
ER
PT J
Rachdi, Houssem
TI Assessing the bank profitability in the MENA region A comparative
analysis between conventional and Islamic bank
MANAGEMENT
VL 7
IS 3
BP 305
EP 332
DI 10.1108/IMEFM-03-2013-0031
PD 2014
PY 2014
AB Purpose - Which of the banking stream is relatively more profitable in
Middle Eastern and North Africa (MENA) region?
Design/methodology/approach - The empirical study covers a sample of 15
conventional and 15 Islamic banks for the period 2002-2009. The authors
estimate models using the generalized method of moments in system, of
Blundell and Bond (1998). They exploit an up-to-date econometric
technique which takes into consideration the issue of endogeneity of
regressors to evaluate the comparative profitability of Islamic and
conventional banks in the MENA region.
Findings - Empirical analysis results show that the determinants'
significance varies between Islamic and conventional banks.
Profitability seems to be quite persistent in the MENA region reflecting
a higher degree of government intervention and may signal barriers to
competition.
Originality/value - The main interest is to develop a comprehensive
model that integrates macroeconomic, industry-specific and bank-specific
determinants. The paper makes comparison of the performance between two
different banking systems in the MENA region. The authors consider a
variable crisis to gain additional insights into the impacts of the
financial crisis on MENA banking sector.
TC 9
Z8 0
ZB 0
ZS 0
ZR 0
ZA 0
Z9 9
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214404400006
ER
PT J
AU Grassa, Rihab
Matoussi, Hamadi
TI Corporate governance of Islamic banks A comparative study between GCC
and Southeast Asia countries
MANAGEMENT
VL 7
IS 3
BP 346
EP 362
DI 10.1108/IMEFM-01-2013-0001
PD 2014
PY 2014
AB Purpose - This paper aims to understand the current governance practices
and governance structure of Islamic banks (IBs) in Gulf Cooperation
Council (GCC) and Southeast Asia countries with the purpose of providing
relevant information in guiding the future development of the governance
system for IBs. As well, the paper discusses and compares the state of
the governance system in GCC countries (Kuwait, Bahrain, United Arab
Emirates, Qatar and Saudi Arabia) and Southeast Asia countries (Malaysia
and Indonesia).
Design/methodology/approach - The study utilizes descriptive analysis
approach in extracting and analyzing data collected for 83 IBs observed
for the period 2002-2011. The authors test for differences in means and
medians of corporate governance attributes between a sample of IBs in
GCC countries and another one for Southeast Asia countries. They use
selected variables of corporate governance of different governance
structures, namely, the ownership structure, the board of directors, the
Shariah board and the CEO attributes.
Findings - The paper findings argue that there are significant
differences and divergence of corporate governance structure of IBs in
GCC countries and those in Southeast Asia countries. This position
acknowledges that there are shortcomings to the existing governance
framework for IBs which needs further improvement and standardization.
Practical implications - The paper is a very useful source of
information that may provide relevant guidelines in guiding the future
development of corporate governance of IBs. As well, the paper provides
relevant guidelines for improving regulations and laws covering the
governance of IBs.
Originality/value - This paper provides fresh data and recent
information on the actual corporate governance system in IBs in GCC and
Southeast Asia countries. As well, the paper discusses a significant
shortage in corporate governance literature of Islamic finance.
RI Matoussi, Hamadi/AAK-1024-2020; grassa, rihab/AAA-7623-2019
ZB 0
ZR 0
TC 17
ZA 0
Z8 0
ZS 0
Z9 17
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214404400008
ER
PT J
AU Wahyudi, Imam
TI Commitment and trust in achieving financial goals of strategic alliance
Case in Islamic microfinance
MANAGEMENT
VL 7
IS 4
BP 421
EP 442
DI 10.1108/IMEFM-10-2013-0113
PD 2014
PY 2014
AB Purpose - This paper aims to illustrate theoretically and empirically
the decision and result of strategic alliance between baitul maal wa
tamwil (BMT) and Islamic banks as a relationship based on trust,
mutual-trustworthiness and commitment. This paper also identifies the
basic criteria for the resilience of a strategic alliance, the
challenges and the barriers in a strategic relationship along with
managerial and operational implications.
Design/methodology/approach - In this study, we have chosen to use the
confirmatory approach through a structured questionnaire by means of
field survey to 131 BMT spread throughout Central Java and Yogyakarta.
From the total sample, 89 BMT fulfilled the sampling criteria, that is:
has operated for a minimum of two years and does not experience any
financial difficulties during those two years; has done a financing
contract with an Islamic bank; channels some of its funds to micro,
small and medium enterprises; and is in the form of a cooperative, and
not a micro financial institute. Data treatment uses the method of
listwise deletion. Data analysis uses equation model with the software
LISREL version 8.80. To validate the result of data analysis, we have
also run a focus group discussion with Directorate of Syariah Banking,
Bank of Indonesia, and in-depth interviews with BMT parent cluster
(Inkopsyah).
Findings - This research shows that commitment contributes positively in
achieving the financial goals of an alliance. Coordination and initial
agreement has a positive and significant influence in forming commitment
from BMT and trust from Islamic banks. Other than coordination and
initial agreement, the trust given by Islamic banks also came from the
social capital owned by BMT.
Originality/value - The trust and commitment will assist the building of
strategic alliance between Islamic banks and BMT. Apart from financial
purposes, the alliance between the two will also encourage natural
knowledge-sharing.
TC 3
ZB 0
Z8 0
ZR 0
ZS 0
ZA 0
Z9 3
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214405900005
ER
PT J
AU Ergec, Etem Hakan
Kaytanci, Bengl Gulumser
TI The causality between returns of interest-based banks and Islamic banks:
the case of Turkey
MANAGEMENT
VL 7
IS 4
BP 443
EP 456
DI 10.1108/IMEFM-07-2014-0072
PD 2014
PY 2014
AB Purpose - This study aims to test whether the Islamic bank rate of
returns are affected by the deposit rates of the interest-based bank in
Turkey and whether they need to develop additional tools to manage it if
they face an interest risk.
Design/methodology/approach - This study tests the causality between the
Islamic bank rate of returns and the time deposit interest rates between
2002 and 2010 in Turkey by use of the Granger Causality method based on
monthly data. The same analysis is repeated with respect to the terms
before and after 2006.
Findings - It is concluded that for each term, the time deposit interest
rates are the Granger cause of the Islamic bank rate of returns. This
causality relation is more visible for the period after 2006.
Originality/value - The results shows that the Islamic banks are
sensitive to the interest-based bank interest rates in Turkey.
Therefore, this finding suggests that these banks need to remain
cautious vis-a-vis the interest rate risk.
TC 3
ZB 0
ZA 0
ZS 0
Z8 0
ZR 0
Z9 3
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214405900006
ER
PT J
AU Taktak, Neila Boulila
Zouari, Sarra Ben Slama
TI Tunisia Islamic finance: overview and future prospects
VL 5
IS 1
SI SI
BP 2
EP 14
DI 10.1108/JIABR-02-2014-0007
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to better understand the current
state of the Islamic financial system in Tunisia. In addition, it is
aimed at discussing the preconditions that can help exploit the
potential development of Tunisia's Islamic finance and expand the banked
population.
Design/methodology/approach - The paper describes the regulatory and
legal framework governing the Tunisian Islamic banks. It provides a
mapping of Islamic banks, mutual funds, Takaful institutions and a
potential Sukuk market. The paper also relates recent developments
including academic qualifications and training in Islamic finance.
Findings - The paper concludes with various recommendations for the
successful transition from a niche position to a critical mass. It
argues the need to establish a specific regulatory framework,
supervisory standards and rules of accounting for this kind of
institutions. It suggests the development of Islamic financial education
to strengthen the role played by the Islamic financing Ecosystem and to
help Tunisia promote local and exportable expertise to other countries.
Finally, authorities should focus more on promoting market Sukuk,
Takaful and microcredit to fund SME.
Originality/value - This paper contributes to the assessment of the
current situation of Islamic finance in Tunisia by performing a full
scan of the Islamic financial landscape instead of being limited only to
Islamic banks. It proposes some prerequisites to benefit from the
opportunities offered by the Islamic finance industry in Tunisia to take
advantage of its future potential and ensure its promotion.
ZS 0
ZA 0
TC 3
ZR 0
ZB 0
Z8 0
Z9 3
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214887800001
ER
PT J
AU Hamza, Hichem
Kachtouli, Safa
TI Competitive conditions and market power of Islamic and conventional
commercial banks
VL 5
IS 1
SI SI
BP 29
EP 46
DI 10.1108/JIABR-05-2012-0030
PD 2014
PY 2014
AB Purpose - The expansion of the Islamic banking industry seems to
accentuate the banking competition in MENA and Southeast Asia where
conventional and Islamic banks coexist. In this context, the research
aims\ to examine the competitive conditions and the market power of the
conventional and Islamic banks during the period 2004-2009 in MENA and
Southeast Asia region.
Design/methodology/approach - The authors use a variety of structural
and non-structural measures related to the traditional approach and the
new empirical approach of the industrial organization. The methodology
is based on set of measures of the competition and market power. The
first measure is a set of concentration ratios (C3, C5) and
Herfindahl-Hirschman index (HHI). The second measures are the Panzar and
Ross H statistic and the Lerner index based on econometric estimations
with the aim of evaluating the structure of market and measuring its
power in terms of price setting.
Findings - The results indicate that under the HHI index, both markets
are low concentrated, while according to the concentration ratios, the
Islamic market is considered as moderately concentrated. The estimations
results, through the H-PR-statistic of Panzar and Ross related to degree
of competition and the Lerner index of market power, indicate that both
markets are characterized by a monopolistic competition and the Islamic
banking expressed a high degree of market power.
Research limitations/implications - The research focuses exclusively on
the countries where the data are available and excludes the other
countries where competition and market power might have different forms.
Practical implications - In a competitive environment, each bank is
required to analyze the structure of its market and competitive
conditions, in order to develop a business strategy and effective action
plans. In the context of the multiplication of the Islamic banks in the
MENA and Southeast Asia, the enhancement of Islamic bank competitiveness
by offering new products is determinant for their success.
Originality/value - To the best of the authors' knowledge few studies
have examined this subject in a comparative analysis between the Islamic
and conventional banks. So the authors contribute to the literature on
Islamic banking by considering a sample of Islamic and conventional
banks operating in the same countries in order to examine the existence
or not of difference between them.
ZB 0
TC 10
Z8 0
ZS 0
ZA 0
ZR 0
Z9 10
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214887800003
ER
PT J
AU Khoutem, Daoud Ben Jedidia
TI Islamic banks-Sukuk markets relationships and economic development The
case of the Tunisian post-revolution economy
VL 5
IS 1
SI SI
BP 47
EP 60
DI 10.1108/JIABR-07-2012-0054
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to examine the opportunities of
Islamic finance in spurring economic development in Tunisia after the
revolution of 2011. Precisely, this paper seeks to explore whether the
Islamic banks-Sukuk markets relationships are more conducive of economic
growth.
Design/methodology/approach - This work reviews the role of Islamic
finance in economic development, examines the current dominance of
Islamic banks on the saving-investment process and compares it with a
situation characterized by a more important implication of banks in the
Sukuk markets both as issuers and buyers.
Findings - This paper finds that the "marketable Islamic intermediation"
provides easily more funds to finance the economic development and solve
the problems of poverty and unemployment. It also reveals that Islamic
intermediation can be improved by a more important implication of banks
in the Sukuk markets. This permits to overcome many problems related to
saving mobilization, bank liquidity management, risk taking and long-run
investment.
Social implications - The author's recommendations related to the
economic policy suggest strict rules to establish accountability,
disclosure laws and transparency in Tunisia.
Originality/value - This paper is a first attempt to study the role of
the relationships between Islamic banks and Sukuk markets in the
economic development process. It stresses the importance of these
relationships to better meet the requirements of development financing
in Tunisia.
ZB 0
ZS 0
TC 2
Z8 0
ZR 0
ZA 0
Z9 2
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214887800004
ER
PT J
Azouzi, Dhekra
Rachdi, Houssem
TI Risk management tools practiced in Islamic banks: evidence in MENA
region
VL 5
IS 1
SI SI
BP 77
EP 97
DI 10.1108/JIABR-10-2012-0070
PD 2014
PY 2014
AB Purpose - The main purpose of this study is to investigate in detail the
way each risk is being measured and managed by Islamic banks in the MENA
region.
Design/methodology/approach - This research attempts to examine the
perceptions of Islamic bankers about the importance of transparency and
public disclosure in the understanding of the bank's risk profile. It
covers 23 Islamic banks located in the MENA region using
self-administered questionnaire.
Findings - The results show that there are differences in the level of
risk perception across funding modes. Also Islamic banks use extensively
the traditional tools in mitigating risk.
Practical implications - The paper discusses and analyses the current
practices employed in the risk management of Islamic banks. It
identifies the tools and methods used in managing credit risk, market
risk, liquidity risk and operational risk by Islamic banks.
Originality/value - This study aims to extend the existing literature in
two ways. First, this paper contributes to the dearth of studies on
examination of tools practiced in the risk management by Islamic banks
located in the MENA region. Next, this work integrates the methods used
in the management of liquidity risk that have not been studied earlier.
ZR 0
TC 6
Z8 0
ZA 0
ZB 0
ZS 0
Z9 6
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214887800006
ER
PT J
AU Al-Kayed, Lama Tarek
Zain, Sharifah Raihan Syed Mohd
Duasa, Jarita
TI The relationship between capital structure and performance of Islamic
banks
VL 5
IS 2
BP 158
EP 181
DI 10.1108/JIABR-04-2012-0024
PD 2014
PY 2014
AB Purpose - This paper aims to examine the effect of capital structure on
Islamic banks' (IBs) performance to provide guidance to finance managers
for raising capital funds. As newcomers to the markets, IBs are facing a
trade-off. They can either use high capital ratios which increase the
soundness and safety of the bank and lower the required return by
investors, or depend on deposits and Islamic bonds which are considered
cheaper sources of funds due to their tax rebate. An IB's management
must carefully decide the appropriate mix of debt and equity, i.e.
capital structure, to maximize the value of the bank.
Design/methodology/approach - Using a sample of 85 IBs covering banking
systems in 19 countries, the study uses a two-stage least squares method
to examine the performance determinants of IBs to control the reverse
causality from performance to capital structure.
Findings - After control of the macroeconomic environment, financial
market structure and taxation, results indicate that IBs' performance
(profitability) responds positively to an increase in equity (capital
ratio). The result is consistent with the signaling theory which
predicts that banks expected to have better performance credibly
transmit this information through higher capital. Optimal capital
structure results of the IBs found a non-monotonic U-shaped relationship
between the capital-asset ratio and profitability, supporting the
efficiency risk and franchise value hypotheses.
Research limitations/implications - Due to limitations for market data,
the study uses book accounting ratios. Future research where market data
are available could use performance measures, such as Tobin's Q in
performance determinants models.
Practical implications - The non-monotonic relationship found between
IBs' return on equity and capital ratios suggests that equity issuances
for IBs' with low capital ratios (lower than the turning point of 37.41
per cent) are expensive and have a negative effect on their
profitability. On the other hand, managers of well-capitalized IBs
(banks with capital ratios beyond 37.41 per cent) are advised to rely on
equity when faced by a decision to raise capital, as the capital ratio
starts to affect their profitability positively.
Originality/value - Islamic banking literature has been silent on IBs'
capital structure and its relevance; this study will try to fill in the
existent gap.
RI Al-kayed/AAT-4939-2020
Z8 0
ZA 0
ZR 1
TC 14
ZB 0
ZS 0
Z9 14
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214888200003
ER
PT J
AU Aziz, Muhammad Ridhwan Ab.
Nooh, Mohammad Noorizzuddin
TI Design Analysis of CIMB Bank's Website
SO JURNAL TEKNOLOGI
VL 66
IS 1
PD JAN 2014
PY 2014
AB Islamic banking has emerged in recent decades as one of the most
important trends in the financial world, side by side with conventional
banking. Website design has become a very powerful tool in disseminating
information of a particular banking institution and this phenomenon has
been fully utilized by both conventional and Islamic banks throughout
the world. The purpose of this article is to analyze website design of
CIMB Bank that offers both conventional and Islamic financing
facilities. The methodology employed in this article is qualitative in
nature through examining the websites of CIMB Bank. The finding shows
that CIMB Bank needs to improve their both website designs in order to
attract more customers to their websites and give true information with
regard of their products and services. It is further suggested that
future researcher tries to explore more in-depth website designs in
terms of products and services provided by the conventional and Islamic
banking institutions in order to increase their market shares.
Z8 0
ZB 0
ZS 0
ZR 0
TC 0
Z9 0
U1 0
U2 0
SN 0127-9696
EI 2180-3722
UT WOS:000218467000020
ER
PT J
AU Zebal, Mostaque
Saber, Hussein
TI Market orientation in Islamic banks - a qualitative approach
SO MARKETING INTELLIGENCE & PLANNING
VL 32
IS 4
BP 495
EP 527
DI 10.1108/MIP-08-2013-0138
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to explore the nature of market
orientation that exists in the Islamic financial institutions. The study
further aims at identifying the antecedents and consequences of such
market orientation.
Design/methodology/approach - Considering the explorative nature, the
study uses qualitative research approach, collecting data in words using
in-depth interview technique, drawing sample from Islamic financial
institutions of both Bangladesh and United Arab Emirates. Data were
coded and categorized using inductive reasoning method and similar
responses were identified from a prepared data matrix. The results were
presented in a narrative way using simple frequency for the agreements
and disagreements of respondents considering "street language" without
being mediating the meaning of the responses.
Findings - A different nature of market orientation called Islamic
market orientation has been identified by the results of the study. The
study identifies five elements (orientation on Islamic customer,
orientation on information, orientation on integration, orientation on
competition, and finally orientation on responsiveness) that embody the
formation of Islamic market orientation. The study also identifies a
different set of antecedents (attitude toward Islamic values, Islamic
leadership, risk partaking, inter-relationships, government
legislations, and management training) that are responsible for
determining the extent of Islamic market orientation. The study further
identifies a set of consequences (profitability, customer satisfaction
and retention, gaining new customers, increase of employees' team spirit
and satisfaction, service quality improvement, increase of market share,
and increase of work efficiency) when market-oriented behavior is being
adopted by the Islamic financial institutions.
Originality/value - To the best of the knowledge of the authors of this
study, the results offer a different kind of market orientation along
with its antecedents and consequences which can be considered as
completely original and unique.
ZS 0
Z8 0
TC 8
ZR 0
ZB 0
ZA 0
Z9 8
U1 0
U2 0
SN 0263-4503
EI 1758-8049
UT WOS:000210786400006
ER
PT J
AU Abdel-Baki, Monal
Sciabolazza, Valerio Leone
TI A consensus-based corporate governance paradigm for Islamic banks
VL 6
IS 1
BP 93
EP 108
DI 10.1108/QRFM-01-2013-0002
PD 2014
PY 2014
AB Purpose - Islamic banking is a viable sustainable banking model that has
shown resilience to financial crises. The aim of this research is to
design a consensus-based ethical and market-driven corporate governance
index (CGI) to boost financial performance and ensure compliance with
Islamic rulings.
Design/methodology/approach - The design of the CGI is the outcome of
the feedback obtained from a cross-country survey to measure bank
efforts in enhancing corporate governance (CG) throughout the ten-year
period of 2001-2011. The CGI is divided into six core CG themes and 40
sub-themes.
Findings - First, the results of the multiple regression analysis show a
consistent positive relationship between CG and financial performance
metrics. Second, the authors detect misaligned compensation structures
for directors. Third, poor governance leads to higher risk exposures.
Research limitations/implications - CG in Islamic banks is yet an
evolving discipline and infant practice. This research aims to introduce
a CGI that should be updated and improved as the discipline evolves.
Practical implications - The research concludes by proposing a CG
paradigm. The outcome of the research could also be of use to both
Islamic banks and to the rapidly growing sustainable banking sector in
designing a similar CGI and CG model incorporating the ethical features
of sustainable finance.
Social implications - The core ethos of Islam are: avoiding the
exploitation of the needy, avoiding excessively risky transactions,
avoiding unethical transactions and justice, equity and income
redistribution. If properly applied, Islamic banking will display all
features of sustainable finance as well as enhance social welfare.
Originality/value - To the best of the authors' knowledge, this is the
first CGI that is based on an ethical and all-inclusive input of all
stakeholders.
ZS 0
Z8 0
TC 7
ZA 0
ZB 0
ZR 0
Z9 7
U1 0
U2 0
SN 1755-4179
UT WOS:000214336600006
ER
PT J
AU Echchabi, Abdelghani
Abd Aziz, Hassanuddeen
TI Shari'ah issues in Islamic banking: a qualitative survey in Malaysia
VL 6
IS 2
BP 198
EP 210
DI 10.1108/QRFM-12-2012-0035
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to examine the customers'
perception regarding the current shari'ah issues of Islamic banks in
Malaysia. Specifically, the study attempts to examine the awareness of
the current criticisms of the main shari'ah issues in Islamic finance,
and the perception of the selected customers towards these criticisms.
Design/methodology/approach - The study uses a qualitative approach to
understand in detail the customers' perception and experiences about
shari'ah compliance of Islamic banks. Semi-structured interview is used
with ten Islamic banks' customers in Malaysia. The study also used
phenomenological techniques to analyse the data.
Findings - The findings revealed that the interviewees have considerable
exposure and awareness of the current criticisms of the shari'ah
compliance of Islamic banks.
Originality/value - This research is the first to study the shari'ah
issues of Islamic banks in Malaysia from the customers' perspective, by
using a qualitative research approach. The findings of this study are of
original importance, because they unveil the customers' experience in an
area that has been severely looked at from the professional and experts'
point of view only.
ZA 0
Z8 0
ZB 0
ZR 0
TC 1
ZS 0
Z9 1
U1 0
U2 0
SN 1755-4179
UT WOS:000214337200006
ER
PT J
AU Ben Othman, Hakim
Mersni, Hounaida
TI The use of discretionary loan loss provisions by Islamic banks and
conventional banks in the Middle East region A comparative study
SO STUDIES IN ECONOMICS AND FINANCE
VL 31
IS 1
BP 106
EP +
DI 10.1108/SEF-02-2013-0017
PD 2014
PY 2014
AB Purpose - The purpose of this paper is to study earnings management
practices of Islamic banks and conventional banks in the Middle East
region. First, the authors examine factors that may influence Islamic
banks managers' use of discretion in reporting loan loss provisions
(LLP). Second, the authors investigate differences that may exist
between Islamic banks and non-Islamic banks in terms of discretionary
loan loss provisions (DLLP) used to manipulate accounting earnings.
Design/methodology/approach - This empirical study uses an unbalanced
panel data of 21 Islamic banks, 18 conventional banks with Islamic
windows and 33 conventional banks, from seven Middle East countries
during a period that ranges from 2000 to 2008. The authors use a
two-stage approach in order to examine factors that may influence the
use of discretion by Islamic banks' managers.
Findings - The empirical results reveal that Islamic banks use DLLP for
both earnings and capital management. External financing is also found
to be a determinant of DLLP. Additional findings show no significant
differences among Islamic banks, conventional banks with Islamic windows
and conventional banks in using DLLP. These three groups of banks behave
similarly in terms of discretion based on DLLP.
Practical implications - The findings are potentially useful for
regulators, auditors and investors. This study provides regulators with
insights to strengthen their financial regulations in order to improve
accounting quality. In addition, it helps auditors when considering the
provisioning policies adopted by banks in order to detect specific
manipulations of accounting earnings. The results may also help
investors to focus on the impact of managerial discretion on accounting
earnings for evaluation purposes.
Originality/value - This study contributes to the literature on Islamic
banking. On the one hand, it extends prior research by examining the
discretionary component of LLP, instead of being restricted to total
LLP. On the other hand, it compares the use of discretion among three
groups of banks: full Islamic banks, conventional banks with Islamic
windows and full conventional banks.
RI Othman, Hakim Ben/F-3287-2012
OI Othman, Hakim Ben/0000-0003-4353-7142
ZA 0
ZB 0
Z8 0
TC 12
ZS 0
ZR 0
Z9 12
U1 0
U2 1
SN 1086-7376
EI 1755-6791
UT WOS:000211749800006
ER
PT J
AU Ibrahim, Mansor
Sufian, Fadzlan
TI A structural VAR analysis of Islamic financing in Malaysia
VL 31
IS 4
BP 371
EP 386
DI 10.1108/SEF-05-2012-0060
PD 2014
PY 2014
AB Purpose - The purpose of this paper is evaluate the interrelations
between Islamic financing and key economic and financial variables
including real output, price level, interest rate and stock prices for
the case of Malaysia.
Design/methodology/approach - The paper makes use of a structural vector
autoregressive (SVAR) model to discern the influences of key economic
and financial variables on the behavior of Islamic financing.
Findings - The basic results indicate that Islamic financing responds
positively to innovations in real output. In addition, the price level
shocks also tend to have significant but lagged effects on the financing
provision of Islamic banks. Most interestingly, Islamic financing is
impacted negatively and immediately by positive interest rate shocks,
contradicting the argument that Islamic bank operations are shielded
from interest rate fluctuations. Indeed, the excess sensitivity of
Islamic banks to interest rate fluctuations and their lagged responses
to price level shocks are found to be robust across alternative SVAR
specifications.
Practical implications - Operating under a dual banking system, Islamic
banks are not immune from monetary conditions of the country. Indeed, it
seems to be exposed to the interest rate risk, an aspect that needs to
be accounted for by Islamic banks in their risk management.
Originality/value - With the emergence of Islamic finance industry,
understanding the implications of various macroeconomic factors on
Islamic financing is essential. This study adds to this understanding,
which has received limited attention.
ZB 0
ZR 0
Z8 0
ZS 0
TC 5
ZA 0
Z9 5
U1 0
U2 0
SN 1086-7376
EI 1755-6791
UT WOS:000211754700002
ER
PT J
AU Mohamad, Saadiah
Othman, Jaizah
Roslin, Rosmimah
Lehner, Othmar
TI The use of Islamic hedging instruments as non-speculative risk
management tools
SO VENTURE CAPITAL
VL 16
IS 3
SI SI
BP 207
EP 226
DI 10.1080/13691066.2014.922824
PD 2014
PY 2014
AB The objectives of this research were, first, to examine how an Islamic
hedging instrument can be used as a risk management tool, second, to
identify the factors that influence the demand for Islamic hedging, and
third, to examine the challenges faced by an Islamic financial
institution in promoting the use of Islamic hedging instruments. This
research is an exploratory study and involves a qualitative research
methodology using case study analysis. Data were gathered using
published literature and information from official websites as well as
interviews with industry practitioners on Islamic hedging instruments
from Bank Muamalat Malaysia Berhad and CIMB Islamic Berhad. The two
banks are selected because they are among the major players in the
Islamic hedging market in Malaysia. This study reveals that the Islamic
hedging instruments offered to corporate clients by the two Islamic
banks under study are Islamic Forex, cross-currency and profit rate
swaps, and commodity hedging instruments. This study also suggests that
price, documentation, bank reputation, awareness, and ownership are
factors that influence the demand for Islamic hedging products. Islamic
Shariah-compliant hedging instruments are meant to appeal more to
clients who are looking for Shariah-compliant hedging instruments to
hedge their risk exposure and less to investors who are looking for
speculative ventures to gain large returns much like investing in hedge
funds. Its use is still limited and it appears that it is more a
question of marketing and branding, as Islamic hedging is still unknown
even though the needs for it could easily be established to many
corporate clients.
RI Lehner, Othmar M/F-1599-2010; Mohamad, Saadiah/AAS-8557-2020; Othman,
Jaizah/AAE-3148-2020
OI Lehner, Othmar M/0000-0002-3317-9604; Othman, Jaizah/0000-0001-8106-4484
ZS 0
ZA 0
ZR 0
ZB 0
Z8 0
TC 1
Z9 1
U1 0
U2 0
SN 1369-1066
EI 1464-5343
UT WOS:000211900000003
ER
PT J
AU Zaheer, Sajjad
Ongena, Steven
van Wijnbergen, Sweder J. G.
TI The Transmission of Monetary Policy Through Conventional and Islamic
Banks
SO INTERNATIONAL JOURNAL OF CENTRAL BANKING
VL 9
IS 4
BP 175
EP 224
PD DEC 2013
PY 2013
AB We investigate the differences in banks' responses to monetary policy
shocks across bank size, liquidity, and type-i.e., conventional versus
Islamic-in Pakistan between 2002:Q2 and 2010:Q1. We find that following
a monetary contraction, small banks with liquid balance sheets cut their
lending less than other small banks. In contrast, large banks maintain
their lending irrespective of their liquidity positions. Islamic banks,
though similar in size to small banks, respond to monetary policy shocks
as large banks. Hence, ceteris paribus, the credit channel of monetary
policy may weaken when Islamic banking grows in relative importance.
ZR 0
Z8 0
ZA 0
ZB 0
ZS 0
TC 8
Z9 8
U1 0
U2 10
SN 1815-4654
EI 1815-7556
UT WOS:000329974600006
ER
PT J
AU Srairi, Samir
TI Ownership structure and risk-taking behaviour in conventional and
Islamic banks: Evidence for MENA countries
VL 13
IS 4
BP 115
EP 127
DI 10.1016/j.bir.2013.10.010
PD DEC 2013
PY 2013
AB This paper investigates the impact of ownership structure, measured by
two dimensions: nature of owners and ownership concentration, on bank
risk, controlling for country and bank specific traits and other bank
regulations. Particularly, it compares risk-taking behaviour of
conventional and Islamic banks in 10 MENA countries under three types of
bank ownership (family-owned, company-owned and state-owned banks) over
the period 2005-2009. The result shows a negative association between
ownership concentration and risk. We also find that different categories
of shareholders have different risk attitudes. Family-owned banks have
incentives to take less risk. State-owned banks display higher risk and
have significantly greater proportions of non-performing loans than
other banks. By comparing conventional and Islamic banks, the empirical
findings show that private Islamic banks are as stable as private
conventional banks. However, Islamic banks have a lower exposure to
credit risk than conventional banks. Copyright (C) 2013, Borsa Istanbul
Anonim Sirketi. Production and hosting by Elsevier B.V.
ZA 0
Z8 0
ZB 0
ZR 0
ZS 0
TC 43
Z9 43
U1 0
U2 0
SN 2214-8450
EI 2214-8469
UT WOS:000434506100006
ER
PT J
AU Imam, Patrick
Kpodar, Kangni
TI Islamic Banking: How Has It Expanded?
SO EMERGING MARKETS FINANCE AND TRADE
VL 49
IS 6
BP 112
EP 137
DI 10.2753/REE1540-496X490607
PD NOV-DEC 2013
PY 2013
AB We investigate the determinants of the pattern of Islamic bank expansion
around the world using country-level data for 1992-2006. The analysis
illustrates that income per capita, share of Muslims in the population,
and economic integration with Middle Eastern countries are linked to the
development of Islamic banking. Interest rates have a negative impact,
while the quality of institutions is not found to be significant. The
September 11, 2001, attacks were not a major factor in the expansion of
Islamic banking, but they coincided with rising oil prices. Islamic
banks also appear to be complements to, rather than substitutes for,
conventional banks.
ZS 0
Z8 0
ZA 1
ZB 0
TC 32
ZR 0
Z9 33
U1 0
U2 35
SN 1540-496X
EI 1558-0938
UT WOS:000338933600008
ER
PT J
AU Abedifar, Pejman
Molyneux, Philip
Tarazi, Amine
TI Risk in Islamic Banking
SO REVIEW OF FINANCE
VL 17
IS 6
BP 2035
EP 2096
DI 10.1093/rof/rfs041
PD NOV 2013
PY 2013
AB This article 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.
OI Tarazi, Amine/0000-0001-8385-2994; Abedifar, Pejman/0000-0002-7648-7201;
Molyneux, Philip/0000-0001-6210-7418
ZA 0
TC 160
ZB 0
Z8 0
ZS 0
ZR 1
Z9 160
U1 3
U2 68
SN 1572-3097
EI 1573-692X
UT WOS:000325777400005
ER
PT J
Yahya, Mohamed Hisham
TI Cost, Revenue and Profit Efficiency in Islamic vs. Conventional Banks:
Empirical Evidence using Data Envelopment Analysis (DEA)
SO PERTANIKA JOURNAL OF SOCIAL SCIENCE AND HUMANITIES
VL 21
SI SI
BP 1
EP 18
PD OCT 2013
PY 2013
AB The objective of this study is to compare the cost, revenue and profit
efficiency of Islamic and conventional banks in Malaysia over the period
2006 to 2009. To represent the Malaysian Islamic and conventional
banking sector, a sample of 39 banks were selected to participate in the
study. The level of efficiencies was measured using the Data Envelopment
Analysis (DEA) method, which applied the intermediation approach. The
result shows that the levels of cost and profit efficiency for Malaysian
Islamic banks are lower compared to the Malaysian conventional banks.
The difference levels between cost and profit efficiency in the
Malaysian banking sector are not influenced by revenue efficiency but,
rather are subject to influence by internal and external factors.
ZB 0
ZS 1
ZA 0
TC 0
Z8 0
ZR 0
Z9 1
U1 0
U2 0
SN 0128-7702
EI 2231-8534
UT WOS:000213440200001
ER
PT J
AU Tobin, Sarah
TI Ramadan Blues: Debates in Popular Islam during Ramadan in Amman, Jordan
SO DIGEST OF MIDDLE EAST STUDIES
VL 22
IS 2
BP 292
EP 316
DI 10.1111/dome.12025
PD FAL 2013
PY 2013
AB Within the context of the contemporary Middle East and the post-Islamic
Resurgence, avoiding music has become associated with a rise in
religiosity and normative Islam. As a result, residents of Amman, Jordan
actively avoid consuming music during Ramadan. A large-scale survey and
ethnographic data, including participant observation with employees in
an Islamic bank, confirm that avoiding music is a public ethic of
Ramadan that is temporally specific and in wide use during the month. In
this article, I argue that the tensions surrounding the debates of
music's compatibility with normative Islam are enacted in terms of a
conflict between cultural and Islamic authenticities. These tensions are
resolved temporarily during Ramadan through altered consumption in which
one ethical, "Islamic" framework that regards music as haram, or
"forbidden,"eclipses another, more diverse "cultural" framework, and
does so largely without inducing crisis or controversy. This is because
the two realms are not articulating with each other; rather, claims of a
normative Islamic authenticity overwhelm the possibilities for a more
diverse cultural authenticity. Outside of Ramadan, however, these two
competing authenticities often spark tensions and conflicts between
family members, neighbors, and coworkers. This article concludes by
exploring the implications of ordering morality for religious life in
this assertive, even illiberal fashion for diversity in belief and
practice.
TC 0
ZR 0
ZS 0
ZB 0
Z8 0
ZA 0
Z9 0
U1 0
U2 0
SN 1060-4367
EI 1949-3606
UT WOS:000211309200005
ER
PT J
AU Quttainah, Majdi A.
Song, Liang
Wu, Qiang
TI Do Islamic Banks Employ Less Earnings Management?
SO JOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING
VL 24
IS 3
BP 203
EP 233
DI 10.1111/jifm.12011
PD SEP 2013
PY 2013
AB In this article, we examine whether Islamic banks are less likely to
manage their earnings than non-Islamic banks and how Islamic banks'
unique corporate governance system, especially Shari'ah Supervisory
Boards, impacts earnings management behaviors within Islamic banks.
Using a sample of Islamic banks and their matched non-Islamic banks in
15 countries, we find that, first, Islamic banks are less likely to
conduct earnings management as measured by both earnings loss avoidance
and abnormal loan loss provisions. Second, there are no significantly
different earnings management behaviors between Islamic banks with and
without Shari'ah Supervisory Boards. Third, several Shari'ah Supervisory
Board characteristics, such as size and the presence of members from
Auditing Organization for Islamic Financial Institutions, are important
determinants of the earnings management of Islamic banks who have
Shari'ah Supervisory Boards.
Z8 0
ZA 0
TC 33
ZR 0
ZB 0
ZS 0
Z9 33
U1 0
U2 42
SN 0954-1314
EI 1467-646X
UT WOS:000324047200001
ER
PT J
AU Faye, Issa
Triki, Thouraya
Kangoye, Thierry
TI The Islamic finance promises: Evidence from Africa
SO REVIEW OF DEVELOPMENT FINANCE
VL 3
IS 3
BP 136
EP 151
DI 10.1016/j.rdf.2013.08.003
PD JUL-SEP 2013
PY 2013
AB The objective of this paper is to improve understanding of the market
for Islamic finance in Africa. Specifically the paper provides a mapping
of Africa-based Islamic finance providers, quantifies the amount of
foreign Islamic funding received by Africa and compares performance of
African Islamic and conventional banks. We find that there are
significant cross country variations in the way Islamic banking has been
developed in Africa and in the type of services offered. Our empirical
findings also support the superior efficiency of Islamic banks and
suggest that Islamic banking could be beneficial for Africa.(C) 2013
Africagrowth Institute. Production and hosting by Elsevier B.V. Open
access under CC B ND license.
ZS 0
ZR 0
ZB 0
ZA 0
TC 18
Z8 0
Z9 18
U1 0
U2 0
SN 1879-9337
UT WOS:000219099400003
ER
PT J
AU Soylu, Ali
Durmaz, Nazif
TI Profitability of Interest-Free versus Interest-Based Banks in Turkey
SO AUSTRALIAN ECONOMIC REVIEW
VL 46
IS 2
BP 176
EP 188
DI 10.1111/j.1467-8462.2013.12002.x
PD JUN 2013
PY 2013
AB The present article compares Islamic banks with interest-based banks to
measure their profitability. It also investigates what Islamic funding
and investments are used by Islamic banks. Our results from this Turkish
sample showed that interest-free banks did have positive and reasonably
strong rates of profitability, though their level of profitability was
somewhat less than that of traditional banks, contrary to our initial
prediction. Nevertheless, our results provide support for the view that
interest-free banks, based on Islamic principles, are a viable option,
compared with traditional capitalist banks that derive a large portion
of their profits from interest charges.
ZS 0
ZA 0
ZB 0
ZR 0
Z8 0
TC 4
Z9 4
U1 0
U2 17
SN 0004-9018
UT WOS:000319704500004
ER
PT J
AU Alkhamees, Ahmad
TI The impact of Shari'ah governance practices on Shari'ah compliance in
contemporary Islamic finance
VL 14
IS 2
BP 134
EP 163
DI 10.1057/jbr.2012.12
PD APR 2013
PY 2013
AB The objective of this article is to highlight the impact of regulatory
issues of the Shari'ah Supervisory Board (SSB) on Shari'ah compliance in
the contemporary Islamic finance industry. For institutions offering
Islamic Financial Services (IIFS) to gain the trust of their Muslim
clients, financial institutions normally incorporate a religious board
in the form of an SSB. In theory, the function of the SSB is to ensure
that IIFS operate within Shari'ah norms and teachings. However, given
that SSBs in countries like Saudi Arabia, Egypt, Turkey and the United
Kingdom are generally unregulated, concerns have been raised about the
feasibility of a viable and functional Shari'ah governance culture in
IIFS. Doubts relate mainly to the unclear functions and legal settings
of SSBs; a lack of accountability and transparency; conflict of
interests and the lack of independence of SSBs, as well as poor training
and the inadequate qualifications of SSB members. The key argument in
this article is that the prevalence of these critical governance issues
largely reduces the level of Shari'ah compliance in the Islamic finance
industry. Thus, the article argues that regulators in Islamic and
secular countries need to intervene and regulate Shari'ah governance in
IIFS so as to ensure a sound financial system and investor confidence.
Z8 0
ZA 0
ZB 0
ZR 0
ZS 0
TC 2
Z9 2
U1 0
U2 1
SN 1745-6452
EI 1750-2071
UT WOS:000214342500003
ER
PT J
AU Bourkhis, Khawla
Nabi, Mahmoud Sami
TI Islamic and conventional banks' soundness during the 2007-2008 financial
crisis
SO REVIEW OF FINANCIAL ECONOMICS
VL 22
IS 2
BP 68
EP 77
DI 10.1016/j.rfe.2013.01.001
PD APR 2013
PY 2013
AB The recent global financial crisis has induced a series of failure of
many conventional banks and led to an increased interest in the Islamic
banking business model. This paper attempts to answer empirically the
following question: What was the effect of the 2007-2008 financial
crisis on the soundness of Islamic banks and their conventional peers?
Using the Z-score as an indicator of bank stability, our regression
analysis (covering a matched sample of 34 Islamic Banks (IBs) and 34
conventional banks (CBs) from 16 countries) shows that there is no
significant difference in terms of the effect of the financial crisis on
the soundness of IBs and CBs. This finding reveals that IBs are
diverging from their theoretical business model which would have allowed
them to keep the same level of soundness even during the crisis. (C)
2013 Elsevier Inc. All rights reserved.
RI Nabi, Mahmoud Sami/K-7822-2012
OI Nabi, Mahmoud Sami/0000-0002-8045-0591
TC 99
ZB 0
ZA 3
Z8 0
ZR 0
ZS 0
Z9 102
U1 0
U2 0
SN 1058-3300
EI 1873-5924
UT WOS:000213575200004
ER
PT J
AU Sardar, Azeem
Azeem, Muhammad Masood
Hassan, Sarfraz
Bakhsh, Khuda
TI COMPARISON OF EFFICIENCY BETWEEN PURE ISLAMIC BANKS AND ISLAMIC BANK
WINDOWS AND ROLE OF ISLAMIC BANKING IN AGRICULTURE SECTOR
SO PAKISTAN JOURNAL OF AGRICULTURAL SCIENCES
VL 50
IS 1
BP 155
EP 161
PD MAR 2013
PY 2013
AB This paper is an attempt to compare the efficiency between pure Islamic
banks and Islamic bank windows of conventional banks. It also explains
the role of Islamic banks in agriculture sector. Data envelopment
analysis (DEA) was used to find out the efficiency. The results of this
study suggest that overall efficiency of Islamic banking is increasing
with the passage of time. The cost, allocative, scale and technical
efficiencies of pure Islamic banks are higher than Islamic banking
windows of conventional banks; however, income efficiency is higher in
the case of Islamic bank windows. In agriculture sector, Islamic banking
provides equal opportunities to all farm size groups with its unique
products. Especially the small farmers can benefit from the products of
to enhance the productivity of their farms.
OI Bakhsh, Khuda/0000-0001-5607-3370; Azeem, Muhammad
Masood/0000-0003-4531-1016
TC 0
ZB 0
ZS 0
ZR 0
ZA 0
Z8 0
Z9 0
U1 0
U2 16
SN 0552-9034
EI 2076-0906
UT WOS:000317480500024
ER
PT J
AU Rammal, Hussain G.
Parker, Lee D.
TI Islamic banking in Pakistan: A history of emergent accountability and
regulation
SO ACCOUNTING HISTORY
VL 18
IS 1
BP 5
EP 29
DI 10.1177/1032373212463269
PD FEB 2013
PY 2013
AB This study presents a history of the Islamic banking sector, its
accountability and regulation in Pakistan, set in its contexts of the
rise of Islamic banking internationally in a global finance marketplace
alongside the localized Islamization of Pakistan's economy. The
historical analysis is informed by the Economic Theory of the State and
the principles of Islamic theocracy, and examines the events leading to
the establishment of the Islamic banking system in Pakistan, government
accountability and regulatory strategies, and the market response. The
findings reveal the complexity of attempts to reform Pakistan's banking
sector into a purely Islamic-based system and the contests between
government, the central bank and religious authorities for the sector's
accountability, regulation and control. The re-emergence of a dual
banking system and its accountability and regulation for both economic
management and theocratic purposes illustrates the ongoing compromise
and accommodation between national religious culture and a global
financial environment.
RI Rammal, Hussain Gulzar/F-4636-2013
OI Rammal, Hussain Gulzar/0000-0002-3346-080X
ZS 0
ZB 0
Z8 0
ZR 0
TC 9
ZA 0
Z9 9
U1 0
U2 0
SN 1032-3732
EI 1749-3374
UT WOS:000211149500002
ER
PT J
AU Beck, Thorsten
Demirguec-Kunt, Asli
Merrouche, Ouarda
TI Islamic vs. conventional banking: Business model, efficiency and
stability
VL 37
IS 2
BP 433
EP 447
DI 10.1016/j.jbankfin.2012.09.016
PD FEB 2013
PY 2013
AB How different are Islamic banks from conventional banks? Does the recent
crisis justify a closer look at the Sharia-compliant business model for
banking? When comparing conventional and Islamic banks, controlling for
time-variant country-fixed effects, we find few significant differences
in business orientation. There is evidence however, that Islamic banks
are less cost-effective, but have a higher intermediation ratio, higher
asset quality and are better capitalized. We also find large
cross-country variation in the differences between conventional and
Islamic banks as well as across Islamic banks of different sizes.
Furthermore, we find that Islamic banks are better capitalized, have
higher asset quality and are less likely to disintermediate during
crises. The better stock performance of listed Islamic banks during the
recent crisis is also due to their higher capitalization and better
asset quality. (C) 2012 Elsevier B.V. All rights reserved.
RI Foglie, Andrea Delle/AAH-9612-2019
ZA 4
Z8 1
TC 400
ZB 1
ZS 1
ZR 0
Z9 406
U1 12
U2 198
SN 0378-4266
EI 1872-6372
UT WOS:000312979100014
ER
PT B
AU Archer, Simon
Haron, Abdullah
BE Archer, S
Karim, RAA
TI Operational Risk Exposures of Islamic Banks
SO ISLAMIC FINANCE: THE NEW REGULATORY CHALLENGE, 2ND EDITION
BP 133
EP 152
PD 2013
PY 2013
TC 5
ZA 0
ZR 0
ZS 0
Z8 0
ZB 0
Z9 5
U1 0
U2 1
BN 978-1-118-24706-8; 978-1-118-24704-4
UT WOS:000332637100009
D2 10.1002/9781118628973
ER
PT B
AU Safa, Samir
BE Archer, S
Karim, RAA
TI Information Technology Risks in Islamic Banks
BP 153
EP 161
PD 2013
PY 2013
ZS 0
TC 0
ZB 0
Z8 0
ZR 0
Z9 0
U1 0
U2 0
BN 978-1-118-24706-8; 978-1-118-24704-4
UT WOS:000332637100010
D2 10.1002/9781118628973
ER
PT B
AU Archer, Simon
Karim, Rifaat Ahmed Abdel
BE Archer, S
Karim, RAA
TI Specific Corporate Governance Issues in Islamic Banks
BP 417
EP 449
PD 2013
PY 2013
TC 0
ZR 0
Z8 0
ZA 0
ZB 0
ZS 0
Z9 0
U1 0
U2 1
BN 978-1-118-24706-8; 978-1-118-24704-4
UT WOS:000332637100023
D2 10.1002/9781118628973
ER
PT B
AU Porzio, Claudio
Starita, Maria Grazia
BE Cattelan, V
TI Islamic banking contracts and the risk profile of Islamic banks
SO ISLAMIC FINANCE IN EUROPE: TOWARDS A PLURAL FINANCIAL SYSTEM
SE Studies in Islamic Finance Accounting and Governance
BP 79
EP 95
PD 2013
PY 2013
ZB 0
TC 0
ZS 0
Z8 0
ZR 0
Z9 0
U1 0
U2 0
BN 978-1-78100-251-3; 978-1-78100-250-6
UT WOS:000325631100007
D2 10.4337/9781781002513
ER
PT J
Nordin, Bany Ariffin Amin
Nasir, Annuar Md
TI PRICE EFFICIENCY AND RETURNS TO SCALE OF BANKING SECTOR IN GULF
COOPERATIVE COUNCIL COUNTRIES: EMPIRICAL EVIDENCE FROM ISLAMIC AND
CONVENTIONAL BANKS
SO ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH
VL 47
IS 3
BP 215
EP 236
PD 2013
PY 2013
AB This paper investigates the price efficiency consist of cost, revenue
and profit efficiency and returns to scale on 74 banks (47 conventional
and 27 Islamic banks) in Gulf Cooperative Council (GCC) countries over
the periods 2007 to 2011. The Data Envelopment Analysis (DEA) method
that applied the intermediation approach adopted in this study to
measure the level of efficiencies. We find that, revenue efficiency
seems to play the main factor leading to the lower or higher profit
efficiency levels only on Islamic banks. This study also shows that they
are statistically significant difference on cost, revenue and profit
efficiency between Islamic and conventional banks in GCC countries.
Furthermore, Islamic and conventional banks tend to operate at constant
return to scale (CRS) or decrease return to scale (DRS), while the small
banks tend to operate at CRS or increase return to scale (IRS).
ZR 0
ZS 1
ZA 0
Z8 0
TC 13
ZB 0
Z9 14
U1 1
U2 13
SN 0424-267X
EI 1842-3264
UT WOS:000324972800014
ER
PT J
AU Kamla, Rania
Rammal, Hussain G.
TI Social reporting by Islamic banks: does social justice matter?
SO ACCOUNTING AUDITING & ACCOUNTABILITY JOURNAL
VL 26
IS 6
BP 911
EP 945
DI 10.1108/AAAJ-03-2013-1268
PD 2013
PY 2013
AB Purpose - This study examines social reporting by Islamic banks with
special emphasis on themes related to social justice. By using critical
theory and "immanent critique", the study attempts to explain and
delineate reasons for disclosures and silences in Islamic banks' annual
reports and web sites vis-a-vis social justice.
Design/methodology/approach - The approach taken was a content analysis
of annual reports and web sites of 19 Islamic banks.
Findings - Islamic banks' disclosures emphasise their religious
character through claims that they adhere to Sharia's teachings. Their
disclosures, however, lack specific or detailed information regarding
schemes or initiatives vis-a-vis poverty eradication or enhancing social
justice.
Research limitations/implications - Limitations associated with content
analysis of annual reports and internet web sites apply. This study
focuses on Islamic banks' social roles. Further studies of banks' social
roles in society in general are of interest.
Practical implications - Drawing attention of Islamic banks and other
stakeholders to the gap between the rhetorical religious and ethical
claims of Islamic banks and their activities (as depicted through their
disclosures) opens up the possibility of a positive change in Islamic
banks' actual social roles.
Originality/value - The study fills a gap in both social accounting and
Islamic accounting literatures with its emphasis on social justice and
poverty eradication. The study contributes to the very scarce literature
linking religion (especially Islam), critical theory, social accounting
and Islamic accounting. It goes beyond previous research in Islamic
accounting literature by exposing contradictions in the Islamic banking
industry's rhetoric regarding their social role in society.
RI Rammal, Hussain Gulzar/F-4636-2013; Kamla, Rania/
OI Rammal, Hussain Gulzar/0000-0002-3346-080X; Kamla,
Rania/0000-0001-6813-0475
ZB 0
Z8 0
TC 35
ZA 0
ZS 0
ZR 0
Z9 35
U1 1
U2 31
SN 0951-3574
EI 1758-4205
UT WOS:000324010000002
ER
PT J
AU Zahid, Anowar
TI Corporate Personality from an Islamic Perspective
VL 27
IS 2
BP 125
EP 150
DI 10.1163/15730255-12341252
PD 2013
PY 2013
AB Corporate personality is said to be a Western concept, but is it also
Islamic? Answering this question is a demand of the day in view of the
ever-increasing number of Islamic commercial and financial entities. For
example, the legal personality of the first Islamic Bank of Malaysia,
Bank Islam Malaysia Berhad, has been brought to question following an
unreported case, Bank Islam Malaysia Bhd. v. Adnan Bin Omar (1994). In
an attempt to answer this question, this article overviews the arguments
of Islamic jurists on this issue and puts forward its own judgment.
ZB 0
ZS 0
ZR 0
ZA 0
TC 0
Z8 0
Z9 0
U1 0
U2 0
SN 0268-0556
EI 1573-0255
UT WOS:000217470700002
ER
PT J
AU Suliman, Abubakr
Al Obaidli, Hanan
TI Leadership and organizational citizenship behavior (OCB) in the
financial service sector The case of the UAE
SO ASIA-PACIFIC JOURNAL OF BUSINESS ADMINISTRATION
VL 5
IS 2
BP 115
EP 134
DI 10.1108/17574321311321603
PD 2013
PY 2013
AB Purpose - This research aims at investigating, for the first time in the
Arab world, the influence of leadership behaviors on organizational
citizenship behaviors (OCB) in the Islamic banking sector. Also, it
explores the role of OCB in affecting work outcomes.
