Search

Despite being exceptionally regulated financial institutions, risk management practices (RMPs) of Islamic banking (IBs) have always remained under the limelight due to their impact on financial performance (FP) and the influence of digitalization (DT). This study aims to investigate the impact of RMPs on FP through the mediating effect of DT. To analyze the linkage between these constructs, we created an index for RMPs, five unique proxies (mobile [MB_DEA], big data [BD_DEA], Internet of Things [IoT], cloud computing [CC_DEA], and social media [SM_DEA]) of DT, and Tobin's Q as a proxy of FP and operationalized the theory of contingency. The data between 2009 and 2020 was collected from Indonesian and Malaysian IBs and was analyzed using the two‐step generalized method of moments (GMMs) technique. The empirical findings represent that RMPs and DT have a significant positive effect on FP. Simultaneously, RMPs have a significant positive effect on two proxies of DT (MB_DEA and SM_DEA), and an insignificant positive effect on the remaining three proxies of DT (BD_DEA, IoT_DEA, and CC_DEA). Simultaneously, DT as a mediator plays a significant role between RMPs and FP. This study contributes to systematizing the RMPs of IBs by integrating digitalization which eventually will increase the financial portfolios of IBs. [ABSTRACT FROM AUTHOR]

Purpose: This study attempts to comprehensively analyze the cost Malmquist productivity index of conventional and Islamic banks in Saudi Arabia, the largest dual banking sector in the world, during the COVID-19 pandemic. Design/methodology/approach: This study employs the novel approach of cost Malmquist productivity index, which focuses on production costs, to measure the change in cost productivity so that the actual impact of the COVID-19 pandemic could be captured. Findings: The Saudi Central Bank has successfully mitigated the impact of the COVID-19 epidemic on the Saudi banking sector by implementing several policies and services. This success is reflected in the large positive shift in the production frontier of Saudi banks. Moreover, it was found that Islamic Saudi banks were by far more productive than conventional Saudi banks during the COVID-19 pandemic. However, the total cost productivity index (CMPCH) of Islamic Saudi banks starts to decline sharply in the last quarter of 2022 compared to conventional Saudi banks, indicating that Islamic banks in Saudi Arabia are suffering the most from the tighter monetary policy recently implemented by the Saudi Central Bank. Practical implications: The results provide insights for policymakers and investors on how different types of banks respond differently to economic crises and monetary policy changes. Targeted support measures may be needed to ensure all banks remain productive and efficient. Originality/value: To the author's knowledge, this is the first study to use this innovative methodology to assess the impact of COVID-19 on bank performance in a dual banking sector. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the influence of voluntary disclosure on bank value in Pakistan, considering the moderating effect of corporate governance characteristics: ownership control, board independence and board size. Design/methodology/approach: The study uses data from 20 listed Pakistani banks for the period 2011–2021. The estimation contains robust fixed effect and its assumptions, and a model of standard error with panel corrections. Findings: The findings revealed a weak positive impact of voluntary disclosure on bank value. However, the increase in the number of independent directors strengthens the positive impact of voluntary disclosure on a bank's value. Conversely, increasing the ownership concentration, and board size (other than independent directors) may strongly decrease the impact of voluntary disclosure on a bank's value in Pakistan. Research limitations/implications: The study's limitations include its exclusive focus on the Pakistani banking industry. Future research should take into account newer contexts and data. The findings suggest that future research should investigate the topic in various contexts, including a comparison of Islamic and conventional banks. Practical implications: The practical implications for Pakistani banks emphasize transparency, board composition and ownership structure. In terms of managerial implications, using independent directors, aligning ownership interests and addressing disclosure challenges are highlighted. Originality/value: Focusing on independent directors, ownership concentration and board size, this study enhances knowledge of the impact of voluntary disclosure on bank value in Pakistan. It contributes to agency theory and the literature in this domain. [ABSTRACT FROM AUTHOR]

We address the scarcity of empirical research on Shariah Compliance Disclosure (hereafter referred to as SCD) by presenting new evidence on the levels and range of SCD, of 807 bank‐year observation of Islamic Financial Institutions (hereafter referred to as IFIs) in 19 countries for the period from 2010 to 2020 and its determinants. Using an unweighted disclosure index measured by manual content analysis categorized into Shariah Supervisory Board (hereafter referred to as SSB) information, audit process, Shariah compliance review and Zakat, several outcomes are documented. In general, the SCD level is above average (57.38%) and hence evidence an overall growth during the sample period. Further, the study