Design/methodology/approach - The study consists of two core concepts:
leadership behaviors and OCB. The sample population for the study was
drawn from 150 employees working for several Islamic banks in the United
Arab Emirates (UAE). A self-administered questionnaire was developed by
combining two instruments.
Findings - The findings revealed that transformational and transactional
leadership styles tend to play a significant role in employees' OCB.
Nonetheless, passive/avoidant leadership style plays no role of
statically evidence in the relationship.
Practical implications - The theoretical and managerial implications of
the findings are discussed in the paper, together with some
recommendations for managing leadership and OCB in the service sector.
Originality/value - The paper examines for the first time the links
between leadership and OCB in the Islamic banking sector of the UAE and
the Arabic context.
ZR 0
ZB 0
Z8 0
TC 12
ZS 2
ZA 2
Z9 16
U1 0
U2 0
SN 1757-4323
EI 1757-4331
UT WOS:000214113400003
ER
PT J
AU Zainuldin, Mohd Haniff
Rahman, Ibrahim Kamal Abdul
Haniff, Mohd Nizal
TI Enhancing management Accounting Practice through Islamic Values: A Case
Study of a Malaysian Islamic Bank
SO ASIA-PACIFIC MANAGEMENT ACCOUNTING JOURNAL
VL 8
IS 2
BP 63
EP 88
PD 2013
PY 2013
AB This is a concept paper discussing how certain Islamic principles are
infused into the overall management accounting practices of an Islamic
Bank which was incorporated in Malaysia. The Bank has successfully
integrated these principles in its management system and in turn has
created a unique approach to management accounting practices for an
Islamic Financial Institution (IFI). This approach earned the Bank, the
prestigious National Award for Management Accounting (NAfMA) in 2008for
the best practice solutions award category in recognition of the Bank's
effective applications of management accounting system and tools that
has had a positive impact of daily practice. This paper discusses the
strategies employed by the Bank and its application of Islamic values.
RI Zainuldin, Mohd Haniff/AAH-6578-2019
OI Zainuldin, Mohd Haniff/0000-0003-1676-7516
ZS 0
Z8 0
TC 1
ZB 0
ZR 0
ZA 0
Z9 1
U1 0
U2 0
SN 1675-3194
UT WOS:000214880700004
ER
PT J
AU Rahman, Azhar Abdul
Bukair, Abdullah Awadh
TI The Influence of the Shariah Supervision Board on Corporate Social
Responsibility Disclosure by Islamic Banks of Gulf Co-Operation Council
Countries
VL 6
IS 2
BP 65
EP 104
PD 2013
PY 2013
AB This paper examines empirically the influence of the Shariah supervisory
board (SSB) and its characteristics on the level of corporate social
responsibility (CSR) disclosure in a sample of 53 Islamic banks
operating in Gulf Co-operation Council (GCC) countries for the year 2008
based on a disclosure index from the Islamic perspective. Using content
analysis, the descriptive statistics show that there is an increase in
CSR information disclosed in the annual reports of Islamic banks. In
addition, using multiple regression analysis and after accounting for
bank size, financial performance and economic performance, the findings
indicate that the combination of SSB attributes has a significant
positive influence on CSR disclosure. This means that the
characteristics of SSB are important factors in determining the level of
CSR disclosure.
ZS 0
Z8 0
ZR 0
TC 34
ZA 0
ZB 1
Z9 35
U1 0
U2 0
SN 1985-4064
EI 2180-3137
UT WOS:000218385900004
ER
PT J
AU Darmadi, Salim
TI Corporate governance disclosure in the annual report An exploratory
study on Indonesian Islamic banks
SO HUMANOMICS
VL 29
IS 1
BP 4
EP 23
DI 10.1108/08288661311299295
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to explore disclosure on
corporate governance mechanisms in annual reports of Islamic commercial
banks in Indonesia.
Design/methodology/approach - Employing a sample comprising seven
Islamic commercial banks in Indonesia, the present study constructs the
so-called Corporate Governance Disclosure Index (CGDI) to score the
banks' disclosure level. Corporate governance mechanisms addressed in
this study include Shariah Supervisory Board, the Board of
Commissioners, the Board of Directors, board committees, internal
control and external audit, and risk management.
Findings - It is revealed that Bank Muamalat and Bank Syariah Mandiri,
the county's two largest and oldest Islamic commercial banks, score
higher than their peers. Disclosure of the sample banks on some
dimensions, such as board members and risk management, is found to be
strong. On the other hand, disclosure on internal control and board
committees tends to be weak.
Practical implications - This study shows that the average disclosure
level among the sample banks is relatively low. Hence, this result has
important implications for the enhancement of corporate governance
disclosure of Islamic banks, thereby wider acceptance and enhanced
reputation could be gained.
Originality/value - This paper is believed to be among the first to
explore the practice of disclosure on corporate governance mechanisms
among Islamic commercial banks. Additionally, it focuses on Indonesia,
the largest Muslim country that has a different institutional setting
from that in other Muslim countries.
RI Darmadi, Salim/Y-9427-2019
OI Darmadi, Salim/0000-0002-7705-2672
ZB 0
ZA 0
ZS 0
Z8 0
TC 18
ZR 0
Z9 18
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210892800001
ER
PT J
AU Wasiuzzaman, Shaista
Gunasegavan, Umadevi
TI Comparative study of the performance of Islamic and conventional banks
The case of Malaysia
SO HUMANOMICS
VL 29
IS 1
BP 43
EP 60
DI 10.1108/08288661311299312
PD 2013
PY 2013
AB Purpose - The aim of this paper is to analyze the differences in bank
characteristics of Islamic and conventional banks in Malaysia,
especially when it comes to their profitability, capital adequacy,
liquidity, operational efficiency and asset quality are also considered.
Corporate governance issues and economic conditions are also included in
the analysis.
Design/methodology/approach - A total of 14 banks (nine conventional and
five Islamic) were considered over the period of 2005- 2009. Three
stages of analysis were performed. First, descriptive statistics were
computed to understand the differences in characteristics of the two
types of banks. Next, to determine whether these differences were
significant, independent t- tests were carried out on each variable.
Finally, regression analysis was carried out to analyze the effect of
the variables on bank profitability.
Findings - It is found that the return on average assets, bank size and
board size values of conventional banks was higher compared to Islamic
banks. The other variables-operational efficiency, asset quality,
liquidity, capital adequacy and board independence-were higher for
Islamic banks. Significant differences between the two bank types were
found for all the variables, except for profitability and board
independence. All variables except for liquidity, board characteristics
and type of bank, were found to be highly significant in affecting
profitability.
Originality/value - This paper looks at the differences between Islamic
and conventional banking systems in Malaysia. Contrasting results were
found for the independent t-tests and regression analysis, which makes
it an interesting study that should be pursued further.
RI Wasiuzzaman, Shaista/H-8403-2019
OI Wasiuzzaman, Shaista/0000-0002-0244-2174
ZR 0
ZS 0
ZA 1
TC 17
ZB 0
Z8 0
Z9 18
U1 0
U2 1
SN 0828-8666
EI 1758-7174
UT WOS:000210892800003
ER
PT J
AU Butt, Muhammad Mohsin
Aftab, Muhammad
TI Incorporating attitude towards Halal banking in an integrated service
quality, satisfaction, trust and loyalty model in online Islamic banking
context
VL 31
IS 1
BP 6
EP 23
DI 10.1108/02652321311292029
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to empirically investigate the
influence of consumer attitude towards Halal banking on e-service
quality and e-satisfaction, in an online Islamic banking context. The
proposed model also aims to investigate the relationships among
e-service quality, e-satisfaction, e-trust and e-loyalty.
Design/methodology/approach - A questionnaire was designed to collect
data from the regular users of online services of Islamic banks in
Pakistan. Convenience sampling method was adopted to collect data from
the existing customers of six Islamic banks, residing in five major
urban centres of Pakistan. A total of 350 questionnaires were
distributed, out of which 292 returned questionnaires were suitable for
further analysis. Structural equation modelling procedure was used to
test the proposed research model.
Findings - The results of this research suggest that attitude towards
Halal banking positively influences perceived e-service quality and
overall e-satisfaction with the online services of Islamic banks.
Furthermore, perceived online service quality enhances customer
e-satisfaction and their e-loyalty towards the bank. Similarly, e-trust
mediates the relationship between e-satisfaction and e-loyalty.
Practical implications - This study enhances our understanding of how
specific religious attitudes can positively influence consumer
assessments of a bank's perceived e-service quality and their overall
e-satisfaction with it.
Originality/value - Much of the previous research on Islamic banking has
been descriptive in its nature. This study contributes to the existing
literature by exploring the causal effect of attitude towards Halal
banking on consumer perceptions about the e-service quality and
e-satisfaction with the online services of Islamic banks.
RI Butt, Muhammad Mohsin/K-1704-2019; Aftab, M/S-6374-2019; KHAN, MUHAMMAD ZIA
AFTAB/AAD-2172-2019; Aftab, Muhammad/; , m/
OI KHAN, MUHAMMAD ZIA AFTAB/0000-0003-2926-3229; Aftab,
Muhammad/0000-0002-4163-1293; , m/0000-0003-4164-4147
Z8 0
ZR 0
TC 52
ZA 1
ZS 1
ZB 0
Z9 53
U1 0
U2 0
SN 0265-2323
EI 1758-5937
UT WOS:000216495300001
ER
PT J
AU Amin, Muslim
Isa, Zaidi
Fontaine, Rodrigue
TI Islamic banks Contrasting the drivers of customer satisfaction on image,
trust, and loyalty of Muslim and non-Muslim customers in Malaysia
VL 31
IS 2
BP 79
EP 97
DI 10.1108/02652321311298627
PD 2013
PY 2013
AB Purpose - The purpose of this study is to investigate customer
satisfaction and its effect on image, trust, and customer loyalty for
Islamic banks.
Design/methodology/approach - The study uses data from Islamic banks and
dual-window Islamic banks, pertaining to two different customer segments
(Muslims and non-Muslims).
Findings - The results indicate that customer satisfaction has a
significant relationship with image, image has a significant
relationship with trust, and trust has a significant relationship with
customer loyalty for both customer segments. Furthermore, significant
differences occur in the effect of customer satisfaction on image, image
on trust, and trust on customer loyalty between Muslim and non-Muslim
customers.
Practical implications - The findings suggest that Muslim customers
establish relationships with Islamic banks because they trust that
Islamic banks are Shariah compliant. Therefore, providing secure banking
products that are fully compliant with Islamic principles are necessary.
Originality/value - This research is important as it clearly
demonstrates that the loyalty of Muslim and non-Muslim customers to
Islamic banks is influenced by customers being satisfied, as well as the
image of and trust in Islamic banks. In this context, when customers are
unwilling to trust Islamic banks, they are also unwilling to be loyal.
RI Amin, Muslim/M-6011-2018; Amin, Muslim/
OI Amin, Muslim/0000-0003-0818-5663
TC 92
ZA 0
ZB 0
Z8 0
ZR 0
ZS 2
Z9 92
U1 0
U2 0
SN 0265-2323
EI 1758-5937
UT WOS:000216495800002
ER
PT J
AU Sayani, Hameedah
Miniaoui, Hela
TI Determinants of bank selection in the United Arab Emirates
VL 31
IS 3
BP 206
EP 228
DI 10.1108/02652321311315302
PD 2013
PY 2013
AB Purpose - This study aims to identify the determinants of bank selection
for Islamic and conventional banks in the United Arab Emirates (UAE).
Design/methodology/approach - Data were collected from 246 respondents
in the Emirates of Dubai and Sharjah and focused on aspects such as bank
products, service quality, profit, reputation, cultural and religious
factors, in addition to demographic attributes of the sample. Multiple
discriminant analysis is used to identify the most important
determinants of bank selection.
Findings - The study concluded that the determinants for bank selection
are more distinguishable amongst Islamic bank customers. Bank reputation
and expectation of profit on deposits are not determinants of bank
selection; however, religious preferences are the most important
considerations in selection between Islamic and conventional banks.
Research limitations/implications - Use of convenience sampling due to
lack of resources may result in insufficient representation of
population. Additionally, analysis of differences between the Muslim and
non-Muslim population with respect to their bank selection process may
provide an avenue for future research.
Practical implications - The study has implications for both Islamic and
conventional banks that can appropriately target the customers using
bank selection determinants that are valued by the customers.
Originality/value - The study adds to the existing literature on
consumer preferences for Islamic and conventional banks in the context
of the UAE with a relatively large and recent data set.
RI Miniaoui, Hela/Q-7647-2019; Sayani, Hameedah/
OI Sayani, Hameedah/0000-0002-5195-597X
ZR 0
ZA 0
ZB 0
Z8 0
ZS 0
TC 23
Z9 23
U1 0
U2 0
SN 0265-2323
EI 1758-5937
UT WOS:000216497100005
ER
PT J
AU Amin, Hanudin
Abdul-Rahman, Abdul-Rahim
Abdul-Razak, Dzuljastri
TI An integrative approach for understanding Islamic home financing
adoption in Malaysia
VL 31
IS 7
BP 544
EP 573
DI 10.1108/IJBM-02-2013-0008
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to investigate the effects of
subjective norm, relative advantage, simplicity, compatibility and
perceived behavioural control on the Islamic home financing adoption. It
also examines the effects of subjective norm, relative advantage,
simplicity and compatibility on attitude. Analyses of attitude as a
mediating factor are also provided.
Design/methodology/approach - Survey data from 237 usable questionnaires
are employed to test the hypothesized relationships. The proposed
hypothesized relationships are examined using partial least squares
(PLS). Similarly, PLS is also extended to analyse attitude as a
potential mediator for the relationships between subjective norm,
relative advantage, simplicity and compatibility with the Islamic home
financing adoption. Baron and Kenny's (1986) procedure is used to
evaluate the role of attitude as a potential mediating factor in the
research's framework.
Findings - This study discovers an integrative approach that is valid in
the case of Islamic home financing. The paper's results, however, have
not supported the effect of compatibility on attitude towards Islamic
home financing preference and it is also reported that attitude does not
mediate for the relationship between compatibility and the Islamic home
financing adoption.
Research limitations/implications - This study, however, suffers from
three limitations which further stimulate new researches in this area.
First, this research does not consider additional measures to capture
Islamic home financing adoption. Second, this study discovers attitude
does not mediate the relationship between compatibility and the Islamic
home financing adoption. Third, there is a possibility that attitude
also serves as a moderator, however, but it is presently unconsidered.
Practical implications - This study has several implications for Islamic
banks to develop proper planning for Islamic home financing products.
Those implications are provided.
Originality/value - This study is the first research in Islamic home
financing's area to integrate two models namely the theory of planned
behaviour (the TPB) and the innovation diffusion theory (the IDT) in a
single research in order to expound Islamic home financing adoption.
This study contributes to the literature by examining an integrative
approach for understanding Islamic home financing adoption in Malaysia.
OI Amin, Hanudin/0000-0003-3645-287X
ZB 0
ZS 0
Z8 0
TC 20
ZA 1
ZR 0
Z9 21
U1 0
U2 0
SN 0265-2323
EI 1758-5937
UT WOS:000216502700004
ER
PT J
AU Ma'in, Masturah
Rafien, Nor Shahrina Mohd
Arshad, Noraziah Che
TI INVESTMENT, ISLAMIC BANK AND FINANCIAL DESIGN FROM MALAYSIAN LISTED
FIRMS
VL 14
IS 3
BP 480
EP 495
PD 2013
PY 2013
AB This paper examines the link between financial design and Islamic bank
variables on firm investment. It is aimed to support additional
empirical evidence based on previous studies. The firm-level data for
Malaysian Shariah listed firms between 2000 and 2010 are used. This
paper utilizes the estimation method from generalised method of moments
for dynamic panel data, as proposed by Arellano and Bover (1995). The
findings show that: first, the investment of Shariah listed firms are
positively related to the development of the banking system and the
capital market. Second, the cash flow shows a negative impact on
investment of firms. Third, the debt asset ratio has a negative impact
on firm investment. Fourth, Bai' Bithaman Ajil and Ijarah financing show
a negative effect on investment of firm. Fifth, the zakah variable shows
a mixed result on firm investment.
ZS 0
ZR 0
Z8 0
ZB 0
TC 0
Z9 0
U1 0
U2 0
SN 1511-6670
UT WOS:000420267500010
ER
PT J
AU Hassan, M. Kabir
Sanchez, Benito
Safa, M. Faisal
TI Impact of financial liberalization and foreign bank entry on Islamic
banking performance
MANAGEMENT
VL 6
IS 1
BP 7
EP 42
DI 10.1108/17538391311310716
PD 2013
PY 2013
AB Purpose - This paper aims to examine the impact of financial
liberalization and foreign Islamic bank entry on the performance of
domestic Islamic banks, and credit availability to the private sector.
Design/methodology/approach - The authors use the weighted least squares
method to estimate four models. These models are suggested by Lee. For
this, the inverse of the number of domestic Islamic banks in each period
is used to weight the observations in the regressions to correct for
varying number of bank observations in each country.
Findings - The results indicate that foreign Islamic banks, on average,
follow aggressive financing in host countries and enjoy higher net
profit margin. Banking sector returns play an important role in the
entry decision and presence of foreign banks. Moreover, favorable
macro-economic conditions play a supportive role while higher tax
policies play a hostile role for the entry and presence of foreign
Islamic banks. The recent financial crisis does not seem to affect the
entry decision significantly. But the profitability of domestic Islamic
banks has been seriously affected by the recent crisis. Also domestic
tax policy and macroeconomic environment play important roles in
determining the domestic Islamic bank performance. Results also indicate
that private sector credit availability seems to suffer because of
higher tax and reserve rate.
Practical implications - The authors' findings suggest that host Islamic
economies should strive for an efficient capital market with supportive
macroeconomic environment, which in turn helps the local banking
sector to develop and benefit from the foreign Islamic bank entry.
Originality/value - This is the first paper to analyze the entry of
foreign Islamic banks in the host countries with Islamic banking sector.
RI Sanchez, Benito/J-8028-2019; Hassan, M. Kabir/D-5053-2012; Safa, M. Faisal/
OI Hassan, M. Kabir/0000-0001-6274-3545; Safa, M.
Faisal/0000-0002-6067-0589
Z8 0
ZB 0
ZA 0
ZS 0
TC 4
ZR 0
Z9 4
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214386500002
ER
PT J
AU Eljelly, Abuzar M. A.
Elobeed, Ahmed Abdelgadir
TI Performance indicators of banks in a total Islamic banking system: the
case of Sudan
MANAGEMENT
VL 6
IS 2
BP 142
EP 155
DI 10.1108/17538391311329833
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to describe the common
performance traits of banks operating in a whole Islamic banking system
in Sudan. Sudan is among the few economies in which a whole Islamic
banking system is in place.
Design/methodology/approach - Nine banks representing the most active
and large banks are used as a sample for this analysis. The study
applied factor analysis to a large set of financial ratios that are
commonly used in financial analysis of banks.
Findings - The study found that six factors are able to explain most of
the variation of the financial ratios used in the study. These factors
ranked according to the percentage of variation explained are: liquidity
risk, coverage, efficiency (utilization), profitability, capital
adequacy, and control. The study also tested for the stability of these
factors over time and found that both the extracted factors and their
loadings are stable over time.
Practical implications - Thus, this study provides a reduced set of
indicators of performance of Islamic banks that operate in a total
Islamic banking system that may be beneficial to a large group of
stakeholders and parties that have interest in Islamic banking.
Originality/value - This study provides an opportunity to interested
researchers in the area of Islamic banks about an important aspect of a
total Islamic banking system, such as Sudan.
ZS 0
ZR 0
ZB 0
ZA 0
Z8 0
TC 2
Z9 2
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214395400005
ER
PT J
AU Farahani, Yazdan Gudarzi
Dastan, Masood
TI Analysis of Islamic banks' financing and economic growth: a panel
cointegration approach
MANAGEMENT
VL 6
IS 2
BP 156
EP 172
DI 10.1108/17538391311329842
PD 2013
PY 2013
AB Purpose - This paper seeks to use empirical evidence to examine the role
of Islamic banks' financing on economic performance of selected
countries (Malaysia, Indonesia, Bahrain, UAE, Saudi Arabia, Egypt,
Kuwait, Qatar and Yemen).
Design/methodology/approach - Using quarterly data (2000:1-2010:4), this
paper utilizes the panel cointegration approach models framework.
Findings - The results generally signify that, in the long run, Islamic
banks' financing is positive and significantly correlated with economic
growth and capital accumulation in these countries. The results obtained
from the Granger causality test reveal a positive and statistically
significant relationship between economic growth and Islamic banks'
financing in the short run and in the long run. It also found that the
long run relationship is stronger than the short run relationship.
Originality/value - This paper uses empirical evidence to show the
effect of Islamic banks' financing on economic growth of selected
Islamic countries. To the best of the authors' knowledge, most of the
studies in this field have applied the bound testing approach of
cointegration, error correction models (ECMs), Auto Regressive
Distributed lag (ARDL) and Vector Autoregressive Model (VAR), and the
coefficients obtained by these models cannot be deemed as a general
finding applicable for other countries. The superiority of this article
is in applying the FMOLS model, which has stable and consistent
coefficients and is also a dynamic model.
ZR 0
TC 19
ZB 0
Z8 0
ZA 0
ZS 0
Z9 19
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214395400006
ER
PT J
AU Hamza, Hichem
TI Sharia governance in Islamic banks: effectiveness and supervision model
MANAGEMENT
VL 6
IS 3
BP 226
EP +
DI 10.1108/IMEFM-02-2013-0021
PD 2013
PY 2013
AB Purpose - The Sharia governance is topic that has generated much
interest in the literature of Islamic banking industry. The Sharia
supervision plays an essential role in the governance of Islamic banks.
The Sharia Board (SB) which is peculiar to Islamic banks is considered
as the principal component of the Sharia governance framework. The
purpose of this paper is to examines the link between Sharia compliance,
the form of Sharia supervision and the effectiveness of Sharia
governance.
Design/methodology/approach - This paper compares two model of Sharia
governance framework, the first is the decentralized model in the Gulf
Cooperation Council (GCC) and the second is the centralized model in
Malaysia.
Findings - The independence of the SB in their mission of supervision
and the consistency of Sharia ruling are the principal components of an
efficient Sharia governance structure. Centralized Sharia governance
system, basically in Malaysia, seems to be beneficial to the industry in
term of effectiveness and credibility of the Islamic banks.
Research limitations/implications - The research focuses exclusively on
the qualitative analysis about the SB and Sharia governance in Islamic
countries.
Practical implications - The model of centralization is able to
strengthen the position and the independence of SB and can better
examine the subjects of divergences between the whole of the SB in order
to promote, in the long term, the consistency of Fatwas and
interpretations between banks and regions.
Originality/value - To the best of our knowledge few studies have
examined this subject in a comparative discussion between MENA and
Southeast Asia region. This paper contributes to the literature on
Sharia governance by considering the difference between these two
regions in term of supervision model of Sharia rules and principles and
its application in Islamic banking.
TC 39
ZA 0
Z8 0
ZB 0
ZR 0
ZS 0
Z9 39
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214396900005
ER
PT J
AU Alam, Nafis
TI Impact of banking regulation on risk and efficiency in Islamic banking
VL 11
IS 1
SI SI
BP 29
EP 50
DI 10.1108/JFRA-03-2013-0010
PD 2013
PY 2013
AB Purpose - This paper aims to examine whether bank regulation,
supervision and monitoring enhance or impede technical efficiency and
risk-taking behaviour of Islamic banks across the globe.
Design/methodology/approach - Technical efficiency scores are calculated
using the data envelopment analysis (DEA) model while simultaneity
between banks' supervision and regulation on risk and efficiency
estimates are calculated using the seemingly unrelated regression (SUR)
approach.
Findings - The author's results suggest that regulations and strict
monitoring of banking operation, and higher supervisory power of the
authorities, increase the technical efficiency for Islamic banks. The
opposite effect is observed in the case of risk-taking behaviour of
Islamic banks, with higher restrictions resulting in a reduction in risk
taking of Islamic banks.
Research limitations/implications - The Basel II & Basel III guidelines
suggested that stricter regulations and supervision could hamper banking
efficiency. The existence of a powerful supervisory body could also lead
to the inefficiency of banks. The DEA scores from this paper suggest
that this may not necessarily be the case, especially as Islamic banks
appear to be technically efficient in stricter regulatory conditions.
Originality/value - A message that emerges from this analysis is that
there is a strong link between Islamic bank technical efficiency and
risk-taking behaviour with the Central Bank regulatory and supervisory
policies. It is also conclusive that the Islamic banking system works
well within a stricter regulatory environment.
OI Alam, Nafis/0000-0002-7096-3692
ZA 0
ZR 0
Z8 0
ZB 0
ZS 0
TC 10
Z9 10
U1 0
U2 0
SN 1985-2517
EI 2042-5856
UT WOS:000211659200002
ER
PT J
AU Astrom, Zeyneb
TI Credit risk management pertaining to profit and loss sharing instruments
in Islamic banking
VL 11
IS 1
SI SI
BP 80
EP +
DI 10.1108/JFRA-03-2013-0014
PD 2013
PY 2013
AB Purpose - This paper aims to provide a new approach for the credit risk
management process of profit and loss sharing instruments in Islamic
banks.
Design/methodology/approach - Three credit risk management steps are
elaborated for profit and loss sharing instruments. Findings - First, a
new credit risk definition compatible with profit and loss sharing
instruments is done. Connected to this definition, possible credit risk
factors are identified. Second, in terms of credit risk measurement, a
general framework for credit scoring of prospective customer-agents is
drawn. Lastly, three groups of credit risk mitigation tools are
suggested.
Research limitations/implications - The paper can be developed further
by empirical analyses and case studies.
Originality/value - Even though credit risk is a well-known and deeply
elaborated financial concept in conventional literature, its unique
characteristics in terms of profit and loss sharing instruments have not
been sufficiently elaborated in Islamic finance literature. This paper
is an attempt to fill in this gap.
ZR 0
TC 4
ZS 0
ZA 0
Z8 0
ZB 0
Z9 4
U1 0
U2 0
SN 1985-2517
EI 2042-5856
UT WOS:000211659200005
ER
PT J
AU Sarea, Adel
Hanefah, Mustafa
TI Adoption of AAOIFI accounting standards by Islamic banks of Bahrain
VL 11
IS 2
BP 131
EP +
DI 10.1108/JFRA-07-2012-0031
PD 2013
PY 2013
AB Purpose - The objective of this paper is to determine the level of
compliance with Accounting and Auditing Organization for Islamic
Financial Institutions (AAOIFI) accounting standards by Islamic banks of
Bahrain.
Design/methodology/approach - The paper is based on diffusion of
innovation theory whereby the perceived relative advantage,
compatibility, complexity, trialability and observability factors are
expected to influence the level of compliance with AAOIFI accounting
standards.
Findings - The findings indicate that Islamic banks of Bahrain are in
full convergence with AAOIFI accounting standards.
Research limitations/implications - This research, just like many other
studies, faces data limitations. Sample size employed for this study
contains only the accountants in Islamic banks of Bahrain.
Originality/value - The results of this paper are expected to serve as a
guide to the regulatory bodies and the setter of accounting standards
for Islamic financial institutions (IFIs).
RI Sarea, Adel/O-2412-2019; Sarea, Adel/N-4216-2016
OI Sarea, Adel/0000-0001-6154-4261; Sarea, Adel/0000-0001-6154-4261
ZS 0
Z8 0
ZA 0
ZB 0
ZR 0
TC 8
Z9 8
U1 0
U2 2
SN 1985-2517
EI 2042-5856
UT WOS:000211660200002
ER
PT J
AU Rahman, Nik Mutasim Nik Ab.
Alias, Mohamad Adnan
Shahid, Sharmin
Hamid, Mohamad Abdul
Alam, Syed Shah
TI Relationship between Islamic Human Resource Management (IHRM) practices
and trust: An empirical study
SO JOURNAL OF INDUSTRIAL ENGINEERING AND MANAGEMENT-JIEM
VL 6
IS 4
BP 1105
EP 1123
DI 10.3926/jiem.794
PD 2013
PY 2013
AB Purpose: The purpose of this study is to explore and examines the
theoretical frameworks of Islamic human resource management practices
and trust in organization. Additionally, to investigate the extent to
which Islamic HRM practices inspire and revival employees trust in
organization.
Design/methodology/approach: This study comprised sample of 236 Islamic
Bank employees in Bangladesh. A cross-sectional research design was used
to examine the relationship between Islamic Human Resource Management
practices and trust. Data were gathered based on personal administered
questionnaire.
Findings: This study results show that knowledge, understanding and
practices of Islamic principles, recruitment and selection, training and
development, and reward system significantly related to the trust. But
performance appraisal are found have insignificant relationship.
Research limitations/implications: The data for this study are collected
by self-administered questionnaire, a method with well-known
shortcomings. Second, this study concentrated on the Islamic bank
employees in Bangladesh.
Practical implications: An important implication of this research is
that the interesting findings give some insight to the management of
Islamic bank to focus on improving Islamic Human Resource Management
practices, in their all kind of management, as that could improve their
trust in the bank.
Originality/value: The findings are original and unique and are based on
the literature from different researches. The results are based on a
sample of Islamic Bank employees in Bangladesh. The research findings
are useful to academics and management of Islamic bank all over the
world.
TC 4
Z8 0
ZR 0
ZS 0
ZB 0
ZA 0
Z9 4
U1 0
U2 0
SN 2013-8423
EI 2013-0953
UT WOS:000215577400018
ER
PT J
AU Oseni, Umar
TI Towards restructuring the legal framework for payment system in
international Islamic trade finance
SO JOURNAL OF INTERNATIONAL TRADE LAW AND POLICY
VL 12
IS 2
BP 108
EP +
DI 10.1108/JITLP-10-2012-0016
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to examine the current legal
framework for payment system in international Islamic trade finance
vis-s-vis the new regime introduced by the Uniform Customs and Practice
for Documentary Credits (UCP) 600 as well as the Shariah Standard on
Documentary Credits issued by the Accounting and Auditing Organization
for Islamic Financial Institutions (AAOIFI) and Shariah Resolutions of
selected Shariah Boards of Islamic financial institutions.
Design/methodology/approach - A partial comparison of both the UCP 600
and the Shariah framework for documentary credit is given through the
content analysis of relevant sources.
Findings - The AAOIFI Shariah Standard on Documentary Credits, as well
as other applicable Shariah resolutions of Islamic financial
institutions, does provide a good framework for a Shariah-compliant
documentary credit system, which is unique to trade in Islamic finance
products, but there is scope for further improvement, taking into
consideration the two possibilities proposed in the available literature
on the subject - harmonization or bifurcation of rules. The UCP 600 also
allows for the exclusion or modification of the rules to suit the
specific needs of the Islamic finance industry.
Research limitations/implications - This study focuses only on UCP 600
and the Shariah framework on Documentary Credits, though bearing mind
that there are other frameworks for documentary credit systems such as
the International Standby Practices (ISP98) and letters of credit issued
under Article 5 of the New York Uniform Commercial Code.
Practical implications - Islamic financial institutions should implement
the provisions of the AAOIFI Shariah standard on documentary credits but
may require a different framework for international trade financing
involving both Islamic banks and conventional banks.
Originality/value - Though few studies have been conducted on Shariah
issues regarding the application of the documentary credits, this seems
to be the first time where a more proactive step is taken to propose two
different frameworks for transactions involving Shariah compliant
financing.
OI Oseni, Umar/0000-0002-2425-5345
ZR 0
TC 11
Z8 0
ZB 0
ZS 0
Z9 11
U1 0
U2 0
SN 1477-0024
EI 2045-4376
UT WOS:000212308000001
ER
PT J
AU Abdullah, Wan Amalina Wan
Percy, Majella
Stewart, Jenny
TI Shari'ah disclosures in Malaysian and Indonesian Islamic banks The
Shari'ah governance system
VL 4
IS 2
BP 100
EP 131
DI 10.1108/JIABR-10-2012-0063
PD 2013
PY 2013
AB Purpose - The paper aims to contribute to the discussion on Shari'ah
governance systems by examining the extent of disclosure on the Shari'ah
Supervisory Board (SSB) as well as the content of the Board's report in
the annual reports of 23 Islamic banks in Malaysia and Indonesia. The
paper also investigates the disclosures about zakat (Islamic levy).
Design/methodology/approach - The study is a cross-sectional analysis of
annual report disclosures in the year 2009. The paper uses both
disclosure indices and content analysis to measure the extent of
disclosures about SSB and zakat. The paper also tests hypotheses
examining the relationship between SSB characteristics and the extent of
the SSB-related and zakat disclosures.
Findings - The results indicate that SSB-related and zakat disclosures
are still limited, with only four banks disclosing more than half of the
SSB Index. What is noticeable is the low level of disclosure on
sensitive matters. Among the factors associated with SSB-related
disclosures are cross-membership with other SSBs and the expertise of
SSB members in accounting, banking, economics or finance.
Originality/value - The study is the first to provide an in-depth
analysis of Shari'ah disclosures in Malaysian and Indonesian Islamic
banks. As such, this study makes an important contribution to the debate
on Shari'ah governance systems and has implications for regulators and
standard setters. The Malaysian and Indonesian standard setters could
play an important role in ascertaining appropriate disclosure
requirements relating to the SSB as the study suggests that the level of
disclosure is less than expected. The evidence also suggests the need
for mandatory enforcement of standards on these types of disclosures.
ZA 0
TC 15
ZR 0
ZB 0
ZS 0
Z8 0
Z9 15
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214886300001
ER
PT J
AU Ahmed, Ishfaq
Shaukat, Muhammad Zeeshan
Islam, Talat
TI Mission statements readability: an insight into Islamic banks
VL 4
IS 2
BP 132
EP 150
DI 10.1108/JIABR-04-2012-0019
PD 2013
PY 2013
AB Purpose - A mission statement is an important tool for organizational
communication, as it speaks to all stakeholders. It should be readable
and comprehensible. The main objective of this article is to determine
the readability of mission statements from selected Islamic banks.
Design/methodology/approach - This study was conducted using simple
counting techniques (total words, total sentences and number of words
per sentence) and readability analyses. The mission statements from 169
Islamic banks were taken from their respective web sites between March
and April 2012.
Findings - The findings reveal that the mission statements of Islamic
banks are difficult to read and comprehend and require 17 years of
formal education before they can be fully understood.
Research limitations/implications - Future studies should consider a
comparative analysis that looks at how the origins of a bank can affect
mission statements as well as examining different division of the
financial sector such as insurance companies and other financial
institutions.
Practical implications - The findings of this study revealed that banks
have a great deal of work to do on their mission statements in order to
make them readable and understandable to a wide range of stakeholders.
Originality/value - This article is first of its kind as it focuses on
an area that has not been investigated by earlier researchers.
RI Islam, Talat/A-7857-2017; Ahmed, Ishfaq/AAH-9130-2019
OI Islam, Talat/0000-0002-3968-4513; Ahmed, Ishfaq/0000-0003-1980-5872
Z8 0
ZS 0
ZB 0
ZA 0
ZR 0
TC 2
Z9 2
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214886300002
ER
PT J
AU Amin, Hanudin
TI Factors influencing Malaysian bank customers to choose Islamic credit
cards Empirical evidence from the TRA model
VL 4
IS 3
BP 245
EP 263
DI 10.1108/JIMA-02-2012-0013
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to explore factors influencing
Malaysian bank customers to choose Islamic credit cards. The bank
customers generally aware of Islamic credit card facilities in Islamic
banks but factors leading them to choose it are particularly unexplored.
Given the importance of Islamic credit cards to Islamic banks, the study
is aimed at explaining the effects of attitude, subjective norm and
perceived financial cost on the Malaysian bank customers' behavioral
intention to choose Islamic credit cards.
Design/methodology/approach - Drawing upon the theory of reasoned action
(TRA), this study suggests a modified model to examine the acceptance
factors of attitude, subjective norm and perceived financial cost within
a context of Islamic credit cards. This paper extends partial least
squares (PLS) to examine the impacts of these factors on the intention
to choose Islamic credit cards. The model is tested using a survey data
from 257 respondents.
Findings - The results reveal that attitude, subjective norm and
perceived financial cost significantly influence the intention to choose
Islamic credit card. Of these, attitude is first ranked as an
influential factor in explaining one's intention to choose Islamic
credit cards. All hypotheses are supported. The findings have proven the
soundness of the TRA for study in the area of Islamic credit cards.
Earlier works in Islamic credit cards have not ready to apply TRA in
their works. The current research is thus closed the gap.
Research limitations/implications - Pertaining to research limitations,
this paper reveals two limitations owing to their future directions for
future research on Islamic credit cards. This study indicates that its
contributions are particularly confined to potential users in
Eastern-Malaysia whilst those from Western-Malaysia are largely
untapped. Further research is required to include users from both
geographies. Owing to time and financial constraints, this study is only
analyzed three factors in explaining the behavioral intention to choose
Islamic credit cards. Therefore, future studies in this area should
examine new potential factors contributing the receptivity.
Practical implications - Findings generated from this study serve as a
basis for more future works in the area of Islamic credit cards. The
theory developed in the current study's model could also be generalized
into other contexts of Islamic banking products and services.
Practically, branch managers of Islamic banking institutions are of
considerable importance to extend the findings of this study to better
future planning of their Islamic credit card services.
Originality/value - This study extends the applicability of the TRA
model into a newly context of Islamic credit cards. Empirically, this
study also integrates the effect of perceived financial cost on the
intention to choose Islamic credit cards. This study offers insights
with respect to factors affecting one's decision to choose Islamic
credit cards.
OI Amin, Hanudin/0000-0003-3645-287X
Z8 0
ZA 1
ZB 0
TC 39
ZS 0
ZR 0
Z9 40
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214151100002
ER
PT J
AU Astrom, Z. Hafsa Orhan
TI Survey on customer related studies in Islamic banking
VL 4
IS 3
BP 294
EP 305
DI 10.1108/JIMA-07-2012-0040
PD 2013
PY 2013
AB Purpose - The aim of this paper is to make a critical review of the
selected customer related studies in Islamic banking.
Design/methodology/approach - In accordance with the aim, the selection
criteria is decided to include the studies which have at least one
citation according to a publicly available citation count database as of
January 2013 and the subjectively selected uncited studies from recent
years. According to the selection criteria, in total, 50 journal
articles for the period of 1989-2013 are reviewed.
Findings - This work identifies the main research subjects, the
distribution for these subjects, the general characteristics of research
methodologies and methods, the strengths and weaknesses of the studies
and the direction of the research area.
Practical implications - The foremost contributions of this work are
that a researcher or someone who is interested in Islamic banking based
customer related studies can attain a detailed picture about the most
common research subjects, methodologies, methods and the country in
which the study is conducted. And, the general evaluation can be
utilized as a directive element for future research.
Social implications - The basic implication of this work is the call for
more industry connections, i.e. to conduct customer related studies due
to the needs, reservations and concerns of Islamic banks.
Originality/value - There is not yet a literature review work regarding
to the research area of Islamic banking based customer related studies.
This work is an attempt to fill in this gap.
ZS 0
ZR 0
ZB 0
ZA 0
Z8 0
TC 12
Z9 12
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214151100005
ER
PT J
AU Bilal, Ahmad Raza
Abu Talib, Noraini Bt.
Khan, Mohd Noor Azli Ali
TI Remodeling of risk management in banking: evidence from the
sub-continent and gulf
SO JOURNAL OF RISK FINANCE
VL 14
IS 5
BP 468
EP 489
DI 10.1108/JRF-11-2012-0074
PD 2013
PY 2013
AB Purpose - The main purpose of this study is to investigate the
remodeling of risk management, risk-averse mechanism and the importance
of Basel-III framework to cope with the current financial challenges in
the regime of post global financial crises of 2008-2011 by evidences in
the banking sectors of emerging economies of Bahrain, the UAE and
Pakistan.
Design/methodology/approach - To ensure deep understanding in this
cross-cultural study, two fold data collection techniques are used; one
through distribution of questionnaires to relevant staff members and
second through personal interviews of selected risk officials.
Respondents are selected on the basis of minimum five years banking
experience and relevant professional education of finance or risk
management. Multistage sampling technique is used for data collection.
To ensure the consistency from respondents, personal interviews were
conducted with an interval of six months after receipt of
questionnaires. Various statistical and econometric techniques were used
to test the study hypotheses and to satisfy the study objectives.
Findings - Based on statistical analysis and personal surveys, research
findings concluded that banking sectors of study-countries have deep
concern with potential risk challenges and they are in continuous
process to improve risk measurement framework in accordance with the
latest regulatory obligations. All three types of banks have clear
understanding of RM practices and strong relationship is observed
between predictors and endogenous variables. Respondent banks of
study-countries have deep attentiveness to manage all key risks and they
recommend to transform existing regulatory framework including Basel-III
reforms to develop a more comprehensive "one-size-fits-all" regulatory
framework to cover loopholes of existing financial system.
Research limitations/implications - This study is limited to the
findings of remodeling of risk management to cope with the new financial
challenges for the banking sector. Empirical investigation is conducted
in emerging economies of the sub-continent and gulf and evidences are
obtained from the UAE, Bahrain and Pakistan. Following this research
model, future research can be extended to enlarge the sample size, by
including other regional countries or a comparison between eastern and
western countries to make it more useful to understand the risk
management strategies, minimize banking default risks and to make this
significant economic sector more strengthen.
Practical implications - Respondent countries of this study are fast
growing and emerging economies of the sub-continent and gulf. Results of
this cross-cultural study are likely to be beneficial for credit
analysts, bankers and academic researchers. Findings are also beneficial
for local and international business investors while they are taking
prudent investment decisions in respective capital markets.
Originality/value - This is the first comparative study to empirically
investigate the RM practices and risk-averse mechanism in banking
sectors of Bahrain, the UAE and Pakistan. In perspective of
study-countries, a critical analysis on risk-averse mechanism and
Basel-III regulatory implications is demonstrated in this study.
RI Bilal, Ahmad Raza/AAH-1537-2019
OI Bilal, Ahmad Raza/0000-0001-9471-7093
ZR 0
ZB 0
Z8 0
ZA 0
TC 5
ZS 0
Z9 5
U1 0
U2 0
SN 1526-5943
EI 2331-2947
UT WOS:000213326500004
ER
PT J
AU Rashid, Mamunur
Abdeljawad, Islam
Ngalim, Siti Manisah
Hassan, M. Kabir
TI Customer-centric corporate social responsibility A framework for Islamic
banks on ethical efficiency
SO MANAGEMENT RESEARCH REVIEW
VL 36
IS 4
SI SI
BP 359
EP 378
DI 10.1108/01409171311314978
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to investigate customer-centric
corporate social responsibility (CSR) in Islamic banks of Bangladesh,
Malaysia and the Arabian Gulf Region. The new framework is found from
the incomplete link between managerial motivation and their actual
involvement with CSR activities.
Design/methodology/approach - The study uses annual reports of 16
Islamic banks from three regions. Using content analysis method, the
study produces an ethical identity index on eight dimensions. The
average index scores are ranked to get a view of the importance given by
Islamic banks to the path of social responsibility.
Findings - In this study, the customer-centric CSR framework assumes
that there are two layers of CSR involvement in Islamic banks. The upper
layer assures the commitment towards Allah (SWT) by operating under
Islamic Shari'ah. The bottom layer ensures the commitment towards
customers, employees and society. The reports of Islamic banks show that
the selected banks are too customer centric and efficiency driven.
However, that efficiency is targeted at the cost of sacrificing Shari'ah
norms. Their commitments to basic Islamic rules fall far behind the
average.
Research limitations/implications - The study uses content analysis of
the annual report to identify CSR involvement of the Islamic banks.
There are various issues related to CSR and corporate management that
are not reported in annual reports. Moreover, disclosure norms and
regulation also have an influence on reporting standards. Thus, this
study is limited to what is found in the reports only.
Originality/value - The study contributes to the existing literature on
customer-centric CSR and customer-centric marketing. There is evidence
that the findings from this study are consistent with other studies.
Islamic banks are becoming customer centric because of the competition
from conventional banks. However, they must not forget the very essence
of the establishment of these banks which is the spiritual freedom based
upon sole submission to Allah (SWT).
RI Rashid, Mamunur/R-3106-2019; Abdeljawad, Islam/E-4651-2012
OI Rashid, Mamunur/0000-0002-6688-5740; Abdeljawad,
Islam/0000-0003-2625-698X
ZS 0
ZB 0
ZA 0
ZR 0
Z8 0
TC 22
Z9 22
U1 0
U2 0
SN 2040-8269
EI 2040-8277
UT WOS:000213423500003
ER
PT J
AU Cader, Yoosuf
O'Neill, K. Kathleen
Blooshi, Ayesha Ali
Al Shouq, Amena Ali Bakheet
Fadaaq, Barra Hussain Mohamed
Ali, Farah Galal
TI Knowledge management in Islamic and conventional banks in the United
Arab Emirates
VL 36
IS 4
SI SI
BP 388
EP 399
DI 10.1108/01409171311314996
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to gain insight into the extent
that knowledge management (KM) is practiced by Islamic and conventional
banks in the United Arab Emirates (UAE).
Design/methodology/approach - Following secondary research, structured
in-depth, qualitative interviews were conducted with CEOs, senior
managers, and department heads of eight banks in the UAE.
Findings - Islamic banks in the UAE were found to be relatively more
actively engaged in KM than conventional banks. However, both Islamic
and conventional banks were found to be focused on knowledge capture,
knowledge transfer, and knowledge sharing. Most of the banks in this
study could be classified as being in the pre-or early implementation
phase of KM. The study found scant knowledge-based marketing taking
place in either type of bank. None of the banks was found to have a
dedicated knowledge champion (KM Officer). Similarly, none of the banks
was identified as possessing a strong organization-wide KM culture.
Research limitations/implications - Cultural norms concerning privacy
limited willingness to participate and information sharing. Although the
sample was small, it was deemed reliable, as participants not only
understood the importance of research to the development of the UAE, a
country very keen to participate in the knowledge-based economy, but
they also held key positions in their banks which allowed them full
knowledge of the scope of KM implementation, utilization, and practice
in their organizations and they agreed to full disclosure and
transparency in their responses. The implication of this research is
that best practice in KM can be implemented in banks in the UAE once KM
gaps are identified.
Originality/value - The banking sector is an important element of the
UAE economy. Successful and appropriate implementation of KM practices
in UAE banks may buttress the Emirati economy, especially during the
current banking crisis. The insight gained from the initial findings of
this research can assist KM implementation, utilization, and practice in
UAE banks, thereby aiding organizations' learning and the development of
a knowledge culture in banks which, in turn, may lead to increased
productivity and gains in competitive advantage, growth, and profit.
ZR 0
TC 4
ZS 0
ZA 0
Z8 0
ZB 0
Z9 4
U1 0
U2 0
SN 2040-8269
EI 2040-8277
UT WOS:000213423500005
ER
PT J
AU Bukhari, Khuram Shahzad
Awan, Hayat M.
Ahmed, Faareha
TI An evaluation of corporate governance practices of Islamic banks versus
Islamic bank windows of conventional banks A case of Pakistan
VL 36
IS 4
SI SI
BP 400
EP 416
DI 10.1108/01409171311315003
PD 2013
PY 2013
AB Purpose - The purpose of this paper is to explore the perceived
importance of management about various corporate governance dimensions
being practiced in the Pakistani Islamic banking context.
Design/methodology/approach - AHP is applied to analyze the corporate
governance indexes and its dimension of five Islamic banks and 12
conventional banks which are providing Islamic banking facilities
(Islamic bank window) throughout Pakistan. These dimensions included
board of directors (BOD), Shari'ah supervisory board (SSB), audit,
investment account holders (IAH), and information disclosure &
transparency.
Findings - The study reveals that the most significant dimensions which
affect the corporate governance in Islamic banks are BOD and SSB, while
the significant factors for Islamic banking windows are almost all
dimensions of corporate governance. The correlation, regression, and
ANOVA tests are applied to check the contributions of various factors of
corporate governance mechanisms. These results indicate that there is a
significant difference between Islamic banks and Islamic banking windows
regarding the BOD and SSB. On the other hand, no significant difference
is seen for the rest of the factors. The dissatisfaction level of
customers reduces with the increase in the audit and BOD governance and
all other factors have no impact in the case of Islamic banking windows;
whereas in Islamic banks, in addition to audit and the SSB, information
disclosure also significantly reduces the dissatisfaction level of
customers. The concern of customers decreases significantly with the
increasing level of IAH in the case of Islamic banking windows whereas
in the case of Islamic banks a significant impact is seen for BOD,
information disclosure, audit and IAH, but improvement in the governance
of these rather increases the concern of customers toward compliance of
Shari'ah and SSB has no contribution towards the concern of customers.
Originality/value - This study has practical significance for
conventional and Islamic banking policy makers for understanding the
requirements of their stakeholders and aligning themwith the
fundamentals of Shari'ah compliance according to the guidelines provided
by the code of corporate governance so as to get better insight into the
relationship between customers'motives behind using Islamic banking
products.
RI Shahzad, Syed Khuram/H-2489-2016
OI Shahzad, Syed Khuram/0000-0003-1173-8089
ZB 0
ZS 0
Z8 0
ZA 0
ZR 0
TC 18
Z9 18
U1 0
U2 1
SN 2040-8269
EI 2040-8277
UT WOS:000213423500006
ER
PT J
AU Azouzi, Dhekra
TI Islamic banking and economic growth: the Kuwait experience
SO MIDDLE EAST JOURNAL OF MANAGEMENT
VL 1
IS 2
BP 186
EP 195
PD 2013
PY 2013
AB Islamic banking witnesses presently a great success and the number of
Islamic banks is rapidly increasing worldwide. This Shari'ah compliant
banking is expected to alleviate the effects of financial crises and to
enhance economic growth. This paper focuses on the relationship between
Islamic banking development and economic growth in Kuwait from Q1: 2004
to Q4: 2011 using co-integration, vector error correction model (VECM)
and Granger causality tests. This study reveals that a negative and
insignificant long-run relationship does exist between Islamic banking
development and economic growth in Kuwait. However, no short-run
causality was highlighted between Islamic banks financing and economic
growth. Such results can be attributed to the general macroeconomic
deterioration and to the global banking sector's declining profitability
during the period of study.
ZB 0
ZA 0
Z8 0
ZS 0
ZR 0
TC 2
Z9 2
U1 0
U2 0
SN 2050-3636
EI 2050-3644
UT WOS:000416708900006
ER
PT J
AU Sukmana, Raditya
Kholid, Muhammad
TI An assessment of liquidity policies with respect to Islamic and
conventional banks A case study of Indonesia
VL 5
IS 2
BP 126
EP 138
DI 10.1108/QRFM-09-2011-0023
PD 2013
PY 2013
AB Purpose - This paper aims to describe, compare and analyze liquidity
policies from the central bank of Indonesia, particularly reserve
requirements, with respect to Islamic as well as conventional banks.
Design/methodology/approach - This paper provides some critical
assessments on the policy applied by the central bank of Indonesia to
both Islamic and conventional banks with regards to the reserve
requirements applied in the Indonesian banking system. The analysis is
based on whether both policies (Islamic and conventional) provide
fairness to the banks as well as whether those policies support the real
sector. In addition, the current global practice is also briefly
described as a justification of the important and relevance of the
current study.
Findings - The authors find that the policy imposed on the Islamic banks
is designed to boost the real sector, compared to that of conventional
banks. For the policywith respect to Islamic banks, it recognizes the
banks which have been doing well in their main role as financial
intermediaries and "punishes" them when they fail to do so. This policy
could not be found in the context of conventional banks.
Practical implications - The authors argue that the current approach
used for Islamic banks can also be adopted and imposed on conventional
banks. This leads to a more stable financial system, since it supports
the real sector.
Originality/value - This paper is the first to analyze central bank
policies with respect to banks (Islamic as well as conventional banks)
in relation to their role as financial intermediaries.
ZB 0
Z8 0
ZS 0
TC 5
ZR 0
ZA 0
Z9 5
U1 0
U2 0
SN 1755-4179
UT WOS:000214335100001
ER
PT J
AU Ismal, Rifki
Haryati, Rice
TI The optimal and decreasing growth rate of the Islamic banking industry
VL 5
IS 3
BP 229
EP 243
DI 10.1108/QRFM-04-2011-0008
PD 2013
PY 2013
AB Purpose - The Indonesian Islamic banking industry is very promising, but
there has been no analysis of the optimal and decreasing growth rate of
the industry. Information regarding these is essential for policy
makers, Islamic bankers and all related parties to guide the future
development of the industry and sets up proper plans and strategies. The
paper aims to explore the optimal and decreasing growth rates of the
industry and in so doing contribute to the current literature on the
Indonesian Islamic banking industry.
Design/methodology/approach - The paper first reports on the performance
of the Indonesian Islamic banking industry, before explaining conditions
where the Islamic banking industry is believed to be still immature.
Third, in order to identify the optimal and decreasing growth rates, the
paper estimates the future performance of the industry by using ARIMA
models to identify periods where the growth rate is at optimal and
decreasing points. Then, on the basis of a number of assumptions and
statistical simulations, the analysis broadens to become qualitative in
nature by determining the optimal numbers of Islamic banks to be
established in the future.
Findings - The paper generates some important findings. First, the
optimum growth rate of the market share (0.12 percent) is predicted to
occur in December 2012; the market share in that month is estimated to
be 5.75 percent. Second, although the market share keeps growing, the
paper finds the rate of increase to be slow, and in October 2018, it
becomes negative, at 0.004 percent. The estimated market share in that
time is 11.63 percent. Finally, the optimal number of Islamic banks in
December 2012 is shown to be 23 and in October 2018, 24.
Research limitations/implications - Qualitative information on the
months of the optimal and decreasing growth rates and quantitative
information on the optimal number of Islamic banks to be established are
significant information for policy makers, Islamic bankers and other
related parties. The information is likely to be important in relation
to their efforts to develop the Islamic banking industry, to anticipate
decreasing growth in the industry and to establish new Islamic banks.
More generally, the paper helps the related parties to direct and guide
the future development of the industry.
first paper that attempts to establish optimal and decreasing growth
rates in the Indonesian Islamic banking industry, or the optimal numbers
of Islamic banks to be established in the future.
ZR 0
Z8 0
ZS 0
ZB 0
ZA 0
TC 1
Z9 1
U1 0
U2 0
SN 1755-4179
UT WOS:000214335900002
ER
PT J
AU Rajhi, Wassim
Hassairi, Slim A.
TI ISLAMIC BANKS AND FINANCIAL STABILITY: A COMPARATIVE EMPIRICAL ANALYSIS
BETWEEN MENA AND SOUTHEAST ASIAN COUNTRIES
SO REGION ET DEVELOPPEMENT
IS 37
BP 149
EP 177
PD 2013
PY 2013
AB The aim of this paper is to investigate whether Islamic banks are more
stable than conventional banks. To measure the financial stability, we
compute the z-score for a sample of banks in 16 countries where Islamic
and conventional banks coexist over the period 2000-2008. We use a
robust estimation for analyzing data that are contaminated with outliers
and leverage points in the data. We use also a quantile estimation to
allow us to address the question whether the factors that cause high
fragility are systematically different from the factors that cause
medium or low fragility. This empirical analysis explores causes of
insolvency risk between Middle East and North Africa and South East
Asian countries. Finally, by controlling for various factors and by
favoring a comparative analysis between the regions, this article is an
extension of the study begun by Cihak and Hesse (2010).
Z8 0
ZB 0
ZS 0
ZR 0
TC 16
ZA 0
Z9 16
U1 0
U2 0
SN 1267-5059
EI 2117-0843
UT WOS:000421203700007
ER
PT J
AU Saeed, Rashid
Ashraf, Rana Umair
Zaidi, Syed Anees Haider
Lodhi, Rab Nawaz
Ahmad, Wasim
Awan, Usama
Malik, Qamar Uz Zaman
TI ISLAMIC AND CONVENTIONAL AGRI-FINANCING IN PAKISTAN
SO SCIENTIFIC PAPERS-SERIES MANAGEMENT ECONOMIC ENGINEERING IN AGRICULTURE
AND RURAL DEVELOPMENT
VL 13
IS 2
BP 357
EP 361
PD 2013
PY 2013
AB The purpose of this paper is to find out the financial agri-products
that have been offered to farmers in Pakistan by different Islamic
financial institutions (banks) and conventional banks as well. This
research paper will discuss the financing facilities in agriculture
sector provided by the Islamic Banks and Conventional Banks in Pakistan.
All agricultural financial products that are offered by all financial
institutions will explain in detail. The main purpose of these
agri-financial products to is to facilitate the farmer to develop and
manage their agricultural projects. We used documents analysis of
financial institutes as a methodology in this research paper and we have
also conducted some personal interviews with the managers of the some
selected Islamic Banks and Conventional Banks.
ZS 0
ZB 0
TC 0
ZR 0
Z8 0
ZA 0
Z9 0
U1 0
U2 0
SN 2284-7995
EI 2285-3952
UT WOS:000422179200060
ER
PT J
AU Hamza, Hichem
Saadaoui, Zied
TI Investment deposits, risk-taking and capital decisions in Islamic banks
VL 30
IS 3
BP 244
EP +
DI 10.1108/SEF-Feb-2012-0016
PD 2013
PY 2013
AB Purpose - This paper aims to examine the relationship between the volume
of investment deposits and capitalization of Islamic commercial banks.
Design/methodology/approach - Unlike current accounts holders,
investment accounts holders may support part or all of the losses on
assets value, which could be a source of moral hazard among bank
managers and shareholders. To test these assumptions, the authors use
the system generalized method of moments (system GMM) on a dynamic panel
of 59 Islamic banks observed during the period 2005-2009.
Findings - After controlling for a set of variables that may influence
capital level, the results show a significant negative relationship
between PSIA and regulatory capital ratio. This may indicate that the
specific nature of PSIA can be a source of excessive risk-taking in
Islamic banks. This behavior is likely to threaten the solvency of
Islamic banks and shows that some deficiencies may exist in their risk
management and governance system.
Practical implications - This paper suggests some recommendations to
better implement the principle of profit and loss sharing and to curb
excessive risk-taking in Islamic banks.
Originality/value - The originality of this paper is to give empirical
responses to theoretical assumptions of a relationship between PSIA and
moral hazard in Islamic banks.
OI SAADAOUI, Zied/0000-0003-3275-2111
TC 14
Z8 0
ZB 0
ZS 0
ZA 0
ZR 0
Z9 14
U1 1
U2 1
SN 1086-7376
EI 1755-6791
UT WOS:000211748200004
ER
PT J
AU Azzam, Azzeddine
Rettab, Belaid
TI Market power versus efficiency under uncertainty: conventional versus
Islamic banking in the GCC
VL 45
IS 15
BP 2011
EP 2022
DI 10.1080/00036846.2011.646068
PD 2013
PY 2013
AB In this article we estimate the effect of concentration on
intermediation margins in Gulf Cooperation Council's (GCC) Islamic and
conventional banking under the assumption that margins are uncertain.
The empirical model, which we formally derive from an expected utility
maximization problem, allows us to test for risk aversion as well as
competitive conduct in loan and the deposit markets. The model also
yields an expression showing that the effect of concentration on margins
is the sum of its respective effects on market power, marginal cost of
intermediation and marginal cost of uncertainty. The expression allows
us to test whether concentration is welfare enhancing, reducing or
neutral. We find Islamic banks to be risk-averse and conventional banks
to be risk-neutral. We also find that concentration is welfare-neutral
in Islamic loans and deposits, welfare-enhancing in conventional loans
and welfare-neutral in conventional deposits. We used Nonlinear
Two-Stage Least Squares (N2SLS) and Nonlinear Three-Stage Least Squares
(N3SLS) to check for robustness.
ZB 0
ZS 0
ZR 0
Z8 0
ZA 0
TC 7
Z9 7
U1 0
U2 16
SN 0003-6846
UT WOS:000303582600006
ER
PT J
AU Ergec, E. H.
Arslan, B. G.
TI Impact of interest rates on Islamic and conventional banks: the case of
Turkey
VL 45
IS 17
BP 2381
EP 2388
DI 10.1080/00036846.2012.665598
PD 2013
PY 2013
AB Identifying the impact of the interest rates upon Islamic banks is a key
to understand the contribution of such institutions to the financial
stability, designing monetary policies and devising a proper risk
management applicable to these institutions. This article analyses and
investigates the impact of interest rate shock upon the deposits and
loans held by the conventional and Islamic banks with particular
reference to the period between December 2005 and July 2009 based on
Vector Error Correction (VEC) methodology. It is theoretically expected
that the Islamic banks, relying on interest-free banking, shall not be
affected by the interest rates; however, in concurrence with the
previous studies, the article finds that the Islamic banks in Turkey are
visibly influenced by interest rates.
ZS 1
ZR 0
ZB 0
TC 24
Z8 0
ZA 1
Z9 26
U1 1
U2 29
SN 0003-6846
EI 1466-4283
UT WOS:000303583700006
ER
PT J
AU Pramuka, Bambang Agus
TI THE FEASIBILITY OF FINANCING INDONESIAN MIGRANT WORKERS BY ISLAMIC BANKS
VL 4
IS 2
BP 173
EP 180
PD OCT 2012
PY 2012
AB This paper identifies the profile of migrant workers located in Banyumas
regency, assesses the financial feasibility of the scheme, and gauges
the viability of the migrant workers financing from conventional and
Islamic banks' perspectives. The samples comprises potential migrant
workers, ex-migrant workers and their relatives. The nature of the study
is descriptive qualitative where both primary and secondary data were
analysed during the study. The result of the study indicates that
financing migrant workers to work abroad is economically desirable for
both conventional and Islamic banks. Either mode of financing, Islamic
and conventional, are advantageous to the Indonesian workers who want to
work abroad.
Z8 0
ZB 0
ZS 0
TC 0
ZA 1
ZR 0
Z9 1
U1 0
U2 0
SN 2086-3128
EI 2502-180X
UT WOS:000447306000007
ER
PT J
AU Ullah, Shakir
Lee, Kun-ho
TI Do customers patronize Islamic banks for Shari'a compliance?
VL 17
IS 3
BP 206
EP 214
DI 10.1057/fsm.2012.18
PD SEP 2012
PY 2012
AB The purpose of this article is to investigate whether Islamic bank
customers view Shari'a compliance and conventional banking services as
two distinct and different sets of bank patronage factors and, if so, to
find the relative importance of each. The article is based on the
primary data collected from 357 Islamic bank customers in Pakistan. The
analytical tools used in this piece of research are factor analysis and
mean ranking. A total of six variables were fed into the factor
analysis, which resulted in the identification of two factors accounting
for about 76 per cent of the total variance in the variables. The
resulting factors were then analysed through mean ranking to investigate
them for the relative importance of each factor. The findings reveal
that customers consider Shari'a compliance and conventional banking
services as two distinct and different packages of bank patronization
factors. It is further revealed that conventional banking services are
rather more important than Shari'a compliance. The article has important
implications for Islamic financial institutions (IFIs) in Pakistan. On
the one hand, it signifies the importance of Shari'a compliance as an
additional discrete factor for customers' bank-selection decision, and
on the other, it highlights the importance of customers' traditional
banking needs. In order to be sustainable, IFIs must be competitive with
the conventional banking industry in the first place and stay Shari'a
compliant in the second place for obtaining marginal competitive edge.
RI Ullah, Shakir/AAD-9337-2019
ZB 0
TC 11
ZS 0
ZA 0
ZR 0
Z8 0
Z9 11
U1 0
U2 0
SN 1363-0539
EI 1479-1846
UT WOS:000211860000003
ER
PT J
AU Farook, Sayd
Hassan, M. Kabir
Clinch, Gregory
TI Profit distribution management by Islamic banks: An empirical
investigation
SO QUARTERLY REVIEW OF ECONOMICS AND FINANCE
VL 52
IS 3
BP 333
EP 347
DI 10.1016/j.qref.2012.04.007
PD AUG 2012
PY 2012
AB The objective of this paper is to ascertain whether Islamic banks do in
fact manage profit distributions and if so, what factors are associated
with the extent of profit distribution management. The results suggest
that most Islamic banks manage profit distributions, with the extent of
profit distribution directly related to religiosity, financial
development, asset composition, and existence of discretionary reserves,
while it is inversely related to market familiarity with Islamic
banking, market concentration, depositor funding reliance and the age of
the Islamic bank. (C) 2012 The Board of Trustees of the University of
Illinois. Published by Elsevier B.V. All rights reserved.
RI Hassan, M. Kabir/D-5053-2012
OI Hassan, M. Kabir/0000-0001-6274-3545
ZB 0
ZR 0
ZA 0
TC 25
ZS 0
Z8 0
Z9 25
U1 0
U2 0
SN 1062-9769
EI 1878-4259
UT WOS:000437631000008
ER
PT J
AU Archer, Simon
TI The structure, regulation and supervision of Islamic banks
VL 13
IS 3
BP 228
EP 240
DI 10.1057/jbr.2012.3
PD JUL 2012
PY 2012
AB A key feature of Islamic banks is their use of Unrestricted Profit
Sharing (and Loss Bearing) Investment Accounts (UPSIA) in place of
conventional interest-bearing deposits. In the first place, this raises
a supervisory issue: UPSIA are, strictly speaking, investment (that is,
capital market) products, rather than banking products. Hence, they call
for a regulatory and supervisory approach that differs from that applied
to banking deposits by banking regulators and supervisors. In addition,
UPSIA give rise to particular problems as regards both the regulation
and supervision of capital adequacy, and also corporate governance.
Moreover, UPSIA do not meet the requirements of the banking regulations
in North American and Western European jurisdictions, and this
constitutes a significant barrier to their development in those
jurisdictions. In the second place, this characteristic of Islamic banks
raises a structural issue: if UPSIA were used to raise funds, not by
Islamic banks themselves, but by fund management companies associated
with them (for example, as subsidiaries or as fellow subsidiaries of a
common parent), then not merely would the barrier just mentioned be
removed, but the application to UPSIA of more appropriate regulatory and
supervisory approaches would be greatly facilitated. Last but not least,
the rights of UPSIA holders in a winding-up of an Islamic bank need to
be clarified, as (bsent misconduct or negligence) they are not creditors
of the bank but have an ownership claim to some of the assets held by
it. This article sets out in more detail an approach that would permit
these benefits to be achieved. In doing so, we highlight the challenges
faced by the Islamic Financial Services Board in developing appropriate
regulatory and supervisory regimens for capital adequacy and corporate
governance in Islamic banks.
ZR 0
ZB 0
ZS 0
ZA 0
TC 7
Z8 0
Z9 7
U1 0
U2 0
SN 1745-6452
EI 1750-2071
UT WOS:000213048900005
ER
PT J
AU Bassens, David
TI Emerging Markets in a Shifting Global Financial Architecture: The Case
of Islamic Securitization in the Gulf Region
SO GEOGRAPHY COMPASS
VL 6
IS 6
BP 340
EP 350
DI 10.1111/j.1749-8198.2012.00500.x
PD JUN 2012
PY 2012
AB Given major geo-economic shifts in the wake of the global financial
crisis, this paper sets out to review major debates in the field of
geographies of emerging markets (EM). Observing lingering implicit
assumptions about the undirectionality behind the emergence of EM
discourses and practices, the paper argues that contemporary processes
of South-South and South-North investment call for a 'decentred' view on
EM integration. Such a decentred framework allows us to research whether
geographical shifts in the world of global finance indeed imply a
fundamental shift the nature of its practices. In this paper, I
therefore explore the case of Islamic securitization in the Gulf Region,
which constitutes a veritable geo-economic hinge in a shifting global
economy. Here, I argue, bilateral negotiation processes take place
between vectors of global finance such as investment banks on the one
hand, and EM client firms and Islamic banks on the other hand, in order
to find a viable context-sensitive financing solution. While this case
acknowledges the blossoming plurality of global finance, the paper
concludes with the view that this plurality is nevertheless mainly
reproducing existing power configurations within the global financial
architecture.
OI Bassens, David/0000-0002-5368-7884
Z8 0
ZS 0
TC 16
ZR 0
ZB 0
ZA 0
Z9 16
U1 1
U2 1
SN 1749-8198
UT WOS:000214334600003
ER
PT J
AU Noor, Mohamad Akbar Mohamad Noor
Ahmad, Nor Hayati Bt
TI The Determinants of Islamic Banks' Efficiency Changes: Empirical
Evidence from the World Banking Sectors
VL 13
IS 2
BP 179
EP 200
DI 10.1177/097215091201300201
PD JUN 2012
PY 2012
AB The article investigates the efficiency of the Islamic banking sectors
in 25 countries during the period 1992-2009 consisting of 78 Islamic
banks. The efficiency estimates of individual banks are evaluated using
the non-parametric Data Envelopment Analysis (DEA) method. The empirical
findings seem to suggest that the World Islamic banks have exhibited
high pure technical efficiency. During the period of study we find that
pure technical inefficiency has greater influence in determining the
total technical inefficiency of the World Islamic banking sectors.
Second, further analysis into the investigation of the World Islamic
banking sector efficiency is suggested to consider specific factors that
contribute to high-income countries leading efficiency over the years
compared to banks operated in medium-and low-income countries. Based on
Table 3, it is consistently stated that most of the efficient banks over
the years were from high-income countries. We find a positive
relationship between bank efficiency and loan intensity, size,
capitalization and profitability. Empirical results show that
technically more efficient banks are those that have higher market share
and a low non-performing loan ratio. A multivariate analysis based on
the Tobit model reinforces these findings.
Z8 0
TC 9
ZS 0
ZB 0
ZA 0
ZR 0
Z9 9
U1 1
U2 1
SN 0972-1509
EI 0973-0664
UT WOS:000415426600001
ER
PT J
AU Sobhani, Farid Ahammad
Amran, Azlan
Zainuddin, Yuserrie
TI Sustainability disclosure in annual reports and websites: a study of the
banking industry in Bangladesh
SO JOURNAL OF CLEANER PRODUCTION
VL 23
IS 1
BP 75
EP 85
DI 10.1016/j.jclepro.2011.09.023
PD MAR 2012
PY 2012
AB This study aims to describe the status of disclosure practices of
corporate sustainability in the annual reports and corporate websites of
the banking industry in Bangladesh. It is revealed in the study that, to
varying degrees, all listed banks practice sustainability disclosure in
an unstructured manner in both the annual reports and corporate
websites. The annual report surpasses the corporate website in the
disclosure of all categories of corporate sustainability disclosure
(CSD) practices except product responsibility disclosure. Unlike the
environmental and economic dimensions, issues concerning the social
dimension are generally disclosed. Islamic banks disclose more
sustainability information in comparison to conventional banks. It is
also found that among the three generation, the older bank does not
outperform the younger bank in terms of the sustainability disclosure.
(C) 2011 Elsevier Ltd. All rights reserved.
CT Sustainability Research Symposium
CY OCT 28, 2009
CL AUSTRALIA
SP Univ Western Sydney
RI Azlan, Amran/F-2503-2012
OI Azlan, Amran/0000-0002-9747-547X
TC 59
ZB 1
ZS 0
ZR 0
Z8 0
ZA 0
Z9 59
U1 1
U2 17
SN 0959-6526
EI 1879-1786
UT WOS:000300076300009
ER
PT J
AU Alemu, Aye Mengistu
TI Factors Influencing Consumers' Financial Transactions in Islamic Banks
Compared with Conventional Banks: Empirical Evidence from Selected
Middle-East Countries with a Dual Banking System
SO AFRICAN AND ASIAN STUDIES
VL 11
IS 4
BP 444
EP 465
DI 10.1163/15692108-12341241
PD 2012
PY 2012
AB Despite various evidences that show Islamic banking has gained
popularity even by non-Muslim consumers and businesses in many parts of
the world, there is still a general misconception that consumer's choice
for Islamic banking is only influenced by religious obligations and thus
it is just a Muslim-only affair. Yet, our knowledge of consumer
motivations for choosing Islamic versus conventional banking services is
modest and the research to date is limited and ambiguous on these key
issues. Therefore, this study conducts a two-step empirical analyses and
first identifies the factors influencing customer's decision whether to
choose Islamic or conventional banking using Linear Probability Model
(LPM) and Tobit estimation method, and as a second step, it investigates
the main attributing factors to consumers overall level of satisfaction
with the services provided by Islamic banks compared to conventional
banks using ordinal-logistic regression model. The study was based on a
randomly selected 322 bank customers from Bahrain, Jordan, and UAE. The
study confirms that although religious factors such as Shari'a
compliance are important, other non-religious factors including better
quality of services and information disclosure are also playing crucial
roles for the growing consumers' demand for Islamic banking.
Nevertheless; factors such as better rate of return, accessibility to
credit, and SMS banking are found to be the main significant
determinants of consumers' choice and satisfaction with the services
provided by conventional banks. Overall, the recent experience
especially after the financial crisis of 2008 demonstrates that Islamic
banking system can be part of the solution since it is mainly based on
stronger regulatory system.
ZB 0
ZA 0
ZR 0
TC 2
ZS 0
Z8 0
Z9 2
U1 0
U2 24
SN 1569-2094
EI 1569-2108
UT WOS:000312570200003
ER
PT J
AU Cebeci, Ismail
TI Integrating the social maslaha into Islamic finance
SO ACCOUNTING RESEARCH JOURNAL
VL 25
IS 3
SI SI
BP 166
EP 184
DI 10.1108/10309611211290158
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to analyse the extent of the
contribution of the current Islamic financial system to society in terms
of social responsibility (SR) required by the concept of social
maslahah.
Design/methodology/approach - The paper adopts a critical analytic
approach in considering the reasons of the failure of the social
dimension of Islamic financial intermediation based on real figures of
selected Islamic banks.
Findings - Concepts of SR and corporate social responsibility (CSR) are
not enough to describe Islamic Banks' responsibilities. Also, this
failure cannot be understood only with reference to the "external
environment", i. e. competition-driven, capitalistic market conditions;
but it is also closely related to the transformation of Islamic finance
into an almost exclusively murabaha-based Islamic banking, which
promotes more individual maslahah than social maslahah. Compared to the
murabaha, other product structures such as mudaraba and musharaka seem
to be better instruments for expanding welfare and alleviating poverty.
Practical implications - There is a close relationship between Islamic
banking contracts and social contribution of Islamic banks. This paper
provides some practical solutions in this context. Also, empirical
evidence derived from several conventional and Islamic banks supports
these arguments.
Originality/value - This paper is the first to analyse the reasons for
the social failure of Islamic Banks and to recommend substantial
solutions in this scope and also offers practical help to practitioners
of Islamic banking on the issue of social contribution of the Islamic
banking business.
ZB 0
ZR 0
TC 11
Z8 0
ZA 0
ZS 0
Z9 11
U1 0
U2 0
SN 1030-9616
EI 1839-5465
UT WOS:000211649800002
ER
PT J
AU Pellegrina, Lucia
TI Does capitalization enhance efficient risk undertaking? A comparison
between Islamic and conventional banks
VL 25
IS 3
SI SI
BP 185
EP 207
DI 10.1108/10309611211290167
PD 2012
PY 2012
AB Purpose - In light of the current debate on bank capital requirements,
the purpose of this paper is to investigate the relative impact of
capitalization on risk-taking efficiency in Islamic and conventional
banks. The author tests whether changes occurring to the capital
structure of such different types of intermediaries unevenly affect
their behaviour in terms of risk-taking efficiency.
Design/methodology/approach - The paper conducts an empirical analysis
using data for the period 2001-2011 by means of both standard regression
methods and stochastic cost frontier techniques.
Findings - Results provide evidence that more capitalized Islamic banks
are associated to less risky positions in terms of their asset
structure. In particular, the latter exhibit higher liquidity standards
and a lower incidence of non-performing loans compared to other banks.
This has delayed positive effects on profitability and no substantial
impact on efficiency. On the other hand, highly capitalized conventional
banks tend to shift from more traditional lending activities to
investment in other (profit generating) assets. Such strategy increases
profitability and efficiency, although raising impaired loans.
Research limitations/implications - This study does not address
potential endogeneity concerns that might affect the variables at stake,
hence mainly providing indications in terms of correlation between
phenomena rather than causality.
Practical implications - The analysis has important practical
implications when considering capital adequacy as a regulatory tool for
managing the risk of Islamic banks' activity, following principles
similar to those recommended by the Basel committee.
Originality/value - The original contribution of the paper to the
literature consists of comparing the effects of capitalization in
different types of banks, and results can be usefully exploited by
policymakers wishing to tailor banking regulation on the specific model
of banking they are entitled to regulate.
ZS 0
ZB 0
ZA 0
Z8 0
ZR 0
TC 3
Z9 3
U1 0
U2 0
SN 1030-9616
EI 1839-5465
UT WOS:000211649800003
ER
PT J
AU Grassa, Rihab
TI Islamic banks' income structure and risk: evidence from GCC countries
VL 25
IS 3
SI SI
BP 227
EP +
DI 10.1108/10309611211290185
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to analyze the income structure
of Islamic banks in the Gulf Cooperation Council (GCC) countries and to
explore the effect of the diversification of banks' earning on risks
that may harm these latter.
Design/methodology/approach - Using data from 2002-2008 for 42 Islamic
banks, this article provides descriptive and analytical analysis and
multiple regression equations.
Findings -This article reveals that greater reliance on the income share
of the profit-loss-sharing products is associated with higher risk and
higher insolvency risk for both listed Islamic banks and non-listed
Islamic banks. However, no effect has been observed between the
operation income of non-profit-losses-sharing products and risk levels.
That is why listed banks prefer to invest less in
non-profit-loss-sharing products than in profit-loss-sharing products.
Research limitations/implications - Financial regulators in emerging
Islamic financial market should help Islamic banks to find equilibrium
between the expansion of the Islamic financial market and respect for
the raison detre of Islamic finance: the profit and loss sharing
mechanisms.
Originality/value - To the best of the author's knowledge, this is the
first article that empirically tests why Islamic banks prefer to invest
less in profit-loss-sharing products. Also, this article contributes to
studying the relationship between Islamic finance and risk.
RI grassa, rihab/AAA-7623-2019
ZA 0
ZB 0
TC 16
ZR 0
Z8 0
ZS 0
Z9 16
U1 0
U2 0
SN 1030-9616
EI 1839-5465
UT WOS:000211649800005
ER
PT J
AU Alnasser, Sulaiman
Muhammed, Joriah
TI Introduction to corporate governance from Islamic perspective
SO HUMANOMICS
VL 28
IS 3
BP 220
EP 231
DI 10.1108/08288661211258110
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to draw an analytical review on
corporate governance from the Islamic perspective, addressing the
importance of understanding governance for Islamic institutions.
Design/methodology/approach - The study follows a browsing method that
takes into consideration the difference between normal corporate
governance in conventional banking and comparing that to Islamic
banking.
Findings - It was found that it is very important to take into
consideration the corporate governance in Islamic banks because it might
help to draw the right image about the organization. In particular, how
the Shariah Supervisory board functions and how it could be linked to
the Islamic banking process.
Originality/value - This paper is one of few papers that highlight the
importance of studying corporate governance for Islamic banks. The paper
is of value in describing governance in Islamic institutions and how
there are many issues under the investigation process, especially issues
related to the Shariah Supervisory board and its functionality.
RI Nasser, Sulaiman/H-6543-2011
ZR 0
ZB 0
TC 27
Z8 0
ZA 0
ZS 0
Z9 27
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210890700005
ER
PT J
AU Khaleequzzaman, Muhammad
Shirazi, Nasim Shah
TI ISLAMIC MICROFINANCE - AN INCLUSIVE APPROACH WITH SPECIAL REFERENCE TO
POVERTY ERADICATION IN PAKISTAN
VL 20
IS 1
BP 19
EP 49
PD 2012
PY 2012
AB The paper attempts to highlight some issues of conventional microfinance
leading to irrational results and suggests alternative mechanism of
Islamic microfinance to alleviate poverty in more effective manner. The
results of the research are based on extensive review of literature
comparing both the systems and finding reasonable ground for Islamic
microfinance to be more inclusive and viable. Owing to time constraint,
data set of Pakistan Poverty Alleviation Fund was used to assess impact
of conventional microfinance which suggested that change in poverty
status of the poorest was not significant, rather the affluent poor
benefitted the most. While making a case for Islamic microfinance, the
paper suggests extending its scope through product diversification,
innovation and downscaling operations of Islamic banks linking
microfinance institutions, particularly for fund sourcing, Sharia'
advisory, and technology transfer. The question of inclusion therefore
needs to be addressed through Islamic poverty alleviation process,
building assets of the target segments which could bring socio-economic
change in their lives. An outline of a few Islamic products has been
recommended in view of specific features of microenterprises and risk
management.
ZB 0
ZS 0
Z8 0
ZR 0
TC 1
Z9 1
U1 0
U2 0
SN 1394-7680
UT WOS:000408990000002
ER
PT J
AU Abduh, Muhamad
Omar, Mohd Azmi
TI Islamic banking and economic growth: the Indonesian experience
MANAGEMENT
VL 5
IS 1
BP 35
EP +
DI 10.1108/17538391211216811
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to examine the short-run and the
long-run relationships between Islamic banking development and economic
growth in the case of Indonesia.
Design/methodology/approach - Using quarterly data (2003:1-2010:2), this
paper utilizes the bound testing approach of cointegration and error
correction models, developed within an autoregressive distributed lag
(ARDL) framework.
Findings - The results demonstrate a significant relationship in
short-run and long-run periods between Islamic financial development and
economic growth. The relationship, however, is neither Schumpeter's
supply-leading nor Robinson's demand-following. It appears to be
bi-directional relationship.
Originality/value - This paper uses empirical evidence to show the role
of Islamic banks' financing towards economic performance of a country.
To the best of the authors' knowledge, the study on the role of Islamic
banking development towards economic growth is limited, particularly in
the context of Indonesia.
RI Abduh, Muhamad/C-3497-2012
OI Abduh, Muhamad/0000-0002-1918-6525
ZS 0
ZA 1
ZB 0
TC 36
ZR 0
Z8 0
Z9 37
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214383400004
ER
PT J
AU Yahya, Mohamed Hisham
Muhammad, Junaina
Hadi, Abdul Razak Abdul
TI A comparative study on the level of efficiency between Islamic and
conventional banking systems in Malaysia
MANAGEMENT
VL 5
IS 1
BP 48
EP +
DI 10.1108/17538391211216820
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to study the difference (or lack
of difference) in the efficiency level of Islamic and conventional
banking in Malaysia. Are the Islamic banks performing as good as the
conventional banks, even though they are constrained by Islamic tenets?
Design/methodology/approach - Data envelopment analysis is used to
measure the efficiency levels of banks in both sectors.
Findings - It is found that there is no significant difference in the
level of efficiency between Islamic banks and conventional banks.
Research limitations/implications - The period of study is only three
years, with only two banks which have been operating for more than three
years, while the other Islamic banks in this study are just beginning
their operation in Islamic banking. The inclusion of foreign banks
operating in Malaysia in this analysis might distort the findings, as
foreign banks have different capital structures and objectives compared
to local ones.
Practical implications - The paper shows that even though Islamic banks
are limited by Islamic tenets in their operations, they are able to
maintain a performance that is equivalent to the conventional banks.
Originality/value - The paper makes comparisons of the efficiency levels
between two different banking systems.
ZA 0
ZR 0
ZS 0
ZB 0
Z8 0
TC 9
Z9 9
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214383400005
ER
PT J
AU Ismal, Rifki
TI Formulating withdrawal risk and bankruptcy risk in Islamic banking
MANAGEMENT
VL 5
IS 1
BP 63
EP 77
DI 10.1108/17538391211216848
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to formulate both withdrawal risk
and bankruptcy risk to mitigate the risks and to find the equilibrium
area of revenue sharing to depositors. Taking the case of the Indonesian
Islamic banking industry, this work might benefit the Islamic banks,
banking regulators and all stakeholders to manage the risks and maintain
the robust development of the industry.
Design/methodology/approach - First, the application of revenue sharing
ratio in Islamic banks is studied. Withdrawal risk might happen because
of the displaced commercial risk and bankruptcy occurs when the banks
fail to manage such withdrawal risk. Referring to that, by using a
mathematical approach, the formulas of withdrawal risk and bankruptcy
risk are created with some underlying scenarios. Finally, mathematical
formula and three dimensions area of the equilibrium revenue sharing
ratio are developed.
Findings - The paper generates the financial mathematical formulas to
assess the vulnerable and invulnerable conditions of the withdrawal risk
and the bankruptcy and solvency conditions of the bankruptcy risk to be
used by decision makers to mitigate the risks. The ultimate output of
the paper is the equilibrium area of the revenue sharing ratio, which
locates Islamic banks in a proper condition of no withdrawal risk and
bankruptcy risk.
first paper trying to analyze the issues under the Indonesian case.
ZR 0
Z8 0
ZS 0
ZA 0
TC 4
ZB 0
Z9 4
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214383400006
ER
PT J
AU Ahmad, Suraya
TI The efficiency of Islamic and conventional commercial banks in Malaysia
MANAGEMENT
VL 5
IS 3
BP 241
EP 263
DI 10.1108/17538391211255223
PD 2012
PY 2012
AB Purpose - The purpose of this study is to examine the relative
efficiency of the Islamic commercial banks (ICBs) and conventional
commercial banks (CCBs) in Malaysia. The study measures and compares the
level of efficiency of both ICBs and CCBs from the year 2003 to 2007.
Design/methodology/approach - There are ten local commercial banks
selected in Malaysia, which comprise of eight CCBs and two ICBs. The
study uses data envelopment analysis (DEA) to measure the relative
efficiency of the selected banks in intermediating inputs into outputs.
The study then analyses the difference in the average efficiency score
of the ICBs and CCBs using the Mann-Whitney U test.
Findings - This study found that the CCBs outperformed ICBs in all
efficiency measures. The finding indicates that the CCBs may be more
efficient than the ICBs due to managerial efficiency and technological
advancement.
Research limitations/implications - This study may be extended in
various ways. Since, this study only covers a sample period of five
years, i.e. 2003 to 2007, future research might cover more sample
periods. Further studies could also take a bigger sample size by
including both the domestic and foreign commercial banks.
Practical implications - The study indicates that the domestic
commercial banks' management is well organised, reflecting the effective
roles of a bank as the mediator between the savers and entrepreneurs.
The technology used in the commercial banks may be up-to-date and fully
utilised in the bank's operation. However, the commercial banks in
Malaysia are facing the scale inefficiency. This means that the banks
are unable to fully utilise their capabilities and capacities in
generating the outputs from their resources. The findings also indicate
that the scale inefficiency is the main factor that leads to the low
technical efficiency in the ICBs as their size is relatively smaller
than the CCBs.
Originality/value - This study identified the most and least efficient
domestic banks and the finding could be useful to the regulators and the
banks to identify the bank's ranking within the industry. Thus, it is
hoped that the regulators are able to address the gap between the best
and worst-practices. The study may also improve the awareness among the
least efficient banks to initiate the proactive measures in order to be
sustainable in the industry.
RI Ahmad, Suraya/N-8503-2019
Z8 0
ZA 0
ZS 0
ZB 0
TC 14
ZR 0
Z9 14
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214385300005
ER
PT J
AU Akbar, Saeed
Shah, Syed Zulfiqar Ali
Kalmadi, Shahin
TI An investigation of user perceptions of Islamic banking practices in the
United Kingdom
MANAGEMENT
VL 5
IS 4
BP 353
EP 370
DI 10.1108/17538391211282845
PD 2012
PY 2012
AB Purpose - Islamic banking as a financial institution has always been
proclaimed to be different from conventional banking systems. This is
mainly due to the prohibition of interest and emphasis on achieving
social economic responsibility in society. However, in practice, Islamic
banking practices in the UK seem to be far away from its paradigm
version. The main purpose of this study is to evaluate user perceptions
of Islamic banking practices in the UK.
Design/methodology/approach - To explore the understandings and
perceptions of customers about Islamic banking practices in the UK an
online questionnaire survey is used as the research approach in this
study. The survey was conducted through a closed-ended structured
questionnaire.
Findings - The overall findings of this study suggest that Islamic
banking in the UK is not fully aligned with the paradigm version of
Islamic finance. The respondents generally agree with the view that the
principle of profit and loss sharing element represents the true spirit
of Islamic banking practices, however, due to the complex nature of
Islamic banking products, they are unsure about the full benefits of
this system. There is a high expectation among the respondents about the
commitment and strong welfare role of Islamic banks in society. It is
therefore suggested that through research, effective marketing and
generating more awareness in users about Islamic finance, it is possible
to achieve more from the Islamic banking paradigm.
Originality/value - This study is not only relevant to Muslims, but also
to the banking regulators in the UK, as many conventional banks are now
offering Islamic products and services alongside their routine
interest-based transactions. Hence there is a need for the regulators to
understand the real nature of such practices by both the Islamic and
conventional banks and establish a uniform regulation so that users are
not ill-treated by banks in the UK.
OI Akbar, Saeed/0000-0003-0413-9395
TC 15
ZB 0
ZS 0
ZR 0
Z8 0
ZA 0
Z9 15
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214385900005
ER
PT J
AU Ameer, Rashid
Othman, Radiah
Mahzan, Nurmazilah
TI Information asymmetry and regulatory shortcomings in profit sharing
investment accounts
MANAGEMENT
VL 5
IS 4
BP 371
EP 387
DI 10.1108/17538391211282854
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to explore the shortcomings in
the compliance of the full-fledged Islamic banks with the Bank Negara
Malaysia (BNM) disclosure guidelines related to the profit sharing
investment accounts (PSIAs).
Design/methodology/approach - This study uses interviews and a survey.
Findings - It was found that only two out five full-fledged Islamic
banks followed BNM guidelines which are based on the idea of
self-regulation. The authors developed a checklist of disclosure items,
and probed whether the sample banks would adopt these new disclosure
items. As it transpired, some banks have been disclosing these items
selectively, and/or recording them for internal control and management
purposes. The findings show these banks do not disclose: policies,
procedures, product design and structure; profit allocation basis,
methodology of calculating profit attributable to investment account
holders (IAHs). Nevertheless, disclosure related to Shari'ah compliance
was given to a reasonable extent. It is intriguing that full-fledged
Islamic banks do not provide comprehensive disclosure related to PSIAs
because such disclosure is not mandatory; while foreign full-fledged
Islamic banks provided such disclosure voluntarily.
Research limitations/implications - The banking sector regulator is not
sure of whether individual Islamic banks have actually complied with all
of its guidelines. The shortcomings in the disclosure are due to lack of
expertise, outdated information system structure, and shortage of
support and highly trained staff. The authors propose that the Islamic
jurists should use Istiqra - which is a comprehensive examination of
contracting environment before a new definite ruling is made on the
issue of accountability to the IAHs. This would involve exploratory
study of how the securities regulator (not banking regulator) perceives
the information risks faced by the IAHs and enforce new disclosure
guidelines.
Originality/value - This paper proposes new disclosure guidelines which
incorporate transparency, appropriateness, and timeliness to reduce
information asymmetry and enhance governance disclosure.
RI Othman, Radiah/D-3554-2019; Ameer, Rashid/
OI Othman, Radiah/0000-0002-9772-0439; Ameer, Rashid/0000-0002-6176-0391
ZR 0
ZB 0
ZS 0
Z8 0
TC 2
ZA 0
Z9 2
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214385900006
ER
PT J
AU Echchabi, Abdelghani
Olaniyi, Oladokun
TI Malaysian consumers' preferences for Islamic banking attributes
VL 39
IS 11
BP 859
EP +
DI 10.1108/03068291211263907
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to shed light on the preferences
of Malaysian banks' customers for Islamic banking attributes.
Design/methodology/approach - The paper uses mixed methodology. The
quantitative approach consists of the collection of primary data through
a self-administered questionnaire distributed to 500 Islamic banks'
customers in Malaysia. The data gathered were analysed using factor
analysis as well as Friedman test. In parallel, qualitative approach was
used, in forms of semi structured interviews with ten Islamic banks'
customers. The results of both approaches were then reported
accordingly.
Findings - The quantitative approach reveals that the preference for
Islamic banking attributes in Malaysia is a combination of the quality
of services offered by the Islamic banks, as well as the convenience
associated with it. On the other hand, the qualitative approach revealed
that choosing Islamic banks was mainly due to the religious motivation
of the customers.
Originality/value - This paper is one of the few that has used a
qualitative approach to study consumer preferences for Islamic banking
attributes. Furthermore, the paper employs this methodology in the
context of Malaysia, which enriches the studies done in this context and
area.
ZS 0
Z8 0
ZA 0
ZB 0
TC 28
ZR 0
Z9 28
U1 0
U2 0
SN 0306-8293
EI 1758-6712
UT WOS:000211585400003
ER
PT J
AU Al-Tamimi, Hussein A. Hassan
TI The effects of corporate governance on performance and financial
distress The experience of UAE national banks
SO JOURNAL OF FINANCIAL REGULATION AND COMPLIANCE
VL 20
IS 2
BP 169
EP +
DI 10.1108/13581981211218315
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to investigate the UAE national
banks' practices of corporate governance (CG) and the perception of the
UAE national banks of the effects of CG on performance and financial
distress.
Design/methodology/approach - A modified questionnaire has been
developed, divided into two parts. The first part covers disclosure and
transparency, executive compensation, relationship with shareholders,
governance structure, policies and compliance, relationship with
stakeholders, and board of directors. The second part deals with
performance and financial distress.
Findings - The results indicate that UAE banks are aware of the
importance of disclosure transparency, executive compensation, the
relationship with shareholders and stakeholders, and the role of the
board of directors. The results also indicate that the corporate
governance practices of UAE national banks are acceptable. In addition,
the results reveal that there is a significant positive relationship
between CG practices of UAE national banks and disclosure and
transparency, shareholders' interests, stakeholders' interests, and the
role of the board of directors. Furthermore, the results indicate that
there is an insignificant positive relationship between CG practices of
UAE national banks and performance level, and that there is a
significant positive relationship between financial distress and CG
practices of UAE national banks. Finally, the study found that there is
no significant difference in the level of CG practices between the UAE's
national conventional banks and its Islamic banks.
Originality/value - The current study is considered the first of its
kind conducted on the UAE. To the best of the author's knowledge, no
such studies have been conducted regarding the effect of CG on
performance and financial distress of UAE national conventional and
Islamic banks.
ZS 0
ZR 0
Z8 0
TC 14
ZA 1
ZB 0
Z9 15
U1 0
U2 0
SN 1358-1988
EI 1740-0279
UT WOS:000211807200003
ER
PT J
AU Zafar, Fahad
TI Ijarah contract: a practical dilemma
VL 3
IS 1
BP 67
EP 69
DI 10.1108/17590811211216078
PD 2012
PY 2012
AB Purpose - This purpose of this paper is to highlight the weakness in
vehicle Ijarah contract.
Design/methodology/approach - A real life example of a vehicle Ijarah
contract was studied in which a customer gets a car from an Islamic bank
and then misuses the system.
Findings - The case study provides a path for more research on Ijarah
contract for vehicle leasing. Islamic bankers should take into account
the amount of down payment requested besides the fulfilment of other
criteria. Vehicle Ijarah contract is only appropriate when the amount of
deposit or down payment requested is below 40 per cent threshold,
otherwise a diminishing Musharakah contract should be preferred.
Research limitations/implications - The research is only on one case
reported in one of the Islamic banks in Pakistan. The solution is also
by only one Shariah scholar. The future research should be on similar
contract at entire Islamic Banking Industry. Views of all top Shariah
scholars should be taken to mitigate such kind of risks for Islamic
banks.
Practical implications - This paper would trigger management of all
Islamic banks to alter the structure of their vehicle Ijarah contracts.
Social implications - Islamic bankers would be warned against making a
vehicle Ijarah contract with individuals wanting to contribute more than
a down payment, just for the sake of cheating the system.
Originality/value - This paper is of great importance to the management
of Islamic banks as this would raise flag against any future losses due
to loopholes in the structuring of contracts.
ZR 0
TC 1
ZS 0
ZB 0
Z8 0
ZA 0
Z9 1
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214885000006
ER
PT J
AU Vinnicombe, Thea
TI A study of compliance with AAOIFI accounting standards by Islamic banks
in Bahrain
VL 3
IS 2
BP 78
EP 98
DI 10.1108/17590811211265902
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to provide an extension of a
previous study by the author into compliance by Islamic banks in Bahrain
with accounting standards issued by the Accounting and Auditing
Organization for Islamic Financial Institutions (AAOIFI).
Design/methodology/approach - A number of compliance indexes are
constructed to better understand compliance by the sample banks. The use
of multiple indexes addresses methodological shortcomings identified in
the previous study.
Findings - Compliance is found to be higher for some Islamic issues than
for others. In a relative sense, compliance is found to be similar to
that for the region with standards issued by the International
Accounting Standards Board.
Research limitations/implications - The sample is limited to Islamic
financial institutions in Bahrain. This is necessitated by the lack of
adaptation elsewhere. The relatively high compliance found in Bahrain
suggests broader adoption would be successful and would contribute to
the overall regulation of the Islamic financial sector.
Originality/value - The AAOIFI has existed for over 20 years, but little
empirical research had been conducted into compliance with the standards
developed by this body. This paper, along with the previous study by the
author, helps address this gap.
Z8 0
TC 10
ZB 0
ZR 0
ZA 1
ZS 0
Z9 11
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214885800002
ER
PT J
AU Zainol, Zairy
Kassim, Salina Hj.
TI A critical review of the literature on the rate of return risk in
Islamic banks
VL 3
IS 2
BP 121
EP 137
DI 10.1108/17590811211265948
PD 2012
PY 2012
AB Purpose - This paper aims to provide a critical review of the literature
on the rate of return risk faced by Islamic banks.
Design/methodology/approach - Through a thorough review of the
literature, this paper presents the discussion among scholars regarding
the rate of return risk in Islamic banks.
Findings - One of the major issues highlighted is the sensitivity of
Islamic banks to the changes in the conventional interest rate due to
the fact that many Islamic banking products are benchmarked against the
conventional interest rate. Moreover, the limited techniques and
instruments available to mitigate the rate of return risk also need
serious attention by the regulators.
Research limitations/implications - The study relies solely on the
literature and highlights important issues in the area but does not
provide any empirical evidence of the importance of rate of return risk
to Islamic banks as it is beyond the scope of the paper.
Practical implications - There are several issues that should be taken
into consideration. First, the dearth of empirical research on the
identification of the rate of return risk in Islamic banking highlights
the need to develop appropriate methodology to enrich the study on the
rate of return risk. Second, more focus is needed to determine the
impact of rate of return risk on the financial stability and the
performance of Islamic banks.
Originality/value - This paper highlights several important issues
relating to the rate of return risk in Islamic banks that are not widely
discussed among researchers. In particular, this paper emphasizes the
need to identify, handle and mitigate such risks to ensure the stability
of Islamic banks. Therefore, this paper identifies a gap that needs
further exploration so as to contribute towards enriching the existing
literature in this area.
RI Kassim, Salina/Q-7008-2019; ZAINOL, ZAIRY/
OI Kassim, Salina/0000-0002-7514-8750; ZAINOL, ZAIRY/0000-0002-4025-166X
Z8 0
TC 7
ZB 0
ZR 0
ZS 0
ZA 0
Z9 7
U1 0
U2 1
SN 1759-0817
EI 1759-0825
UT WOS:000214885800004
ER
PT J
AU Ibrahim, Muhammad Faishal
Ong, Seow Eng
Akinsomi, Kola
TI Shariah compliant real estate development financing and investment in
the Gulf Cooperation Council
SO JOURNAL OF PROPERTY INVESTMENT & FINANCE
VL 30
IS 2
SI SI
BP 175
EP +
DI 10.1108/14635781211206913
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to investigate Shariah compliant
real estate development financing and investment in the Gulf Cooperation
Council (GCC).
Design/methodology/approach - In this paper, the authors employed desk
research and survey to examine issues relating to Shariah compliant real
estate development financing and investment. Following the desk
research, 18 in-depth interviews were conducted with senior executives
of banks, real estate developers and consultants.
Findings - Equity Shariah instruments are found to be in high demand by
real estate investors, however they are rarely offered by Islamic banks.
In addition, the survey results confirm that Islamic financiers tend to
partner real estate companies through land acquisition to post
construction, contrary to how conventional financiers operate, therefore
reducing moral hazard issues.
Research limitations/implications - As Shariah compliant real estate
research and knowledge is limited, the authors faced a challenge in
getting respondents who are familiar and willing to participate in the
interview. Nevertheless, the 18 respondents gave adequate inputs to
enable the authors to write the research paper.
Practical implications - The paper includes challenges and implications
for the future developments of Shariah compliant real estate development
financing and investment.
Originality/value - This paper provides the Shariah compliant
perspective of real estate development financing and investment, where
the current knowledge is very limited.
RI Akinsomi, Omokolade/M-1617-2019
OI Akinsomi, Omokolade/0000-0002-0745-043X
TC 3
ZB 0
ZA 0
ZR 0
ZS 0
Z8 0
Z9 3
U1 0
U2 0
SN 1463-578X
EI 1470-2002
UT WOS:000212862200006
ER
PT J
AU Khalid, Sania
Amjad, Shehla
TI Risk management practices in Islamic banks of Pakistan
VL 13
IS 2
BP 148
EP 159
DI 10.1108/15265941211203198
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to evaluate the degree to which
Islamic banks in Pakistan use risk management practices (RMPs) and
techniques in dealing with different types of risk.
Design/methodology/approach - A standardized questionnaire is used which
covers six aspects: understanding risk and risk management (URM), risk
assessment and analysis (RAA), risk identification (RI), risk monitoring
(RM), credit risk analysis (CRA) and RMPs.
Findings - This study found that the Islamic banks are somewhat
reasonably efficient in managing risk where URM, RM and CRM are the most
influencing variables in RMPs.
Research limitations/implications - The paper's findings are limited to
the RMPs of Islamic banks in Pakistan.
Originality/value - This paper explores the RMPs of the Islamic banks in
Pakistan. The results can be used as a valuable feedback for improvement
of RMPs in the Islamic banks in Pakistan and will be of value to those
people who are interested in the Islamic banking system.
ZA 0
ZB 0
Z8 0
ZS 0
TC 14
ZR 0
Z9 14
U1 0
U2 0
SN 1526-5943
EI 2331-2947
UT WOS:000213317600004
ER
PT J
AU Abu Hussain, Hameeda
Al-Ajmi, Jasim
TI Risk management practices of conventional and Islamic banks in Bahrain
VL 13
IS 3
BP 215
EP 239
DI 10.1108/15265941211229244
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to report empirical evidence
regarding the risk management practices of banks operating in Bahrain.
Design/methodology/approach - A sample of bankers was surveyed through a
questionnaire and the results used to examine if the risk management
practices are significantly associated with the type of bank
(conventional or Islamic) and if those practices are positively affected
by understanding risk, risk management, risk identification, risk
assessment analysis, risk monitoring and credit risk analysis. Several
statistical and econometric methods were used to the test the
hypotheses.
Findings - Banks in Bahrain are found to have a clear understanding of
risk and risk management, and have efficient risk identification, risk
assessment analysis, risk monitoring, credit risk analysis and risk
management practices. In addition, credit, liquidity and operational
risk are found to be the most important risks facing both conventional
and Islamic banks. Furthermore, the risk management practices are
determined by the extent to which managers understand risk and risk
management, efficient risk identification, risk assessment analysis,
risk monitoring and credit risk analysis. Islamic banks are found to be
significantly different from their conventional counterparts in
understanding risk and risk management. The levels of risks faced by
Islamic banks are found to be significantly higher than those faced by
conventional banks. Similarly, country, liquidity, and operational,
residual, and settlement risks are found to be higher in Islamic banks
than in conventional banks.
Research limitations/implications - The results may have been influenced
by the current economic global crisis. Although the response rate is
very high, there is no evidence of non-response bias, and there is high
internal consistency within the responses. The reliance on survey
methodology introduces the possibility that respondents expressed their
beliefs and did not necessarily describe their actions.
Practical implications - Bankers, depositors, investors and regulators
are likely to benefit from the results of the study when taking
decisions related to the banking industry.
Originality/value - This is the first published attempt to investigate
empirically the risk management practices of banks operating in Bahrain
and to compare the practices of conventional and Islamic banks.
Z8 0
ZB 0
ZA 3
TC 16
ZS 0
ZR 0
Z9 19
U1 0
U2 0
SN 1526-5943
EI 2331-2947
UT WOS:000213320300003
ER
PT J
AU Amin, Hanudin
TI Patronage factors of Malaysian local customers toward Islamic credit
cards
VL 35
IS 6
BP 512
EP 530
DI 10.1108/01409171211238271
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to analyze the probability of
Islamic credit card usage intention among Islamic banks' customers.
Financial cost, knowledge of Islamic credit card, attitude, financial
recommendation and demographic items were examined in order to determine
whether these factors are influencing the Islamic credit card usage
intention or not.
Design/methodology/approach - Drawing upon the theory of reasoned action
(TRA), this study proposes a conceptual model to examine the factors
determining the Islamic credit card usage intention. The research model
is evaluated using survey data from 354 respondents with the help of a
questionnaire.
Findings - The results reveal that "financial recommendation",
"knowledge on Islamic credit card", "age (young)", "marital status",
"religion" and "education level" are significantly affecting the Islamic
credit card usage intention. The research also concludes that " attitude
on Islamic credit card" appears to have no effect on the Islamic credit
card usage intention.
Research limitations/implications - The research has two limitations.
The limitations however provide support for future researches in the
area of Islamic credit card. Despite the limitations, the study
contributes to the body of academic knowledge by shedding more light
onto the factors affecting Islamic credit card usage intention.
Practical implications - Insights reported from this study are of
particular importance to bank managers, providing them with an improved
understanding pertaining to the Malaysian bank customers' usage
intentions for Islamic credit cards. The research helps them to better
plan for Islamic credit card facilities, in order to cater for the
financial needs of Malaysia bank customers.
Originality/value - The contribution of the research lies in achieving a
more profound understanding of Malaysia bank customers' usage intentions
for Islamic credit cards. The research manages to discover the factors
which particularly determine the use of Islamic credit cards. It also
expands the literature on Islamic credit cards.
OI Amin, Hanudin/0000-0003-3645-287X
ZA 1
ZB 0
Z8 0
TC 22
ZR 0
ZS 0
Z9 23
U1 0
U2 0
SN 2040-8269
EI 2040-8277
UT WOS:000213416300004
ER
PT J
AU Rehman, Asma Abdul
Masood, Omar
TI Why do customers patronize Islamic banks? A case study of Pakistan
VL 4
IS 2-3
SI SI
BP 130
EP 141
DI 10.1108/17554171211252475
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to determine the selection
criteria for Islamic banks employed by customers in a dual banking
system, as in the case of Pakistan, and to know the overall satisfaction
of the customers with Islamic banks.
Design/methodology/approach - This is a survey-based study conducted on
the primary data collected through structured questionnaire. In total,
23 variables are identified from the literature which are reduced to
eight main variables by using factor analysis in SPSS. Data are gathered
from 200 customers of full-fledged Islamic banks in Pakistan, i.e.
Meezan bank, Bank Islami and Dubai Islamic bank, Al-Baraka Islamic bank,
Burj Bank Ltd The data have been analyzed in two models: the first
includes the selection criteria according to gender; the second includes
the overall customer's preferences for selection criteria.
Findings - The results reveal that the most important factors are
"Religious factors" and "Convenient location" that customers consider
while selecting an Islamic bank. Other important factors include "Secure
feeling" by customer, "Quality related issues" and "Efficiency of bank".
Research limitations/implications - The data used in this study are
limited, so the generalization of the results is not possible. Also the
study is conducted on the full-fledged Islamic banks and it has ignored
the Islamic Windows.
Practical implications - Considering the importance of the topic, this
research has identified the selection criteria that are considered by
the customer while selecting an Islamic bank. It will help banks to
improve the criteria said and considered by customers while selecting a
bank. This research will be of interest to both serving banks and
potential entrants into this niche market.
Originality/value - The literature shows that patronize factors of
Islamic banks are an under-researched area in Pakistan. So, this paper
will contribute to the body of knowledge by identifying the Islamic
banking selection criteria considered by the customers.
Z8 0
ZR 0
ZS 0
TC 14
ZB 0
ZA 0
Z9 14
U1 0
U2 0
SN 1755-4179
UT WOS:000214334000002
ER
PT J
AU Alam, Nafis
Tang, Kin Boon
TI Risk-taking behaviour of Islamic banks: application of prospect theory
VL 4
IS 2-3
SI SI
BP 156
EP 164
DI 10.1108/17554171211252493
PD 2012
PY 2012
AB Purpose - The paper aims to gain an insight into behavioural
characteristics of Islamic banks and how they influence the risk-taking
decisions of Islamic banks in financial markets within the prospect
theory context.
Design/methodology/approach - The study employs review and application
of prospect theory in Islamic banking industry across the globe, making
use of 99 Islamic banks across 14 countries.
Findings - Empirical evidence shows that Islamic banks located above
target risk level tend to show risk-adverse behaviour, while banks below
target risk level inclined towards risk-seeking attitude. Results also
highlighted that banks which have higher loans to total asset ratio tend
to take on lower risk.
Practical implications - Islamic bank regulators will be better prepared
to monitor the Islamic banking system if they understand risk-taking
behaviour of Islamic bank managers. The findings will provide more
effective bank regulatory oversight, thus preventing Islamic bank
failures in future.
Originality/value - Since there are relatively few studies conducted in
risk-taking behaviour of Islamic banks, specifically global Islamic
banking, this study will broaden the scope of the literature by
providing novel empirical evidence on risk-taking practice of Islamic
banks worldwide.
OI Alam, Nafis/0000-0002-7096-3692
TC 5
ZB 0
ZR 0
ZA 0
ZS 0
Z8 0
Z9 5
U1 0
U2 0
SN 1755-4179
UT WOS:000214334000004
ER
PT J
AU Rehman, Asma Abdul
TI Customer satisfaction and service quality in Islamic banking A
comparative study in Pakistan, United Arab Emirates and United Kingdom
VL 4
IS 2-3
SI SI
BP 165
EP 175
DI 10.1108/17554171211252501
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to investigate the relationship
between customer satisfaction and six dimensions of service quality
(CARTER model) in Islamic banks of Pakistan, the UK and UAE.
Design/methodology/approach - This study uses a sample of 225 customers
of Islamic banks; 75 responses have been taken from each country.
Structured questionnaire technique has been used to collect data.
Findings - The paper's findings reveal that Pakistani and UK Islamic
banking customers consider assurance, reliability and empathy as
significant factors for customer satisfaction, whereas UAE customers
consider assurance and tangible as significant dimensions of
satisfaction.
Research limitations/implications - The study's limitation relates to
the sample size of the respondents.
Practical implications - This study is significantly important for the
academic point of view, as well as for the practitioners, managers and
policy makers to find out the pattern of customer satisfaction in terms
of service quality for Islamic banks.
Originality/value - The current study is of particular value because it
is a comparative study of customer satisfaction and service quality
dimensions (CARTER model) of Islamic banks in Pakistan, UK, and UAE.
Z8 0
ZB 0
ZS 0
ZA 0
TC 18
ZR 0
Z9 18
U1 0
U2 0
SN 1755-4179
UT WOS:000214334000005
ER
PT J
AU Ghauri, Shahid Muhammad Khan
Qambar, Amal Sabah Obaid
TI Rewards in faith-based vs conventional banking
VL 4
IS 2-3
SI SI
BP 176
EP 196
DI 10.1108/17554171211252510
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to analyze the performance of
conventional and Islamic paradigms of banking through profitability.
Profitability of conventional and Islamic banks is compared through four
authentic methods of ratio through reliable statistical data from seven
countries. The healthier bank spread in the Islamic way of banking is
analyzed and compared with the conventional trend of banking.
Design/methodology/approach - Profitability of two-streams of banking
are analyzed through bank spread, bank margin to total assets,
non-interest-based costs to total assets and relationship of bank-spread
and NPBT&Z of conventional and Islamic banks. Data from 87 banks
belonged to seven countries were analyzed to obtain results, of which 35
were following Islamic principles-based products and services. Countries
are selected among those which are following binary-banking systems
simultaneously. Statistical data are gathered from audited-annual
reports of these sample banks.
Findings - Islamic banks are found to reflect marginal bank spread but
bear higher operational (non-bank margin) costs.
Research limitations/implications - Statistical data are gathered from
audited annual accounts of banking companies. Foreign banks are excluded
in this analysis due to non-availability of published accounts for most
of such banks at country level. Further NPLs of sample banks were not
available in most of sample banks, which could provide actual
statistical figures for earning assets of bank.
Originality/value - The paper will be helpful in analyzing the business
approach of the global, growing trend of Islamic banking.
ZS 0
ZB 0
ZR 0
Z8 0
TC 2
Z9 2
U1 0
U2 0
SN 1755-4179
UT WOS:000214334000006
ER
PT J
AU Masood, Omar
Al Suwaidi, Hasan
Thapa, Priya Darshini Pun
TI Credit risk management: a case differentiating Islamic and non-Islamic
banks in UAE
VL 4
IS 2-3
SI SI
BP 197
EP 205
DI 10.1108/17554171211252529
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to identify any differences
between the Islamic and non-Islamic banks in the UAE on credit risk
management.
Design/methodology/approach - The study uses survey based methodology
for data collection. The sample for the study consists of six commercial
banks from UAE with three non-Islamic and three Islamic banks and with
148 credit risk managers as respondents for the survey. The study aims
to investigate factors which distinguish between Islamic and non-Islamic
banks in UAE. This is achieved by fitting a binary logistic regression
model.
Findings - The study shows that the managers in Islamic banks now do not
rely only on personal experiences and simple credit risk analysis. The
Islamic banks appear also to be developing and practising the newer and
robust techniques, in addition to traditional methods, to manage their
credit risk in UAE compared to non-Islamic banks, which indicates a
possibility of further improvement in their credit risk management.
Originality/value - The paper uses questionnaire-based methodology,
which has not been used previously in the UAE financial sector, as well
as in studies of credit risk management. Therefore, this research could
become the cornerstone of further academic research in other developing
countries using this methodology.
TC 3
ZB 0
ZS 0
ZA 1
ZR 0
Z8 0
Z9 4
U1 0
U2 0
SN 1755-4179
UT WOS:000214334000007
ER
PT J
AU Al-Khasawneh, Jamal Ali
Bassedat, Karima
Aktan, Bora
Thapa, Priya Darshini Pun
TI Efficiency of Islamic banks: case of North African Arab countries
VL 4
IS 2-3
SI SI
BP 228
EP 239
DI 10.1108/17554171211252547
PD 2012
PY 2012
AB Purpose - The purpose of this paper is twofold. The first and the most
important is to examine the efficiency of Islamic banks relative to
conventional banks operating in North African Arab countries, in terms
of cost and revenue efficiency. The second objective is to assess more
evidence regarding the banking system efficiency trend and dynamics in
each single country, and to compare such trends among countries included
in the study.
Design/methodology/approach - The non-parametric data envelopment
analysis (DEA) was used to estimate cost and revenue efficiency scores
assuming variable returns to scale (VRS). The sample consists of nine
Islamic banks and 11 conventional banks.
Findings - The results indicated that Islamic banks achieved higher
average revenue efficiency scores over conventional banks in this
region, while the growth rate of revenue efficiency score of Islamic
bank was less than conventional banks. In terms of cost efficiency, the
results varied from country to another. The results also showed that
both groups of banks were close to each other, with an advantage to
conventional banks, which suffer less cost efficiency loss over time
compared to Islamic banks.
Research limitations/implications - The very limited data sources
(banks' web sites) was was the main limitation faced during preparing
for this research. Another limitation was the non-regularity of annual
reports.
Practical implications - Islamic banks are highly challenged in finding
investment opportunities/avenues that comply with Islamic regulations,
unlike conventional banks that can invest in fixed income securities.
There is a serious need for some countries to deregulate their banking
systems more, in order to enhance the compatibility and the efficiency
of their banking, such as the case of Sudan.
Originality/value - Given the previously mentioned difficulties, decent
data set were collected. The value of this paper is the use of
nonparametric DEA to analyse cost and revenue efficiences in the
countries of this region.
RI Aktan, Bora/S-6019-2017; Al-Khasawneh, Jamal/
OI Aktan, Bora/0000-0002-1334-3542; Al-Khasawneh, Jamal/0000-0003-3838-5578
TC 6
ZS 0
ZB 0
Z8 0
ZR 0
ZA 1
Z9 7
U1 0
U2 0
SN 1755-4179
UT WOS:000214334000009
ER
PT J
AU Masood, Omar
Ashraf, Muhammad
TI Bank-specific and macroeconomic profitability determinants of Islamic
banks The case of different countries
VL 4
IS 2-3
SI SI
BP 255
EP 268
DI 10.1108/17554171211252565
PD 2012
PY 2012
AB Purpose - The purpose of this paper is to inspect whether bank-specific
and macro-economic determinants influence Islamic banks' profitability
in the selected countries of different regions.
Design/methodology/approach - In order to achieve the study objective
and to answer the question, the balanced panel data regression model has
been used. Bank level data is used and this study examines the
alternative measures ROA and ROE as a bank-specific function and
macro-economic determinants.
Findings - The study results signify that banks with larger assets size
and with efficient management lead to greater return on assets.
Originality/value - The paper shows that management efficiency regarding
operating expenses positively and significantly affects the banks'
profitability.
TC 22
ZB 0
ZA 0
ZS 0
Z8 0
ZR 0
Z9 22
U1 0
U2 0
SN 1755-4179
UT WOS:000214334000011
ER
PT J
AU Hasan, Maher
Dridi, Jemma
TI THE EFFECTS OF THE GLOBAL CRISIS ON ISLAMIC AND CONVENTIONAL BANKS: A
COMPARATIVE STUDY
SO JOURNAL OF INTERNATIONAL COMMERCE ECONOMICS AND POLICY
VL 2
IS 2
BP 163
EP 200
DI 10.1142/S1793993311000270
PD DEC 2011
PY 2011
AB This paper examines the performance of Islamic banks (IBs) and
conventional banks (CBs) during the recent global crisis by examining
the impact of the crisis on profitability, credit and asset growth, and
external ratings in a group of countries where the two types of banks
have significant market share. Our analysis suggests that IBs have been
affected differently than CBs. Factors related to IBs' business model
helped limit the adverse impact on profitability in 2008, while
weaknesses in risk management practices in some IBs led to a larger
decline in profitability in 2009 compared to CBs. IBs' credit and asset
growth performed better than did that of CBs in 2008-2009, contributing
to financial and economic stability. External rating agencies'
re-assessment of IBs' risk was generally more favorable.
Z8 0
ZB 0
TC 52
ZS 0
ZA 1
ZR 0
Z9 53
U1 0
U2 0
SN 1793-9933
EI 1793-9941
UT WOS:000214611200001
ER
PT J
AU Ongena, Steven
Sendeniz-Yuencue, Ilkay
TI Which firms engage small, foreign, or state banks? And who goes Islamic?
Evidence from Turkey
VL 35
IS 12
BP 3213
EP 3224
DI 10.1016/j.jbankfin.2011.05.001
PD DEC 2011
PY 2011
AB We study a representative dataset from Turkey that identifies firm-bank
connections. 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. We estimate a
multinomial logit of the choice by the firm of bank type. We document a
strong correspondence between bank type and firm characteristics that is
not always the same as has been documented so far for US datasets. For
example, small firms engage large rather than small banks. Young, large,
multiple-bank, and industry-diversified firms, that are located in or
close to Istanbul, team up with foreign banks. Islamic banks mainly deal
with young, multiple-bank, industry-focused and transparent firms. (C)
2011 Elsevier B.V. All rights reserved.
ZA 0
Z8 0
ZR 0
TC 38
ZS 0
ZB 0
Z9 38
U1 2
U2 22
SN 0378-4266
EI 1872-6372
UT WOS:000296215900006
ER
PT J
AU bin Mohamed, Marlehan
Nizam, Mohd
Badaruddin, Bin A.
Choong, Chee-Keong
TI Trust formation process in Islamic banking in Malaysia
SO AFRICAN JOURNAL OF BUSINESS MANAGEMENT
VL 5
IS 30
BP 11779
EP 11785
DI 10.5897/AJBM10.232
PD NOV 30 2011
PY 2011
AB An increasing number of citizens are doing transaction with Islamic
banks and the numbers are likely to increase rapidly in the future.
Research shows that trust is the key factor before undertaking
transaction. However, much of our understanding about the trust is still
in the embryonic stage especially in the Islamic banking industry.
Hence, this study focuses on trust in the context of engaging in Islamic
banking transactions and to address its evolutionary nature and
associated factors. This article explores the trust antecedent, trust
behavior and trust consequence in selecting Islamic banking. The
uniqueness of this paper is that it develops a model for trust
process/construct in Islamic banking. This is deemed essential in order
to market the Islamic banking products and services that can truly
enable and support lasting relationships in commercial settings.
RI Choong, Chee Keong/D-7110-2011
OI Choong, Chee Keong/0000-0002-5241-4884
ZS 0
ZB 0
ZR 0
ZA 0
TC 3
Z8 0
Z9 3
U1 1
U2 30
SN 1993-8233
UT WOS:000297665400005
ER
PT J
AU Baten, M. A.
Kamil, A. A.
TI A stochastic frontier model for measuring online bank profit efficiency
SO SOUTH AFRICAN JOURNAL OF BUSINESS MANAGEMENT
VL 42
IS 3
BP 49
EP 59
DI 10.4102/sajbm.v42i3.499
PD SEP 2011
PY 2011
AB This study revisited an alternative profit efficiency function specified
by Berger & Mester, (1997) and we applied Battese & Coelli, (1995)
inefficiency model as a unified and consistent framework in exploring
the determinants of important factors causing profit efficiency
differential on banking industry in Bangladesh. Using stochastic
frontier technique we estimated bank specific profit efficiency for the
period 2000 to 2007. This study attempted to examine the changes in the
profit efficiency in accordance with NBs (Nationalized Commercial
Banks), ISBs (Islamic Banks), FBs (Foreign Banks) and PBs (Private
Banks) and significant variations of efficiencies across different kinds
of banks in time periods. We found that the profit inefficiency has
declined over the reference period and Translog Production Function is
more preferable than Cobb-Douglas Production Function. Our results
showed that Nationalized Commercial Banks were significantly inefficient
and on the contrary ISBs, FBs, and PBs were efficient in producing
profit and noteworthy. The estimated year wise average efficiencies of
the sample banks from the profit efficiency model was 0.664 while group
wise average profit efficiency was 0,639. Dhaka Bank is highly efficient
with score 0.89 and AB Bank was found lowest efficient with score 0,35
according to the sample data.
RI Kamil, Anton Abdulbasah/A-9795-2011
OI Kamil, Anton Abdulbasah/0000-0001-5410-812X
TC 3
Z8 0
ZA 0
ZS 0
ZR 0
ZB 0
Z9 3
U1 0
U2 10
SN 2078-5585
EI 2078-5976
UT WOS:000296313400005
ER
PT J
AU Boumediene, Aniss
TI Is credit risk really higher in Islamic banks?
SO JOURNAL OF CREDIT RISK
VL 7
IS 3
BP 97
EP 129
PD FAL 2011
PY 2011
AB This paper empirically explores the assertion that Islamic banks have
higher credit risk than conventional banks. We give definitions, methods
for identification and methods for management of credit risk for each
Islamic financial tool. This risk is then calculated for nine Islamic
banks and nine conventional banks using contingent claims analysis.
Merton's model, based on Black and Scholes's option pricing formula, is
used to measure the distance-to-default, DD, and the default
probability, DP from 2005 to 2009. Islamic banks have a mean
distance-to-default of 204, significantly higher than conventional
banks. (DD = 15). The mean default probabilities are 0: 03 and 0: 05,
respectively. Cumulative logistic probability distributions are then
used to derive default probability from distance-to-default. These
results are more satisfying: the distribution of default probability has
larger tails, responding to the criticism of the use of a normal
distribution.
TC 17
Z8 0
ZA 0
ZS 0
ZB 0
ZR 1
Z9 18
U1 0
U2 13
SN 1744-6619
EI 1755-9723
UT WOS:000300831800004
ER
PT J
AU Dahlan, Nuarrual Hilal Md.
Aljunid, Sharifah Zubaidah Syed Abdul Kader
TI Shariah and Legal Issues in House Buying in Malaysia: The Legality of
Bay'Bithaman-Al-Ajil ('BBA') with Special Reference to Abandoned Housing
Projects
SO PERTANIKA JOURNAL OF SOCIAL SCIENCE AND HUMANITIES
VL 19
IS 2
BP 349
EP 361
PD SEP 2011
PY 2011
AB The primary duties of Islamic banks and financial institutions in
Malaysia are to carry out Islamic banking and financial activities and
to offer products that are in accordance with the Islamic teachings.
These products are subject to the scrutiny and approval of Bank Negara's
Shariah Advisory Council (SAC) and the internal Shariah Advisory Bodies
(SAB) or the Shariah Committees of the respective financial
institutions. Despite having been in existence for more than 25 years,
in the authors' view, it is still questionable whether or not the
Islamic banks and financial institutions in Malaysia have been
satisfactorily carrying out these duties. One area worth examining is
the transaction involving house buying, particularly the one that falls
under the purview of the Housing Development (Control and Licensing) Act
1966 (Act 118) and transactions involving houses pending completion.
This paper examines this area of transaction and the loan agreement,
affected via Bay' Bithaman al-Ajil (BBA), provided by Islamic banking
and financial institutions in Malaysia. The purpose is to see to what
extent the sale and purchase agreement and the loan agreement have
complied with the requirements of the Islamic Law in protecting
stakeholders and to provide practical suggestions to improve the
existing practice. The paper concludes that the current practice of the
BBA contradicts with the teachings of Islam and should therefore be
modified and revamped until it is fully able to protect the interests of
the purchasers/borrowers.
RI Dahlan, Nuarrual Hilal Md/AAR-5010-2020; Aljunid, Syed Alwee/D-9379-2011
OI Aljunid, Syed Alwee/0000-0003-2739-6220
ZR 0
TC 5
ZA 0
Z8 0
ZS 0
ZB 0
Z9 5
U1 0
U2 0
SN 0128-7702
EI 2231-8534
UT WOS:000213377600008
ER
PT J
AU Qasaymeh, Khaled
TI Islamic banking in South Africa: between the accumulation of wealth and
the promotion of social prosperity
SO COMPARATIVE AND INTERNATIONAL LAW JOURNAL OF SOUTHERN AFRICA-CILSA
VL 44
IS 2
BP 275
EP 292
PD JUL 2011
PY 2011
AB The banking sector is the cornerstone of modern economy. Muslims in
South Africa have been utilising Islamic banking through Albarakah since
1989. In 2004 and 2006 successively First National Bank and Absa Bank
started offering Islamic banking services through their Islamic windows.
South African legislature has introduced the Draft Taxation Laws
Amendment Bill introducing Islamic Banking instruments for the purposes
of taxation. The Bill does not create a comprehensive legal landscape
for Islamic banking. Nonetheless, the Bill indicates at the practices of
South African Islamic banks. The investigation of the application of the
shari'ah-compliance banking reveals that the mechanical application of
Islamic rules does not necessarily achieve the goals of shari'ah. This
is due to the major role of the institution of Islamic banking in
promoting social prosperity. The matter requires Islamic banks to
revisit their current practices in order to restore the origin of norms
intended to justify profit by promoting social development.
Z8 0
TC 0
ZR 0
ZB 0
ZS 1
Z9 1
U1 0
U2 0
SN 0010-4051
UT WOS:000217372200006
ER
PT J
AU Ahmad, Ashfaq
Awan, Rehmat Ullah
Malik, Muhammad Imran
TI An overview of the operations/products offered by Islamic banks in
Pakistan
VL 5
IS 11
BP 4185
EP 4190
PD JUN 4 2011
PY 2011
AB Islamic banks are striving to capture the maximum number of customers to
compete with conventional banks by providing a large number of products
as an alternative for interest based products. There is a clear
difference between operations/products offered by Islamic and
conventional banks. Islamic banks are offering interest free products
according to Shariah principles to promote business and trade in the
country. This study presents an overview of operations and products
offered by Islamic banks especially in Pakistan. Islamic banks provide a
variety of products according to principles of Shariah to cope with the
challenges of the recent age. These products may be categorized as
short-term, mediumterm and long-term according to their specific
characteristics. It also reflects a brief picture regarding performance
of Islamic banks in Pakistan since 2002. This study contributes a lot
towards existing literature by beautiful reflection of operations and
products of Islamic banks as bank-customer relationship for provision of
quality services. It also presents the popularity and progressive
products offered by Islamic banks in Pakistan. It could enhance the
understanding of customers, bankers, policy makers and academicians.
This study provides an insight regarding products/operations of Islamic
bank that enables the researchers, academicians and policy makers to
explore the ways to realize the potential benefits of Islamic banking.
ZA 0
ZB 0
Z8 0
TC 2
ZS 0
ZR 0
Z9 2
U1 0
U2 4
SN 1993-8233
UT WOS:000294951200020
ER
PT J
AU Weill, Laurent
TI Do Islamic Banks Have Greater Market Power?
SO COMPARATIVE ECONOMIC STUDIES
VL 53
IS 2
BP 291
EP 306
DI 10.1057/ces.2011.1
PD JUN 2011
PY 2011
AB The aim of this paper is to investigate whether Islamic banks have
greater market power than conventional banks, as they might benefit from
a captive client base. To measure market power, we compute Lerner
indices for a sample of banks from 17 countries where Islamic and
conventional banks coexist over the period 2000-2007. We also use the
Rosse-Panzar model to measure the degree of competition for each type of
banks. We find that Islamic banks do not have greater market power than
conventional banks. We attribute the competitive behavior of Islamic
banks to differences in norms and incentives.
OI Weill, Laurent/0000-0002-8630-1351
ZA 0
ZS 0
ZR 1
ZB 0
Z8 0
TC 38
Z9 38
U1 0
U2 0
SN 0888-7233
EI 1478-3320
UT WOS:000210787200007
ER
PT J
AU Salehi, Mahdi
Hematfar, Mahmoud
Khatiri, Mahmod
TI Entrepreneurship gap in Islamic banking sector: Empirical evidence of
Iran
VL 5
IS 8
BP 3322
EP 3329
PD APR 18 2011
PY 2011
AB This paper addresses the degree of entrepreneurship gap in Iranian
Islamic banking sector from the view points of own-state banks and
privet banks in Iran. Unlike conventional banks, Islamic banks operate
within the boundaries of the Islamic Law (Shariah) (Naser and Moutinho,
1997). The results of this study show huge gap regarding
entrepreneurship between own-state bankers and private bankers in Iran.
The authors came to conclusion that private banks in Iran have higher
tendency of higher entrepreneurship than own-state banks.
RI Salehi/G-2496-2013
OI Salehi/0000-0003-2698-9817
ZR 0
TC 1
ZS 0
ZA 0
Z8 0
ZB 0
Z9 1
U1 0
U2 5
SN 1993-8233
UT WOS:000291554100031
ER
PT J
AU Ahmad, Ashfaq
Kashif-ur-Rehman
Safwan, Nadeem
TI Testing a model of Islamic banking based on service quality, customer
satisfaction and bank performance
VL 5
IS 5
BP 1880
EP 1885
PD MAR 4 2011
PY 2011
AB This study analyzes the services quality of products offered by Islamic
banks with mediating effect of customer satisfaction on bank
performance. There is an increasing competition among banks to capture
new customers as well as to retain existing customers. It requires a
study to measure the impact of service quality on customer satisfaction
towards bank performance. Data were collected from 720 respondents of 60
branches of six full fledged Islamic banks operating in Pakistan by
simple random sampling. The researcher used PLS based SEM to assess the
magnitude of the relationship among service quality, customer
satisfaction and performance of Islamic banks. The results indicate a
strong positive relationship between service quality and customer
satisfaction, while weak positive correlation exists between service
quality and bank performance, but negative relationship was found
between customer satisfaction and performance of Islamic banks in
Pakistan. Furthermore, it is found that customer satisfaction does not
mediate between service quality and bank performance. The gap between
customer satisfaction and bank performance may be due to bankers'
concentration on network expansion instead of customer orientation and
customer focus. This study enables the bankers, policy makers and
researchers to identify the factors that could result a discrepancy
between satisfaction and performance of banks.
ZA 0
ZB 0
TC 1
ZS 0
ZR 0
Z8 0
Z9 1
U1 0
U2 10
SN 1993-8233
UT WOS:000290800600041
ER
PT B
AU Yacout, Omneya Mokhtar
ElSahn, Mohamed Farid
BE Sandikci, O
Rice, G
TI Customer-based brand equity of Islamic banks in Bahrain: an empirical
investigation
SO HANDBOOK OF ISLAMIC MARKETING
BP 274
EP 299
PD 2011
PY 2011
ZS 0
ZA 0
Z8 0
ZB 0
TC 0
ZR 0
Z9 0
U1 0
U2 6
BN 978-1-84980-013-6
UT WOS:000299046600015
ER
PT B
AU Ahmed, Habib
BA Ahmed, H
TI PRODUCT DEVELOPMENT PRACTICES IN ISLAMIC BANKS
SO PRODUCT DEVELOPMENT IN ISLAMIC BANKS
SE Edinburgh Guides to Islamic Finance
BP 131
EP 160
PD 2011
PY 2011
ZS 0
ZR 0
TC 0
ZA 0
ZB 0
Z8 0
Z9 0
U1 0
U2 0
BN 978-0-7486-3951-9
UT WOS:000288749600005
ER
PT J
AU Kurt-Gumus, Guluzar
Aktaif, Bora
Masood, Omar
TI ANALYSIS OF ISLAMIC BANKING INDUSTRY IN THE REPUBLIC OF SUDAN
SO ACTUAL PROBLEMS OF ECONOMICS
IS 122
BP 379
EP 389
PD 2011
PY 2011
AB This paper seeks to analyze the financial performance of the selected
Sudanese Islamic banks and highlight their growth using financial
statement analysis. The procedure involves calculating numerous
financial ratios and categorizing them into 5 key groups in order to
examine profitability, earning potential, liquidity, credit risk, and
assets activity. Findings reveal that Sudanese Islamic banks are doing
very well in terms of generating reasonable profits, and the liquidity
earning performance and asset activity performance of the 3 selected
banks is satisfactory. Finally, while analyzing the credit risk we found
that Sudanese Islamic banks are taking excessive risks.
RI Aktan, Bora/S-6019-2017; KURT GUMUS, GULUZAR/
OI Aktan, Bora/0000-0002-1334-3542; KURT GUMUS, GULUZAR/0000-0002-9016-285X
ZS 0
TC 0
ZA 0
ZB 0
Z8 0
ZR 0
Z9 0
U1 0
U2 8
SN 1993-6788
UT WOS:000294704100046
ER
PT J
AU Ab Aziz, Muhammad Ridhwan B.
TI OPPORTUNITY FOR AGRO ENTREPRENEUR IN DEVELOPING AGRO INITIATIVE IN
ISLAMIC BANKING IN MALAYSIA
SO JOURNAL OF ANIMAL AND PLANT SCIENCES
VL 21
IS 2
BP 290
EP 302
PD 2011
PY 2011
AB This article tries to examine the concept of agriculture and
agribusiness in Islam and financing facilities available for the
agriculture sector provided by the Islamic Banking in Malaysia. Thus,
this article will be divided into two sections. The first section begins
with the exploration of agriculture and agribusiness in Islam, whilst
the second section in this article will discuss Islamic financing
facilities in agriculture provided by the local Islamic Banks. All
financing facilities offered by the banks will be explained in details
in this section as well as the relevant products with respect of
financial assistant to agro entrepreneurs in developing their projects.
The methodology of this research is through documents analysis as well
as field study with the officers of the selected Islamic Banks.
Z8 0
ZA 0
TC 1
ZR 0
ZB 0
ZS 0
Z9 1
U1 1
U2 7
SN 1018-7081
UT WOS:000294780500035
ER
PT J
AU Maggs, Peter B.
TI Islamic Banking in Kazakhstan Law
SO REVIEW OF CENTRAL AND EAST EUROPEAN LAW
VL 36
IS 1
BP 1
EP 32
DI 10.1163/092598811X12960354394641
PD 2011
PY 2011
AB Kazakhstan has adopted legislation designed to facilitate Islamic
banking, and at least one Islamic bank has started operations in
Kazakhstan. Islamic banking is based upon traditional Islamic law, which
forbids the taking of interest, the making of profit without risk, and
profiting from "sinful" businesses such as pornography. The legislation
in Kazakhstan forbids such activities for Islamic banks and also
requires each Islamic bank to have an independent "Council on the
principles of Islamic finance" to rule on bank policies and specific
transactions. Islamic banking practices use complex combinations of
transactions, each permitted by Islamic law, to mimic common
conventional banking transactions, such as loans bearing fixed interest
rates and repayable on a fixed date. Stable income and manageable
principal obligations from credit-worthy borrowers can ensure that a
bank will receive high ratings from leading international credit rating
agencies and, thus, can satisfy the requirements of Kazakhstan's bank
regulators.
The formal difference between Islamic banking transactions and the
conventional transactions that they mimic could lead to differing
treatment for taxation. To provide a level playing field, Kazakhstan has
amended its Tax Code to provide for equal treatment of economically
equivalent Islamic and conventional banking transactions. Adjustments
have also been made to bankruptcy legislation, reflecting the
unavailability of deposit insurance for Islamic banks and the special
nature of investment deposits in Islamic banks.
There are controversies among Islamic law scholars as to whether or not
various practices used to mimic conventional banking transactions are
unlawful because they violate the spirit of Islamic law. This creates
what is called "Sharia risk", the risk that a transaction will be found
unlawful after it has been concluded, with consequences highly
unfavorable for a party.
ZR 0
ZS 0
ZA 0
ZB 0
TC 0
Z8 0
Z9 0
U1 0
U2 10
SN 0925-9880
UT WOS:000291404300001
ER
PT J
AU Amin, Muslim
Isa, Zaidi
Fontaine, Rodrigue
TI The role of customer satisfaction in enhancing customer loyalty in
Malaysian Islamic banks
SO SERVICE INDUSTRIES JOURNAL
VL 31
IS 9
BP 1519
EP 1532
AR PII 927209313
DI 10.1080/02642060903576076
PD 2011
PY 2011
AB This study examines the role of customer satisfaction in enhancing the
loyalty of Muslim and non-Muslim customers in the Malaysian Islamic
banking industry. Respondents are the customers (Muslim and non-Muslim
customers) visiting the bank counters and have an account with Islamic
banks. A total of 660 questionnaires were distributed, and 440 were
returned. The results indicate that customer satisfaction has a
statistically significant positive effect on customer loyalty and
intentions to switch for Muslim and non-Muslim customers. However, there
were significant differences in the effects of customer satisfaction on
customer loyalty and intention to switch for Muslim and non-Muslim
customers. The effect of customer satisfaction on customer loyalty and
intention to switch is greater for the non-Muslim than the Muslim
customers.
RI Amin, Muslim/M-6011-2018; Amin, Muslim/
OI Amin, Muslim/0000-0003-0818-5663
ZB 0
Z8 0
TC 26
ZS 0
ZR 0
ZA 0
Z9 26
U1 1
U2 40
SN 0264-2069
EI 1743-9507
UT WOS:000290676000009
ER
PT J
AU Abdul-Majid, Mariani
Saal, David S.
Battisti, Giuliana
TI The impact of Islamic banking on the cost efficiency and productivity
change of Malaysian commercial banks
VL 43
IS 16
BP 2033
EP 2054
AR PII 913183875
DI 10.1080/00036840902984381
PD 2011
PY 2011
AB This study employs Stochastic Frontier Analysis (SFA) to analyse
Malaysian commercial banks during 1996-2002, and particularly focuses on
determining the impact of Islamic banking on performance. We derive both
net and gross efficiency estimates, thereby demonstrating that
differences in operating characteristics explain much of the difference
in costs between Malaysian banks. We also decompose productivity change
into efficiency, technical, and scale change using a generalized
Malmquist productivity index. On average, Malaysian banks experience
moderate scale economies and annual productivity change of 2.68%, with
the latter driven primarily by Technical Change (TC), which has declined
over time. Our gross efficiency estimates suggest that Islamic banking
is associated with higher input requirements. However, our productivity
estimates indicate that full-fledged Islamic banks have overcome some of
these cost disadvantages with rapid TC, although this is not the case
for conventional banks operating Islamic windows. Merged banks are found
to have higher input usage and lower productivity change, suggesting
that bank mergers have not contributed positively to bank performance.
Finally, our results suggest that while the East Asian financial crisis
had a short-term cost-reducing effect in 1998, the crisis triggered a
long-lasting negative impact by increasing the volume of nonperforming
loans.
RI Abdul-Majid, Mariani/AAE-3801-2020
OI Abdul-Majid, Mariani/0000-0002-4730-332X
ZS 0
ZR 0
TC 26
ZA 0
ZB 0
Z8 0
Z9 26
U1 1
U2 34
SN 0003-6846
UT WOS:000291804300006
ER
PT J
AU Farooq, Mohammad Omar
TI Qard Hasan, Wadi ah/Amanah and Bank Deposits: Applications and
Misapplications of Some Concepts in Islamic Banking
VL 25
IS 2
BP 115
EP 146
DI 10.1163/157302511X553985
PD 2011
PY 2011
AB Based on the categorical prohibition of riba in the Qur an, presumably
further reinforced by Hadith, qard (loan) is considered ribawi, i.e.,
only gratuitous monetary loans are considered permissible. Deposits
(particularly, demand deposits) in Islamic banks are often structured as
qard hasan or wadi ah/amanah (trust). Based on the Qur an, Hadith and
earliest Islamic discourse, this article examines whether qard is ribawi
and whether the application of the concept of qard hasan or wadi
ah/amanah is coherent in the context of Islamic finance.
ZS 0
ZA 0
Z8 0
TC 3
ZR 0
ZB 0
Z9 3
U1 0
U2 0
SN 0268-0556
EI 1573-0255
UT WOS:000217460100001
ER
PT J
AU Hudayati, Ataina
Auzair, Sofiah Md
TI Performance Measurement System, Organisational Learning and Business
Unit Performance in Islamic Banks
SO ASIAN JOURNAL OF ACCOUNTING AND GOVERNANCE
VL 2
BP 1
EP 13
PD 2011
PY 2011
AB This study examines the relationship between performance measurement
systems (PMS), business unit, and profit and loss sharing (PLS)
financing performance in Islamic Banks. Two elements of PMS were
studied-strategic PMS and interactive use of PMS. Utilising the survey
method, questionnaires were mailed to 256 business units of Islamic
Banks in Indonesia, of which 99 were returned. Employing the
resourced-based view, it is expected that the effect of PMS on both
performances is indirect through organisational learning. Nevertheless,
strategic PMS is also expected to have a direct relationship with
business unit performance. Tested using Partial Least Squares
regression, the results indicate that the interactive use of PMS is
indirectly related to performances through organisational learning.
Strategic PMS was found to be directly related to business unit
performance. The findings highlight the role of PMS in enhancing
organisational learning in Islamic Banks, which translates into high
performance.
TC 1
ZB 0
ZR 0
Z8 0
ZS 0
Z9 1
U1 0
U2 0
SN 2180-3838
UT WOS:000219064200001
ER
PT J
AU Islam, Jesmin
Talukder, Majharul
Hu, Hui
TI The Impact of Technology, Job Complexity and Religious Orientation on
Managerial Performance
SO AUSTRALASIAN ACCOUNTING BUSINESS AND FINANCE JOURNAL
VL 5
IS 4
AR 4
PD 2011
PY 2011
AB This paper explores the impact of technology, job complexity and
religious orientation on the performance of managers in the financial
services industries. Data were collected from bank managers representing
Islamic and conventional banks in Bangladesh. Path models were used to
analyse the data. The results provide support for the hypothesis that a
management accounting systems (MAS) adequacy gap exists in the financial
sector in a developing country such as Bangladesh. These Islamic and
conventional banks also experienced varied outcomes regarding the impact
of the MAS adequacy gap on managerial effectiveness. Significant results
emerged concerning the direct influence of technology and job complexity
on managerial effectiveness, although these findings again differed
across religious and conventional banks. Significant intervening effects
of both MAS adequacy gap and job complexity on the relationships between
contingency factors and managers' effectiveness were also found. Overall
the findings showed that the type of religious orientation in Islamic
banks wielded an important influence on the sensitivity of the MAS
adequacy gap. Religious orientation served as a control device for the
relationships between job-related contingency factors and managerial
effectiveness.
ZB 0
Z8 0
ZR 0
TC 2
ZS 0
Z9 2
U1 0
U2 0
SN 1834-2000
EI 1834-2019
UT WOS:000214229800004
ER
PT J
AU Sayim, Ferhat
Alakel, Murat
TI THE PARTICIPATION BANKING AND ITS COMPARISON WITH DEPOSIT BANKING IN THE
TURKISH FINANCE MARKET
SO EUROPEAN INTEGRATION STUDIES
IS 5
BP 152
EP 164
PD 2011
PY 2011
AB Financial systems and institutions has become the most important reason
in the fragility of world economic system. The formation and development
process of the financial structure also constitutes the infrastructure
of the world economic system. The course of the financial system and
development has led to debate with the financial crisis in 2009-2010.
One of the discussion topic in order to eliminate problems caused by the
conventional banking system is alternative financing systems. In our
country, the corporations based on profit share system which are named
participation based banking spotlight, if the alternative banking
systems are considered. These banks which determine different principles
in the risk distribution of the portfolio acquired are analyzed more
nowadays. Participation based banks are placed in almost every
regulation related to banking terms and get their legal infrastructure
more stable in the banking legislation of our country. In this study, we
try to find out the place and the importance of participation based
banking with the various sub-headings especially in our country. We
examine the comparative review 2007-2009 data of participation banks
which Collected Turkish Currency and Foreign Currency Funds, Bank Loan
Funds, Total Assets, Equity and Net Profit figures for the four
participation banks in Turkey. We are comparing the total figures with
deposit banks for the same period.
One of our primary goal in this essay, to study in the framework of the
alternatives of the financial institutions and options. These options
could be asserted as a vibrant and viable well established choice as a
non-western model-different from the classical western interest based
dominant banking system in the globe. Moreover, that participation
banking systems' growth, advancement and increase with its resourceful
bulk of transactions and shares within the financial market. In
addition, we intended to delineate the basic functioning structures,
rules, norms, principles, procedures, operations of the Alternate
banking system in the financial market.
After that, we have applied as a descriptive, explanatory, discursive
and comparative analytic methodology to expound the matter in detail.
Having gathered a large volume of literature reviews then we have
concentrated on Turkey as a model state in that banking system practice;
at which, what kind of instruments and tools used by referring basic
indicators, data and information related to the growth, flourish and
share of that sector within the total banking and financial system in
Turkey.
Furthermore, that participation banking system positions, researched in
the country. Thus, it is explicated more concerns on by investigating
its credits, deposits, financing formulation systems and commitments
with the banks, customers and investors of the alternate banking system
in the country's financial order. At last, we have attempted to clarify
and summarize the concepts, definitions, expositions, demonstrations,
rules, assets, liabilities, equities etc.. by giving special cultural
internalizations about the organizational and operational activities of
the participation banks both similarities and discrepancies, too; so as
to draw the attentions of the new researchers and studies in that
situation.
ZA 0
ZB 0
TC 0
ZR 0
ZS 0
Z8 0
Z9 0
U1 0
U2 0
SN 1822-8402
EI 2335-8831
UT WOS:000215285800023
ER
PT J
AU Ismal, Rifki
TI Depositors' withdrawal behavior in Islamic banking: case of Indonesia
SO HUMANOMICS
VL 27
IS 1
BP 61
EP 76
DI 10.1108/08288661111110187
PD 2011
PY 2011
AB Purpose - Islamic banks need to manage depositors' deposit withdrawals
in a well manner in order to be able to optimize depositors' funds in
their portfolio financing. Taking into account the Indonesian Islamic
banking industry as a study case, this paper attempts to analyze the
depositors' withdrawal behavior. Moreover, it also analyzes the
responses of Islamic banks to mitigate such deposit withdrawals.
Design/methodology/approach - First, the paper accommodates the flow of
funds of the Indonesian Islamic banking operations. Second, it
formulates a liability side model of the competitive Islamic banking
industry referring to some ideas from the conventional models. Then, the
paper uses linear probability model (LPM) to identify depositors'
withdrawal behavior and to analyze the responses of Islamic banks to
mitigate deposit withdrawals.
Findings - It is found that depositors withdraw their money if: Islamic
banks do not generate incomes from their financing; interest rate goes
up; and total deposits tend to decrease. As such, Islamic banks have to
anticipate this withdrawal behavior by doing two actions: reserving some
liquidity and adjusting return sharing ratio to depositors. The output
of this paper should benefit the policy markers and Islamic banks to
understand depositors' behavior in withdrawing money and determine
appropriate policies to manage it.
Originality/value - The best of author's knowledge, this is the first
paper trying to analyze the depositors' withdrawal behavior with LPM
model taking into account the Indonesian Islamic banking industry.
ZB 0
ZA 0
Z8 0
TC 3
ZS 0
ZR 0
Z9 3
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210884100005
ER
PT J
AU Muneeza, Aishath
Yusuf, Nik
Hassan, Rusni
TI The possibility of application of salam in Malaysian Islamic banking
system
SO HUMANOMICS
VL 27
IS 2
BP 138
EP 147
DI 10.1108/08288661111135135
PD 2011
PY 2011
AB Purpose - This research aims to explore the theoretical nature of salam
contract in depth, the extent of its use in the banking arena of
Malaysia and to test the theoretical feasibility of its future
application by the Islamic banks in Malaysia by suggesting an Islamic
banking product structure based on salam contract.
Design/methodology/approach - This is a legal exploratory study
primarily focused on library research.
Findings - Salam contract is more susceptible to risks than the rest of
the Islamic commercial contracts used by the Islamic banks in Malaysia
and none of the Islamic banks in the country utilize this type of
contract as a mode of financing. However, the research indicates that a
feasible banking product based on salam contract could be formulated to
help poor farmers in the country. To prove this a new model product
based on salam contract to help farmers is created by the authors and
the pros and cons of the product with the risk mitigating ways are
explored. It is found that theoretically, this product is workable.
Originality/value - This research will complement the knowledge based on
practical applicability of salam and is targeted to the Islamic
financial Institutions in Malaysia, who are the prospective
beneficiaries.
RI Muneeza, Aishath/AAD-9293-2020; Hassan, Rusni/S-8001-2019; Muneeza, Aishath/
OI Muneeza, Aishath/0000-0002-1107-8511
ZB 0
ZA 0
ZR 0
TC 6
ZS 0
Z8 0
Z9 6
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210884800006
ER
PT J
AU Diaw, Abdou
Mbow, Abdoulaye
TI A comparative study of the returns on Mudharabah deposit and on equity
in Islamic banks
SO HUMANOMICS
VL 27
IS 4
BP 229
EP 242
DI 10.1108/08288661111181288
PD 2011
PY 2011
AB Purpose - The paper aims to compare the return on Mudharabah deposits
(ROMD) to the return on equity (ROE) in Islamic banks.
Design/methodology/approach - The summary statistics of the ROMD and the
ROE is used to make a comparison between them with a sample of nine
Islamic banks, from seven countries, over the last five years.
Regression analysis is also undertaken to unveil the variables affecting
the behaviour of ROMD and ROE at Kuwait Finance House.
Findings - The results show that the ROE tend to be at least two times
higher than the ROMD. In most of the investigated cases the ROMD are
more correlated to the corresponding conventional interest rate than to
ROE. The regression analysis suggests that the return on assets affects
more significantly the ROE than the ROMD.
Originality/value - The originality of the paper resides in the size of
the sample and in the design and the findings.
ZS 0
TC 4
ZR 0
ZB 0
Z8 0
Z9 4
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210887400002
ER
PT J
AU Abidin, Ahmad Zainal
Alwi, Norhayati Mohd
Ariffin, Noraini Mohd
TI Case Study on the Implementation of Qardhul Hasan Concept as a Financing
Product in Islamic Banks in Malaysia
VL 19
BP 81
EP 99
SU S
PD 2011
PY 2011
AB Qardhul Hasan is a zero-return financing that Al- Quran urges Muslims to
make available to those who need it. In addition, Qardhul Hasan is an
example of a unique instrument offered by Islamic Financial Institutions
("IFIs") due to non involvement of interest. The objective of this paper
is to study the implementation of Qardhul Hasan concept, as a financing
product in an Islamic bank in Malaysia. This study adopted a single case
study research. This is the best approach and appropriate to answer the
research questions and to achieve the research objectives. In addition,
this is a pilot case study which can be extended for multiple case
studies later. This study reveals that CALF Berhad offers Qardhul Hasan
financing only to its employees. In addition, the facility is limited
for certain purposes like marriage, birth of a child, study and other
relevant purposes. The study also offers guidelines on the
implementation process of the Qardhul Hasan financing in IFIs. Hence it
is also believed that this study can be used by the regulatory body like
Bank Negara Malaysia or Malaysian Accounting Standard Board, as a basis
for setting up the accounting and reporting guidelines, specifically on
Qardhul Hasan.
ZR 0
Z8 0
ZB 0
TC 0
ZA 0
ZS 0
Z9 0
U1 0
U2 0
SN 1394-7680
UT WOS:000408989700003
ER
PT J
AU Rahman, M. Mizanur
TI NON-PARAMETRIC APPROACH TO MODEL THE BRANCH-WISE EFFICIENCY OF ISLAMI
BANK BANGLADESH LIMITED (IBBL): AN EMPIRICAL STUDY
VL 19
IS 2
BP 137
EP 168
PD 2011
PY 2011
AB This study examines the branch-wise technical, pure technical, scale and
allocative efficiencies of Islami Bank Bangladesh Limited (IBBL) using
panel data for the year 2003 to 2007. The technique of Data Envelopment
Analysis (DEA) has been utilized to compute the efficiencies of
branches. The average allocative efficiency is 61-76%, whereas the
average technical efficiency is about 51-65% during the study period.
This means that the dominant source of inefficiency is due to both
technical inefficiency and allocative inefficiency but technical
inefficiency has got more contribution to inefficiency than allocative
inefficiency. These results are consistent with the fact that the
Islamic banks do not operate in an overall regulatory supportive
environment. They are not even technically sound enough in their
operations. Average scale efficiency is about 53%, and average pure
technical efficiency is about 68% t, suggesting that the major source of
the total technical inefficiency for IBBL branches are not pure
technical inefficiency (input related) but scale inefficiency (output
related). Study results indicate that there has been moderate increase
in productivity growth over the years. Productivity increases in IBBL
branches are mainly driven by technological change (opening up and
penetrating in other markets) not technical efficiency change (efforts
of inefficient banks to catch up with the efficient ones). The results
show that larger branch size is associated with higher efficiency. These
results indirectly support the economies of scale arguments in IBBL
branches.
Z8 0
ZB 0
ZS 0
ZR 0
TC 0
Z9 0
U1 0
U2 0
SN 1394-7680
UT WOS:000408988200002
ER
PT J
AU Mostafa, Mohamed M.
TI Modeling Islamic banks' efficiency: a non-parametric frontier approach
MANAGEMENT
VL 4
IS 1
BP 7
EP 29
DI 10.1108/17538391111122186
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to measure the relative
efficiency of the top 100 Islamic banks. The sensitivity of the results
is also investigated.
Design/methodology/approach - Data envelopment analysis (DEA) method was
applied to evaluate the relative efficiency of Islamic banks using
cross-sectional data for the year 2009. The use of DEA to measure
Islamic banks' efficiency appears especially appropriate since this
method does not require the specification of particular production or
cost functions.
Findings - The results indicate that the performance of several banks is
sub-optimal, suggesting the potential for significant improvements.
Separate benchmarks were derived for possible reductions in resources
used, and significant savings are possible on this account.
Originality/value - From a policy perspective, the paper highlights the
importance of encouraging increased efficiency throughout the Islamic
banking industry.
ZA 0
ZB 0
ZR 0
Z8 0
TC 2
ZS 0
Z9 2
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214380300002
ER
PT J
AU Lee, Kun-ho
Ullah, Shakir
TI Customers' attitude toward Islamic banking in Pakistan
MANAGEMENT
VL 4
IS 2
BP 131
EP +
DI 10.1108/17538391111144524
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to examine the different
motivational factors that lead to customers' Islamic bank selection
decision in Pakistan. In particular, it aims to look into the importance
of Shari'a compliance for Islamic banks' customers and thereby the
potential risk of deposits withdrawal in case of violations of Shari'a
principles.
Design/methodology/approach - The paper presents descriptive statistics
and cross-tabulation analysis based on data collected from 357
customers.
Findings - The findings reveal that Islamic banks' customers highly
value Shari'a compliance in their banks and that non-compliance with
Shari'a principles leads to disgruntled customers. An interesting
pronouncement is that if an Islamic bank is involved in repeated
violations of Shari'a, the customers are inclined to switch their banks.
Nonetheless, the findings reveal that Shari'a compliance is not the only
satisfaction yardstick for Islamic banks' customers; they also expect
their banks to be convenient, technologically advanced and provide
security of their capital.
Practical implications - The paper has profound implications for Islamic
financial institutions operating in Pakistan. Although Shari'a
compliance is the most important factor that Islamic banks need to
observe, they also need to be competitive with conventional banks.
Originality/value - The paper is a unique contribution to Islamic banks'
selection criteria where the importance of Shari'a compliance and
conventional bank patronage factors has been explored. The paper's has
practical implications for Islamic banks' owners and regulators.
RI Ullah, Shakir/AAD-9337-2019
ZB 0
ZS 0
Z8 0
ZR 0
TC 22
ZA 0
Z9 22
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214380800003
ER
PT J
AU Al Zaabi, Obaid Saif H.
TI Potential for the application of emerging market Z-score in UAE Islamic
banks
MANAGEMENT
VL 4
IS 2
BP 158
EP +
DI 10.1108/17538391111144498
PD 2011
PY 2011
AB Purpose - The purpose of this study is primarily to implement the
emerging market (EM) Z-score model to predict bankruptcy and to measure
the financial performance of major Islamic banks in the UAE. In
addition, this study aims to introduce the Z-score model to this
industry as a beneficial diagnostic tool for possible causes standing
behind the deterioration of financial performance.
Design/methodology/approach - The methodology that has been used in this
study is based on Z-score model for EMs developed by Altman. The related
studies have proved that Z-score has more than 80 percent accuracy and
verified it is a robust tool and is useful in assessing the business
performance and prediction of potential distress of firms. The approach
determined in this study is to examine the financial statements of the
UAE Islamic banks by calculating the EM Z-score for the past three years
and comparing it with the current year's score as an effort to measure
the overall financial performance as well as the likelihood of
bankruptcy of the UAE Islamic banks.
Findings - The paper finds that UAE Islamic banks should work on
improving the ratios that are dragging their scores down to better
understand their past performance and realize their current position in
the industry; Z-score can be adopted by the UAE Islamic banks as
effective evaluation approach toward financing the potential long-term
partnership projects including small and medium business enterprises
(SMEs); Z-score model can be adapted by Islamic banks as an independent
credit risk analysis approach to measure the competencies and financial
strengths of potential projects; Islamic banks in the UAE are by and
large financially sound and healthy and that Z-score is a beneficial
analytical tool that can be adapted by Islamic banks in the UAE to
complement other financial analysis techniques to establish Islamic
banking industry averages. The study also finds that the ratios used in
calculating Z-score can be considered to provide valuable instrumental
indicators.
Research limitations/implications - Z-score model is a valid model to
measure the performance of Islamic banks and the ratios used in
calculating Z-score can be considered to provide valuable instrumental
indicators. Z-score can be adopted by the UAE Islamic banks to finance
long-term partnership projects and SMEs. Limitations including the
Islamic banking industry are still considered small size, which might
has negative effect on the maximum outcomes of the study. Future studies
are needed toward updating the coefficient values connected to each
ratios in Z-score model as per the inputs from the Islamic banking
industry.
Practical implications - Z-score model is a valid model to measure
Islamic banks performance and the ratios used in calculating Z-score can
be considered to provide valuable instrumental indicators. Z-score can
be adopted by the UAE Islamic banks to finance long-term partnership
projects and SMEs.
Social implications - The model is believed to widen the industry
exposure in order to finance more projects and companies which is
believed will reflect positively on the society welfare. By adopted
Z-score SMEs will be provided with all financings needed specially
providing the microfinance for small projects.
Originality/value - Introducing Z-score to the Islamic banking industry
as crucial credit risk measuring tool.
ZB 0
ZR 0
ZS 0
TC 2
Z8 0
Z9 2
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214380800005
ER
PT J
AU Smolo, Edib
Hassan, M. Kabir
TI The potentials of mush(a)over-barrakah mutan(a)over-barqisah for Islamic
housing finance
MANAGEMENT
VL 4
IS 3
BP 237
EP 258
DI 10.1108/17538391111166476
PD 2011
PY 2011
AB Purpose - The main purpose of this paper is to provide a comprehensive
review of musharakah mutanaqisah ( MM; diminishing partnership)
technique and its potentials for Islamic financial institutions.
Design/methodology/approach - Based on an extensive literature review,
this paper aims to highlight, explain and discuss the basic principles
underlying implementation of MM and its distinctive features when
compared to other modes of finance.
Findings - Islamic banks, throughout the years, developed several modes
of finance which are more or less similar to their conventional
counterparts. In fact, al-Bay(c) bithaman al-ajil (BBA) and murabahah
are the two instruments most commonly used by Islamic banks and
financial institutions. Investment and financing through the profit and
loss sharing instruments is almost nonexistent within the Islamic
financial system. MM technique is an alternative financial instrument
available for Islamic banks. It is a relatively new and very little used
product available for Islamic banks. The paper claims that MM is more in
line with Shari'ah teachings and as such should be used more by Islamic
financial institutions. The study indicates that MM possibly has a
comparative advantage for both financier and the customer when compared
with conventional loans and BBA.
Research limitations/implications - As a relatively new and untested
mode of finance, the paper offers a theoretical overview only. Further
studies should discuss more practical issues that keep banks away from
utilizing MM more efficiently.
Originality/value - The comprehensive overview of the MM and underlying
issue discussed in this paper is a very good foundation for further
studies on the topic. It gives a clear theoretical base for practical
implementation of MM.
RI Smolo, Edib/AAJ-2226-2020; Hassan, M. Kabir/D-5053-2012
OI Smolo, Edib/0000-0002-7645-4581; Hassan, M. Kabir/0000-0001-6274-3545
ZS 0
ZB 0
Z8 0
ZR 0
ZA 0
TC 18
Z9 18
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214381600005
ER
PT J
AU Bhatti, M. Ishaq
Zafarullah, M.
Awan, Hayat M.
Bukhari, Khuram S.
TI Employees' perspective of organizational service quality orientation
Evidence from Islamic banking industry
MANAGEMENT
VL 4
IS 4
BP 280
EP 294
DI 10.1108/17538391111186537
PD 2011
PY 2011
AB Purpose - Internal organizational orientation of service quality and its
impact on service delivery performance of the employees have received
considerable attention from financial management literature. The purpose
of this paper is to address this issue by conducting empirical research
focusing on the Pakistani Islamic banking industry. It conceptualizes
and measures key determinants of internal organizational orientation of
service quality from the employees' perspective.
Design/methodology/approach - The data were collected from a sample of
150 employees of pure Islamic banks and conventional banks with IBBs
(Islamic Banking Branches or windows) across the entire country. The
paper uses principal component factor analysis and regression methods.
Findings - Statistical results demonstrate that the employee perceptions
of organizational service quality orientation mainly depends upon four
main predictors: employees' perception about training and development;
development and positioning of Islamic banking products/service concept;
customer service orientation; and employees' service quality
performance. Principal component factor analysis results indicate four
predictive internal organizational service quality orientation factors
(ISQF) where 16 per cent of the variation is being explained by employee
perception of organizational orientation towards employees' training and
development (ISQF1), 13 per cent variation explained employee perception
of organizational orientation towards development and positioning of
Islamic banking products/service concept (ISQF2), 11 per cent variation
explained by employee perception of organizational service quality
orientation towards customer service orientation (ISQF3), and 10 per
cent variation explained employee perception of organizational service
quality orientation towards employees' service quality performance
(ISQF4).
Originality/value - Management of Islamic Banks in Pakistan need to be
mindful about the fact that ISQFs identified by this study have the
potential to indirectly influence customer perceptions through effective
employees' recruitment and selection criteria, complemented by training
to improve service oriented skills and knowledge development about Shria
principles related with the products/services offered by Islamic banks
in Pakistan.
RI Bhatti, M.Ishaq/B-5489-2015; Shahzad, Syed Khuram/H-2489-2016
OI Bhatti, M.Ishaq/0000-0002-5027-7871; Shahzad, Syed
Khuram/0000-0003-1173-8089
TC 3
ZA 0
ZS 0
ZR 0
ZB 0
Z8 0
Z9 3
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214382200002
ER
PT J
AU Estiri, Mehrdad
Hosseini, Farshid
Yazdani, Hamidreza
Nejad, Hooman Javidan
TI Determinants of customer satisfaction in Islamic banking: evidence from
Iran
MANAGEMENT
VL 4
IS 4
BP 295
EP 307
DI 10.1108/17538391111186546
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to clarify and extend the
conceptualization and measurement of customer satisfaction in the
Islamic banking sector in Iran.
Design/methodology/approach - The authors perform a review of the set of
attributes which are capable of being incorporated in the measure of
customer satisfaction for Islamic banks. Later, the possibility is posed
of grouping these attributes into dimensions of quality, proceeding to
value various alternative structures by means of confirmatory factor
analysis methodology and testing their reliability and validity.
Findings - The findings from this study reveal that service quality in
Iranian banking adopting the commercial format of Islamic services has a
two-factor structure: Value proposition quality and Service delivery
quality.
Originality/value - The paper contributes to the literature on Islamic
Banking in a Middle Eastern economy.
RI Yazdani, Hamid Reza/AAA-5638-2020; Estiri, Mehrdad/C-1775-2014
OI Yazdani, Hamid Reza/0000-0002-5957-643X; Estiri,
Mehrdad/0000-0003-1892-0852
ZS 0
ZB 0
Z8 0
ZR 0
ZA 0
TC 20
Z9 20
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214382200003
ER
PT J
AU Suliman, Abubakr M.
Al Obaidli, Hanan
TI Organizational climate and turnover in Islamic banking in the UAE
MANAGEMENT
VL 4
IS 4
BP 308
EP 324
DI 10.1108/17538391111186555
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to examine the nature, strength
and significance of the links between organizational climate and
employee turnover.
Design/methodology/approach - Using a self-administered questionnaire,
70 employees from an Islamic bank were surveyed in order to examine the
five main hypotheses of the study.
Findings - The study results revealed that employees' perceptions of
corporate climate plays a significant role in the rate of staff
turnover. Organizational justice, as a component of corporate climate,
found to be the most important factor in explaining the variance in
employee turnover.
Practical implications - The theoretical and managerial implications of
the findings are discussed in the paper, together with some
recommendations for managing corporate climate and turnover in today's
diverse work teams and environments.
Originality/value - The paper examines the links between organizational
climate and employee turnover for the first time, to the authors'
knowledge, in the UAE and the Arabic context.
ZB 0
Z8 0
ZS 0
TC 10
ZA 0
ZR 0
Z9 10
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214382200004
ER
PT J
AU Muhamat, Amirul Afif
Jaafar, Mohamad Nizam
Azizan, Norfaridah Binti Ali
TI An empirical study on banks' clients' sensitivity towards the adoption
of Arabic terminology amongst Islamic banks
MANAGEMENT
VL 4
IS 4
BP 343
EP 354
DI 10.1108/17538391111186573
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to measure the sensitivity of the
banks' customers towards the adoption of Arabic terminology in the
Islamic banking industry.
Design/methodology/approach - A sample of 100 respondents who were
mainly banks' clients was surveyed through personally administered
questionnaire and only 60 questionnaires are usable for the study. The
remaining 40 questionnaires were rejected due to incomplete answers and
error. The survey executed based on convenience sampling method. The
study was conducted at Shah Alam for nearly two and a half months and
the city chosen due to the exclusivity of the city's demographic;
significant availability of white collar employees as its residents
which illustrate a high income population, high literacy and high
academic qualification.
Findings - The majority of the respondents agree that Arabic terminology
gives competitive edge to the Islamic banks but at the same time they
indicate that the catchy Arabic name will give them difficulty in
gaining fast information about and comprehension of the product. The
trend depicted by the non-Muslims respondents when answering the
questionnaire indicates that, in many cases, they are at the negative
side on every statement given. Thus, it signifies a need from the
Islamic banking side to manage this issue, since the non-Muslims are
majority clients of the industry in Malaysia.
Research limitations/implications - The response rate of 60 per cent for
this study is considered good. However, the availability of more
respondents would give higher rate of representation.
Practical implications - This paper provides insights for the interested
parties to know the banks' clients' needs from the Islamic banking
sector and will help to increase the number.
Originality/value - This paper measures the responses of banks'
customers towards the adoption of Arabic terminology, in a multi-racial
society in which limited study has been done.
RI MUHAMAT, AMIRUL AFIF/P-3910-2019
ZB 0
TC 8
ZA 0
ZS 0
Z8 0
ZR 0
Z9 8
U1 0
U2 3
SN 1753-8394
EI 1753-8408
UT WOS:000214382200006
ER
PT J
AU Zaki, Ehab
Bah, Rahim
Rao, Ananth
TI Assessing probabilities of financial distress of banks in UAE
SO INTERNATIONAL JOURNAL OF MANAGERIAL FINANCE
VL 7
IS 3
BP 304
EP +
DI 10.1108/17439131111144487
PD 2011
PY 2011
AB Purpose - Commercial and Islamic banks are important players in the UAE
financial market. However, little is known about their financial
distress because these financial institutions usually resolve financial
distress within their own organisations, which means that outsiders
cannot explicitly observe distress. The purpose of the research is
therefore to identify the main drivers of financial institutions'
financial distress.
Design/methodology/approach - The paper estimates a probability distress
prediction model using the BankScope Database and the annual reports of
UAE financial institutions submitted to UAE Security Exchange Authority.
The paper also analyses the impact of macroeconomic information for
forecasting financial institutions' financial distress.
Findings - The fundamentals of financial institutions in terms of cost
income ratio, equity to total assets, total asset growth and ratio of
loan loss reserve to gross loans (all these variables with a lag of one
year) positively impacted the probability of financial distress in the
next year. Recent findings for emerging economies have cast some doubt
on the usefulness of macroeconomic information for financial
institutions' risk assessment. Similar results are found for UAE
financial institutions in predicting the probability of financial
distress.
Originality/value - This is the first study to provide empirical
evidence on the drivers of financial distress of commercial and Islamic
banks in UAE during 2000-2008, and to examine the extent of the
financial distress that can be can be attributed to internal
bank-specific fundamental factors and external factors in the economy.
RI Rao, Ananth/A-8154-2016
OI Rao, Ananth/0000-0002-8110-5423
TC 8
ZR 0
ZA 0
Z8 0
ZB 0
ZS 1
Z9 8
U1 0
U2 0
SN 1743-9132
EI 1758-6569
UT WOS:000212449500005
ER
PT J
AU Abdullah, Firdaus
Suhaimi, Rosita
Saban, Gluma
Hamali, Jamil
TI Bank Service Quality (BSQ) Index An indicator of service performance
SO INTERNATIONAL JOURNAL OF QUALITY & RELIABILITY MANAGEMENT
VL 28
IS 5
BP 542
EP +
DI 10.1108/02656711111132571
PD 2011
PY 2011
AB Purpose - This study aims to design and validate a new measuring
instrument of service quality, and ultimately to establish a national
service quality index for the banking sector. The primary contribution
is the insight offered regarding what factors affect service quality and
the BSQ Index, a national indicator reflecting the level of service
quality within the banking sector.
Design/methodology/approach - A total of 3380 questionnaires were
distributed to the customers of 21 commercial and Islamic banks, of
which only 1,519 were deemed usable, yielding a response rate of 44.9
per cent. The proposed 29-item instrument has been empirically tested
for unidimensionality, reliability and validity using both exploratory
and confirmatory factor analysis.
Findings - A factorial analysis suggests that service quality has three
dimensions namely "Systemization", "Reliable Communication" and
"Responsiveness", and subsequent multiple regression analysis revealed
that "Systemization" is the most important service quality dimension
within the banking sector. The overall weighted BSQ Index of 4.00
implies that banking customers are generally pleased with the quality of
services rendered by banking institutions.
Practical implications - The new Bank Service Quality Index (BSQ Index)
is expected to be an important complement to traditional measures of
economic performance, providing useful information to the banking
institutions, shareholders, investors, government regulators, and
customers. This composite index shall become an indicator reflecting the
level of service quality in the banking institutions.
Originality/value - The results from the current study are crucial
because previous studies have produced scales that bear a resemblance to
SERVQUAL, a generic measure of service quality, which may not be totally
adequate to assess the perceived quality in the banking sector. Thus,
the present study captured customers' evaluation of service quality in a
29-item questionnaire exclusively adapted to the unique nature of the
banking sector.
OI ABDULLAH @ KENNETH KEVIN AKEU, PROFESOR DR FIRDAUS/0000-0002-5572-5573
ZA 0
ZR 0
Z8 0
ZB 0
ZS 1
TC 34
Z9 35
U1 0
U2 0
SN 0265-671X
EI 1758-6682
UT WOS:000211503700004
ER
PT J
AU Taap, Manshor
Chong, Siong
Kumar, Mukesh
Fong, Tat
TI Measuring service quality of conventional and Islamic banks: a
comparative analysis
SO INTERNATIONAL JOURNAL OF QUALITY & RELIABILITY MANAGEMENT
VL 28
IS 8
BP 822
EP +
DI 10.1108/02656711111162505
PD 2011
PY 2011
AB Purpose - Based upon an extended SERVQUAL model, this paper attempts to
measure and compare the service quality between conventional and Islamic
banks in Malaysia.
Design/methodology/approach - A new dimension, i.e. convenience was
added to the existing SERVQUAL model of five dimensions. Data were
collected from 287 bank customers residing in two major cities in
Malaysia using self-reporting questionnaires. Factor analysis is used to
validate the instrument, after which the gap and dominance analyses
techniques are employed.
Findings - The factor analysis extracted four dimensions of service
quality, i.e. tangibility, reliability, competence, and convenience. The
results reveal that there are large and significant differences between
respondents' expectations and their perceptions. Specifically, the
expectations on competence and convenience are significantly different
between the conventional and Islamic banks, whereas the perceptions on
tangibility and convenience are found to be significantly different
between the two types of banks. The application of dominance analysis to
predict the SERVQUAL gap indicates that the difference between the two
types of banks lie in terms of degree but not pattern. Competence and
convenience are found to be the relatively more dominant dimensions in
both types of banks. These two dimensions, taken together, can help to
reduce the overall service quality gap to an extent of 72 percent in the
case of conventional banks and 85 percent in the case of Islamic banks.
Research limitations/implications - Although the outcomes lend support
to the extended SERVQUAL model, the results are derived based on a
relatively small sample size with an uneven distribution between the two
types of banks. This limits the generalizability of the study results
which calls for future research attention.
Practical implications - The Malaysian banking sector needs to take
initiative to become more competent by being more responsive through
fulfilling their assurance for customers and by providing banking
facilities more conveniently. Originality/value - This study is one of
the first to examine and compare the service quality between
conventional and Islamic banks using an extended SERVQUAL model. The
results could be particularly useful to countries adopting dual banking
systems.
ZA 0
Z8 0
TC 23
ZR 0
ZB 0
ZS 0
Z9 23
U1 0
U2 0
SN 0265-671X
EI 1758-6682
UT WOS:000211505900002
ER
PT B
AU Yousif, Adnan Ahmed
BA ElTiby, AM
TI The Regulatory Framework of Islamic Banks
SO ISLAMIC BANKING: HOW TO MANAGE RISK AND IMPROVE PROFITABILITY
VL 640
BP 119
EP 140
PD 2011
PY 2011
ZS 0
ZB 0
Z8 0
ZR 0
ZA 0
TC 0
Z9 0
U1 0
U2 0
BN 978-0-470-93008-3; 978-0-470-88023-4
UT WOS:000341861500012
ER
PT J
AU Farook, Sayd Zubair
Farooq, Mohammad Omar
TI Incentive-based regulation for Islamic banks
VL 2
IS 1
BP 8
EP 21
DI 10.1108/17590811111129481
PD 2011
PY 2011
AB Purpose - Recent calls by prominent Islamic scholars to shift the focus
of Islamic finance away from bond-like sukuk have been met with great
unease by bankers in the industry. Islamic Financial Institutions, which
hold the majority of all sukuk issued, face deposit side constraints on
the types of returns they distribute, due to a need to match returns to
market-based deposit interest rates. Hence, it is in their interest to
hold assets that provide stable benchmark-based returns. The purpose of
this paper is to provide an outline of an incentive-based regulatory
mechanism to encourage Islamic banks to reconcile their intended
normative structure (profit and loss sharing) with the operational and
pragmatic realities within which Islamic banks exist.
Design/methodology/approach - The paper traces the regulatory
infrastructure and in particular Islamic Financial Services Board
regulations on Capital Adequacy for Islamic Banks and provides
recommendations for technical improvements to particular aspects of the
regulations.
Findings - The paper provides practical regulatory recommendations on
the capital adequacy regime implemented by central banks that could
potentially align more effectively with the intended form of Islamic
bank's operational structure, either as an investment bank or as a
commercial bank.
Practical implications - By aligning the activities of Islamic banks
with their intended operational structure through the implementation of
a system of regulatory incentives as recommended in this paper, may help
in quelling the increasing tide of criticisms of the current Islamic
banking model which has deviated from its intended form. More
importantly, if such regulation is implemented, it could also lead to
enhanced systemic stability, since Islamic banks will be more resistant
to economic shocks that affect the system.
Originality/value - While there are studies that research the effect of
the capital adequacy ratio, none really provide practically
implementable recommendations that align the Islamic bank business model
with its intended objectives.
TC 3
ZS 0
ZA 0
ZR 0
Z8 0
ZB 0
Z9 3
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214883700002
ER
PT J
AU Amin, Hanudin
Sondoh, Stephen Laison, Jr.
Hwa, Ang Magdalene Chooi
TI Determinants of customers' intention to use Islamic personal financing
The case of Malaysian Islamic banks
VL 2
IS 1
BP 22
EP 42
DI 10.1108/17590811111129490
PD 2011
PY 2011
AB Purpose - Islamic banking and finance is an emerging global industry
founded on Islamic ethical precepts. Just as in the case of conventional
banks, Islamic banks are expected to offer products that consider the
needs of their customers. The present study investigates the effects of
the following factors: attitude; social influence; religious obligation;
government support; and pricing, on the intention to use Islamic
personal financing.
Design/methodology/approach - The sample comprised of 150 customers of
two fully fledged Islamic banks in Malaysia: Bank Islam Malaysia Berhad
and Bank Muamalat Malaysia Berhad. Data were obtained through a
face-to-face survey using semi-structured questionnaire. Out of a total
of 150 responses, only 136 responses were usable for further analysis.
The study used factor analysis, correlation and regression to analyse
the data.
Findings - The study found three determinants to be significant in
influencing the intention to use Islamic personal financing, namely,
attitude, social influence and pricing of Islamic personal financing.
Religious obligation and government support were found to be
insignificant predictors.
Research limitations/implications - The first limitation of the study is
the narrow focus of the survey on the customers of two fully fledged
Islamic banks. The second limitation of this work concerns the
measurement employed to gauge bank customers' acceptance of Islamic
personal financing. Despite these limitations, the findings of this
study provide invaluable insights into factors affecting the bank
customers' intention to use Islamic personal financing, especially in
the case of Malaysian Islamic banks.
Originality/value - This empirical study on the determinants of Islamic
financing using the survey method contributes towards a better
understanding of the customers' expectations for Islamic financial
products. Managers of Islamic banks can now comprehend better the
factors that influence bank customers' decision in patronizing Islamic
personal financing. Hence, more effective strategies can be recommended
to attract bank customers to use Islamic personal financing. Not to
mention, the findings of this study should be of value to Islamic banks
in terms of expanding their customer base.
RI Amin, Hanudin/I-1176-2017; Ang, Magdalene/
OI Amin, Hanudin/0000-0003-3645-287X; Ang, Magdalene/0000-0003-4580-3010
ZS 0
Z8 0
TC 80
ZR 0
ZB 0
ZA 0
Z9 80
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214883700003
ER
PT J
AU Farook, Sayd
Hassan, M. Kabir
Lanis, Roman
TI Determinants of corporate social responsibility disclosure: the case of
Islamic banks
VL 2
IS 2
BP 114
EP +
DI 10.1108/17590811111170539
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to develop and test a theoretical
model of the determinants of Islamic banks' social disclosures. In
testing the hypotheses, the level of social disclosure in Islamic banks'
annual reports is gauged based on a benchmark derived from Islamic
principles.
Design/methodology/approach - Applying the principles of
systems-oriented theories such as political economy, legitimacy and
stakeholder theories, as well as agency theory, hypotheses linking
Islamic social disclosure and its determinants are developed. The sample
comprised 47 Islamic banks in 14 countries and the data related to the
dependent (Islamic banks social disclosures) variable are collected
mainly from the annual reports, while data for the independent variables
(determinants) are collected from various sources. Regression analysis
was conducted to test the hypotheses.
Findings - Corporate social responsibility (CSR) disclosure by Islamic
banks varies significantly across the sample. According to the
regression results, variation is best explained by the "influence of the
relevant publics" and the "Shari'ah (SSB supervisory boards) corporate
governance mechanism" variables. Using alternative variable measures,
the regression results suggest that "level of social and political
freedom" and "the proportion of investment account deposits to total
assets" are also significant determinants of Islamic banks' CSR
disclosure.
Research limitations/implications - The major limitation of this paper
is the small sample size of only 47 Islamic banking institutions. Future
studies may expand the sample size used here.
Practical implications - The results indicate the significance of the
SSB as a governance mechanism that may increase the CSR disclosure of
Islamic banks. Thus, from a policy perspective, bodies that regulate
Islamic banking should consider mandating the SSB for all "Islamic
banks".
Originality/value - This research is the first to provide an a priori
basis for CSR disclosure of Islamic banks and to test using empirical
data. The findings of this research should be of significant value to
regulators, shareholders and deposit holders of Islamic banks. In a more
general context, this paper is one of a few that has operationalised
Gray et al.' s conception of "levels of resolution of perception" and
empirically tested the concept using non-traditional organisations
(Islamic banks) in a non-Western context. This adds further credibility
to systems-oriented theories in explaining CSR disclosures of
non-Western organisations operating in non-Western cultures.
RI Hassan, M. Kabir/D-5053-2012; lanis, roman/
OI Hassan, M. Kabir/0000-0001-6274-3545; lanis, roman/0000-0002-1821-8345
ZR 0
Z8 0
ZS 0
ZB 0
TC 86
ZA 2
Z9 88
U1 1
U2 1
SN 1759-0817
EI 1759-0825
UT WOS:000214884300003
ER
PT J
TI The nature of smoothing returns practices: the case of Islamic banks
VL 2
IS 2
BP 142
EP +
DI 10.1108/17590811111170548
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to examine empirically the nature
of smoothing returns practices in a sample of 79 Islamic banks across 19
countries during the period 2001-2006.
Design/methodology/approach - Previous researchers' methods, based on
the variation and determination coefficients, are used in this study to
detect the smoothing practices.
Findings - Results indicate that the revenues from the "Shariah-based
products" derived from the profit and loss sharing principle show higher
variability than the "Shariah compliant revenues" and that income from
this source is relatively lower. They also show that a large number of
Islamic banks engage in natural income smoothing. Based on the
determination coefficient results, 70 per cent of banks were found to
have less smoothed total revenue than their net income. Results based on
variation coefficient further confirm this finding, with 67 banks having
a coefficient of total revenue higher than that of the net income.
Practical implications - The results suggest that Islamic banks should
strengthen the use of smoothing techniques, such as the profit
equalization reserves (PER) and the investment risk reserves (IRR), as
they allow them to further stabilize the revenues payout for the
investment account holders (IAH) and therefore mitigate withdrawal risk.
Standardizing the smoothing techniques could be a solution to overcome
the variability of this category of revenue.
Originality/value - This work is the first of its kind for Islamic
banks. It extends previous research by examining whether or not managers
may smooth their results naturally or intentionally. It also helped to
bridge the gap in the literature by providing the empirical evidence on
the smoothing returns in Islamic finance.
ZB 0
Z8 0
ZR 0
ZS 0
ZA 0
TC 9
Z9 9
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214884300004
ER
PT J
AU Awan, Hayat M.
Bukhari, Khuram Shahzad
TI Customer's criteria for selecting an Islamic bank: evidence from
Pakistan
VL 2
IS 1
BP 14
EP 27
DI 10.1108/17590831111115213
PD 2011
PY 2011
AB Purpose - Islamic banking is an emerging financial system in the
contemporary world. Currently, it is found mostly in Islamic countries
or in countries where OPEC oil revenues have been invested. Most of the
research has therefore been oriented towards macro-environment issues,
ignoring the market-oriented problems. The purpose of this paper is to
determine the conditions under which Islamic banks can successfully
compete with conventional banks by understanding customer attitudes
towards Islamic banking products.
Design/methodology/approach - A sample of 250 respondents was taken from
four cities of Pakistan to examine customer awareness of key
products/services being offered by Islamic banks, usage of those
services and customer satisfaction with the service delivery mechanism
being used by pure Islamic banks and conventional banks with Islamic
bank branches (IBBs). Data for this study were collected by using a
structured questionnaire containing two sections, where section I
contains ten statements using Likert scale, for assessing customer's
preferred selection criteria for Islamic banks. These statements are
developed based on past literature. Section II deals with the questions
related to the social and demographic profiles of respondents.
Findings - Analysis of data indicated that most of the customers value
product features and quality of service as major factors for making
selection of Islamic banks, and give lesser importance to religious
belief as influential factor in selecting an Islamic bank. Findings
suggest that there is a lack of awareness about basic conventions of
Islamic financing options among respondents and customers of both the
pure Islamic banks and conventional banks with IBBs do believe that the
bank's staff lacks ability to provide credible information about
religious compliance of Islamic banking financial services.
Originality/value - The paper has practical significance for Islamic
banking policy makers, for understanding the key behavioral and
demographical dimensions of their customers and using these dimensions
for effectively positioning Islamic banking financial instruments,
developing policies; and articulating procedures to maximize customer
satisfaction and to ensure better exchange of value.
ZA 0
TC 47
ZS 0
Z8 0
ZB 0
ZR 0
Z9 47
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214136900002
ER
PT J
AU Ahmad, Khaliq
Rustam, Ghulam Ali
Dent, Michael M.
TI Brand preference in Islamic banking
VL 2
IS 1
BP 74
EP 82
DI 10.1108/17590831111115259
PD 2011
PY 2011
AB Purpose - University students have a clear need for bank accounts as
they have fees, expenses and cash needs. The usefulness of a current
account is therefore pre-evident and Islamic banks need to focus on
their brand image and the services they offer. Indeed, understanding
bank selection from Muslim customer's perspective can provide useful
information to banks' senior management to help them allocate resources
and design products that promise to attract and better satisfy
customers. Literature collected so far suggests a strong Islamic brand
reputation as well as better financial and banking services are the main
factors which influence the selection of a brand. The purpose of this
paper is to test this within a positivistic empirical framework and
amongst the younger generation in Malaysia.
Design/methodology/approach - The sample was based on 300 students at
the International Islamic University of Malaysia. The study utilised
five selection criteria based on previous research, personal experience
and interview with bank officials and university students. The study
also provides some insight into the younger generation's awareness of
Islamic banking and the processes involved in the selection of their
preferred brand.
Findings - It would seem that whilst the importance of religion is a
major driver in the choice of Islamic banking the fundamental
differences between Islamic and conventional banking are poorly
understood. What is important is brand, ease of use and the quality of
the customer interaction.
Originality/value - The paper investigates the factors which determine a
customer's choice of a particular bank and provides insights into
cementing relationships with existing customers as well as how to gain
new ones.
OI Ahmad, Khaliq/0000-0001-8129-5178
TC 25
ZS 0
ZB 0
ZR 0
ZA 0
Z8 0
Z9 25
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214136900006
ER
PT J
AU Razak, Dzuljastri Abdul
Taib, Fauziah Md
TI Consumers' perception on Islamic home financing Empirical evidences on
Bai Bithaman Ajil (BBA) and diminishing partnership (DP) modes of
financing in Malaysia
VL 2
IS 2
BP 165
EP 176
DI 10.1108/17590831111139875
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to examine customers' perception
on two modes of home financing namely Bai Bithaman Ajil (BBA),
debt-based financing, and diminishing partnership (DP), an equity-based
financing, focusing on the concepts used, methods of computation and
pricing, Shariah compliant, justice and equality, societal well being
and equitable distribution of wealth and income and preference for the
products.
Design/methodology/approach - The perception of respondents towards BBA
and DP home financing were obtained by distributing a self-administered
survey questionnaire to a sample of 320 postgraduate students from three
universities. Postgraduate students are considered suitable samples for
this study because they are educated and own a house or intended to own
one in the future.
Findings - Customers are dissatisfied with the prevailing mode of BBA
financing as the bank's profit is computed upfront resulting in high
pricing, injustice and a burden to individuals and society. On the other
hand, the DP home financing mode is more preferred as profit and risk is
shared between the customer and bank resulting in greater fairness,
justice and equity. Its features also meet the purpose of the Shariah
(Maqasid al Shariah).
Research limitations/implications - The use of convenience sampling and
postgraduate students may not sufficiently capture the variations that
could potentially exist in the market.
Practical implications - There is a need for Islamic banks to move away
from their dependence on debt mode of financing such as Murabahah and
BBA to equity financing. The latter mode provides them with greater
flexibility and innovation which can be used to fulfill customers' needs
and wants.
Originality/value - The paper provides empirical evidence on the
viability of home ownership based on equity financing which reduces
customers' debt over a long period. This is due to the flexibility of
purchasing the bank's share to own the house earlier. The DP model can
also be used for the purchase of equipment and vehicles. It can also be
applied to joint ventures and private equity arrangements.
ZA 0
ZB 0
ZR 0
ZS 0
TC 10
Z8 0
Z9 10
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214138900005
ER
PT J
AU Awan, Hayat Muhammad
Bukhari, Khuram Shahzad
Iqbal, Anam
TI Service quality and customer satisfaction in the banking sector A
comparative study of conventional and Islamic banks in Pakistan
VL 2
IS 3
SI SI
BP 203
EP 224
DI 10.1108/17590831111164750
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to investigate the service
quality and its relationship to customer satisfaction among the
customers of conventional banks and Islamic banks. A modified SERVQUAL
scale is utilized to ascertain the functional dimensions of service
quality specific to the industry and service context under study. In
addition, the study examines the differences in service quality
satisfaction and its impact on the behavioral intentions of customers.
Design/methodology/approach - A field survey carried out with the help
of a questionnaire constructed by using a modified SERVQUAL scale. Data
were collected from 200 walk-in customers conveniently drawn from three
major conventional banks and three Islamic banks located in urban areas
of Pakistan. Data were analyzed using the analytical hierarchy process
to identify service quality and customer satisfaction-related factors
for Islamic and conventional banks.
Findings - By using factor analysis, 52 measurement items with a factor
loading greater than (0.5) were identified to form five service quality
dimensions namely empathy, service architecture, convenience service
encounter, employee service criteria, customer focus and five customer
satisfaction dimensions: responsiveness, competency, safe transaction,
competitive services, knowledge for the overall banking industry
explained 56 percent of the variance. Results from regression analysis
of the relationship between multidimensional service quality dimensions
and unidimensional customer satisfaction factors also validated the
importance of service quality aspects for behavioral intentions
(satisfaction, feelings) for customers from conventional banks and
Islamic banks.
Originality/value - This study has practical significance for
conventional and Islamic banking policy makers for understanding the
behavioral intentions of their customers and using them for effectively
positioning the service quality of their banks.
ZB 0
Z8 0
ZA 1
ZS 0
TC 30
ZR 0
Z9 31
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214140700002
ER
PT J
AU Butt, Irfan
Saleem, Nausherwan
Ahmed, Hassan
Altaf, Muzammil
Jaffer, Khawaja
Mahmood, Jawad
TI Barriers to adoption of Islamic banking in Pakistan
VL 2
IS 3
SI SI
BP 259
EP 273
DI 10.1108/17590831111164787
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to report the findings of a pilot
study conducted in Pakistan, about the barriers perceived by users and
non-users of Islamic banking when selecting Islamic banks.
Design/methodology/approach - This study was conducted to include two
types of banking customers, users (customers of Islamic banks only and,
Islamic and conventional banks both) and non-users (customers of
conventional banks only). The qualitative research included in-depth
interviews with managers of Islamic banks and two focus groups with
users and non-users, respectively. The survey questionnaire that was
subsequently designed received 109 responses. The analysis includes
hypothesis testing, factor analysis, and cluster analysis.
Findings - A narrow branch network, inconvenient branch locations and
perception that "Islamic banks do not completely follow Islamic
principles" acted as barriers for non-users when selecting Islamic
banks. Further, "a religious ruling against Islamic banks" was not
considered an important barrier when selecting Islamic banks.
Originality/value - This research outlines an alternative methodology of
looking at bank selection criteria, by measuring the other side of the
coin, i.e. the barriers perceived by users and non-users of Islamic
banking when selecting Islamic banks. Compared to the prevailing
literature on the subject, such an approach is enlightening and can have
enormous potential as it directly measures the perceived barriers
towards Islamic banking. Furthermore, this pilot study is also an
important contribution to the limited literature on consumer attitudes
towards Islamic banking in Pakistan, where the operations of Islamic
banks are still in their formative stage.
RI Butt, Irfan/AAE-6255-2020
OI Butt, Irfan/0000-0002-9594-5722
ZS 0
ZA 0
ZR 0
Z8 0
TC 18
ZB 0
Z9 18
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214140700005
ER
PT J
AU Trabelsi, Mohamed Ali
TI The impact of the financial crisis on the global economy: can the
Islamic financial system help?
VL 12
IS 1
BP 15
EP 25
DI 10.1108/15265941111100049
PD 2011
PY 2011
AB Purpose - The aim of this paper is to analyse the different measures
taken by the G7 and G20 leaders to face the current global financial
crisis and to show whether such decisions represent a return to
protectionism.
Design/methodology/approach - The paper proposes the introduction of a
new economic system based on Islamic banks' principle which calls for
cancelling interests. This line of thinking might solve speculation
problems and put this type of crisis to an end.
Findings - This financial crisis pushed most developed countries to
lower their banking rates and to implement null-approximating interest
rates, a move which replicates the principle adopted by Islamic banks.
Originality/value - The paper represents a point of view on the
financial crisis, the return to protectionism and the role of Islamic
banking.
RI Trabelsi, Mohamed Ali/P-5803-2019
OI Trabelsi, Mohamed Ali/0000-0003-2307-323X
Z8 0
ZR 0
ZB 0
ZS 0
ZA 0
TC 7
Z9 7
U1 0
U2 0
SN 1526-5943
EI 2331-2947
UT WOS:000213311700002
ER
PT J
AU Tafri, Fauziah Hanim
Rahman, Rashidah Abdul
Omar, Normah
TI Empirical evidence on the risk management tools practised in Islamic and
conventional banks
VL 3
IS 2
SI SI
BP 86
EP +
DI 10.1108/17554171111155339
PD 2011
PY 2011
AB Purpose - The paper aims to gain an insight into the risk management
tools practised in Islamic and commercial banks in Malaysia, and
selected Islamic banks outside Malaysia. The study also examines the
level of adequacy of risk management tools and systems of these banks.
Design/methodology/approach - The study employs primary data collected
using a questionnaire survey.
Findings - There are significant differences in the level of
extensiveness of the usage of market value at risk (VaR), usage of
stress testing results, the usage of credit risk mitigation methods and
also the level of extensiveness of the usage of operational risk
management tools between Islamic and conventional banks. The findings
further show that risk management tools and systems for Islamic banking
are inadequate, particularly in the critical areas of "IT professionals
with relevant expertise in process integration and risk analytics", "IT
systems to cater for each Islamic instrument" and also the "capacity of
human capital in the highly technical areas of risk measurement." This
implies that more innovations and product developments are needed for
Islamic banking in managing risks.
Originality/value - Since there are relatively few studies conducted in
this area, specifically among Islamic banks in Malaysia, this study will
broaden the scope of the literature by providing novel empirical
evidence.
OI omar, normah/0000-0001-9393-9057
ZS 0
TC 19
ZA 2
Z8 0
ZR 0
ZB 0
Z9 21
U1 0
U2 0
SN 1755-4179
UT WOS:000214332100002
ER
PT J
AU Masood, Omar
Niazi, Ghulam Shabbir Khan
Ahmad, Noryati
TI An analysis of the growth and rise of smaller Islamic banks in last
decade
VL 3
IS 2
SI SI
BP 105
EP +
DI 10.1108/17554171111155348
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to analyse the factors
responsible for the rise and growth of smaller Islamic banks in the last
decade.
Design/methodology/approach - Z-score analysis is used to test the
stability of both smaller and larger Islamic banks. The pooled ordinary
least square (OLS) regression technique is also employed to examine the
factors.
Findings - The results of this paper show higher z-scores for smaller
Islamic banks indicating that the latter have tended to be more stable
than larger Islamic banks over the last decade. Z-scores tend to
increase with bank size for large Islamic banks, but decrease with size
for the small Islamic banks. The OLS regression results confirm that
larger banks have greater income diversity than do the smaller banks.
Originality/value - Islamic banking represents a radical departure from
conventional banking, and from the viewpoint of corporate governance; it
embodies a number of interesting features since equity participation,
risk and profit-and-loss sharing arrangements form the basis of Islamic
financing. Using econometric techniques, this paper provides valuable
insights as to the stability of Islamic banks and the factors
responsible for the growth of smaller such institutions that has been
witnessed in the last decade.
RI Ahmad, Noryati/AAD-5487-2020; Ahmad, Noryati/
OI Ahmad, Noryati/0000-0002-6865-2756
ZR 0
TC 4
ZA 1
ZB 0
ZS 0
Z8 0
Z9 5
U1 0
U2 0
SN 1755-4179
UT WOS:000214332100003
ER
PT J
AU Hamid, Ayesha
Masood, Omar
TI Selection criteria for Islamic home financing: a case study of Pakistan
VL 3
IS 2
SI SI
BP 117
EP +
DI 10.1108/17554171111155357
PD 2011
PY 2011
AB Purpose - The aim of this research is to examine the selection criteria
of customers for Islamic home financing in the context of Pakistan and
to examine these factors with respect to gender, age, income, and
occupation.
Design/methodology/approach - This study uses a quantitative approach to
investigate the choice criteria for Islamic home financing. All 18
independent variables are taken from previous research; for their
analysis, descriptive statistics, independent sample t-tests and ANOVA
was used. Data were gathered from the customers of Islamic banking who
use the services of Islamic home financing. The sample consists of 200
respondents. For the collection of data, a survey questionnaire with
closed-ended questions and a five-point Likert scale was employed. The
questionnaire was designed into two sections, one consisting of
demographic information and the second relating to the selection
criteria of Islamic home financing.
Findings - The results indicate that the shariah principle, fast and
efficient services, price, bank reputation, and terms and conditions of
product flexibility are the five most important factors considered by
customers in choosing Islamic mortgages.
Research limitations/implications - The limitations relate to the sample
area for the study, which is confined to Lahore, and due to the limited
sample size, the findings cannot be generalized. Second, only four banks
are considered.
Practical implications - This study is beneficial for practitioners in
Pakistan by offering insight into choice criteria for Islamic home
financing. The results should also be useful for Islamic bank managers
who are also policy makers, as they can study and plan for attractive
schemes and policies for customers through which they can fulfill their
needs and expectations. For the researcher, this study will also add to
the existing body of knowledge by providing novel evidence on the
selection criteria used for Islamic home financing.
Originality/value - This topic has never been examined in the context of
Pakistan, so this study initiates the choice criteria for Islamic home
financing among Pakistani banks' customers. The paper provides
potentially useful information for both customers (in selecting Islamic
banks) and bank managers to identify the factors needed to attract
customers.
TC 22
ZB 0
Z8 0
ZR 0
ZA 0
ZS 0
Z9 22
U1 0
U2 0
SN 1755-4179
UT WOS:000214332100004
ER
PT J
AU Abdullah, Marliana
Shahimi, Shahida
Ismail, Abdul Ghafar
TI Operational risk in Islamic banks: examination of issues
VL 3
IS 2
SI SI
BP 131
EP +
DI 10.1108/17554171111155366
PD 2011
PY 2011
AB Purpose - The purpose of this paper is to assess key issues in
measurement and management of operational risk in Malaysian Islamic
banks.
Design/methodology/approach - Descriptive, analytical, and comparative
analyses are used to discuss the issues of operational risk in Islamic
bank through the implications associated with the Islamic banks'
operational risk as well as the implications on risk measurement, risk
management, and capital adequacy.
Findings - Discussion on operational risk in Islamic banks is
significant and becoming more complicated compared with conventional
banking because of the unique contractual features and general legal
environment. While basic Basel II core principles of effective banking
supervision apply equally well and ideally suit the Islamic banking
institutions, risk measurement, and risk management practices still need
specific adaptations to Islamic banks' operational characteristics.
These particularities highlight the unique characteristics of Islamic
banks and raise serious concerns regarding the applicability of the
Basel II methodology for Islamic banks.
Research limitations/implications - This study has important
implications for the understanding of operational risk, particularly the
specific issues of the Islamic banks' operational risk that arise from
the different nature of the financing and investment activities of the
banks. With regard to measuring operational risk capital charge, the
banks have to choose the right and effective method to ensure the
operational risk capital charge will be more in line with the banks'
actual risk profile and thus will provide the adequate capital and an
improved buffer once the losses are announced.
Originality/value - The paper will fill the gap to the existing
literature of operational risk in banking institutions especially
Islamic banks, by showing the needs of specific adaption of operational
risk measurement and risk management practices due to the nature of
Islamic banks.
ZR 0
TC 22
ZA 0
ZS 0
ZB 0
Z8 0
Z9 22
U1 0
U2 0
SN 1755-4179
UT WOS:000214332100005
ER
PT J
Saal, David S.
Battisti, Giuliana
TI Efficiency and total factor productivity change of Malaysian commercial
banks
VL 31
IS 13
BP 2117
EP 2143
DI 10.1080/02642069.2010.503882
PD 2011
PY 2011
AB This paper analyses the efficiency of Malaysian commercial banks between
1996 and 2002 and finds that while the East Asian financial crisis
caused a short-term increase in efficiency in 1998 primarily due to
cost-cutting, increases in non-performing loans after the crisis caused
a more sustained decline in bank efficiency. It is also found that
mergers, fully Islamic banks, and conventional banks operating Islamic
banking windows are all associated with lower efficiency. The paper
estimates suggest mild decreasing returns to scale, and an average
productivity change of 2.37% that is primarily attributable to technical
change, which has nonetheless declined over time. Finally, while Islamic
banks have been moderately successful in developing new products and
technologies, the results suggest that the potential for Islamic banks
to overcome their relative inefficiency is limited.
Z8 0
ZB 0
ZA 0
ZS 0
TC 12
ZR 0
Z9 12
U1 0
U2 21
SN 0264-2069
EI 1743-9507
UT WOS:000298923400005
ER
PT J
AU Saini, Yvonne
Bick, Geoff
Abdulla, Loonat
TI CONSUMER AWARENESS AND USAGE OF ISLAMIC BANKING PRODUCTS IN SOUTH AFRICA
SO SOUTH AFRICAN JOURNAL OF ECONOMIC AND MANAGEMENT SCIENCES
VL 14
IS 3
BP 298
EP 313
DI 10.4102/sajems.v14i3.193
PD 2011
PY 2011
AB This paper investigates the level of consumer awareness and use of
Islamic banking products in South Africa. A non-probability sampling
method was used whereby a questionnaire was administered to 250
respondents and statistically analysed to determine the factors that are
important in the choice between Islamic or conventional banks. It was
found that Muslims are aware of Islamic banks, but their rate of use is
low, as Muslim customers regard efficiency, lower bank charges, the
availability of automatic teller machines and an extensive branch
network as important factors when it comes to choosing a bank, rather
than religious motivations for compliance with Islamic conventions. It
was concluded that, if Islamic banks wanted to attract and retain
customers and remain relevant in the South African context, they would
have to develop relevant strategies designed to meet customers' needs.
Religion as the sole motivation for choosing Islamic banks is
inadequate.
RI Bick, Geoff/AAB-1698-2020
ZB 0
Z8 0
ZS 1
ZR 0
TC 18
ZA 0
Z9 18
U1 0
U2 9
SN 2222-3436
UT WOS:000299677600004
ER
PT J
AU Rahman, Aisyah Abdul
TI Financing structure and insolvency risk exposure of Islamic banks
SO FINANCIAL MARKETS AND PORTFOLIO MANAGEMENT
VL 24
IS 4
BP 419
EP 440
DI 10.1007/s11408-010-0142-x
PD DEC 2010
PY 2010
AB This study analyzes the impact of financing structure on Islamic banks'
insolvency risk exposure. By analyzing four models, we find that an
increase in real estate financing decreases insolvency risk; however, an
increasing concentration of financing structure increases insolvency
risk. We discover that increasing the stability of the financing
structure reduces risk in the short term, but not in the medium term.
Interestingly, our findings show that the level of insolvency risk
exposure during the 1997 Asian financial crisis was lower than it was
for the overall period, whereas it is higher than the overall average in
the ongoing global economic crisis. Thus, regulatory bodies,
policymakers, and market players in the Islamic banking industry should
take appropriate action to in manage the insolvency risk of Islamic
banks.
RI Abdul-Rahman, Aisyah/H-7345-2016
OI Abdul-Rahman, Aisyah/0000-0001-8347-2705
ZB 0
TC 5
ZA 0
ZS 0
Z8 0
ZR 0
Z9 5
U1 0
U2 0
SN 1934-4554
EI 2373-8529
UT WOS:000453443000005
ER
PT J
AU Khan, Feisal
TI How 'Islamic' is Islamic Banking?
VL 76
IS 3
BP 805
EP 820
DI 10.1016/j.jebo.2010.09.015
PD DEC 2010
PY 2010
AB Islamic Banks hold well over US $700 billion in assets and are growing
at over 15% p.a. Islamic Banking and Finance (IBF) involves wider
ethical and moral issues than simply 'interest-free' transactions. Its
advocates argue that these make it more economically efficient than
conventional banking and promote greater economic equity and justice. To
what extent, then, do actual Islamic Banking practices live up to the
ideal, and how different are they from conventional banking? A
preliminary investigation shows that, three decades after its
introduction, there remain substantial divergences between IBF's ideals
and its practices, and much of IBF still remains functionally
indistinguishable from conventional banking. This runs counter to claims
by IBF advocates that it would rapidly differentiate itself from
conventional banking. However, despite not providing an alternative to
conventional banking and finance, IBF does strengthen a distinctly
Islamic identity by providing the appropriate Islamic terminology for de
facto conventional financial transactions. (C) 2010 Elsevier B.V. All
rights reserved.
ZS 0
TC 186
ZR 0
ZB 0
Z8 0
ZA 1
Z9 187
U1 3
U2 55
SN 0167-2681
UT WOS:000285896800025
ER
PT J
AU Sufian, Fadzlan
TI Productivity, technology and efficiency of De Novo Islamic banks:
Empirical evidence from Malaysia
VL 15
IS 3
SI SI
BP 241
EP 258
DI 10.1057/fsm.2010.20
PD DEC 2010
PY 2010
AB The impact of foreign banks' entry on the conventional banking sector
has been well documented in the literature. However, empirical evidence
on the impact of foreign banks' entry on the Malaysian Islamic banking
sector is completely missing from the literature. By employing the
Malmquist Productivity Index method, the article provides, for the first
time, empirical evidence on the impact of foreign banks' entry on the
efficiency and productivity of the Islamic banking sector. The empirical
findings indicate that the De Novo foreign Islamic banks have been
relatively more efficient and productive compared to their domestic and
foreign Islamic bank counterparts. The results also suggest that the
Malaysian Islamic banking sector has exhibited a higher level of total
factor productivity during the post De Novo foreign Islamic banks' entry
period.
OI Sufian, Fadzlan/0000-0001-7092-2324
ZR 0
ZA 0
Z8 0
TC 3
ZS 0
ZB 0
Z9 3
U1 0
U2 0
SN 1363-0539
EI 1479-1846
UT WOS:000211837800006
ER
PT J
AU Hussein, Kassim
TI Bank-level stability factors and consumer confidence - A comparative
study of Islamic and conventional banks' product mix
VL 15
IS 3
SI SI
BP 259
EP 270
DI 10.1057/fsm.2010.21
PD DEC 2010
PY 2010
AB This study examines the behaviour of key bank-level stability factors of
liquidity, capital, risk-taking and consumer confidence in Islamic and
conventional banks that operate in the same market. Using fixed effect
for a sample of 194 banks of Gulf Cooperation Countries between 2000 and
2007, we found that liquidity is not determined by the bank's product
mix but rather attributed to systematic factors. However, non-performing
assets (representing loans to sub-prime borrowers) have a positive and
significant relationship with liquidity, implying that during the crisis
Islamic banks tend to take stringent risk strategies compared to
conventional banks. Furthermore, Islamic banks generally tend to provide
higher consumer confidence levels as they were more capitalized than
conventional banks, although conventional banks had carried higher
averages of liquidity compared to Islamic banks. Consumer confidence
levels or depositors' discipline as proxied by deposits and customer
funding over liabilities generally appear to be higher in Islamic banks
than conventional banks.
ZB 0
TC 12
ZA 1
Z8 0
ZS 0
ZR 0
Z9 13
U1 0
U2 0
SN 1363-0539
EI 1479-1846
UT WOS:000211837800007
ER
PT J
AU Cihak, Martin
Hesse, Heiko
TI Islamic Banks and Financial Stability: An Empirical Analysis
SO JOURNAL OF FINANCIAL SERVICES RESEARCH
VL 38
IS 2-3
BP 95
EP 113
DI 10.1007/s10693-010-0089-0
PD DEC 2010
PY 2010
AB The relative financial strength of Islamic banks is assessed empirically
based on evidence covering individual Islamic and commercial banks in 19
banking systems with a substantial presence of Islamic banking. We find
that (a) small Islamic banks tend to be financially stronger than small
commercial banks; (b) large commercial banks tend to be financially
stronger than large Islamic banks; and (c) small Islamic banks tend to
be financially stronger than large Islamic banks, which may reflect
challenges of credit risk management in large Islamic banks. We also
find that the market share of Islamic banks does not have a significant
impact on the financial strength of other banks.
Z8 0
TC 203
ZB 0
ZS 0
ZR 1
ZA 1
Z9 204
U1 4
U2 44
SN 0920-8550
EI 1573-0735
UT WOS:000283577000002
ER
PT J
AU Hoq, Mohammad Ziaul
Amin, Muslim
TI The role of customer satisfaction to enhance customer loyalty
VL 4
IS 12
BP 2385
EP 2392
PD SEP 18 2010
PY 2010
AB This study attempts to examine the role of customer satisfaction in
enhancing customer loyalty for Muslim and non-Muslim customers, and the
effects of customer loyalty on customers behavioural decisions in the
Malaysian Islamic banking industry. In this study, respondents are the
customers (Muslim and non-Muslim customers) visiting the banks counters
and have an account with Islamic banks. A total of 660 questionnaires
were distributed and 440 were returned. Multiple groups data analysis
was employed to test the significant differences between Muslim and
non-Muslim customers. The result shows that customer satisfaction is the
most important driver to enhance customer loyalty for non-Muslim than
Muslim customers. This result implies that higher customer satisfaction
leads to a lower customer intention to switch banks.
RI Amin, Muslim/M-6011-2018
ZR 0
ZA 0
TC 14
ZB 0
ZS 0
Z8 0
Z9 14
U1 0
U2 21
SN 1993-8233
UT WOS:000283515300002
ER
PT J
AU Baten, Azizul
Kamil, Anton Abdulbasah
TI A stochastic frontier model on measuring online bank deposits efficiency
VL 4
IS 12
BP 2438
EP 2449
PD SEP 18 2010
PY 2010
AB An attempt has been made to investigate the online bank specific
deposits efficiency using stochastic frontier technique and it intends
to determine various factors affecting the efficiency level of banks for
the period 2001 - 2007. We used a panel of 20 banks divided into four
groups namely, NBs (National Banks), ISBs (Islamic Banks), FBs (Foreign
Banks), and PBs (Private Banks) in Bangladesh. In this study, a
comparison was made with the efficiency scores of banks group-wise,
year-wise and individually. This study showed that the estimated
year-wise average online banks deposits efficiency was 0.738 while
group-wise average deposits efficiency was 0.777. At the bank group
level, Nationalized Commercial Banks (NBs) and Islamic Banks (ISBS) were
more efficient by 90.9 and 86.8% respectively, followed by Private Banks
(PBs) which had 63.4% and Foreign Banks (FBs), 62.7%. We observed that
the foreign banks were less efficient in producing deposits. However,
the overall deposits efficiency of all bank groups steadily increased
over time except in 2007. The most efficient bank was found to be Islami
Bank Ltd. and the most inefficient bank was Pubali Bank with efficiency
scores of 0.96 and 0.52, respectively.
RI Kamil, Anton Abdulbasah/A-9795-2011
OI Kamil, Anton Abdulbasah/0000-0001-5410-812X
ZR 0
TC 5
ZA 0
ZS 0
ZB 0
Z8 0
Z9 5
U1 1
U2 8
SN 1993-8233
UT WOS:000283515300009
ER
PT J
Saal, David S.
Battisti, Giuliana
TI Efficiency in Islamic and conventional banking: an international
comparison
SO JOURNAL OF PRODUCTIVITY ANALYSIS
VL 34
IS 1
BP 25
EP 43
DI 10.1007/s11123-009-0165-3
PD AUG 2010
PY 2010
AB The paper investigates the efficiency of a sample of Islamic and
conventional banks in 10 countries that operate Islamic banking for the
period 1996-2002, using an output distance function approach. We obtain
measures of efficiency after allowing for environmental influences such
as country macroeconomic conditions, accessibility of banking services
and bank type. While these factors are assumed to directly influence the
shape of the technology, we assume that country dummies and bank size
directly influence technical inefficiency. The parameter estimates
highlight that during the sample period, Islamic banking appears to be
associated with higher input usage. Furthermore, by allowing for bank
size and international differences in the underlying inefficiency
distributions, we are also able to demonstrate statistically significant
differences in inefficiency related to these factors even after
controlling for specific environmental characteristics and Islamic
banking. Thus, for example, our results suggest that Sudan and Yemen
have relatively higher inefficiency while Bahrain and Bangladesh have
lower estimated inefficiency. Except for Sudan, where banks exhibits
relatively strong returns to scale, most sample banks exhibit very
slight returns to scale, although Islamic banks are found to have
moderately higher returns to scale than conventional banks. While this
suggests that Islamic banks may benefit from increased scale, we would
emphasize that our results suggest that identifying and overcoming the
factors that cause Islamic banks to have relatively low potential
outputs for given input usage levels will be the key challenge for
Islamic banking in the coming decades.
Z8 0
ZR 0
ZB 0
ZS 0
TC 62
ZA 0
Z9 62
U1 1
U2 39
SN 0895-562X
EI 1573-0441
UT WOS:000279466300004
ER
PT J
AU Srairi, Samir Abderrazek
TI Cost and profit efficiency of conventional and Islamic banks in GCC
countries
SO JOURNAL OF PRODUCTIVITY ANALYSIS
VL 34
IS 1
BP 45
EP 62
DI 10.1007/s11123-009-0161-7
PD AUG 2010
PY 2010
AB Using stochastic frontier approach, this paper investigates the cost and
profit efficiency levels of 71 commercial banks in Gulf cooperation
council countries over the period 1999-2007. This study also conducts a
comparative analysis of the efficiency across countries and between
conventional and Islamic banks. Moreover, we examine the bank-specific
variables that may explain the sources of inefficiency. The empirical
results indicate that banks in the Gulf region are relatively more
efficient at generating profits than at controlling costs. We also find
that in terms of both cost and profit efficiency levels, the
conventional banks on average are more efficient than Islamic banks.
Furthermore, we observe a positive correlation of cost and profit
efficiency with bank capitalization and profitability, and a negative
one with operation cost. Higher loan activity increases the profit
efficiency of banks, but it has a negative impact on cost efficiency.
ZS 0
ZB 0
ZA 1
TC 74
ZR 0
Z8 0
Z9 75
U1 1
U2 24
SN 0895-562X
EI 1573-0441
UT WOS:000279466300005
ER
PT J
AU Ariss, Rima Turk
TI Competitive conditions in Islamic and conventional banking: A global
perspective
SO REVIEW OF FINANCIAL ECONOMICS
VL 19
IS 3
BP 101
EP 108
DI 10.1016/j.rfe.2010.03.002
PD AUG 2010
PY 2010
AB I analyze the competitive conditions prevailing in Islamic and
conventional global banking markets, and investigate the possible
differences in profitability between these markets, using a sample of
banks across 13 countries during 2000-2006. The results suggest that
Islamic banks allocate a greater share of their assets to financing
activities compared to conventional banks, and they are also better
capitalized. Different computed measures of competition indicate that
Islamic banking is less competitive compared to conventional banking. A
second-stage analysis shows that profitability significantly increases
with market power, but this does not warrant higher profitability levels
for Islamic banks. (C) 2010 Elsevier Inc. All rights reserved.
Z8 0
TC 64
ZR 0
ZA 3
ZB 0
ZS 0
Z9 67
U1 1
U2 2
SN 1058-3300
EI 1873-5924
UT WOS:000213564000002
ER
PT J
AU Vinnicombe, Thea
TI AAOIFI reporting standards: Measuring compliance
SO ADVANCES IN ACCOUNTING
VL 26
IS 1
BP 55
EP 65
DI 10.1016/j.adiac.2010.02.009
PD JUN 2010
PY 2010
AB Islamic banking and finance have grown rapidly in recent decades.
Islamic banks offer a range of products, which, in complying with
Islamic law, often differ from traditional Western financial products.
Consequently, developing accounting standards to guide Islamic financial
reporting is now an important issue. To this end, the Accounting and
Auditing Organization for Islamic Financial Organizations (AAOIFI), was
established in Bahrain in 1991. While the AAOIFI has published a
substantial body of accounting and governance standards empirical
research into compliance with these standards is lacking. This article
addresses that gap. A benchmark index is constructed to measure the
compliance of Islamic banks licensed and domiciled in Bahrain. The
findings of the study show compliance to be very high with respect to
the governance standard relating to the in-house supervisory boards of
Islamic banks, and reporting the Islamic murabaha contract. In contrast,
compliance with the AAOIFI's requirements regarding the zakah religious
tax and the mudaraba contract is relatively low. (C) 2010 Elsevier Ltd.
All rights reserved.
ZA 0
TC 22
ZR 0
Z8 0
ZS 0
ZB 0
Z9 22
U1 0
U2 0
SN 0882-6110
EI 1046-5715
UT WOS:000441343600008
ER
PT J
AU Ahmad, Ashfaq
Kashif-ur-Rehman
Saif, Iqbal
Safwan, Nadeem
TI An empirical investigation of Islamic banking in Pakistan based on
perception of service quality
VL 4
IS 6
BP 1185
EP 1193
PD JUN 2010
PY 2010
AB This study examines the perception of bank customers regarding service
quality of the Islamic banks as well as conventional banks in Pakistan.
In today's global and border less market, service quality is gaining
importance for successful survival of banks. This study is important due
to an emerging trend of Islamic banking practices in Pakistan besides
conventional banking to replace Riba based products with the sharia'h
compliance products. Data were collected from 720 bank customers by
using stratified random sampling. It is found that the perception of
customers of Islamic banks regarding service quality is higher than the
perception of customers of conventional banks. The results indicate that
there is significant difference in perception of service quality among
customers of Islamic banks on the basis of gender but there is no
significant difference in service quality perception of male and female
customers of conventional banks. The study has a number of implications
for bankers, policy makers and academicians. It provides a guideline to
Islamic banks for provision of marketable products to meet expectations
of male and female customers according to their specific requirements.
This study enables policy makers and bankers to make effective and
quality oriented arrangements to have satisfied and delighted customers
for long term benefits. Academicians are required to conduct research in
the banking sector for beautiful blending of theory and practice to
analyze the quality of services for increased satisfaction among bank
customers.
ZA 1
Z8 0
ZS 1
TC 19
ZR 0
ZB 0
Z9 20
U1 0
U2 14
SN 1993-8233
UT WOS:000279636200042
ER
PT B
AU Abdul-Rahman, Yahia
BA AbdulRahman, Y
TI Shari'aa Shari'aa Boards in Islamic Banks: An Overview and a Vision for
the Future
SO ART OF ISLAMIC BANKING AND FINANCE: TOOLS AND TECHNIQUES FOR
COMMUNITY-BASED BANKING
VL 504
BP 61
EP 83
PD 2010
PY 2010
Z8 0
ZB 0
ZS 0
ZR 0
TC 0
Z9 0
U1 0
U2 0
BN 978-0-470-57261-0; 978-0-470-44993-6
UT WOS:000336769900005
ER
PT J
AU Rahman, Aisyah Abdul
TI THREE-FACTOR CAPM RISK EXPOSURES: SOME EVIDENCE FROM MALAYSIAN
COMMERCIAL BANKS
SO ASIAN ACADEMY OF MANAGEMENT JOURNAL OF ACCOUNTING AND FINANCE
VL 6
IS 1
BP 47
EP 67
PD 2010
PY 2010
AB This study investigates the determinants of the three-factor capital
asset pricing model (CAPM) risk exposures in the case of commercial
banks. Five risk exposures are examined namely, market, interest rate,
exchange rate, total, and unsystematic risk exposures. Our findings
provide four major contributions. First, we find that different types of
risk exposures have different determinants. Second, the market risk
exposure for the Islamic bank in our study is lower than for
conventional banks. Third, the merger programme is fruitful because it
reduces the interest rate risk exposure, total risk exposure, and
unsystematic risk exposure. Finally, our results show that the banks
under study have higher total and unsystematic risk exposures during the
1997 Asian financial crisis. Thus, a clear understanding of this
evidence helps in ensuring effective and successful decision-making for
regulators, policy makers and market players.
RI Abdul-Rahman, Aisyah/H-7345-2016
OI Abdul-Rahman, Aisyah/0000-0001-8347-2705
TC 5
ZR 0
Z8 0
ZS 0
ZB 0
Z9 5
U1 0
U2 0
SN 1823-4992
EI 2180-4192
UT WOS:000214565600003
ER
PT J
AU Ismal, Rifki
TI Strengthening and improving the liquidity management in Islamic banking
SO HUMANOMICS
VL 26
IS 1
BP 18
EP +
DI 10.1108/08288661011024977
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to analyze and evaluate the
present liquidity management in the Indonesian Islamic banking industry.
It also proposes an integrated and comprehensive program of liquidity
risk management which captures and assimilates the whole aspects of the
issue and brings the industry into a better way of managing liquidity
risk based on sharia principles.
Design/methodology/approach - The paper first examines the
organizational structure of Islamic banks and Islamic windows in
managing liquidity. Second, it investigates the characteristics of the
depositors, their investment behaviors and expectations followed by the
banks efforts and policies to manage the liquidity. Then, it identifies
the potential liquidity problems and Islamic liquid instruments.
Finally, it proposes an integrated and comprehensive program for
managing liquidity.
Findings - The paper suggests institutional deepening; restructuring the
liquidity management on the liability and asset sides; and revitalizing
the usage of the Islamic liquid instruments, in the integrated program.
Originality/value - This is believed to be the first paper to propose a
liquidity management improvement program in the Indonesian Islamic
banking industry.
ZR 0
TC 9
ZB 0
ZS 0
Z8 0
Z9 9
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210880000002
ER
PT J
AU Anwar, Saiful
Romansyah, Dadang
Pramono, Sigit
Watanabe, Kenji
TI Treating return of mudharabah time deposit as investment instrument A
utilization of artificial neural networks (ANNs)
SO HUMANOMICS
VL 26
IS 4
BP 296
EP +
DI 10.1108/08288661011090893
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to propose the development of
return forecasting model for mudharabah time deposit product in Islamic
bank based on artificial neural networks (ANNs).
Design/methodology/approach - The analysis consists of two main
elements. First element is the identification and selection of
significant macroeconomic variables that determine return volatility of
mudharabah time deposit in Indonesian Islamic bank industry. Second
element is the implementation of appropriate ANNs model according to
neural networks properties, and model evaluation based on simulated
return predictions of mudharabah time deposit product in Bank Syariah
Mandiri (RR-BSM).
Findings - It is shown that monthly changes of return can be predicted
quite well. The model provides a satisfactory result in forecasting
RR-BSM for 12 months ahead with 95.22 per cent accuracy. These results
suggest that the ANNs can be applied as an adequate tool to help
depositors in predicting future return of mudharabah time deposit
product.
Originality/value - There is believed to be no other empirical study of
Islamic banks that exclusively examines the utilization of ANNs to
forecast time deposit return as well as return from other investment
instruments.
RI anwar, Saiful/U-4854-2019
OI anwar, Saiful/0000-0001-5298-7458
TC 3
ZS 0
ZA 0
ZR 0
Z8 0
ZB 0
Z9 3
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210883300006
ER
PT J
AU Taliep, Moegamat Igshaan
Hassan, Rusni
Yusoff, Adnan
TI VIABILITY OF ISLAMIC BANKING AND FINANCE IN SOUTH AFRICA: A LOOK AT THE
LEGAL FRAMEWORK AND GOVERNANCE
SO IIUM LAW JOURNAL
VL 18
IS 2
BP 239
EP 260
PD 2010
PY 2010
AB South Africa has a total Muslim population of more than 1 million people
representing 2.1% of total population (Islamic Finance News, 27th
October 2010), thus creating the demand for Islamic banking and finance.
Though the concept of Islamic banking in South Africa can he traced back
to several decades, the practical implementation only started in late
1980s with slow initial start up. Presently, while the industry is
relatively modest in term to figures, Islamic banking is strategically
important for economic development of the country. South African Islamic
banking is set to expand at a rapid rate as the new players identify
huge opportunity in the country. However; Islamic banks face a series of
challenges in the South African market. Increasing competition,
education and awareness, and legal framework are the significant
challenges for all institutions in the Islamic banking markets. This
paper looks at the challenges of the legal,framework and governance in
implementing Islamic banking and finance in South Africa.
TC 0
Z8 0
ZA 0
ZS 0
ZB 0
ZR 0
Z9 0
U1 0
U2 0
SN 0128-2530
EI 2289-7852
UT WOS:000436677700003
ER
PT S
AU Rauch, Christian
BE Kim, SJ
Mckenzie, MD
TI BANK FRAGILITY AND THE FINANCIAL CRISIS: EVIDENCE FROM THE US DUAL
BANKING SYSTEM
SO INTERNATIONAL BANKING IN THE NEW ERA: POST-CRISIS CHALLENGES AND
OPPORTUNITIES
SE International Finance Review
VL 11
BP 33
EP 86
DI 10.1108/S1569-3767(2010)0000011006
PD 2010
PY 2010
AB Purpose - This chapter compares the stability of the U.S. Dual Banking
system's two bank groups, national and state banks, in light of the
current financial crisis. The goal of the chapter is to answer three
distinct questions: first, is there a difference in the ( balance sheet)
fragility between the two groups and, second, to what extent has the
balance sheet fragility of both groups changed after the escalation of
the financial crisis beginning in August 2007? Building on that, the
third question asks to whether or not the respective regulatory agencies
of both bank groups are responsible for these changes in balance sheet
fragility in light of the financial crisis.
Methodology - To answer these questions the chapter uses U.S. Call
Report data containing full quarterly balance sheets and P&Ls of all
U.S. commercial banks over the period 2005-2008. Anecdotal evidence as
well as univariate and multivariate difference-in-difference methodology
focusing on the immediate pre-crisis period Q1/2005-Q3/2007 and the
crisis period Q3/2007-Q4/2008 are applied.
Results - Highly significant and robust results show that, ceteris
paribus, national banks reduced their potential balance sheet fragility
after the escalation of the crisis in August 2007 by reducing lending
and liquidity creation stronger than state banks. Anecdotal evidence
supports the empirical findings. Although both FDIC and OCC did not
anticipate the adverse effects of the crisis, the OCC publicly showed an
earlier reaction to liquidity-related problems than the FDIC.
Originality - The chapter is the first of its kind to analyze bank
fragility around the escalation of the financial crisis and the role of
the regulatory agencies. The chapter holds especially interesting policy
implications in the light of the current discussion about the future
regulation of the banking markets.
OI Rauch, Christian/0000-0002-3381-7733
ZR 0
ZB 0
TC 3
ZA 0
ZS 0
Z8 0
Z9 3
U1 0
U2 1
SN 1569-3767
BN 978-1-84950-912-1
UT WOS:000299845600003
ER
PT S
AU Ahmad, Wahida
Luo, Robin H.
BE Kim, SJ
Mckenzie, MD
TI COMPARISON OF BANKING EFFICIENCY IN EUROPE: ISLAMIC VERSUS CONVENTIONAL
BANKS
SO INTERNATIONAL BANKING IN THE NEW ERA: POST-CRISIS CHALLENGES AND
OPPORTUNITIES
SE International Finance Review
VL 11
BP 361
EP 389
DI 10.1108/S1569-3767(2010)0000011016
PD 2010
PY 2010
AB Many banking efficiency studies have focused on conventional banks.
Recently, Islamic banks have opened in many countries and operated in
similar fashion to traditional banks. This chapter measures and compares
Islamic banking efficiency to conventional banking efficiency
represented by three European countries - Germany, Turkey and the United
Kingdom. The study covers the period from 2005 to 2008 in measuring the
X-efficiency using the non-parametric method, known as Data Envelopment
Analysis (DEA). It reveals that Islamic banks are technically more
efficient than conventional banks but are beset by lower allocative
efficiency. This results in lower cost efficiency for Islamic banks in
comparison to the more conventional banks in Europe.
RI Luo, Robin H/A-8193-2012
OI Luo, Robin H/0000-0002-2492-4983
ZS 0
ZB 0
ZR 0
TC 9
Z8 0
ZA 0
Z9 9
U1 1
U2 6
SN 1569-3767
BN 978-1-84950-912-1
UT WOS:000299845600013
ER
PT J
AU Sukmana, Raditya
Kassim, Salina H.
TI Roles of the Islamic banks in the monetary transmission process in
Malaysia
MANAGEMENT
VL 3
IS 1
BP 7
EP 19
DI 10.1108/17538391011033834
PD 2010
PY 2010
AB Purpose - This paper aims to determine the importance of the Islamic
banks in the monetary transmission process in the Malaysian economy. In
particular, the paper analyzes the relevance of Islamic banks' financing
and deposit in channelling the monetary policy effects to the real
economy.
Design/methodology/approach - The paper relies on the co-integration
test, impulse response functions, and variance decomposition analysis,
focusing on the period from January 1994 to May 2007.
Findings - The results show that both Islamic banks' financing and
deposit play important roles in the monetary transmission process in the
Malaysian economy. In particular, both Islamic deposit and financing are
shown to be statistically significant in linking the monetary policy
indicator to the real output.
Practical implications - The results imply that the monetary authority
should also consider the Islamic banks in the implementation of monetary
policy in Malaysia. The results also imply that ensuring the stability
of the Islamic financial institutions is just as important as that of
the conventional counterpart to achieve an effective transmission of
monetary policy in the economy.
Originality/value - This paper is a pioneer study undertaking empirical
investigation on the role of Islamic banks in the monetary transmission
process in an economy.
OI Kassim, Salina/0000-0002-7514-8750
ZR 0
ZB 0
ZA 0
TC 27
ZS 0
Z8 0
Z9 27
U1 1
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214376100003
ER
PT J
AU Hutapea, Erwin G.
Kasri, Rahmatina A.
TI 3 Bank margin determination: a comparison between Islamic and
conventional banks in Indonesia
MANAGEMENT
VL 3
IS 1
BP 65
EP 82
DI 10.1108/17538391011033870
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to examine the relationship
between Islamic bank margin (BM) and its determinants. It also compares
the BM behavior of Islamic and conventional banks in the Indonesian dual
banking system.
Design/methodology/approach - The paper employs a time series approach
under the dealership framework of Ho and Saunders. The autoregressive
distributed lag model is used to inspect cointegration between BM and
its determinants for the period of January 1996 to February 2006 of five
sample banks (two Islamic banks and three conventional banks).
Findings - The result confirms that there exists a long-running
relationship between the Islamic BM and its determinants. In particular,
as interest rate volatility increases, Islamic BM responds negatively
while that of conventional banks responds positively. The findings
differ from most of the other studies as they found a positive
relationship between BM and interest rate volatility. This paper also
shows that the margin behavior changes as the basis of bank operations
changes from conventional to Islamic principles.
Research limitations/implications - The paper uses a relatively small
sample of three (out of 150) conventional banks as a comparison to two
sample Islamic banks. However, as they come from the same peer with the
Islamic banks, it is believed that the finding is valid. Islamic banks
in Indonesia are not remote from the interest rate volatility in their
presence under a dual banking system. It is the displaced commercial
risk that threatens Islamic banking profitability in a changing market
interest rate situation.
Practical implications - Under a dual banking system, the stability of
interest rates and the financial system is of great importance for the
policy maker in developing the Islamic banking industry in Indonesia. As
long as the BM is still a major source of income to the Islamic banks,
it is necessary for Islamic banks to have prudent risk management to
mitigate the negative effect of displaced commercial risk and maintain
its profitability. Implementation of profit equalization reserves
concept is a possible measure for Islamic banks to shield their
operation.
Originality/value - This paper is believed to be the first study on
Islamic BM behavior in Indonesia. It is expected to provide useful
information for policy makers and Islamic bank management to develop a
sound and profitable Islamic banking industry in Indonesia.
ZR 0
TC 16
ZS 0
ZB 0
ZA 0
Z8 0
Z9 16
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214376100007
ER
PT J
AU Ismal, Rifki
TI Assessment of liquidity management in Islamic banking industry
MANAGEMENT
VL 3
IS 2
BP 147
EP 167
DI 10.1108/17538391011054381
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to assess liquidity risk
management (LRM) practices in Indonesian Islamic banking industry during
the period 2000-2007.
Design/methodology/approach - The paper constructs the LRM index (100
scale) which is composed of individual index of asset side; liability
side; LRM policies; and the overall LRM index.
Findings - The index produces a "good" grade for the liquidity
management practices in the Indonesian Islamic banking industry,
represented by three Islamic banks which capture 82 percent of the total
market share of the industry. However, the breakdown of the index of
every Islamic bank suggests various achievements.
Research limitations/implications - It is found that the practices of
LRM are not optimal yet based on some considerations explained in this
paper. Further progressive actions have to be taken by the regulators
and all industry's players to improve the LRM practices.
first paper trying to assess how good the LRM in Indonesian Islamic
banking is.
ZS 0
TC 11
ZB 0
ZR 0
ZA 0
Z8 0
Z9 11
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214377300005
ER
PT J
AU Hassan, Abul
Harahap, Sofyan Syafri
TI Exploring corporate social responsibility disclosure: the case of
Islamic banks
MANAGEMENT
VL 3
IS 3
BP 203
EP 227
DI 10.1108/17538391011072417
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to explore whether any
discrepancy exists between the corporate social activities disclosed in
the annual reports of Islamic banks and the corporate social
responsibility (CSR) disclosure index which has been developed based on
the Islamic business ethics framework.
Design/methodology/approach - This paper reports on a survey of annual
reports of seven Islamic banks using the method of content analysis to
measure the volume of CSR disclosure.
Findings - The results show the overall mean CSR disclosure index of one
Islamic bank out of seven to be above average and the issues of CSR are
not of major concern for most Islamic banks.
Research limitations/implications - CSR disclosure in the Islamic banks
is experimental and could be explored in greater depth in future
studies.
Practical implications - The findings have important implications for
academics and researchers, as they pave the ways for further
investigation. The results also have important implication for
Accounting and Auditing Organisation for Islamic Financial Institutions
in developing a CSR reporting standard if Islamic banks are to enhance
their image and reputation globally, as well as to remain competitive.
Originality/value - The paper contributes to the growing debate on CSR
in ethical perspective and key underlying issues associated with the
emergence of new disclosure practices for Islamic financial
institutions. Through this paper, new visibilities explored, and
competing dilemmas opened up.
OI Hassan, Abul/0000-0002-6355-1884
ZB 0
ZA 2
Z8 0
TC 65
ZR 0
ZS 1
Z9 68
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214378900002
ER
PT J
AU Ismal, Rifki
TI Volatility of the returns and expected losses of Islamic bank financing
MANAGEMENT
VL 3
IS 3
BP 267
EP 279
DI 10.1108/17538391011072453
PD 2010
PY 2010
AB Purpose - The paper attempts to analyze the volatility of returns and
expected losses of Islamic bank financing. In particular, it takes the
case of Indonesian Islamic banking industry.
Design/methodology/approach - The paper uses Value at Risk (VaR)
approach to compute the volatility (risk) of returns and expected losses
of Islamic bank financing. In particular, it uses variance-covariance
method to calculate VaR of multi-asset portfolios (groups of equity-,
debt- and service-based financing).
Findings - First of all, equity and debt- based financing produce
sustainable returns of bank financing. Moreover, they are also very
resilient during unfavorable economic conditions. Second, the
performance of service-based financing is very sensitive to the economic
conditions. Lastly, VaR computation on the volatility of returns and
expected losses of bank financing finds that risk of investment and
expected losses are well managed.
Practical implications - The paper demands Islamic banks to keep
intensifying equity-based financing rather than only debt-based
financing and improve the banking services to support the performance of
service-based financing.
first paper to assist the volatility of returns and expected losses of
the Islamic banking financing in Indonesian.
ZS 0
ZB 0
TC 4
ZR 0
ZA 0
Z8 0
Z9 4
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214378900006
ER
PT J
AU Kassim, Salina H.
Abd Majid, M. Shabri
TI Impact of financial shocks on Islamic banks Malaysian evidence during
1997 and 2007 financial crises
MANAGEMENT
VL 3
IS 4
SI SI
BP 291
EP 305
DI 10.1108/17538391011093243
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to provide empirical evidences on
the impact of financial shocks on the Islamic banks vis-a-vis the
conventional banks. Based on the Malaysian experience over two major
financial crises, namely the 1997 Asian financial crisis and 2007
financial crisis, the study aims to test the validity of the proposition
that the Islamic banks are more resilient to the financial shocks
compared to the conventional banks.
Design/methodology/approach - Focusing on the Malaysian data covering
three sub-periods, namely, the 1997 Asian financial crisis period (July
1997-September 1999), the non-crisis period (October 1999-June 2007) and
the 2007 financial crisis period (July 2007-September 2009), the study
employs the impulse response functions and variance decomposition
analysis based on the vector auto-regression (VAR) method.
Findings - The results indicate that both the Islamic and conventional
banking systems are vulnerable to financial shocks. This is contrary to
the popular belief that the Islamic financial system is sheltered from
the financial shocks due to its interest-free nature.
Research limitations/implications - The results of this study have
important implications for the risk management practices of both the
Islamic and conventional banks.
Originality/value - This paper contributes in providing the empirical
evidence on the impact of financial shocks on the Islamic banks. To the
authors' knowledge, there have been no studies comparing of the impacts
of the two major financial crises on the Islamic banking sector.
RI Kassim, Salina/Q-7008-2019; Majid, M. Shabri Abd./S-9038-2016
OI Kassim, Salina/0000-0002-7514-8750; Majid, M. Shabri
Abd./0000-0003-3558-8783
ZB 0
ZA 0
ZR 0
ZS 0
TC 15
Z8 0
Z9 15
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214379700002
ER
PT J
AU Chazi, Abdelaziz
Syed, Lateef A. M.
TI Risk exposure during the global financial crisis: the case of Islamic
banks
MANAGEMENT
VL 3
IS 4
SI SI
BP 321
EP 333
DI 10.1108/17538391011093261
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to examine the way Islamic
financial institutions dealt with the recent financial problems in terms
of risk management.
Design/methodology/approach - In total, 27 Islamic banks and the same
number of conventional banks selected from a wide range of countries
around the world were analyzed. The capital ratios, based on the Basel
Committee, are the primary tools used to analyze the riskiness of the
Islamic and conventional banks. The focus on capital ratios is relevant
in light of changes in banks' balance sheets due to significant write
offs that caused a huge credit crunch in the western world. Capital
ratios are considered as a reliable source in predicting potential
bankruptcies.
Fndings - The paper shows that Islamic banks are maintaining better
capital ratios than to their conventional counterparts.
Originality/value - The paper presents a new approach to the comparative
performance of Islamic and conventional banks in terms of risk
management. The research design as well as the findings can be very
useful to academicians and banking professionals alike.
OI Chazi, Abdelaziz/0000-0002-8865-269X
ZB 0
ZS 0
ZR 0
TC 16
ZA 0
Z8 0
Z9 16
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214379700004
ER
PT J
AU Sufian, Fadzlan
Habibullah, Muzafar Shah
TI Does Foreign Banks Entry Fosters Bank Efficiency? Empirical Evidence
from Malaysia
SO INZINERINE EKONOMIKA-ENGINEERING ECONOMICS
VL 21
IS 5
BP 464
EP 474
PD 2010
PY 2010
AB The impact of foreign banks entry on the banking sector has been well
documented in the literature. However, these studies have been confined
to the conventional banking sector. On the other hand, virtually nothing
has been published in respect to the impact of foreign banks entry on
the Islamic banking sector.
The purpose of the present paper is to provide new empirical evidence on
the impact of foreign banks entry on the efficiency of the incumbent
domestic and foreign Islamic banks. Although there exist several other
studies which have examined the performance of the Malaysian Islamic
banking sector (e. g. Samad, 1999; Samad and Hassan, 2000; Sufian, 2007;
Mokhtar et al. 2008, Majid et al. 2009, and others), the focus of these
studies have not been the impact of foreign banks entry.
The present study therefore attempts to fill in the gap and add insights
to the present literature in several respects as follows: First, by
employing the Data Envelopment Analysis (DEA) method, we examine whether
the De Novo foreign Islamic banks are relatively more efficient than the
incumbent domestic and foreign Islamic banks. To date, empirical
evidence form the contemporary banking industry has mainly suggested
that foreign banks in developing countries outperform their domestic
bank counterparts. It is therefore interesting to examine whether the
same is applicable to the Islamic banking sector.
Second, we compute a battery of DEA-based parametric and non-parametric
tests to examine the difference in the efficiency of the Malaysian
Islamic banking sector between the pre and post-entry periods. During
both periods, the efficiency scores of the De Novo and the incumbent
banks will be compared. By doing so, we would be able to shed some light
on the sources of inefficiency in the Malaysian Islamic banking sector
in general, differentiate between the De Novo and the incumbent banks'
efficiency scores, and assess the impact of foreign banks entry on the
efficiency of the incumbent banks.
In undertaking the study, we have gathered information from the yearly
financial statements of the two full-fledged domestic Islamic banks,
three full-fledged foreign Islamic banks, 11 domestic IBS (Islamic
banking scheme) banks, and four foreign IBS banks for the period 2001 to
2008.
The empirical findings from this study suggest that the domestic banks
have been relatively more efficient than their foreign and De Novo bank
counterparts, while the De Novo banks have been the least efficient
banking groups. The results indicate that the Malaysian Islamic banking
sector has exhibited a lower level of efficiency during the post-entry
of the De Novo banks period.
The findings from the study should interest not only the managers of the
banks, but numerous stakeholders such as the central banks, bankers
associations, governments, and other financial authorities.
ZS 0
ZB 0
TC 7
ZR 0
Z8 0
Z9 7
U1 0
U2 22
SN 1392-2785
UT WOS:000286635800001
ER
PT J
AU Archer, Simon
Sundararajan, Venkataraman
TI Supervisory, regulatory, and capital adequacy implications of
profit-sharing investment accounts in Islamic finance
VL 1
IS 1
BP 10
EP +
DI 10.1108/17590811011033389
PD 2010
PY 2010
AB Purpose - The aims of this paper are: first, to draw attention to the
issues of displaced commercial risk (DCR) which arise as a result of the
risk characteristics of profit-sharing investment accounts (PSIA), the
main source of funding of Islamic banks in most jurisdictions; and,
second, to present a value-at-risk approach to the estimation of DCR and
the associated adjustments in capital requirements.
Design/methodology/approach - The paper is based on empirical research
into the characteristics of PSIA in practice, which vary to a greater or
lesser extent from what one would expect them to be in principle, on an
analysis of the capital adequacy and risk management implications that
flow from this, and on an econometric formulation whereby the extent of
DCR in Islamic banks may be estimated.
Findings - The findings are, first, that the characteristics of PSIA can
vary from being a deposit like product (fixed return, capital certain,
all risks borne by shareholders) to an investment product (variable
return, bearing the risk of losses in underlying investments), depending
upon the extent to which the balance sheet risks get shifted
("displaced") from investment account holders to shareholders through
various techniques available to Islamic banks' management. Second, the
paper finds that this DCR has a major impact on Islamic bank's economic
and regulatory capital requirements, asset-liability management, and
product pricing. Finally, it proposes an econometric approach to
estimating DCR but report that individual Islamic banks generally lack
the data needed to apply this approach, in the absence of which panel
data for a population of Islamic banks may be used to estimate DCR for
that population.
Research limitations/implications - Empirically, the paper is thus
limited by the lack of data just mentioned. Furthermore, the application
of the proposed panel data approach has been left for future research.
Originality/value - The analysis of the issues and the development of
the econometric model represent in themselves an original research
contribution of some significance.
TC 32
ZR 0
ZS 0
ZB 0
Z8 0
ZA 1
Z9 33
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214878800002
ER
PT J
AU Maali, Bassam
Napier, Christopher
TI Accounting, religion and organisational culture: the creation of Jordan
Islamic Bank
VL 1
IS 2
BP 92
EP 113
DI 10.1108/17590811011086705
PD 2010
PY 2010
AB Purpose - The paper seeks to examine the cultural factors that shaped
the creation of one of the earliest Islamic banks, discussing the
tensions that arise between religious and economic aims.
Design/methodology/approach - The paper is a case study of a
historically significant institution. The information on which the paper
is based was obtained through interviews with participants in the
process being analysed, review of archived documents, and observation.
Edgar Schein's theory of organisational culture and leadership is
employed to provide theoretical structure for the analysis.
Findings - The paper shows that creating a new type of organisation - an
Islamic bank - in Jordan required special legislation. A study of the
development of this legislation reveals that the bank's founder needed
to convince both the religious and political authorities and potential
investors that the bank would comply with Shari'a principles while at
the same time generating profitable business. The outcome was to
validate transactions that were Shari'a-compliant in form but similar in
substance to those of conventional banks.
Research limitations/implications - The paper examined one bank, and the
findings are not necessarily representative of the experience of other
Islamic financial institutions.
Social implications - The research highlights the problems faced in
establishing businesses that seek to follow the moral and economic
teachings of Islam. The paper contributes to the ongoing debate about
whether it is possible to establish genuinely Islamic businesses within
a conventional economy.
Originality/value - This is the first detailed academic study of the
creation of an Islamic financial institution to make use of a wide range
of documentary and oral evidence, including interviews with insiders.
RI Maali, Bassam/AAG-6757-2019
OI Maali, Bassam/0000-0001-7000-8874
ZR 0
ZB 0
TC 14
Z8 0
ZS 0
ZA 0
Z9 14
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214879400002
ER
PT J
Zouari, Sarra Ben Slama
Boudriga, AbdelKader
TI Do Islamic banks use loan loss provisions to smooth their results?
VL 1
IS 2
BP 114
EP 127
DI 10.1108/17590811011086714
PD 2010
PY 2010
AB Purpose - The paper seeks to examine income smoothing practices in
Islamic banks. It first focuses on detecting income smoothing practices.
It then seeks to test whether loan loss provisions (LLPs) are used for
earnings management purposes.
Design/methodology/approach - The paper explores income smoothing
practices on a sample of 66 Islamic banks over the period 2001-2006
using Beidleman's and Eckel's coefficients. Data are obtained from the
Bankscope database. To test the use of LLPs to smooth Islamic banks
results, a regression model was developed and tested.
Findings - The results provide evidence on an extensive use of income
smoothing by Islamic banks. More than 75 per cent of the examined banks
have a determination coefficient between 0.5 and 1 and 44 per cent have
a variation coefficient less than 0.5. However, income smoothing is not
achieved through LLPs. The variable earnings before taxes and provisions
are not significant in all model specifications. The paper advances that
these smoothed incomes are derived rather by the use of profit
equalization reserve (PER) and investment risk reserve (IRR). The
finding is contradictory to the widespread view stating that those
mechanisms are designed to stabilize rewards attributed to investment
account holders.
Research limitations/implications - The non-disclosure of detailed
information on PER and IRR prevented the empirical testing of the
assertion on the use of these discretionary items to smooth Islamic
banks' incomes.
Originality/value - Unlike previous studies which implicitly assume that
Islamic banks intentionally use accounting techniques to disclose
smoothed results, this paper pioneers the study on detecting income
smoothing practice by such institutions. Second, it explores the use of
LLPs for earnings management purposes in the context of a fast growing
industry where Islamic assets have grown on average by 30 per cent per
year over the period 2002-2007. Third, it is the first paper to give
some evidence on the use of PER and IRR as income smoothing devices.
Finally, the paper covers a larger number of Islamic banks and from
various countries.
ZS 0
TC 27
ZB 0
Z8 0
ZR 0
ZA 0
Z9 27
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214879400003
ER
PT J
AU Sufian, Fadzlan
TI Does foreign presence foster Islamic banks' performance? Empirical
evidence from Malaysia
VL 1
IS 2
BP 128
EP 147
DI 10.1108/17590811011086723
PD 2010
PY 2010
AB Purpose - The paper examines the impact of entry of foreign banks on the
performance of the Malaysian Islamic banking sector during the period
2001-2007.
Design/methodology/approach - To maintain homogeneity, the empirical
analysis is confined to two fully fledged domestic Islamic banks, three
fully fledged foreign Islamic banks, 11 domestic window Islamic banks,
and four foreign window Islamic banks during the period of 2001-2007.
The paper applies the ordinary least square method, where the standard
errors are calculated by using White's transformation to control for
cross section heteroscedasticity.
Findings - The empirical findings suggest that overhead cost is
negatively related to Malaysian Islamic banks' profitability. On the
other hand, Islamic banks which are better capitalized and have a higher
level of liquidity tend to be more profitable. It is found that the De
Novo commercial banks are relatively less profitable than their
incumbent bank peers, which could be attributed to the different levels
of knowledge of the market between the incumbent and the De Novo Islamic
banks.
Research limitations/implications - Future research could include more
variables such as taxation and regulation indicators, exchange rates as
well as indicators of the quality of the offered services. Another
possible extension could be the examination of differences in the
determinants of profitability between small and large or high and low
profitability banks. In terms of methodology, a statistical cost
accounting and/or frontier optimization technique, such as the
non-parametric data envelopment analysis, the stochastic frontier
analysis, and/or the Malmquist productivity index approach, may be
adopted to examine changes in efficiency and productivity of the
Malaysian Islamic banking sector.
Originality/value - While extensive literature exists to examine the
performance of conventional banking sectors over recent years, empirical
works on the Islamic banking sector are still in its infancy.
Furthermore, studies on Islamic bank performance have focused on
theoretical issues and the empirical works have relied mainly on the
analysis of descriptive statistics rather than rigorous statistical
estimation. The paper therefore attempts to fill the gap in the
literature by providing new empirical evidence on the performance of the
Islamic banking sector.
ZR 0
Z8 0
TC 12
ZS 0
ZA 0
ZB 0
Z9 12
U1 0
U2 0
SN 1759-0817
EI 1759-0825
UT WOS:000214879400004
ER
PT J
AU Haque, Ahasanul
Ahmed, Khaliq
Jahan, Syeada Irfath
TI Shariah observation: advertising practices of Bank Muamalat in Malaysia
VL 1
IS 1
BP 70
EP 77
DI 10.1108/17590831011026240
PD 2010
PY 2010
AB Purpose - The purpose of this paper is to assess the existing
advertising practices in Malaysia and their compliance with the Shariah
(Islamic Law).
Design/methodology/approach - Using descriptive observations, the
promotional tools and practices used by the prominent conventional banks
were compared to those used by the Islamic banks. A total of 40
different advertisements were assessed as well as staff and personnel
from 30 branches were interviewed.
Findings - The paper reveals that customers remain unaware of the
Islamic banks' products. Shariah-based promotions will help increase
customer awareness of these banks and their offerings.
Research limitations/implications - Future research on Shariah-based
promotions and advertising will improve banks' effectiveness and help
position themas rolemodels for other advertisers, both Islamic and
non-Islamic. The producers of Islamic advertisements need to apply
precise screening procedures that ensure the delivery of their message
through Shariah-compliant methods.
Originality/value - The paper contributes to research through improving
understanding of the main issues relating to the effect of advertising
practices in Islamic societies.
RI Haque, AKM Ahasanul/O-1658-2019; Ahmad, Khaliq/
OI Ahmad, Khaliq/0000-0001-8129-5178
ZR 0
ZB 0
Z8 0
ZS 0
TC 13
ZA 0
Z9 13
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214130600011
ER
PT J
AU Elbeck, Matt
Dedoussis, Evangellos-Vagelis
TI Arabian Gulf innovator attitudes for online Islamic bank marketing
strategy
VL 1
IS 3
BP 268
EP 285
DI 10.1108/17590831011082437
PD 2010
PY 2010
AB Purpose - This paper's aim is to guide online Islamic bank marketing
strategy.
Design/methodology/approach - A study in 1999 interviewed 120 innovators
about their attitudes and preferences to a hypothetical online Islamic
bank, and replicated in 2009 for existing online Islamic banks using a
sample of 220 innovators.
Findings - The ten-year replication interval reveals increased internet
and online bank usage, higher household incomes and concerns about
security (fraud, theft, and hacking). Criteria describing a bona fide
online Islamic bank are inconsistent and do not strongly reflect Sharia,
suggesting a vague marketspace position. Similarities between online
Islamic bank innovator attitudes and preferences with online bank
innovators allows online Islamic banks confidence in the use of best
practices in online marketing strategy.
Practical implications - The 2009 study offers present-day insights for
online Islamic bank marketing strategy development, with 48 percent
planning to open an online Islamic bank (51 percent have a retail branch
Islamic bank account) citing time savings and 24-hour access as primary
advantages, with online security as the major impediment. For product
mix, preferred investment products include real estate, construction and
restaurants, whilst popular bank services include the ability to view
and transfer across accounts, investment portfolio variety, and ease to
open new accounts.
Originality/value - This study is one of the first to address marketing
issues about the burgeoning online Islamic bank market.
OI Elbeck, Matt/0000-0002-7980-7565; Dedousis,
Evangelos/0000-0002-4562-9895
ZR 0
ZS 0
Z8 0
ZA 0
ZB 0
TC 5
Z9 5
U1 0
U2 0
SN 1759-0833
EI 1759-0841
UT WOS:000214135400008
ER
PT J
AU Mansour, Walid
Ben Abdelhamid, Mohamed
Masood, Omar
Niazi, G. S. K.
TI Islamic banking and customers' preferences: the case of the UK
VL 2
IS 3
BP 185
EP 199
DI 10.1108/17554171011091746
PD 2010
PY 2010
AB Purpose - Islamic banking is an increasingly important factor in the UK
financial environment. With Islamic banks entering the industry in
significant numbers - and competing directly with the incumbent
"conventional" ones - the question of selection criteria of the banks'
customers is of obvious interest. The purpose of this paper is to study
the decision-making process of a sample of UK customers and the factors
that may influence them.
Design/methodology/approach - The paper uses a sample of 156 UK
questionnaire respondents, comprising Muslim and non-Muslim bank
customers alike. The methodological approach is partly borrowed from
Masood et al. with the chosen questions aimed at finding out what drives
the selection process of bank customers.
Findings - The paper's major findings show that, irrespective of the
demographic features and the religion of the respondents, the criterion
"low services charges" is the top customers' criteria. The Islamic
nature of the bank is, however, placed second, pointing to the
importance of religious orientation.
Research limitations/implications - The major limitation of the paper
relates to the size of the sample of respondents. The findings of the
paper are likely to be of interest to UK banks determining how best to
attract customers in the new era. Future research may usefully focus on
an international comparison of bank selection criteria by employing an
index of religiosity.
Originality/value - The paper is of particular value because it focuses
on the choice of banking in the context of the recent significant growth
in the Islamic banking industry in the UK.
ZS 0
ZB 0
Z8 0
TC 17
ZR 0
ZA 1
Z9 18
U1 0
U2 0
SN 1755-4179
UT WOS:000214330700004
ER
PT J
AU Alam, Mohammed Nurul
TI COST MINIMISATION THROUGH INTEREST-FREE MICRO CREDIT TO MICRO
ENTREPRENEURS: A CASE OF BANGLADESH
SO WORLD JOURNAL OF ENTREPRENEURSHIP MANAGEMENT AND SUSTAINABLE DEVELOPMENT
VL 6
IS 3
BP 247
EP 256
DI 10.1108/20425961201000019
PD 2010
PY 2010
AB The purpose of the paper is to present the result of an empirical review
as to how and to what extent the interest-free microfinance to micro
entrepreneurs contributes in minimising different cots of both th e
lender and the borrowers. An institutional-network theoretical approach
is used to study the phenomenon. A qualitative nature of research
methodology is used while studying this particular phenomenon. A
multiple explanatory case study was a dopted as a research strategy in
order to focus on contemporary phenomenon within the real life context
of different rural-based micro entrepreneurs and their relationships
with the lending organisations. Interest-free microfinance by Islamic
banks is characterised by a close supervision and an in-kind type of
financing, which contributes greatly in promoting lender-borrower
network relationships between the bank and the rural based micro
entrepreneurs. Such network relationships res ult in minimising exchange
costs and other business related costs of both the borrowers and the
lending organi-sations. The study was mainly concerned with rural-based
micro entrepreneurs who are engaged in grass-root type entrepreneurs
like p oultry and diary firm, handloom industry, etc. Particular
reference is made here to the facts of rural-based micro en-trepreneurs
and their relationships with Islamic ba nks in Bangladesh.
TC 0
ZR 0
ZB 0
Z8 0
ZA 0
ZS 0
Z9 0
U1 0
U2 0
SN 2042-5961
EI 2042-597X
UT WOS:000219066600007
ER
PT J
AU Al-Tamimi, Hussein
Lafi, Adel
Uddin, Md
TI Bank image in the UAE: Comparing Islamic and conventional banks
VL 14
IS 3
BP 232
EP 244
DI 10.1057/fsm.2009.17
PD DEC 2009
PY 2009
AB This study investigates how bank customers in the UAE view Islamic banks
versus conventional banks and whether this image affects customer
loyalties or selection of a bank. We distributed a questionnaire to a
convenient sample of UAE bank customers that focused on five areas: bank
image, bank products, service quality, cultural aspects and religious
factors, in addition to demographic attributes of the sample. The main
findings of this study are: first, most UAE bank customers prefer
banking with Islamic banks, although they are not satisfied with the
quality of products and services; second, customers generally have a
positive image of whatever bank they dealt with; third, the regression
analysis results indicate that the most important factor in choosing a
bank was bank products followed by service quality and then religious
factors; fourth, there is a significant difference between how customers
perceive UAE Islamic banks versus conventional banks; fifth, there is a
significant difference in how customers perceive UAE Islamic banks based
on their gender, education and duration of the relationship; and
finally, there is a significant difference in how customers perceive UAE
conventional banks based on their gender.
TC 21
ZR 0
ZA 1
ZB 0
ZS 0
Z8 0
Z9 22
U1 0
U2 0
SN 1363-0539
EI 1479-1846
UT WOS:000211822800005
ER
PT J
AU Mokhtar, Mokhrazinim
Zakaria, Zukarnain
TI CLASSIFICATION AND MANAGEMENT OF NON-PERFORMING LOANS OF ISLAMIC BANKS
AND CONVENTIONAL BANKS: A COMPARATIVE STUDY
SO JURNAL TEKNOLOGI
VL 51
PD DEC 2009
PY 2009
AB This paper compares the classification and management of non-performing
loans between Islamic banks in Malaysia and conventional banks in the UK
and Japan. The objective of this paper is to investigate if there are
differences in the classification and management of non-performing loans
in Islamic banks as a result of the existence of the Investment Account
Depositors (IADs). The nature of profit and sharing loss agreement has
made the position of IADs in an Islamic bank unique. This uniqueness,
however, has posed some degree of risk where in case the bank incurs a
loss, the IADs are liable to share this loss. This has made the
investment of IADs very risky and is subject to the potential problem of
asymmetric information. This paper finds that the Islamic banks define
and manage their non-performing loans differently from the conventional
banks in the UK and Japan. The analysis shows that even though Islamic
banks have special characteristics, the classification and management of
its non-performing loans are quite lenient. This is evidenced in the way
non-performing loans are defined, the way loss provision is made and the
level of disclosure made by an Islamic bank.
ZR 0
ZA 0
Z8 0
ZB 0
ZS 0
TC 0
Z9 0
U1 0
U2 0
SN 0127-9696
EI 2180-3722
UT WOS:000218410500006
ER
PT J
AU ElGindi, Tamer
Said, Mona
Salevurakis, John William
TI Islamic Alternatives to Purely Capitalist Modes of Finance: A Study of
Malaysian Banks from 1999 to 2006
SO REVIEW OF RADICAL POLITICAL ECONOMICS
VL 41
IS 4
BP 516
EP 538
DI 10.1177/0486613409341453
PD DEC 2009
PY 2009
AB Like Western financial markets, Islamic modes of finance offer services
characterized by profit-and-loss sharing while also providing certain
debt-based instruments. Unlike traditional capitalist modes of finance,
however, Islamic finance places a unique emphasis upon the former, thus
prompting many comparisons between the performance of Islamic banks and
conventional ones. Given the mixed results of these studies, our paper
analyzes eight banks in Malaysia offering both conventional and Islamic
banking operations. Our comparison is conducted via discussions of
profitability, liquidity, and asset quality. It is illustrated via this
micro-level analysis that Islamic modes of finance may generally equal
or surpass the quantitative measures of performance describing
traditional capitalist finance systems and simultaneously encourage
higher levels of social equity and economic stability in the era of
financialization.
ZS 0
ZB 0
ZR 0
TC 7
Z8 0
ZA 0
Z9 7
U1 0
U2 24
SN 0486-6134
EI 1552-8502
UT WOS:000208136900005
ER
PT J
AU Archer, Simon
TI Profit-sharing investment accounts in Islamic banks: Regulatory problems
and possible solutions
VL 10
IS 4
BP 300
EP 306
DI 10.1057/jbr.2009.9
PD SEP 2009
PY 2009
AB As interest-bearing deposits are not permitted by the rules and
principles of the Islamic Shari'ah, Islamic banks typically raise
deposits in the form of profit-sharing investment accounts. These
accounts differ from conventional deposits not merely by virtue of the
profit-sharing nature of the returns they offer, but also because the
contact between the depositors and the bank is not a debt contract, and
the deposits are in consequence not 'capital certain' (that is, the
depositors are required to accept negative returns or losses). This
latter characteristic leads to serious regulatory problems in
jurisdictions where bank deposits are required by legal definition to be
'capital certain'. More generally, the presence of such 'puttable
instruments' in the capital structure of Islamic banks leads to
complications in assessing their capital adequacy. In addition, the fact
that the profit-sharing investment account holders are a type of equity
investor without the governance rights of either creditors or
shareholders raises a major problem of supervision. This article
explains these problems in further detail, and proposes a solution in
the form of a structural distinction between the Islamic bank in the
narrow sense on the one hand, and the entity that manages the
profit-sharing investment accounts on the other hand.
ZA 0
TC 31
ZB 0
Z8 0
ZR 0
ZS 0
Z9 31
U1 0
U2 0
SN 1745-6452
EI 1750-2071
UT WOS:000213040800003
ER
PT J
AU Hosseini, S. Safdar
Khaledi, Mohammed
Gray, Richard
TI An Analysis of Transaction Costs of Islamic Banks in Rural Iran
SO AGRIBUSINESS
VL 25
IS 3
BP 291
EP 313
DI 10.1002/agr.20211
PD SUM 2009
PY 2009
AB This study measures transaction costs of obtaining credit from Islamic
banks. Data were collected from rural households in Iran. The factors
affecting transaction costs and the probability of accessing Islamic
financial markets are investigated. Similar to conventional financial
institutions found in other developing countries, Iranian banks impose
high transaction costs that limit poor rural household access to credit.
The results reveal that the transaction costs of gaining credit are oil
average equivalent to an additional 13.8% annual interest cost. The
contractual form, the size of credit, the borrower distance from a
financial center, and the experience and education level of the borrower
are important determinants of the transactions costs. [EconLit
Citations: D230, R510, G210]. (C) 2009 Wiley Periodicals, Inc.
ZB 0
Z8 0
ZR 0
TC 1
ZA 0
ZS 0
Z9 1
U1 0
U2 9
SN 0742-4477
EI 1520-6297
UT WOS:000268605800001
ER
PT J
AU Lateh, Nasrina
Ismail, Suhaiza
Ariffin, Noraini Mohd
TI CUSTOMERS' PERCEPTIONS ON THE OBJECTIVES, CHARACTERISTICS AND SELECTION
CRITERIA OF ISLAMIC BANK IN THAILAND
VL 11
IS 2
BP 167
EP 189
DI 10.22146/gamaijb.5525
PD MAY-AUG 2009
PY 2009
AB Due to relatively new establishment of islamic bank in Thailand and
paucity of empirical research undertaken in the area, this study intends
to capture the perceptions of Thai customers towards the objectives and
characteristics of the islamic bank. In addition, this study aims to
determine the important bank selection criteria as perceived by the
customers and the differences in the perceptions of moslem and
non-moslem customers were identified. The study surveys a sample of 462
respondents. The empirical findings show that the Thai customers know
that the essential characteristic of the islamic bank is interest
prohibition. They tend to support the idea that the islamic bank should
strive to achieve its social objectives more than the commercial
objectives. In addition, the results showed that there are differences
between the Thai moslem and non-moslem customers' preferences toward
various bank selection criteria. The moslems highly considered the
interest-free saving facilities, while the non-moslems tended to concern
more about its reputation and image, and knowledgeable and competent
personnel.
ZR 0
ZA 0
ZB 0
Z8 0
TC 5
ZS 0
Z9 5
U1 0
U2 0
SN 1411-1128
EI 2338-7238
UT WOS:000436722500002
ER
PT J
AU Safieddine, Assem
TI Islamic Financial Institutions and Corporate Governance: New Insights
for Agency Theory
SO CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW
VL 17
IS 2
BP 142
EP 158
DI 10.1111/j.1467-8683.2009.00729.x
PD MAR 2009
PY 2009
AB Empirical
This paper takes a theory building approach to highlighting variations
of agency theory in the unique and complex context of Islamic banks,
mainly stemming from the need to comply with Sharia and the separation
of cash flow and control rights for a category of investors.
The paper provides insights that agency structures in the context of
Islamic banking might give rise to trade-offs between Sharia compliance
and mechanisms protecting investors' rights. Alternative models of
idiosyncratic governance might be effective in balancing the two
cornerstones of the agency dynamic. In practice, the paper finds that
most of the surveyed Islamic banks appear to recognize the value of
governance and institute some basic mechanisms. Nonetheless, some
governance flaws relating to audit, control, and transparency are
observed, a situation further exacerbated by the fact that investment
account holders are not represented on the board, and are not granted
control or monitoring rights. This leads to a discussion on the tradeoff
between the costs and benefits of such a practice.
This study contributes to the agency theory literature by providing
theoretical propositions highlighting challenges to this theory whereby
mechanisms with the purpose of mitigating agency problems might lead to
a divergence from Islamic principles of Sharia.
The paper motivates Islamic banks to improve governance practices
currently in place. It alerts policy makers to the need to tailor the
regulations to safeguard the interests of all investors without
violating the principles of Sharia.
ZB 0
ZR 0
Z8 0
TC 76
ZS 0
ZA 1
Z9 77
U1 0
U2 40
SN 0964-8410
EI 1467-8683
UT WOS:000263965700003
ER
PT J
AU Ariffin, Noraini Mohd
Archer, Simon
TI Risks in Islamic banks: Evidence from empirical research
VL 10
IS 2
BP 153
EP 163
DI 10.1057/jbr.2008.27
PD MAR 2009
PY 2009
AB This study attempts to ascertain the perceptions of Islamic bankers
(chief financial officers and risk managers) about the nature of risks,
risk measurement and risk management techniques in their banks. It
covers 28 Islamic banks in 14 countries using a questionnaire survey.
The results indicate that Islamic banks are mostly exposed to similar
types of risks to those in conventional banks, but that there are
differences in the level of the risks. The findings of the study have
both theoretical and policy implications for the issue of transparency,
with particular reference to risk reporting in Islamic banks.
TC 25
Z8 0
ZB 0
ZS 0
ZA 0
ZR 0
Z9 25
U1 0
U2 0
SN 1745-6452
EI 1750-2071
UT WOS:000213036200003
ER
PT J
AU Napier, Christopher
TI Defining Islamic accounting: current issues, past roots
SO ACCOUNTING HISTORY
VL 14
IS 1-2
BP 121
EP 144
DI 10.1177/1032373208098555
PD FEB-MAY 2009
PY 2009
AB The emergence of Islamic banks and other financial institutions since
the 1970s has stimulated a modern literature that has identified itself
as addressing "Islamic accounting". Much of this literature is
prescriptive, though studies of actual practice, and of attitudes to
proposed alternatives, are beginning to emerge. Historical research into
Islamic accounting is still in a process of development, with a range of
studies based on both primary archives and manuals of accounting
providing growing insight into accounting in state and private contexts
in the Middle East. Other parts of the Muslim world are also the focus
of historical accounting research. There is still much to discover,
however, before historians can determine the influence of Middle Eastern
accounting ideas and practices in other parts of the world. Moreover,
the term "Islamic accounting" may simply be a convenient label to group
together quite disparate accounting practices and ideas across time and
space.
ZA 0
Z8 0
TC 30
ZR 0
ZS 0
ZB 0
Z9 30
U1 0
U2 0
SN 1032-3732
EI 1749-3374
UT WOS:000211139500007
ER
PT J
AU Abdullah, N. Irwani
TI IMPLEMENTATION OF MUAMALAH HIRE- PURCHASE BILL IN MALAYSIA: CHASING A
MIRAGE?
SO IIUM LAW JOURNAL
VL 17
IS 1
BP 99
EP 123
PD 2009
PY 2009
AB Islamic hire-purchase (Al-Ijarah Thumma Al-Bai or AITAB) is one of the
innovative products of Islamic banks in Malaysia. Since its first
inception more than 10 years ago, AITAB has been governed by the
Hire-Purchase Act 1967 (hereinafter referred to as 'the HPA').
Notwithstanding the surge in popularity of AITAB amongst the general
public, the product has received much criticism due to its inherent
limitations especially with regard to its regulatory framework. Critics
of AITAB posit the inherent limitation of the HPA to effectively and
efficiently govern AITAB transactions particularly when dealing with
Shariah issues. Consequently, Muam alah Hire-Purchase Bill had been
proposed to the Malaysian government to overcome certain limitations of
the HPA. The issue was, whether AITAB would be best governed by having
an independent regulation (known as Muamalah Bill), or by simply
incorporating SharENah principles within
ZR 0
ZS 0
Z8 0
TC 0
ZB 0
Z9 0
U1 0
U2 0
SN 0128-2530
EI 2289-7852
UT WOS:000436676900005
ER
PT J
AU Hassan, Taufiq
Mohamad, Shamsher
Bader, Mohammed Khaled I.
TI Efficiency of conventional versus Islamic banks: evidence from the
Middle East
MANAGEMENT
VL 2
IS 1
BP 46
EP 65
DI 10.1108/17538390910946267
PD 2009
PY 2009
AB Purpose - This paper aims to investigate the differences in mean cost,
revenue and profit efficiency scores of conventional versus Islamic
banks. It also aims to examine the effect of size and age on cost,
revenue and profit efficiency of the sampled banks.
Design/methodology/approach - This study evaluates a cross-country level
data compiled from the financial statements of 40 banks in 11
Organisation of Islamic Conference (OIC) countries over the period
1990-2005. The data were collected for each year available from the
BankScope database. The DEA nonparametric efficiency approach originally
developed by Farrell was applied to analyse the data.
Findings - The findings suggest no significant differences between the
overall efficiency of conventional and Islamic banks. However, it was
noted that, on average, banks are more efficient in using their
resources compared to their ability to generate revenues and profits.
The average bank lost an opportunity to receive 27.9 percent more
revenue, given the same amount of resources. Similarly, the average bank
lost the opportunity to make 20.9 percent more profits utilising the
same level of inputs. Clearly there is substantial room for improvement
in cost minimisation and revenue and profit maximisation in both banking
systems. The size and age factor did not significantly influence the
efficiency scores in both banking streams.
Originality/value - This research is substantially different from the
prior work in this area in three main ways. First, it investigates cost,
revenue, and profit efficiency, whereas previous studies focus on cost,
profit, or cost and profit efficiency. Also, no previous studies have
compared conventional and Islamic banks. Second, this study
distinguishes differences among big versus small, and old versus new
banks, which allows more detailed insights on the efficiency issue.
Third, the age issue in Islamic banks has been addressed, so far
undocumented.
ZS 0
ZR 0
TC 40
ZB 0
Z8 0
ZA 0
Z9 40
U1 1
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214372800006
ER
PT J
AU Sufian, Fadzlan
Noor, Mohamad Akbar Noor Mohamad
TI The determinants of Islamic banks' efficiency changes Empirical evidence
from the MENA and Asian banking sectors
MANAGEMENT
VL 2
IS 2
BP 120
EP 138
DI 10.1108/17538390910965149
PD 2009
PY 2009
AB Purpose - The purpose of this paper is to provide a comparative analysis
on the performance of the Islamic banking sector in 16 MENA (Middle East
and north Africa) and Asian countries.
Design/methodology/approach - A two-stage procedure is followed to
examine the efficiency of Islamic banking sectors in 16 MENA and Asian
countries. First, data envelopment analysis (DEA) is used to estimate
the technical, pure technical, and scale efficiency for each bank in the
sample. Following previous research, an annual frontier specific to each
year is constructed, as it is more flexible and thus more appropriate
than estimating a single multiyear frontier for the banks in the sample.
It has been pointed out that the principal advantage of having panel
data is the ability to observe each bank more than once over a period of
time. Nevertheless, the issue is also critical in a continuously
changing business environment because the technology of a bank that is
most efficient in one period may not be the most efficient in another.
To an extent, this relieves also the problems related to the lack of
random error in DEA by allowing an efficient bank in one period to be
inefficient in another, assuming that the errors owing to luck or data
problems are not consistent over time. In the second stage regression,
Tobit regression is used to determine the impact of internal and
external factors on Islamic banks' efficiency.
Findings - The results suggest that the MENA Islamic banks have
exhibited higher mean technical efficiency relative to their Asian
Islamic bank counterparts. The empirical findings suggest that during
the period of study, pure technical inefficiency outweighs scale
inefficiency in both the MENA and Asian countries banking sectors. Banks
from the MENA region were found to be the global leaders by dominating
the efficiency frontier during the period of study. Positive
relationship was found between bank efficiency and loans intensity,
size, capitalization, and profitability. The empirical results show that
technically more efficient banks are those that have smaller market
share and low non-performing loans ratio. A multivariate analysis based
on the Tobit model reinforces these findings.
Originality/value - The paper aims to fill a demanding gap in the
literature by providing the latest empirical evidence on the
determinants of the performance of Islamic banks in 16 MENA and Asian
countries.
ZB 0
TC 44
ZA 1
Z8 0
ZR 0
ZS 0
Z9 45
U1 1
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214373000004
ER
PT J
AU Amin, Hanudin
Hamid, Mohamad Rizal Abdul
Lada, Suddin
Baba, Ricardo
TI Cluster analysis for bank customers' selection of Islamic mortgages in
Eastern Malaysia An empirical investigation
MANAGEMENT
VL 2
IS 3
BP 213
EP 234
DI 10.1108/17538390910986344
PD 2009
PY 2009
AB Purpose - The purpose of this paper is to explore the reasons behind
customers' selection of Islamic mortgage in Sabah, Malaysia and present
factor and cluster analyses to identify the importance of choice
criteria for Islamic mortgage selection. The choice criteria among
Sabahans are investigated along with their gender, age group, religion,
monthly income, and ethnicity.
Design/methodology/approach - Atotal of 250 bank customers responded to
a survey addressing the choice criteria for Islamic mortgage providers.
It is important to address the criteria in order to make sure the
service providers are able to come up with attractive package of Islamic
home financing to their prospective customers. Of these, only 211
questionnaires are usable, which gives us a response rate of 84.4
percent. No extra efforts are conducted in order to increase the number
of respondents. Non-probability, convenience sampling is implemented.
This paper uses a quantitative study similar to what employed by
Lymperopoulos et al. and by Devlin. Frequencies, descriptive, factor and
cluster analyses are used to analyze the data.
Findings - A cluster analysis indicates that bank customers can be
divided into three clusters. Members of cluster 1 reported a tendency to
select mortgage bank on the basis of "service provisions" while the
members of cluster 2 reported a tendency to select mortgage bank on the
basis of "elements of Shariah and Islamic principles." While those of
members in the cluster 3, almost entirely had lower mean scores as
compared to other clusters. Nevertheless, the members of this cluster
reported a greatest tendency to choose Islamic mortgage provider on the
basis of "pricing."
Research limitations/implications - The paper has addressed three
limitations that provide opportunities for other researchers to explore
them in depth in the future in the similar field of Islamic home
financing. The limitations are presented in the conclusion's part.
Practical implications - With regard to implications, this paper offers
inputs for management decision among Islamic mortgage providers (i.e.
Islamic banking institutions such as full-fledged Islamic banks,
conventional banks with Islamic windows and conventional banks with
Islamic subsidiaries). In addition, this paper adds to the literature in
the area of home loans/financing.
Originality/value - This paper offers the choice criteria for
Islamicmortgage providers provides useful information on the Islamic
mortgage providers' selection among Sabahans. This paper indeed provides
useful information on the main choice criteria that affect why Sabahan
choose Islamicmortgage providers.
RI Amin, Hanudin/I-1176-2017; Lada, Suddin/P-7915-2019
OI Amin, Hanudin/0000-0003-3645-287X;
ZS 0
ZB 0
ZA 0
TC 13
ZR 0
Z8 0
Z9 13
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214374200004
ER
PT J
AU Ahmad, Abu Umar Faruq
Hassan, M. Kabir
TI Legal and regulatory issues of Islamic finance in Australia
MANAGEMENT
VL 2
IS 4
BP 305
EP 322
DI 10.1108/17538390911006368
PD 2009
PY 2009
AB Purpose - The purpose of this paper is to contribute to the existing
body of work in the area of Islamic finance by examining the regulation
of Islamic finance in Australia.
Design/methodology/approach - The method employed in this paper is a
mixture of direct observation from legal and regulatory perspectives and
authors' personal experience, curiosity, and association with this
industry.
Findings - In Australia, where Muslims are minorities and full-fledged
Islamic banks are absent, it is expected that regulatory authorities
would ensure there is a level playing field, so that neither Islamic
financial services providers (IFSPs) nor conventional financial
institutions are disadvantaged. They have also been expected to approve
and monitor Islamic financial products, including those offered by
Islamic managed funds.
Research limitations/implications - The study is undertaken through the
Shari'ah, where law, finance, economics, and business form a single
dimension only, even though a very significant one. No attempt is made
to evaluate the economic efficiency and profitability or otherwise, of
IFSPs in Australia. Also, the approach for the study is not supplemented
by any empirical work (e.g. by quantitative analysis of data or by
survey or other qualitative methodologies).
Practical implications - The paper practically examines: the impact of
banking and financial services regulation on Islamic banking and
financing practice in Australia; and what further legislative measures
and changes are needed to accommodate Islamic financing practice into
Australian society to make ita truly viable alternative system of
financing for Muslims in Australia.
Originality/value - Examination of the issues of the study is originally
undertaken through one of the authors' personal expertise and working
experience with some IFSPs in Australia, aiming at developing the
relevant regulations by the Australian regulatory regime to make Islamic
finance a viable alternative system of financing for Muslims in
Australia.
RI , Abu Umar Faruq Ahmad/I-4680-2012; Hassan, M. Kabir/D-5053-2012
OI , Abu Umar Faruq Ahmad/0000-0003-1523-1883; Hassan, M.
Kabir/0000-0001-6274-3545
Z8 0
ZA 0
ZB 0
TC 1
ZS 0
ZR 0
Z9 1
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214374800004
ER
PT J
AU Hossain, Mohammed
Leo, Shirley
TI Customer perception on service quality in retail banking in Middle East:
the case of Qatar
MANAGEMENT
VL 2
IS 4
BP 338
EP 350
DI 10.1108/17538390911006386
PD 2009
PY 2009
AB Purpose - The purpose of this paper is to evaluate the service quality
in retail banking in the Middle East in general, and Qatar in
particular, based on different levels of customers' perception regarding
service quality.
Design/methodology/approach - This is an analytical study based mainly
on the primary data collected through a scientifically developed
questionnaire. The questionnaire have been personally administered on a
sample size of 120, chosen on a convenient basis from four Qatari banks,
i.e. Qatar National Bank, Doha Bank, Qatar International Islamic Bank,
and Arab Bank. The questionnaire has been designed on the basis of the
study of previous scholars such as Berry et al., Parasuraman et al.,
Zeithaml and Bitner, and Stafford.
Findings - The result indicates that customers' perception is highest in
the tangibles area and lowest in the competence area.
Practical implications - In order to achieving higher levels of quality
service in retail banking, banks should deliver higher levels of service
quality and in the present context customers' perceptions are highest in
the level of infrastructure facilities of the bank, followed by timing
of the bank, and return on deposit. Owing to the increasing competition
in retail banking, customer service is an important part and bank
managers should be rethinking how to improve customer satisfaction with
respect to service quality.
Originality/value - This paper makes a useful contribution given that
there are only a few studies dealing with the assessment of service
quality in banking environments.
OI Hossain, Mohammed/0000-0003-0009-3094
TC 33
ZB 0
Z8 0
ZR 0
ZA 1
ZS 0
Z9 34
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214374800006
ER
PT J
AU Al-Ajmi, Jasim
Hussain, Hameeda
Al-Saleh, Nadhem
TI Clients of conventional and Islamic banks in Bahrain How they choose
which bank to patronize
VL 36
IS 11
BP 1086
EP +
DI 10.1108/03068290910992642
PD 2009
PY 2009
AB Purpose - The purpose of this paper is to report a study into: the
motives that dispose customers in Bahrain to choose a specific bank; the
level of familiarity of customers with the most widely used
services/products offered by Islamic banks; and the extent of use of
those products.
Design/methodology/approach - This is the first study conducted in
Bahrain to include three types of bank clients: those who bank with
conventional banks, those who bank with Islamic banks, and who use both
kinds of banks. The results are based on a response rate of 65.5 percent
from 1,000 questionnaires distributed. Descriptive statistics and
non-parametric statistics (Mann-Whitney and Kruskal-Wallis tests) are
reported, and factor analysis used to analyze the responses.
Findings - It is found that: Islamic religious belief and social
responsibility are the two most important factors that determine bank
selection. Cost benefit is the third most important factor considered in
bank selection; clients of conventional and Islamic banks share a number
of motives, but they differ significantly on a few motives in relation
to bank selection; and clients of Islamic banks are more familiar with
the products/services that conform to the sharia'a. Overall, for clients
who bank exclusively with Islamic banks, and for those who bank in
different kinds of banks, the most widely used product/service of
Islamic banks is murabaha.
Practical implications - The most important practical implication is for
banks, conventional and Islamic, when setting and implementing their
marketing strategies, which should include an awareness campaign. The
results also benefit banks operating in the countries of the Gulf
Cooperation Council (GCC). This is because of the similarities of the
countries in the GCC.
Originality/value - This paper is the first attempt to identify the
motives and criteria for bank selection in Bahrain among clients of
conventional banks, Islamic banks, and clients who bank with both types
of banks. The study goes on to determine the extent of familiarity of
clients of banks in Bahrain with the products/services that comply with
Islamic sharia'a.
Z8 0
ZA 0
ZS 0
ZR 0
ZB 0
TC 58
Z9 58
U1 0
U2 0
SN 0306-8293
EI 1758-6712
UT WOS:000211550500005
ER
PT B
AU Visser, Hans
BA Visser, H
TI Islamic banks
SO ISLAMIC FINANCE: PRINCIPLES AND PRACTICE
BP 81
EP 101
PD 2009
PY 2009
Z8 0
TC 0
ZA 0
ZS 0
ZB 0
ZR 0
Z9 0
U1 0
U2 0
BN 978-1-84542-525-8
UT WOS:000285288300006
ER
PT J
AU Mansor, Mohd Najib
TI Islamic Banking and Financial Institutions in Malaysia: Current
Developments
SO JOURNAL OF INTERNATIONAL STUDIES-JIS
VL 5
BP 109
EP 123
PD 2009
PY 2009
AB This paper presents current developments in Islamic banking and
financial institutions in Malaysia. It begins by discussing the paradigm
of Islamic banking and finance through the concept of Islam and
economics, the emergence of Islamic financial institutions in Malaysia,
the concept of Al-Bai' Bithaman Ajil (BBA) and also the future direction
of Islamic banking. The writer argues that Islamic banking is still
within the framework of the conventional system except on the element of
riba in its transaction. The growing number of products, systems,
infrastructures and supporting institutions of Islamic banking in recent
years may sustain the development of the Islamic banking industry. With
the current issues in BBA, the industry needs to better understand the
basic tools in Islamic banking and any weaknesses in today's system
should be rectified so as to help develop Islamic banks become truly
innovative, competitive and integrated part of the contemporary global
finance.
Z8 0
ZB 0
ZR 0
ZS 0
TC 0
Z9 0
U1 0
U2 0
SN 1823-691X
EI 2289-666X
UT WOS:000219963000007
ER
PT J
AU Mouawad, Sherin Galal Abdullah
TI The development of Islamic finance: Egypt as a case study
SO JOURNAL OF MONEY LAUNDERING CONTROL
VL 12
IS 1
BP 74
EP +
DI 10.1108/13685200910922660
PD 2009
PY 2009
AB Purpose - The purpose of this paper is to analyze the political and
economic dilemma that Islamic finance (IF) poses on some Muslim
Governments of either encouraging or restraining this global phenomenon;
in spite of their awareness of the developmental role that IF plays.
Egypt, in this concern represents a peculiar example where government's
policies apparently determine the performance of Islamic financial
institutions.
Design/methodology/approach - The paper begins with an overview of IF
and the momentums that catalyzed the development of IF in general and in
Egypt in specific. It then analyses the policies of the Egyptian
Government towards Islamic financial institutions since its inception in
1963 until 2007, with a specific focus on Islamic banks and Islamic
companies. This is followed by a discussion on the current practices of
these institutions in the Egyptian economy. Finally, the paper presents
a prospect vision of the future path of Egypt in the field of IF.
Findings - The paper finds that the shares of IF in the Egyptian economy
are modest at local, regional and global levels. Such backward position
could be justified in the light of the governmental policies and their
manipulation over the legal, economic and religious institutions in a
way that restrain the performance of Islamic financial institutions.
However, the responsibility is not solely the government's; Islamic
financial institutions share part of such retreat due to their practices
that divert them from their mission.
Practical implications - The paper concludes that the nature of the
Egyptian Government's attitudes towards IF stems from its tendency to
maintain the stability of its economic system besides its suspicion to
the nature of Islamic financial institutions and their links with
Islamist groups. In addition, Islamic financial institutions suffer from
administrative and legal problems that shape their practices and reveal
their divergence from their Islamic and developmental role that they are
supposed to play.
Originality/value - In the final analysis, the paper offers an insight
into prospective development of IF in Egypt on both local and external
levels.
ZS 0
ZR 0
TC 9
ZB 0
Z8 0
ZA 0
Z9 9
U1 0
U2 0
SN 1758-7808
EI 1368-5201
UT WOS:000212752200007
ER
PT J
AU Hassan, Abul
TI Risk management practices of Islamic banks of Brunei Darussalam
VL 10
IS 1
BP 23
EP 37
DI 10.1108/15265940910924472
PD 2009
PY 2009
AB Purpose - The objective of this paper is to assess the degree to which
Islamic banks in Brunei Darussalam use risk management practices (RMPs)
and techniques in dealing with different types of risk.
Design/methodology/approach - The researcher developed a questionnaire
which covers six aspects in the first part: understanding risk and risk
management, risk assessment and analysis (RAA), risk identification
(RI), risk monitoring, credit risk analysis and RMPs. The second part
consists of two questions based on an ordinal scale dealing with two
topics: methods of RI and risk facing the sample banks.
Findings - This study found that that the three most important types of
risk that the Islamic banks in Brunei Darussalam facing are
foreign-exchange risk, followed by credit risk and then operating risk.
It also found that the Islamic banks are somewhat reasonably efficient
in managing risk where RI and RAA are the most influencing variables in
RMPs.
Research limitations/implications - The paper's findings are limited to
the RMPs of Islamic banks in Brunei Darussalam.
Originality/value - The paper explores the RMPs of the Islamic banks in
Brunei Darussalam. The results can be used as a valuable feed back for
improvement of RMPs in the Islamic banks in Brunei and will be of value
to those people who are interested in the Islamic banking system.
ZB 0
ZS 0
ZR 0
TC 35
Z8 0
ZA 1
Z9 36
U1 0
U2 0
SN 1526-5943
EI 2331-2947
UT WOS:000213293800004
ER
PT J
AU Chong, Beng Soon
Liu, Ming-Hua
TI Islamic banking: Interest-free or interest-based?
VL 17
IS 1
BP 125
EP 144
DI 10.1016/j.pacfin.2007.12.003
PD JAN 2009
PY 2009
AB A unique feature of Islamic banking, in theory, is its profit-and-loss
sharing (PLS) paradigm. In practice, however, we find that Islamic
banking is not very different from conventional banking. Our study on
Malaysia shows that only a negligible portion of Islamic bank financing
is strictly PLS based and that Islamic deposits are not interest-free,
but are closely pegged to conventional deposits. Our findings suggest
that the rapid growth in Islamic banking is largely driven by the
Islamic resurgence worldwide rather than by the advantages of the PLS
paradigm and that Islamic banks should be subject to regulations similar
to those of their western counterparts. (C) 2008 Elsevier B.V. All
rights reserved.
ZA 4
ZR 1
ZB 0
ZS 2
Z8 0
TC 240
Z9 245
U1 5
U2 59
SN 0927-538X
EI 1879-0585
UT WOS:000274533300007
ER
PT J
AU Sufian, Fadzlan
TI Sources of TFP growth in the Malaysian Islamic banking sector
VL 29
IS 9
BP 1273
EP 1291
AR PII 912443466
DI 10.1080/02642060801911128
PD 2009
PY 2009
AB This paper attempts to empirically analyse productivity changes of the
Malaysian Islamic banking sector during the period of 2001-2004 by
applying the non-parametric Malmquist productivity index method. During
the period of study, the empirical findings suggest that the Malaysian
Islamic banking sector has exhibited productivity progress during the
earlier years before declining during the latter years. The results
suggest that foreign banks have exhibited higher productivity levels
compared with their domestic counterparts during the earlier years,
while the domestic banks' productivity levels were relatively higher
compared with the foreign banks during the latter years.
OI Sufian, Fadzlan/0000-0001-7092-2324
ZB 0
Z8 0
ZS 0
TC 8
ZR 0
ZA 0
Z9 8
U1 0
U2 11
SN 0264-2069
UT WOS:000270094000007
ER
PT J
AU Olson, Dennis
Zoubi, Taisier A.
TI Using accounting ratios to distinguish between Islamic and conventional
banks in the GCC region
SO INTERNATIONAL JOURNAL OF ACCOUNTING
VL 43
IS 1
BP 45
EP 65
DI 10.1016/j.intacc.2008.01.003
PD MAR 2008
PY 2008
AB This study determines whether it is possible to distinguish between
conventional and Islamic banks in the Gulf Cooperation Council (GCC)
region on the basis of financial characteristics alone. Islamic banks
operate under different principles, such as risk sharing and the
prohibition of interest, yet both types of banks face similar
competitive conditions. The combination of effects makes it unclear
whether financial ratios will differ significantly between the two
categories of banks. We input 26 financial ratios into logit, neural
network, and k-means nearest neighbor classification models to determine
whether researchers or regulators could use these ratios to distinguish
between the two types of banks. Although the means of several ratios are
similar between the two categories of banks, non-linear classification
techniques (k-means nearest neighbors and neural networks) are able to
correctly distinguish Islamic from conventional banks in out-of-sample
tests at about a 92% success rate. (C) 2008 University of Illinois. All
rights reserved.
RI Olson, Dennis/AAU-1458-2020
TC 115
ZR 0
ZA 2
ZB 2
ZS 0
Z8 0
Z9 117
U1 0
U2 1
SN 0020-7063
EI 1879-2251
UT WOS:000217542800003
ER
PT J
AU Dayan, Mumin
Al-Tamimi, Hussein A. Hassan
Lo Elhadji, Amar
TI Perceived justice and customer loyalty in the retail banking sector in
the UAE
VL 12
IS 4
BP 320
EP 330
DI 10.1057/palgrave.fsm.4760085
PD MAR 2008
PY 2008
AB In this study, the impacts of the three dimensions of justice
(distributive, interactional, and procedural) on customers
'post-complaint behaviour (ie exit vs loyalty) of both conventional and
Islamic banks in the UAE were investigated. The results showed that
interactional justice (eg courtesy) and distributive justice (eg refund)
play predominant roles, since they impact both positive and negative
emotions and the exit-loyalty behaviour of customers regardless of the
type of bank (conventional or Islamic). The results show, however, that
procedural justice (eg timeliness) has no impact on either negative or
positive emotions and the exit-loyalty behaviour of either conventional
bank customers or Islamic bank customers. The results were interpreted
in terms of cultural context and in terms of managerial implications for
conventional and Islamic banks that are mostly dealing with complaint
handling and employee training. The limitations of this study are also
discussed at the end.
ZA 0
ZR 0
TC 6
ZS 0
Z8 0
ZB 0
Z9 6
U1 0
U2 0
SN 1363-0539
EI 1479-1846
UT WOS:000211810300007
ER
PT J
AU Aldohni, Abdul Karim
TI The Emergence of Islamic Banking in the UK: A Comparative Study with
Muslim Countries
VL 22
IS 2
BP 180
EP 198
DI 10.1163/157302508X311590
PD 2008
PY 2008
AB Islamic banking is a financial phenomenon that has taken many
specialists by surprise. In this respect, the uniqueness of Islamic
banks comes from their ability to grow fast and extend to non-Muslim
financial markets. Therefore, it is crucial to examine the elements that
have led to this development, taking into account the differences
between the experience of Muslim countries and that of non-Muslim
countries, particularly the UK. In addition, it is very important to
address how both experiences have interacted with each other.
TC 6
ZR 1
ZA 0
ZB 0
Z8 0
ZS 0
Z9 6
U1 0
U2 0
SN 0268-0556
EI 1573-0255
UT WOS:000217450500004
ER
PT J
AU Mokhtar, Hamim
Abdullah, Naziruddin
Alhabshi, Syed
TI Efficiency and competition of Islamic banking in Malaysia
SO HUMANOMICS
VL 24
IS 1
BP 28
EP +
DI 10.1108/08288660810851450
PD 2008
PY 2008
AB Purpose - In an attempt to enrich the literature of the efficiency of
Islamic banks, this study aims to empirically investigate the efficiency
of the fully fledged Islamic banks as well as Islamic windows in
Malaysia.
Design/methodology/approach - This study measures the technical and
cost-efficiencies of these banks using the non-parametric frontier
method, data envelopment analysis (DEA).
Findings - The findings show that, on average, the efficiency of the
overall Islamic banking industry has increased during the period of
study. The study also revealed that, although the fully fledged Islamic
banks were more efficient than the Islamic windows, they were still less
efficient than the conventional banks. Finally, Islamic windows of the
foreign banks were found to be more efficient than Islamic windows of
the domestic banks.
Originality/value - The findings of this study will provide some
empirical insights as to how these two modes of Islamic banks had fared
in the competitive environment from 1997 to 2003.
ZB 0
ZR 0
ZS 1
ZA 0
Z8 0
TC 43
Z9 43
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210871700004
ER
PT J
AU Dusuki, Asyraf
TI Banking for the poor: the role of Islamic banking in microfinance
initiatives
SO HUMANOMICS
VL 24
IS 1
BP 49
EP +
DI 10.1108/08288660810851469
PD 2008
PY 2008
AB Purpose - The main purpose of this paper is to review the microfinance
scheme and discuss how Islamic banks can participate in such an
endeavour without actually compromising the issue of institutional
viability and sustainability.
Design/methodology/approach - The paper is based on an extensive review
of microfinance with the objective of building a case for Islamic
banking to participate in a microfinance initiative.
Findings - As reviewed in this paper, microfinance requires innovative
approaches beyond the traditional financial intermediary role. Among
others, building human capacity through social intermediation and
designing group-based lending programmes are proven to be among the
effective tools to reduce transaction costs and lower exposure to
numerous financial risks in relation to providing credit to the rural
poor. This paper also suggests the use of a special purpose vehicle
(SPV) as one of the possible alternatives for Islamic banks channelling
funds to the poor.
Research limitations/implications - Islamic banks may benefit from the
spectrum of Shariah-compliant sources of funds and offer a wide array of
financing instruments catering for different needs and demands of their
clients. Furthermore, the use of a bankruptcy-remote entity like SPV can
protect Islamic banks from any adverse effect of microfinance
activities.
Originality/value - The analysis here is valuable in drawing the
attention of Islamic banking practitioners to the fact that they can
actually practise microfinance without undermining their institutional
viability, competitiveness and sustainability. This is evident from the
proposed model to incorporate SPV into their microfinance initiatives.
ZB 1
ZA 1
ZR 0
TC 43
Z8 0
ZS 0
Z9 44
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210871700005
ER
PT J
AU Zakaria, Roza
Ismail, Abdul
TI Does Islamic banks' securitization involvement restrain their financing
activity?
SO HUMANOMICS
VL 24
IS 2
BP 95
EP +
DI 10.1108/08288660810876813
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to validate the concern that
banks' increasing involvement in securitization activity restrains
banks' lending, as well as their degree of risk tolerance. Theoretical
frameworks claim that securitization reduces risk, hence decreasing
banks' degree of risk aversion. Subsequently, banks would be motivated
to increase their percentage of assets devoted to risky activities,
which is lending to economic sectors. However, banking statistics
dictates that banks' lending is on the decline while banks'
securitization activities are on the rise.
Design/methodology/approach - The paper refers specifically to the
Malaysian Islamic commercial banks and utilizes standard panel data
analysis.
Findings - Supportive evidence was found that banks' involvement in
securitization activity do restrain their lending activity. In addition,
banks tend to have a riskier portfolio composition following their
involvement in securitization activity. Taken together, this signals
that banks' involvement in securitization activity needs to be regulated
or restricted since excessive securitization activities could curtail
credit and increase risk inherent in banks' lending portfolio.
Originality/value - This study departs from previous literature in the
sense that an alternative method is introduced to measure banks'
securitization activity.
ZS 0
ZB 0
ZA 0
TC 5
Z8 0
ZR 0
Z9 5
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210872600003
ER
PT J
AU Djojosugito, Reza
TI Mitigating legal risk in Islamic banking operations
SO HUMANOMICS
VL 24
IS 2
BP 110
EP +
DI 10.1108/08288660810876822
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to outline the principles of and
legal risk faced by Islamic banking and suggest necessary steps to
mitigate them.
Design/methodology/approach - The paper examines ideal concept of
Islamic banking and its practice. A range of publication is used,
however the bulk of it concerns existing practices to provide practical
insight on the subject rather than theoretical discourse. The paper is
sorted into sections: Introduction, Islamic banking system, existing
practices, legal risk and proposed reform.
Findings - Islamic banks face risks stemming from legal structure chosen
due to the differences between principles of Shariah and law. While
compliance to Shariah is paramount for Islamic banks, the law governing
Islamic banking transactions may not necessarily give any consideration
to Shariah. The paper elaborates legal risk exposed to parties to
Islamic banking transactions encompassing the issues of the capacity of
the parties to enter into a contract and its enforceability, uncertainty
in laws, regulations, and legal actions pertaining to Shariah; as well
as the legality of Islamic financial instruments.
Research limitations/implications - The paper reviews relevant laws and
regulations related to Islamic banking, however no specific reference to
any particular jurisdiction.
Practical implications - This paper is a source of information for those
in the Islamic banking industry without legal background or lawyer new
to it.
Originality/value - This paper touches upon a new area, the legal risk
due to the divergence between the principle of Shariah and law. It
offers practical insight into the legal aspect of Islamic banking
operations.
ZR 0
Z8 0
TC 8
ZA 0
ZS 0
ZB 0
Z9 8
U1 0
U2 1
SN 0828-8666
EI 1758-7174
UT WOS:000210872600004
ER
PT J
AU Ahmed, Gaffar
TI The implication of using profit and loss sharing modes of finance in the
banking system, with a particular reference to equity participation
(partnership) method in Sudan
SO HUMANOMICS
VL 24
IS 3
BP 182
EP 206
DI 10.1108/08288660810899359
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to evaluate the performance of
musharakah (equity participation) in terms of profitability and risk; to
investigate musharakah management to recognise the obstacles and factors
influencing decision-making and to investigate the implications of using
musharakah mode of finance.
Design/methodology/approach - Data from Sudan, which fully adhere to
interest-free principles of finance, will be used. Part of the data
source is the Sudanese banks' balance sheets and annual reports, which
provide bank level data for all Sudanese banks for the period 1990-2004.
Initially, some descriptive analysis is provided. The concentration of
musharakah in the Sudanese Islamic banks each year is provided so as to
give an indication of the influence of musharakah. The second part of
the data is survey data collected from nine banks. The survey has been
distributed and collected from staff members of investment departments
at the Sudanese banks.
Findings - The results show the high preference of musharakah among
banks' staff compared with other modes of finance. The results indicate
that the lack of knowledgeable bankers in selecting, evaluating and
managing profitable projects is a significant cause for the lack of
profit and loss (PLS) projects. The results show the high profitability
and risk performance. The paper has exposed the key issues involved in
bad debt and general risk degree for musharakah.
Originality/value - The advantages and disadvantages of using musharakah
have been discussed, obstacles for the scheme have identified, and the
performance of musharakah has been evaluated. The paper should
contribute to a better understanding of the implications of using PLS
modes of finance, particularly musharakah.
ZA 0
ZB 0
ZR 0
ZS 0
Z8 0
TC 3
Z9 3
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210873200003
ER
PT J
AU Ghayad, Racha
TI Corporate governance and the global performance of Islamic banks
SO HUMANOMICS
VL 24
IS 3
BP 207
EP +
DI 10.1108/08288660810899368
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to study the operation of Islamic
banks and the elements which determine their performance.
Design/methodology/approach - In order to ensure the respect of Shari'a,
religious committee of monitoring exists within the Islamic bank to take
care of the conformity of the activities and banking products with the
Shari'a. This paper supposes that corporate governance of Islamic banks
imposes an important constraint on Islamic banks operations.
Furthermore, the directors of the Islamic banks are subjected to the
governorship exerted by the board of directors and the Shari'a board.
Findings - The findings of this paper are that the performance of an
Islamic bank - as a company based on principles of Islam - is affected
not only by the internal variables of quantitative nature (for example
financial ratios) but also by the internal qualitative variables like
the managerial variables. Moreover, the performance of an Islamic bank
and a conventional bank should not be measured in the same way because
of their divergence on the level of the objectives. The Shari'a member
must have a qualification in finance and commerce to ensure better
quality of supervision and consultation.
Research limitations/implications - The findings of this paper are based
on case studies from one country only (Bahrain).
Practical implications - This paper implies that in practice, members of
Shari'a Board must have stature to give the bank credibility vis-a`-vis
the stakeholders and the depositors.
Originality/value - The original contribution of this paper is that it
shows that the members of Shari'a board were a serious handicap for the
directors of the Islamic banks. Directors and members of Shari'a board
did not speak the same language. The members of the Shari'a board were
not very specialized in the fields other than Shari'a and contrary the
directors in Shari'a.
ZR 0
ZB 0
ZA 1
TC 35
ZS 0
Z8 0
Z9 36
U1 0
U2 1
SN 0828-8666
EI 1758-7174
UT WOS:000210873200004
ER
PT J
AU Amin, Hanudin
TI Choice criteria for Islamic home financing Empirical investigation among
Malaysian bank customers
SO INTERNATIONAL JOURNAL OF HOUSING MARKETS AND ANALYSIS
VL 1
IS 3
BP 256
EP 274
DI 10.1108/17538270810895105
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to investigate the choice
criteria for Islamic home financing in Malaysian Islamic banks. Most
importantly, this study considers establishing a specific rank of choice
criteria for Islamic home financing. Moreover, these choice criteria
will also be ranked according to the selected demographic elements such
as gender, marital status and age range.
Design/methodology/approach - This study uses a quantitative study
similar to what was employed by previous researchers. The study presents
primary data collected by self-administered questionnaires involving a
sample of 150 Malaysian bank customers in Labuan, Malaysia. Of these,
141 questionnaires were returned with a response rate equivalent to 94
per cent. The Islamic home financing choice criteria as perceived by the
Malaysian bank customers are analysed using frequencies, independent
samples t-test and ANOVA.
Findings - The results suggest that "Shariah principle'', "lower monthly
payment'', "transparency practice'', "interest-free practice'' and "100
per cent financing'' are the first five decision criteria considered as
being very important. The least preferred criteria, among others, are
"recommendation'', "longer financing period'', "product range'' and
"branch location''. Results also suggested that a small number of
significant differences are apparent in the importance of choice
criteria with respect to gender, marital status and age range.
Research limitations/implications - The study contains three
limitations. The first limitation was based on the sample area for the
study which is confined to Labuan, Malaysia. Second, this study
restricted the use of factor analysis since the data did not allow for
aggregation. Third, this study was also unable to perform ANOVA for
religion differences as the sample consisted largely of Muslims.
Practical implications - The results are primarily beneficial to
academics and practitioners in Malaysia by offering an insight into
choice criteria for Islamic home financing. This study provides new
results about different kinds of customer types and their preferences
with regards to Islamic home financing selection. As such, Islamic bank
managers can learn and plan to offer attractive schemes for the Islamic
home financing market that meet Malaysian bank customers' needs. For the
researcher, this study contributes to existing body of knowledge by
providing an investigation of choice criteria in the Islamic home
financing. Indeed, this study is considered an "eye-opener'' for Islamic
home financing choice criteria which has limited previous studies.
Originality/value - This study introduces the choice criteria for
Islamic financing among Malaysian bank customers. The study offers an
insight into Islamic home financing choice criteria in Malaysia which
has limited previously been investigated.
OI Amin, Hanudin/0000-0003-3645-287X
TC 35
ZR 0
Z8 0
ZS 1
ZA 0
ZB 0
Z9 35
U1 0
U2 0
SN 1753-8270
EI 1753-8289
UT WOS:000214340500005
ER
PT J
AU Shubber, Kadom
Alzafiri, Eid
TI Cost of capital of Islamic banking institutions: an empirical study of a
special case
MANAGEMENT
VL 1
IS 1
BP 10
EP 19
DI 10.1108/17538390810864223
PD 2008
PY 2008
AB Purpose - The paper's purpose is to ascertain how computing the cost of
capital for Islamic banks may differ from the case of conventional ones.
Design/methodology/approach - The published accounts of four major
Islamic banks were analysed, so as to test the set hypotheses. Also, two
surveys were undertaken on this issue, one for banking officials; the
other for depositors at a major Islamic bank.
Findings - For Islamic banks, it became clear that deposit accounts were
not a liability, as these fell within the definition of "profit-and-loss
sharing" instruments. In fact, a high-positive correlation coefficient
was apparent between an Islamic bank's market value and the size of its
deposits. Also, the market value of Islamic banks was clearly
independent of its cost of capital.
Research limitations/implications - The two surveys expressed the views
of respondents, and these could be subjective. Also, the core sample
studied in depth was limited to four banks, and this could be widened in
subsequent research.
Practical implications - Risk associated with deposit-taking needs to be
looked at differently in the case of Islamic banking institutions. Also,
return provided to shareholders came out higher than for depositors.
Originality/value - The paper sheds new light on how the cost of capital
may be computed in the case of Islamic banks. Also, the relationship
between depositors and shareholders is investigated, though additional
research is required on this aspect.
ZS 0
ZR 0
Z8 0
ZA 0
ZB 0
TC 6
Z9 6
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214364600004
ER
PT J
AU Hasan, Zubair
TI Credit creation and control: an unresolved issue in Islamic banking
MANAGEMENT
VL 1
IS 1
BP 69
EP 81
DI 10.1108/17538390810864269
PD 2008
PY 2008
AB Purpose - To reopen for discussion the issue of credit creation and
control in the area of Islamic banking.
Design/methodology/approach - In view of a rapid expansion of Islamic
banking in recent decades, the answer to questions whether Islamic banks
can create credit like mainstream banks and, if yes, what methods
central banks could use to control it in their case is of paramount
importance. An overview of the literature on the subject is provided and
credit creation process is explained as background material for the
discussion.
Findings - The literature on the subject is scanty, controversial and
inconclusive. One reason seems to be the mismatch between structural
design of Islamic banks and the objectives they are supposed to meet. It
is concluded that Islamic banks can create credit in the usual manner
but central banks will have to design new tools for credit control
applicable to Islamic banks.
Research limitations/implications - It is not a rigorous analytical
exercise as the main purpose of the paper is to reopen an important
issue for discussion. It is an opinioned work and presents rather
tentative answers to the questions raised.
Practical implications - The findings of the paper may have serious
implications for the current structure of Islamic banks and the legal
framework for regulating their credit creation activities.
Originality/value - The paper draws attention to a rather neglected
issue in Islamic banking and offers guidelines to resolve it.
TC 3
ZR 0
ZS 0
ZA 0
ZB 0
Z8 0
Z9 3
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214364600008
ER
PT J
AU Benamraoui, Abdelhafid
TI Islamic banking: the case of Algeria
MANAGEMENT
VL 1
IS 2
BP 113
EP 131
DI 10.1108/17538390810880973
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to provide a detailed analysis of
the Islamic banking in Algeria following the financial liberalisation
initiated in the 1990 s. It seeks to examine the performance of the sole
bank offering Islamic financial products in Algeria, Banque Al Baraka
d'Algerie. The study also aims to analyse the methods adopted by the
bank to improve the allocation of its financial resources and to boost
its earnings.
Design/methodology/approach - Interviews were conducted to learn about
the performance and risks associated with Banque Al Baraka d'Alge ' rie
operations. All interviews were held one-to-one with each respondent in
Algeria. Statistical data and financial ratio analyses are also used to
support the arguments made in this study. Analyses are carried out on
major factors affecting the bank operations.
Findings - The study reveals four key findings: Banque Al Baraka d'Alge
' rie offers only a few Islamic financial products to its customers;
most of the instruments are geared towards short-term financing; the
bank's overall performance has improved since its operations in Algeria;
and credit risk remains the main obstacle facing the bank.
Research limitations/implications - This research uses a single country
case study. The study also refers to the case of one Islamic bank with
no competition from other Islamic finance providers.
Practical implications - The analyses presented in this research can be
used by policymakers and managers as a guide to developing the existing
Islamic banking practices in Algeria.
Originality/value - The study makes a contribution to the literature on
Islamic banking in Algeria. It is the first study to particularly
investigate the issue of Islamic banking performance in Algeria. The
findings achieved in this research will be of interest for practitioners
and academics concerned with developments of the Algerian banking
industry.
ZS 0
ZA 1
TC 7
ZB 0
Z8 0
ZR 0
Z9 8
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214365400003
ER
PT J
AU Dusuki, Asyraf Wajdi
TI Understanding the objectives of Islamic banking: a survey of
stakeholders' perspectives
MANAGEMENT
VL 1
IS 2
BP 132
EP 148
DI 10.1108/17538390810880982
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to survey the viewpoints of
various stakeholder groups on the philosophy and objectives of Islamic
banking, particularly in a dual banking environment, as in the case of
Malaysia.
by self-administered and postal questionnaires involving a sample of
1,500 respondents representing seven stakeholder groups, namely
customers, depositors, local communities, Islamic banking managers,
employees, banking regulatory officers and Shariah advisers. An
exploratory factor analysis is employed to examine the respondents'
perceptions towards various objectives of Islamic banking.
Findings - This paper reveals that respondents regard Islamic banking as
an institution that should uphold social objectives and promote Islamic
values towards their staffs, clients and the general public. Other
factors perceived to be important include contributing to the social
welfare of the community, promoting sustainable development projects and
alleviating poverty.
Practical implications - The empirical evidence of this paper affects
two aspects; first Islamic banks must not be solely profit-driven
entities; rather they must aim at promoting Islamic norms and values to
achieve the economic objectives as prescribed by Shariah (Islamic Law).
Second, true success for Islamic banking participants depends on the
extent to which they can integrate social goals with the mechanics of
financial innovation. This research will be of interest to both
incumbent and potential entrants into this niche market.
Originality/value - The paper reports findings from the first
nation-wide survey of diverse stakeholder groups in the area of Islamic
banking and finance.
TC 58
ZR 0
ZA 1
ZS 0
ZB 1
Z8 0
Z9 59
U1 0
U2 1
SN 1753-8394
EI 1753-8408
UT WOS:000214365400004
ER
PT J
AU Bacha, Obiyathulla Ismath
TI The Islamic inter bank money market and a dual banking system: the
Malaysian experience
MANAGEMENT
VL 1
IS 3
BP 210
EP 226
DI 10.1108/17538390810901140
PD 2008
PY 2008
AB Purpose - This paper seeks to examine the operation of an Islamic
inter-bank money market (IIMM), within a dual banking system.
Design/methodology/approach - The paper describes Malaysia's Islamic
IIMM. It then examines some of the key risks associated with money
market functions. An empirical examination of the extent to which yields
in the IIMM are correlated with conventional money market yields is
undertaken. The implication of this on interest-rate exposure for the
Islamic financial sector is discussed. Finally, the paper looks at some
of the challenges and offers conclusions.
Findings - The paper argues that even though an Islamic money market
operates in an interest-free environment and trades Shariah-compliant
instruments, many of the risks associated with conventional money
markets, including interest-rate risks are relevant. The empirical
evidence, based on Malaysian data, points to Islamic money market profit
rates/yields that are highly correlated and move in tandem with
conventional money market rates. Given the dynamics of fund flows and
cross-linkages, an IIMM operating within a dual banking system cannot
sterilize itself from interest-rate risks. In fact, the paper argues
that such an IIMM may actually enhance interest-rate risk transmission
to the Islamic banking sector, by providing additional channels of
transmission. Ironical as it may be, the operations of an IIMM in a dual
banking system may serve to bring the Islamic banking sector into closer
orbit with the conventional sector.
Originality/value - The paper offers insights into the IIMM, focusing on
Malaysia.
ZS 0
TC 12
ZR 0
ZA 0
ZB 0
Z8 0
Z9 12
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214365900003
ER
PT J
AU Obiyo, Ofurum Clifford
TI Islamic financing/banking in the Nigerian economy Is it workable? A
review of related issues and prospects
MANAGEMENT
VL 1
IS 3
BP 227
EP 234
DI 10.1108/17538390810901159
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to examine the concept of Islamic
banking in Nigeria, against the backdrop of the country's peculiar
socio-cultural background and economy.
Design/methodology/approach - The paper reviews related issues and
prospects in the context of Islamic banking in the Nigerian economy.
Findings - Implementation and success of Islamic banking in Nigeria
would require: re-shaping the society, restructuring of the economic
system and re-framing of the laws according to the dictates of Islam.
This will not be easy in Nigeria, given her multi-religious nature. The
most difficult and important task, however, is the reformation of
society, which has to be undertaken as an on-going process. The paper
recommends a dual banking system, where the conventional system will run
side by side with the Islamic banking system.
Originality/value - The paper offers some useful suggestions that may
lead to effective interest-free banking operations in Nigeria.
ZS 0
TC 4
ZA 0
ZB 0
Z8 0
ZR 0
Z9 4
U1 0
U2 0
SN 1753-8394
EI 1753-8408
UT WOS:000214365900004
ER
PT J
AU Choudhury, Masudul
Harahap, Sofyan
TI Interrelationship between Zakat, Islamic bank and the economy A
theoretical exploration
VL 34
IS 9
SI SI
BP 610
EP 617
DI 10.1108/03074350810890967
PN 1
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to formalize a general
equilibrium circular causation relationship model in the Islamic
economic framework between wealth tax (Zakat), Islamic bank and the real
economy.
Design/methodology/approach - Mathematical modeling along with
explanation.
Findings - The integrative interrelationships can be formalized only
under the assumption of unity of knowledge as derived from the
foundation of oneness of the divine law (shari'ah) according to the
Qur'an, Prophetic traditions (Sunnah) and social discourse.
Research limitations/implications - A future work would be to
empirically estimate the general equilibrium model.
Practical implications - A guidance to Islamic banks on the constructive
utilization of Zakat fund for productive transformation in the real
economy.
Originality/value - A general equilibrium model guided by the episteme
of oneness of the divine law at work, hence unity of knowledge at work
in real problems of ethics and economics according to the Islamic
worldview.
Z8 0
ZR 0
TC 9
ZA 0
ZB 0
ZS 0
Z9 9
U1 0
U2 0
SN 0307-4358
EI 1758-7743
UT WOS:000210878100003
ER
PT J
AU Haron, Sudin
Azmi, Wan
TI Determinants of Islamic and conventional deposits in the Malaysian
banking system
VL 34
IS 9
SI SI
BP 618
EP 643
DI 10.1108/03074350810890976
PN 1
PD 2008
PY 2008
AB Purpose - The objective of this study is to investigate the impact of
selected economic variables on deposits level in the Islamic and
conventional banking systems in Malaysia.
Design/methodology/approach - Both long-and short-run relationships
between these variables are measured by using advanced time series
econometrics. These techniques are co-integration and error correction
framework, which are conducted within the vector autoregression
framework.
Findings - By applying recent econometric techniques, we find
determinants such as rates of profit of Islamic bank, rates of interest
on deposits of conventional bank, base lending rate, Kuala Lumpur
composite index, consumer price index, money supply and gross domestic
product have different impact on deposits at both Islamic and
conventional banking systems. In most cases, customers of conventional
system behave in conformity with the savings behaviour theories. In
contrast, most of these theories are not applicable to Islamic banking
customers. Therefore, there is a possibility that religious belief plays
an important role in the banking decisions of Muslim customers.
Research limitations/implications - As customers are sensitive to
rewards, they receive from their deposits, rates of profit of Islamic
system must at any time be similar to those of the conventional system.
Finally, religious dimension can be considered as an important element
to attract more people to deposit their funds in the Islamic system.
first attempt to empirically examine the depositor's behaviour in the
Islamic banking environment.
ZS 0
ZR 0
ZA 0
Z8 0
TC 24
ZB 0
Z9 24
U1 0
U2 0
SN 0307-4358
EI 1758-7743
UT WOS:000210878100004
ER
PT J
AU Khan, M.
TI Main features of the interest-free banking movement in Pakistan
(1980-2006)
VL 34
IS 9
SI SI
BP 660
EP 674
DI 10.1108/03074350810890994
PN 1
PD 2008
PY 2008
AB Purpose - The main objective of this paper is to highlight the main
features of interest-free banking theory and practice in Pakistan over
the last three decades. It explores the country-wide interest-free
banking movement since its inception in 1980 to its demise in 2002, and
the reasons for such outcome. Moreover, it addresses the question why
interest-free banking has been recently reinstated by the government of
Pakistan under the dual banking system and more importantly, would it be
any real and big success?
Design/methodology/approach - The paper explores concepts, model,
strategies and practical issues related with the Islamic banking and
finance system. It holds a conceptual approach. It is designed as a case
study that provides comprehensive analysis over the contributions made
by political, government, financial, legislative and religious
institutions of Pakistan in setting-up the interest-free banking and
finance system in the country.
Findings - The findings of the paper hold that all intellectual,
practical, institutional, political, constitutional and regulatory
measures undertaken by the government and top policy makers of Pakistan
to transform the banking system of the country Shariah compliant were
devoid of real urge and effectiveness, only piecemeal solutions. The
interest institution got very firm roots in the financial sector of
Pakistan and strongly supported by other exploitative agents and systems
that prevail in the socio-economic life of the country. There is a dire
need to take revolutionary steps with strong political and public
support and commitment to uproot interest along with its allies from
Pakistan economy and society. After all, Pakistan is an
ideologically-based Muslim country that holds the constitutional
responsibility to eliminate interest from its economy and establish a
fair and just socio-economic order.
Research limitations/implications - The paper envisages the main
concepts, models and strategies adopted in implementing the Islamic
economic and finance system in Pakistan. However, it does not deal in
quantitative data and statistical tools to support its findings by
empirical evidence. Rather it entails subjective analysis and critique
work.
Originality/value - The paper provides the deeper insight of highly
technical, complex and mammoth job of eradicating interest from Pakistan
economy that was deeply rooted and also strongly supported by other
exploitative forces prevailing in the socio-economic life of the
country, causing gross distribution of wealth and concentration of
resources and powers in the hands of few. It explains that the need for
a major change in one institution or system entails the demand for
bringing radical changes in the whole set-up of country. This paper
undertakes longitudinal view to analyze the institutional, financial,
judicial and political developments that took place in Pakistan to
restructure its economy on Islamic lines. It lays down all relevant
facts and issues systematically to provide a clear-cut assessment over
the past, present and future of interest-free banking movement in
Pakistan.
ZB 0
ZA 0
ZR 0
Z8 0
ZS 0
TC 4
Z9 4
U1 0
U2 0
SN 0307-4358
EI 1758-7743
UT WOS:000210878100006
ER
PT J
AU Siddiqui, Anjum
TI Financial contracts, risk and performance of Islamic banking
VL 34
IS 10
SI SI
BP 680
EP 694
DI 10.1108/03074350810891001
PN 2
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to focus on various modes of
Islamic finance and examines their risk and other characteristics by
conducting a selective literature review.
Design/methodology/approach - Due to the Islamic prohibition of interest
and in compliance with injunctions on permissible trade contracts, the
savings and investment contracts offered by Islamic banks have a
different risk profile than those of conventional banks. This gives rise
to a number of regulatory issues pertaining to capital adequacy and
liquidity requirements. Operational issues also arise as Islamic banks
are limited in their choice of risk and liquidity management tools such
as derivatives, options and bonds. All these issues are theoretically
examined and various performance indicators of two Islamic banks are
also examined to compare them with traditional banks that practice mark
up pricing.
Findings - The balance sheets and various performance indicators show
that there is evidence that Islamic banks in Pakistan tend to engage in
little long-term project financing. However, on the plus side these
banks have shown good performance with respect to the returns on their
assets and equity and have also demonstrated better risk management and
maintained adequate liquidity.
Research limitations/implications - A larger set of banks across various
countries needs to be examined before any substantive conclusions can be
reached about the relative performance of Islamic versus conventional
banks.
Practical implications - These largely pertain to central bank
prudential regulations which must ensure that a level playing field is
created for Islamic banks to compete with traditional banks.
Originality/value - The paper is a commentary on the risk
characteristics of Islamic banks and also analyzes for the first time
the performance of the only two purely Islamic banks currently operating
in Pakistan.
ZA 1
ZB 0
ZR 0
ZS 0
TC 36
Z8 0
Z9 37
U1 0
U2 0
SN 0307-4358
EI 1758-7743
UT WOS:000210879200001
ER
PT J
AU Rosly, Saiful
Zaini, Mohammad
TI Risk-return analysis of Islamic banks' investment deposits and
shareholders' fund
VL 34
IS 10
SI SI
BP 695
EP 707
DI 10.1108/03074350810891010
PN 2
PD 2008
PY 2008
AB Purpose - The purpose of this paper is to study the differences or
variance in the yields of Islamic and conventional bank deposits and
capital, respectively, in view of their contractual differences, namely
the former which is based on equity and the latter on debt.
Design/methodology/approach - The paper uses a financial ratio approach.
Findings - It was found that deposit yields in conventional banks were
lower than return on equity (ROE), which truly reflect the contractual
differences between fixed deposit and bank's capital. Also, it was found
that Islamic banks' deposit yield and ROEs do not reflect their
risk-taking properties, as their variances were found to be smaller.
Research limitations/implications - The paper adds to the literature on
risk-return relationship in Islamic capital theory, which currently
lacks theoretical studies. Practical implications - The paper shows that
increasing the level of risk taking in mudarabah investment account
could increase its expected returns.
Originality/value - Since both shareholders' capital and mudarabah
investment accounts constitute risk capital, variance in yields should
be proportional to risk. The paper is the first attempt to explore and
compare yields from Islamic bank capital and mudarabah deposits.
ZB 0
ZS 0
ZA 1
Z8 0
ZR 0
TC 12
Z9 13
U1 0
U2 0
SN 0307-4358
EI 1758-7743
UT WOS:000210879200002
ER
PT J
AU Said, Fathin Faizah
Ismail, Abd Ghafar
TI HOW DOES THE CHANGES IN MONETARY POLICY AFFECT LENDING BEHAVIOUR OF
ISLAMIC BANKING IN MALAYSIA?
VL 12
IS 3
BP 163
EP 177
PD DEC 2007
PY 2007
AB This paper tries to analyse the role of Islamic banks in the
transmission of monetary policy and business cycle. This study will only
analyse the Islamic banking in Malaysia. The changes in the monetary
policy channel give an idea to regulate and strengthen the banking
industry. Thus, several questions can be highlighted: how do the changes
in the monetary policy tools affect the bank lending? If bank lending
plays as monetary policy channel, do they affect the other portfolio? Do
the current regulations (such as capital requirement) affect the Islamic
bank lending? Furthermore, Generalize Least Squares approach will be
using to estimate the monetary changes towards Islamic banks portfolio.
Annual data will be used from the year 1997 until 2004. The number of
observations is based on the combination of time series and
cross-sectional data, which is known as pooled data. Instead of that, we
will use an unbalanced bank-level panel data set for Islamic banks
(i.e., two full-pledged Islamic banks and thirteen Islamic windows).
ZR 0
ZB 0
ZS 0
ZA 0
TC 1
Z8 0
Z9 1
U1 0
U2 0
SN 2086-3128
EI 2502-180X
UT WOS:000447125000001
ER
PT J
AU Ariss, Rima Turk
Sarieddine, Yolla
TI Challenges in implementing capital adequacy guidelines to Islamic banks
VL 9
IS 1
BP 46
EP 59
DI 10.1057/palgrave.jbr.2350059
PD NOV 2007
PY 2007
AB Throughout the past 30 years or so, the practice of Islamic banking has
proved to be a viable alternative and is growing at an estimated annual
rate of 15 per cent. Many challenges still lie ahead, however, for
Islamic banks to be able to comply with international standards and
guidelines. A key issue relates to the implementation of Pillar 1 of the
Basel II Accord, or capital adequacy requirements that were originally
set to capture different types of risks faced by conventional banks, and
that do not cater to the risk specificities of Islamic banks. The
objective of this paper is to overview the recent guidelines for risk
management and capital adequacy in Islamic banking and to study the
implications of applying Pillar 1 to a major Islamic bank. We
specifically raise serious issues related to the nature of risks arising
from the uses of funds of Islamic financial institutions and their
implication on the banking book of the Islamic financial institution.
Still other challenges lie ahead of international regulatory bodies in
order to cater to other types of risks that are unique to Islamic
financial institutions.
Z8 0
ZB 0
ZR 0
ZS 0
TC 20
ZA 0
Z9 20
U1 0
U2 0
SN 1745-6452
EI 1750-2071
UT WOS:000213033800005
ER
PT J
AU Haniffa, Roszaini
Hudaib, Mohammad
TI Exploring the ethical identity of Islamic banks via communication in
annual reports
SO JOURNAL OF BUSINESS ETHICS
VL 76
IS 1
BP 97
EP 116
DI 10.1007/s10551-006-9272-5
PD NOV 2007
PY 2007
AB Islamic Banks (IBs) are considered as having ethical identity, since the
foundation of their business philosophy is closely tied to religion. In
this article, we explore whether any discrepancy exists between the
communicated (based on information disclosed in the annual reports) and
ideal (disclosure of information deemed vital based on the Islamic
ethical business framework) ethical identities and we measure this by
what we have termed the Ethical Identity Index (EII). Our longitudinal
survey results over a 3-year period indicate the overall mean EII of
only one IB out of seven surveyed to be above average. The remaining six
IBs suffer from disparity between the communicated and ideal ethical
identities. We further found the largest incongruence to be related to
four dimensions: commitments to society; disclosure of corporate vision
and mission; contribution to and management of zakah, charity and
benevolent loans; and information regarding top management. The results
have important implications for communication management if IBs are to
enhance their image and reputation in society as well as to remain
competitive.
ZS 1
Z8 0
ZB 1
ZR 0
ZA 0
TC 146
Z9 146
U1 3
U2 37
SN 0167-4544
EI 1573-0697
UT WOS:000249918800008
ER
PT J
AU Starr, Martha A.
Yilmaz, Rasim
TI Bank runs in emerging-market economies: Evidence from Turkey's special
finance houses
SO SOUTHERN ECONOMIC JOURNAL
VL 73
IS 4
BP 1112
EP 1132
DI 10.2307/20111944
PD APR 2007
PY 2007
AB Recent banking crises in emerging-market countries have renewed debates
about deposit insurance. Because insurance erodes banks' incentives to
manage risks prudently, some argue that its elimination would improve
bank stability. Yet eliminating insurance could be destabilizing if it
recreates risks of self-fulfilling runs. This paper examines dynamics of
depositor behavior during a set of runs on Turkey's Special Finance
Houses, an uninsured sub-sector of Islamic banks. Detailed data on
withdrawals are analyzed in a vector autoregressive framework that
enables us to distinguish between informational and self-fulfilling
elements of runs. We found that both types of dynamics were at work
during the runs, suggesting a role for deposit insurance, judiciously
used, in ruling out expectational problems that fuel tendencies to run.
OI Yilmaz, Rasim/0000-0002-1084-8705
ZA 0
TC 20
ZB 2
ZS 0
ZR 0
Z8 0
Z9 20
U1 0
U2 10
SN 0038-4038
EI 2325-8012
UT WOS:000245930100014
ER
PT J
AU El-Din, Seif I. Tag
Abdullah, N. Irwani
TI Issues of Implementing Islamic Hire Purchase in Dual Banking Systems:
Malaysia's Experience
SO THUNDERBIRD INTERNATIONAL BUSINESS REVIEW
VL 49
IS 2
SI SI
BP 225
EP 249
DI 10.1002/tie.20141
PD MAR-APR 2007
PY 2007
AB Malaysia, being one of the first countries to promote Islamic finance,
has experienced a dual banking system whereby a full-fledged Islamic
banking system operates on a parallel basis with a sophisticated
conventional banking system. Operating within a dual banking system
provides a relative advantage to Islamic banks as compared to operating
in a single Islamic banking system. One of the latest innovations is the
development of the Islamic hire-purchase instrument, which is commonly
known as al-ijarah waiqtina'; in the Malaysian experience, it is called
al-ijarah thumma al-bai' (AITAB). This article aims to examine some
critical issues arising from the implementation of AITAB from jurist,
legal, and practical perspectives. It presents a comparative study with
conventional practices to highlight similarities and differences, thus
invoking a number of jurist, legal, and practical issues about the
concept and implementation of AITAB. It is hoped through the assessment
of the Malaysian experience to offer practicable solutions to help
provide better and more legitimate structured implementation of Islamic
hire purchase in financial institutions. (C) 2007 Wiley Periodicals,
Inc.
TC 12
ZA 0
ZR 0
Z8 0
ZS 0
ZB 0
Z9 12
U1 0
U2 1
SN 1096-4762
EI 1520-6874
UT WOS:000212948600006
ER
PT J
AU Ahmad, Abu Umar Faruq
Hassan, M. Kabir
TI Regulation and Performance of Islamic Banking in Bangladesh
VL 49
IS 2
SI SI
BP 251
EP 277
DI 10.1002/tie.20142
PD MAR-APR 2007
PY 2007
AB This article examines current legal and regulatory issues of Islamic
banking in Bangladesh. The most important issue in this context is the
lack of a well-defined regulatory and supervisory framework for Islamic
banks for their effective functioning in line with the tenets of
Shariah. Other major issues come from the absence of an interbank
Islamic money market, following the same policy and guidelines for
Islamic and conventional banking by the Bangladesh Bank, presence of a
discriminatory legal reserve requirement for Islamic and conventional
banking, prevalence of a restrictive environment in the capital market,
and the lack of legal support and protection of Bangladesh Bank to avoid
the associated risks of Islamic banks. For this purpose, it is suggested
that Islamic banks in Bangladesh should have an independent banking act
that controls, guides, and supervises their functions and provide legal
support to the parties concerned. (C) 2007 Wiley Periodicals, Inc.
RI Hassan, M. Kabir/D-5053-2012; , Abu Umar Faruq Ahmad/I-4680-2012
OI Hassan, M. Kabir/0000-0001-6274-3545; , Abu Umar Faruq
Ahmad/0000-0003-1523-1883
ZA 0
Z8 0
ZB 0
TC 31
ZR 0
ZS 0
Z9 31
U1 0
U2 2
SN 1096-4762
EI 1520-6874
UT WOS:000212948600007
ER
PT J
AU Buang, Ahmad Hidayat
TI Islamic Contracts in a Secular Court Setting? Lessons From Malaysia
VL 21
IS 4
BP 317
EP 340
DI 10.1163/026805507X247590
PD 2007
PY 2007
AB The judgement in the Kuala Lumpur High Court in the case of Affin Bank
Berhad v. Zulkifl i Abdullah ([2006] 1 CLJ 438) illustrates the
difficulty in cases where Islamic principles such as Bay'Bithaman Ajil
or BBA are litigated in a court of law where Islamic Shariah is little
understood. From the traditional Islamic law perspective the legal basis
arrived at in the judgement is questionable. In the light of this
complexity, this article attempts to analyse the effect of the judgement
to the principles of Islamic contracts used in banking products and
services in Malaysia with reference to the sources used in the creation
of the contracts and forum to settle disputes between Islamic Banks and
their customers. In conclusion, this article would argue for the
appropriate application of the Shariah in the above matters through the
promulgation of a specific law in relation to Islamic contracts in
banking and finance or alternatively a special procedure to be
introduced enabling all matters relating to the question of Shariah be
referred to the Shariah Courts for decision.
OI Buang, Ahmad Hidayat bin/0000-0002-5201-3124
Z8 0
ZA 0
TC 8
ZB 0
ZS 0
ZR 0
Z9 8
U1 0
U2 0
SN 0268-0556
EI 1573-0255
UT WOS:000217447600003
ER
PT B
AU Wilson, Rodney
BA Ibrahim, BEDA
TI Some aspects of liquidity of Islamic banks in two AGCC states
SO ECONOMIC CO-OPERATION IN THE GULF: ISSUES IN THE ECONOMIES OF THE ARAB
GULF CO-OPERATION COUNCIL STATES
SE Routledge Studies in Middle Eastern Economies
BP 59
EP +
PD 2007
PY 2007
ZB 0
ZR 0
ZS 0
Z8 0
TC 0
Z9 0
U1 0
U2 1
BN 978-0-203-96179-7
UT WOS:000278863400005
ER
PT J
AU Omar, Mohd Azmi
Abd Majid, M. Shabri
Rulindo, Ronald
TI EFFICIENCY AND PRODUCTIVITY PERFORMANCE OF THE NATIONAL PRIVATE BANKS IN
INDONESIA
VL 9
IS 1
BP 1
EP 18
DI 10.22146/gamaijb.5603
PD JAN-APR 2007
PY 2007
AB This study investigates the efficiency and productivity performance of
the national private banks in Indonesia during the period of 2002-2004.
The data consist of 21 national private banks including two Islamic
banks. Productivity is measured by the Malmquist Index using Data
Envelopment Analysis (DEA) technique. Overall, the result shows that the
Total Factor Production (TFP) Index of the national private banks has
considerably increased for the whole industry, in which technical change
is found to be a more important source of productivity growth to the
Indonesian Banking Industry compared to efficiency change. Furthermore,
the result also shows that the efficiency of two Islamic banks is above
the average efficiency of the national private banks.
RI Majid, M. Shabri Abd./S-9038-2016
OI Majid, M. Shabri Abd./0000-0003-3558-8783
ZA 0
TC 9
ZS 0
ZB 0
ZR 0
Z8 0
Z9 9
U1 0
U2 0
SN 1411-1128
EI 2338-7238
UT WOS:000436717100001
ER
PT B
AU Brown, Kym
Hassan, M. Kabir
Skully, Michael
BE Hassan, MK
Lewis, MK
TI Operational efficiency and performance of Islamic banks
SO HANDBOOK OF ISLAMIC BANKING
SE Elgar Original Reference
BP 96
EP 115
PD 2007
PY 2007
OI Brown, Kym/0000-0003-2725-6236; Skully, Michael/0000-0002-4904-9003
TC 12
ZS 0
ZR 0
ZB 0
Z8 0
ZA 0
Z9 12
U1 0
U2 0
BN 978-1-84542-083-3
UT WOS:000301289700007
ER
PT J
AU Sufian, Fadzlan
TI The efficiency of Islamic banking industry in Malaysia Foreign vs
domestic banks
SO HUMANOMICS
VL 23
IS 3
BP 174
EP 192
DI 10.1108/08288660710779399
PD 2007
PY 2007
AB Purpose - To examine the relative efficiency between the domestic and
foreign banks Islamic banking operations in Malaysia.
Design/methodology/approach - The paper utilises the Data Envelopment
Analysis (DEA) methodology, which allows for the decomposition of
technical efficiency into its pure technical and scale efficiency
components. The authors further examined whether the domestic and
foreign banks are drawn from the same population by performing a series
of parametric and non-parametric tests. Finally, the authors attempt to
investigate the consistency of the estimated DEA efficiency scores by
examining its relationship with the traditional measures of banks
performance.
Findings - The results from the DEA suggest that Malaysian Islamic banks
efficiency declined in year 2002 to recover slightly in years 2003 and
2004. The domestic Islamic banks were more efficient compared to the
foreign Islamic banks albeit marginally. The source of inefficiency of
Malaysian Islamic banks in general has been scale, suggesting that
Malaysian Islamic banks have been operating at the wrong scale of
operations. The results from the parametric and non-parametric tests
further suggest that the foreign and domestic banks are drawn from the
same population, as most of the test results could not reject the null
hypothesis at the 0.05 levels of significance. The results from the
correlation coefficients have further confirmed the dominance of scale
in determining the technical efficiency of Malaysian Islamic banks. The
results also suggest that profitability is significantly and positively
correlated to all efficiency measures.
Research limitations/implications - The paper can be extended to
consider the production approach along with the intermediation approach,
which has been applied in this paper. Investigation of changes in
productivity over time as a result of technical change or technological
progress or regress by employing the Malmquist Total Factor Productivity
Index could yet be another extension to the paper.
Originality/value - This paper provides new evidence on the relative
efficiency of domestic and foreign banks, which offer Islamic banking
services.
ZB 1
ZS 0
ZA 0
ZR 0
TC 37
Z8 0
Z9 37
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210869600005
ER
PT J
AU Dusuki, Asyraf Wajdi
Abdullah, Nurdianawati Irwani
TI Why do Malaysian customers patronise Islamic banks?
VL 25
IS 3
BP 142
EP 160
DI 10.1108/02652320710739850
PD 2007
PY 2007
AB Purpose - The purpose of this paper is to examine the main factors that
motivate customers to deal with Islamic banks particularly in a dual
banking environment, like in the case of Malaysia. A discussion on
factors relating to corporate social responsibility initiatives as part
of potential customers' banking selection criteria is also included.
by self-administered questionnaires involving a sample of 750
respondents from four different regions in Malaysia. The Islamic banking
criteria ranking as perceived by the respondents are analysed using
Friedman Test. To further explore the customers' understanding of the
banking criteria, an exploratory factor analysis is employed.
Findings - This study reveals that the selection of Islamic banks
appears to be predominantly a combination of Islamic and financial
reputation and quality service offered by the bank. Other factors
perceived to be important include good social responsibility practices,
convenience and product price.
Practical implications - The empirical evidence of this paper affects
two aspects; first, Islamic banks must offer quality services while
maintaining its Islamic credential and reputation; second, Islamic banks
should also embrace good customers services policies to reap its
potential as a strategic tool to achieve competitive advantage, enhance
reputation and secure customers allegiance. This research will be of
interest to both incumbent and potential entrants into this niche
market.
Originality/value - The paper reports findings from the first nationwide
study carried out in the area of Islamic banking selection criteria.
TC 171
ZA 1
ZS 2
ZR 0
ZB 0
Z8 0
Z9 172
U1 0
U2 0
SN 0265-2323
EI 1758-5937
UT WOS:000216437400002
ER
PT J
AU Malkawi, Bashar H.
Malkawi, Hikmet O.
TI Anti-terrorist finance provisions in Jordan: important step but
insufficient
SO JOURNAL OF MONEY LAUNDERING CONTROL
VL 10
IS 2
BP 180
EP 188
DI 10.1108/13685200710746884
PD 2007
PY 2007
AB Purpose - The purpose of this paper is to examine the anti-terrorist
finance provisions in the Penal Law as well as the vulnerabilities in
place that hamper more effective regime.
Design/methodology/approach - The paper identifies the pre-September 11
legal structure in Jordan regarding terrorist finance. Since, then the
amended Penal Law, promulgated on October 8, 2001, has emerged as the
principal tool in addressing terrorist finance activities. The paper is
divided into five sections covering pre-existing statutory provisions on
terrorist finance, Jordan's counterterrorist financing regime including
money laundering law and directives, the anti-terrorist finance
provisions in the Penal with its constituent elements, Jordan's
accession to the United Nations Convention for the Suppression of the
Financing of Terrorism, and finally the paper provides a set of
conclusions.
Findings - There are still many loopholes to close in Jordan's
anti-terrorist finance initiatives. There is a need for greater
enforcement of existing provisions with an eye to expanding the scope of
article 147( 2) of the Penal Law to include Islamic banks, hawala,
charities, and zakat. A clear definition of the term "terrorist
activity" should be supplied in article 147( 2) and penalties for
terrorist finance offense should be tightened.
Research limitations/implications - Lack of publications or research on
the subject of terrorist finance in Jordan in Arabic.
Practical implications - This paper will be very helpful for any
individual interested in the legal regime of anti-terrorist financing as
it exists in Jordan.
Originality/value - This paper meets a need for an understanding of the
Jordanian legal regime as applied to anti-terrorist financing and offers
insights to lawyers and academics.
RI Malkawi, Bashar H./C-8609-2019
OI Malkawi, Bashar H./0000-0003-2009-1619
ZS 0
TC 0
ZR 0
ZA 0
ZB 0
Z8 0
Z9 0
U1 0
U2 0
SN 1758-7808
EI 1368-5201
UT WOS:000212744900004
ER
PT J
AU Maali, Bassam
Casson, Peter
Napier, Christopher
TI Social reporting by Islamic banks
SO ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES
VL 42
IS 2
BP 266
EP 289
DI 10.1111/j.1467-6281.2006.00200.x
PD JUN 2006
PY 2006
AB The last thirty years have witnessed the appearance and rapid expansion
of Islamic banking both inside and outside the Islamic world. Islamic
banks provide financial products that do not violate Sharia, the Islamic
law of human conduct. The Islamic principles upon which the banks claim
to operate give an important role to social issues. Applying these
principles, we develop a benchmark set of social disclosures appropriate
to Islamic banks. These are then compared, using a disclosure index
approach, the actual social disclosures contained in the annual reports
of twenty-nine Islamic banks (located in sixteen countries) to this
benchmark. In addition, content analysis is undertaken to measure the
volume of social disclosures. Our analysis suggests that social
reporting by Islamic banks falls significantly short of our
expectations. The results of the analysis also suggest that banks
required to pay the Islamic religious tax Zakah provide more social
disclosures than banks not subject to Zakah.
RI Maali, Bassam/AAG-6757-2019
OI Maali, Bassam/0000-0001-7000-8874
ZR 0
ZB 0
ZA 1
Z8 0
TC 140
ZS 1
Z9 141
U1 3
U2 23
SN 0001-3072
EI 1467-6281
UT WOS:000238587700008
ER
PT J
AU Archer, Simon
TI ON CAPITAL STRUCTURE, RISK SHARING AND CAPITAL ADEQUACY IN ISLAMIC BANKS
SO INTERNATIONAL JOURNAL OF THEORETICAL AND APPLIED FINANCE
VL 9
IS 3
BP 269
EP 280
DI 10.1142/S0219024906003627
PD MAY 2006
PY 2006
AB Islamic banks do not pay interest on customers' deposit accounts.
Instead, customers' funds are placed in profit-sharing investment
accounts (PSIA). Under this arrangement, the returns to the bank's
customers are their pro-rata shares of the returns on the assets in
which their funds are invested, and if these returns are negative so are
the returns to the customers. The bank is entitled to a contractually
agreed share of positive returns (profits) as remuneration for its work
as asset manager; however, if the returns are zero or negative, the bank
receives no remuneration but does not share in any loss.
In the case of Unrestricted PSIA, the investment account holders' funds
are invested (i.e., commingled) in the bank's asset pool together with
the bank's shareholders' own funds and the funds of current account
holders. In that case, the bank's own funds that are invested in the
asset pool are treated the same as those of Unrestricted PSIA holders
for profit and loss sharing purposes; however, the shareholders also
receive as part of their profit the remuneration earned by the bank as
asset manager (less certain expenses not chargeable to the PSIA
holders). This remuneration (management fees) represents an important
source of revenue and profits for Islamic banks.
From a capital market perspective, this arrangement presents an apparent
anomaly, as follows: shareholders and Unrestricted PSIA holders share
the same asset risk on the commingled funds, but shareholders enjoy
higher returns because of the management fees. On the other hand,
competitive pressure may induce the bank to forgo some of its management
fees in order to pay a competitive return to its PSIA holders. In this
way, some of the PSIA holders' asset risk is absorbed by the
shareholders. This phenomenon has been termed "displaced commercial
risk" [2].
This paper analyzes this phenomenon. We argue that, in principle,
displaced commercial risk is potentially an efficient and value-creating
means of sharing risks between two classes of investor with different
risk diversification capabilities and preferences: wealthy shareholders
who are potentially well diversified, and less wealthy PSIA holders who
are not. In practice, however, Islamic banks set up reserves with the
intention of minimizing any need to forgo management fees.
Z8 0
ZR 0
TC 29
ZA 0
ZB 0
ZS 0
Z9 29
U1 0
U2 0
SN 0219-0249
EI 1793-6322
UT WOS:000217063500001
ER
PT J
AU Ibrahim, Badr
TI The "missing links'' between Islamic development objectives and the
current practice of Islamic banking - the experience of the Sudanese
Islamic banks (SIBs)
SO HUMANOMICS
VL 22
IS 2
BP 55
EP 66
DI 10.1108/08288660610669365
PD 2006
PY 2006
AB Purpose - To vindicate whether or not there are signs of social and
developmental role in the current practice of Islamic banking in Sudan,
a criterion required by the rules guiding the Islamic circulation of
money and investment.
Design/methodology/approach - The objective of the paper is to draw
attention to this important, but neglected aspect of Islamic finance, by
assessing some indicators of Islamic banking in Sudan such as: the
geographical distribution of Islamic banks (ISBs), short vs long-term
investment, credit by modes of financing used, sectoral distribution of
financing, role in poverty alleviation, harmonization of the Shari'aa
rules with economic thinking to cope with today's modern and global
world development constraints, and the developmental role of ISBs within
globalization.
Findings - Many banking indicators in Sudan are signs of the weak size
of the financial sector and financial liquidity, low confidence in the
banking system, and low and poor credit performance. Banks are also
characterized by unti-developmental signs of regional inequality of
distribution of branches, use of sales modes; uneven, short-term and
modern-sector-biased distribution of investment, high share of demand
deposits and shortages of long-term funds.
Practical implications - The developmental role of ISBs needs to entwine
economic development with social development by gearing production
priorities towards common needs, via specialized branches, partnership
modes, short and long term investment plans. It also requires the
renewal of fiqh in the course of Ijtihad to devise new rules, or to
change rules in accordance with globalization, and harmonization of
economic and fiqh thinking.
Originality/value - The analysis here is valuable in drawing attention
to Islamic banking practitioners that the link between Islamic finance
and development objectives (including social development) is still under
trial, and some work needs to be undertaken despite the many years which
have elapsed since the introduction of Islamic finance.
TC 8
ZS 0
ZR 0
ZA 0
ZB 0
Z8 0
Z9 8
U1 0
U2 0
SN 0828-8666
EI 1758-7174
UT WOS:000210865100002
ER
PT B
AU Tripp, Charles
BA Tripp, C
TI Islamic economics and Islamic banks
SO ISLAM AND THE MORAL ECONOMY: THE CHALLENGE OF CAPITALISM
BP 103
EP 149
DI 10.1017/CBO9780511617614.006
PD 2006
PY 2006
Z8 0
ZS 0
ZR 0
ZA 0
ZB 0
TC 0
Z9 0
U1 0
U2 0
BN 978-0-521-86377-3
UT WOS:000297339300005
D2 10.1017/CBO9780511617614
ER
PT J
AU El-Gamal, MA
Inanoglu, H
TI Inefficiency and heterogeneity in Turkish banking: 1990-2000
SO JOURNAL OF APPLIED ECONOMETRICS
VL 20
IS 5
BP 641
EP 664
DI 10.1002/jae.835
PD JUL-AUG 2005
PY 2005
AB Recent studies have stressed the importance of privatization and
openness to foreign competition for bank efficiency and economic growth.
We study bank efficiency in Turkey, an emerging economy with great
heterogeneity in bank types and ownership structures. Earlier studies of
Turkish banking had three limitations: (i) excessive reliance on
cost-function frontier analyses, wherein volume of loans is a measure of
banking output; (ii) pooling all banks or imposing ad hoe heterogeneity
assumptions; and (iii) lack of a comprehensive panel data set for proper
analysis of productivity and heterogeneity. We use an
estimation-classification procedure to find likelihood-driven
classification of bank technologies in an 11-year panel. In addition, we
augment traditional cost-frontier analysis with a labour-efficiency
analysis. We conclude that state banks are not particularly inefficient
overall, but that they do utilize labour inefficiently. This partially
supports recent calls for privatization. We also conclude that special
finance houses (or Islamic banks) utilize the same technology as
conventional domestic banks, and do so relatively efficiently. This
suggests that they do not cause harm to the financial system. Finally,
we conclude that foreign banks utilize a different technology from
domestic ones. This suggests that one should not overstate their value
to the financial sector. Copyright (c) 2005 John Wiley & Sons, Ltd.
ZS 0
ZB 0
ZR 0
ZA 0
TC 55
Z8 0
Z9 54
U1 1
U2 20
SN 0883-7252
UT WOS:000231163300004
ER
PT J
AU Al Janahi, Ahmed
Weir, David
TI How Islamic Banks Deal with Problem Business Situations: Islamic Banking
as a Potential Model for Emerging Markets
VL 47
IS 4
BP 429
EP 445
DI 10.1002/tie.20061
PD JUL-AUG 2005
PY 2005
AB Models of emerging markets often ignore corporate crises and business
failure and are based on research in western economic situations,
assuming western institutional patterns and attitudes. This study is
based on an empirical analysis of companies in the GCC region of
companies within the Islamic Banking System. A "sharp-bending"
orientation model is used to review the role of banks and their methods
of managing difficult client situations, triggering early
problem-recognition, and the sequence of recovery. As many emerging
markets have large Moslem populations and as Islamic banking continues
to be a vibrant growth sector, these findings have wider implications.
(C) 2005 Wiley Periodicals, Inc.
TC 4
ZR 0
ZA 0
Z8 0
ZS 0
ZB 0
Z9 4
U1 0
U2 0
SN 1096-4762
EI 1520-6874
UT WOS:000212926100004
ER
PT J
AU Hassan, Salleh
Christopher, Theo
TI Corporate governance statement disclosure of Malaysian banks and the
role of Islam
SO ASIAN REVIEW OF ACCOUNTING
VL 13
IS 2
BP 36
EP 50
DI 10.1108/eb060786
PD 2005
PY 2005
AB The objective of this study is to undertake a qualitative study to
examine the influence of religion, specifically Islam, on corporate
governance statement disclosure in the annual reports of three major
Malaysian banks, both conventional and Islamic banks. It has been argued
that given the characteristics and values espoused by Islam, there is an
expectation that in Malaysia, an Islamic organization like the Bank
Islam - should make additional governance disclosures that would set it
apart from conventional banks. The evidence thus far seems to suggest
that the role of Islam has not been as expected. Specifically, being an
Islamic organization (by virtue of label attached to and/or the nature
of its operations) and/or having Malays/Muslim directors leading such
Islamic organization have not resulted in better corporate governance
practices and disclosure relative to other secular banking institutions
that have fewer Malay/Muslims directors. Possible implications of these
findings are proffered in the paper.
TC 8
Z8 0
ZR 0
ZS 0
ZB 0
ZA 0
Z9 8
U1 0
U2 2
SN 1321-7348
EI 1758-8863
UT WOS:000216665100003
ER
PT J
AU Choudhury, Masudul
Hussain, Md.
TI A paradigm of Islamic money and banking
VL 32
IS 3
BP 203
EP +
DI 10.1108/03068290510580760
PD 2005
PY 2005
AB Purpose - Theological perspectives in ethics, values and their
functional application in the real world are vividly covered by the
theory and practice of Islamic banking in recent times. This paper seeks
to formalize the theological paradigm of the unity of God (Tawhid) and
to make the groundwork of unity of knowledge in the context of the
money, finance and real economy linkages.
Design/methodology/approach - The paper combines narrative with argument
and analysis.
Findings - On the basis of this the structure of the balance sheet of
Islamic banks with no interest rate as an ethical condition of Islamic
financing is delineated. This topic is followed by a discussion on the
experience of Islamic banks in recent times in the area of mobilizing
resources and gaining profitability, popularity and stability by the
Islamic financing methods and the direct mobilizing of financial
resources into the real economy. In this way, the Islamic banks are
shown to attain the much-needed complementary relations between social
well-being for clients and financial efficiency for the banks.
Originality/value - Adds insights to the theory and practice of Islamic
banking.
TC 20
Z8 0
ZA 0
ZS 0
ZR 0
ZB 0
Z9 20
U1 0
U2 0
SN 0306-8293
EI 1758-6712
UT WOS:000210631700002
ER
PT J
AU How, Janice C. Y.
Karim, Melina Abdul
Verhoeven, Peter
TI Islamic Financing and Bank Risks: The Case of Malaysia
VL 47
IS 1
BP 75
EP 94
DI 10.1002/tie.20041
PD JAN-FEB 2005
PY 2005
AB We examine whether Islamic financing can explain three important bank
risks in a country with a dual banking system: credit risk,
interest-rate risk, and liquidity risk. Using Malaysian data, we find
that commercial banks with Islamic financing have significantly lower
credit and liquidity risks but significantly higher interest-rate risk
than banks without Islamic financing. There is also evidence that bank
size is significantly related to credit risk; the proportion of loan
sales to total liabilities and bank size are significant determinants of
interest-rate risk; and off-balance-sheet financing, the extent of
securitization, loan volatility, bank capital, and bank size are
statistically significantly related to liquidity risk. (C) 2005 Wiley
Periodicals, Inc.
OI How, Janice/0000-0003-1890-6970
ZR 0
ZS 0
Z8 0
ZB 0
ZA 1
TC 28
Z9 29
U1 0
U2 1
SN 1096-4762
EI 1520-6874
UT WOS:000212925100004
ER
PT J
AU Taylor, JM
TI Islamic banking - The feasibility of establishing an Islamic bank in the
United States
SO AMERICAN BUSINESS LAW JOURNAL
VL 40
IS 2
BP 385
EP 416
PD WIN 2003
PY 2003
ZS 0
ZA 1
ZB 0
TC 16
ZR 0
Z8 0
Z9 17
U1 0
U2 9
SN 0002-7766
EI 1744-1714
UT WOS:000184077800004
ER
PT J
AU Aggarwal, RK
Yousef, T
TI Islamic banks and investment financing
SO JOURNAL OF MONEY CREDIT AND BANKING
VL 32
IS 1
BP 93
EP 120
DI 10.2307/2601094
PD FEB 2000
PY 2000
AB Islamic Law prohibits charging interest. We study financial instruments
used by Islamic banks and find that most are not based on
profit-and-loss sharing (equity) but, instead, are very debtlike in
nature. We see some bias against providing financing for agriculture and
industry. Long-term financing is rarely offered to entrepreneurs. Our
model shows that debtlike instruments are a rational response by Islamic
banks to their contracting environments. As agency problems become more
severe, debt becomes the dominant instrument of finance. We give
conditions under which banning debt increases social welfare as well as
conditions under which banning debt decreases social welfare.
ZB 0
ZR 2
ZS 1
Z8 0
TC 138
ZA 1
Z9 139
U1 5
U2 52
SN 0022-2879
UT WOS:000085534700006
ER
PT J
AU KURAN, T
TI ISLAMIC ECONOMICS AND THE ISLAMIC SUBECONOMY
SO JOURNAL OF ECONOMIC PERSPECTIVES
VL 9
IS 4
BP 155
EP 173
DI 10.1257/jep.9.4.155
PD FAL 1995
PY 1995
AB Although Islamic economics was developed to serve cultural and political
ends, efforts have been made to put its ideals into practice. There now
exist Islamic banks, which claim to offer an interest-free alternative
to conventional banking, and government-run Islamic redistribution
systems, which were established to reduce inequalities. These
institutions have not revolutionized the economic lives of Muslims. Yet,
along with a wide variety of enterprises that have emerged outside the
purview of Islamic economics, they have formed vibrant Islamic
subeconomies in numerous metropolises. These subeconomies are expanding
because they foster interpersonal trust and offer opportunities for
guilt relief.
ZR 0
ZB 0
Z8 0
ZA 2
TC 102
ZS 0
Z9 104
U1 0
U2 6
SN 0895-3309
EI 1944-7965
UT WOS:A1995TJ23700009
ER
PT J
AU WILMARTH, AE
TI THE EXPANSION OF STATE BANK POWERS, THE FEDERAL RESPONSE, AND THE CASE
FOR PRESERVING THE DUAL BANKING SYSTEM
SO FORDHAM LAW REVIEW
VL 58
IS 6
BP 1133
EP 1256
PD MAY 1990
PY 1990
Z8 0
ZS 0
ZA 0
TC 13
ZB 0
ZR 0
Z9 13
U1 0
U2 0
SN 0015-704X
UT WOS:A1990EJ87300001
ER
PT J
AU MOORE, CH
TI ISLAMIC BANKS AND COMPETITIVE POLITICS IN THE ARAB-WORLD AND TURKEY
SO MIDDLE EAST JOURNAL
VL 44
IS 2
BP 234
EP 255
PD SPR 1990
PY 1990
TC 15
ZR 0
ZB 0
Z8 0
ZS 0
ZA 0
Z9 15
U1 0
U2 1
SN 0026-3141
UT WOS:A1990FB75000002
ER
PT J
AU KOPPEL, RM
TI THREAT TO THE DUAL BANKING SYSTEM - STATE-LAW REQUIREMENTS FOR
DIVESTITURE OF AGRICULTURAL LAND HELD APPLICABLE TO NATIONAL BANKS
SO BANKING LAW JOURNAL
VL 107
IS 1
BP 47
EP 71
PD JAN-FEB 1990
PY 1990
ZS 0
ZB 0
ZR 0
Z8 0
TC 0
Z9 0
U1 0
U2 0
SN 0005-5506
UT WOS:A1990EE13700004
ER
PT J
AU BUTLER, HN
MACEY, JR
TI THE MYTH OF COMPETITION IN THE DUAL BANKING SYSTEM
SO CORNELL LAW REVIEW
VL 73
IS 4
BP 677
EP 718
PD MAY 1988
PY 1988
ZR 0
TC 46
Z8 0
ZS 0
ZA 0
ZB 0
Z9 46
U1 1
U2 1
SN 0010-8847
UT WOS:A1988R709200001
ER
PT J
AU BASHIR, BA
TI PORTFOLIO MANAGEMENT OF ISLAMIC BANKS - CERTAINTY MODEL
VL 7
IS 3
BP 339
EP 354
DI 10.1016/0378-4266(83)90043-2
PD 1983
PY 1983
ZA 0
Z8 0
ZS 0
ZR 0
ZB 0
TC 21
Z9 21
U1 0
U2 4
SN 0378-4266
UT WOS:A1983RM20300003
ER
PT J
AU KARR, FH
TI THE DUAL BANKING SYSTEM AND BRANCH BANKING - THE OKMULGEE, OKLAHOMA
INCIDENT
SO FEDERAL BAR NEWS & JOURNAL
VL 29
IS 5
BP 243
EP 247
PD 1982
PY 1982
TC 0
ZB 0
Z8 0
ZS 0
ZR 0
Z9 0
U1 0
U2 0
SN 0279-4691
UT WOS:A1982NT46300006
ER
PT J
AU GLIDDEN, WB
TI LEGAL CONSTRAINTS ON BANK EXPANSION - CAN THEY BE REMOVED WITHOUT
DESTROYING THE DUAL BANKING SYSTEM
SO UNIVERSITY OF ILLINOIS LAW FORUM
IS 2
BP 369
EP 387
PD 1980
PY 1980
ZB 0
ZA 0
ZS 0
ZR 0
TC 0
Z8 0
Z9 0
U1 0
U2 0
SN 0041-963X
UT WOS:A1980KP21900001
ER
PT J
AU SCOTT, KE
TI DUAL BANKING SYSTEM - MODEL OF COMPETITION IN REGULATION
SO STANFORD LAW REVIEW
VL 30
IS 1
BP 1
EP 50
DI 10.2307/1228174
PD 1977
PY 1977
TC 50
Z8 0
ZR 0
ZS 0
ZA 0
ZB 0
Z9 50
U1 0
U2 0
SN 0038-9765
UT WOS:A1977EH24900001
ER
EF

Savedrecs

Uploaded by

Copyright:

Available Formats

Savedrecs

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Savedrecs

Uploaded by

Copyright:

Available Formats

FN Clarivate Analytics Web of Science

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.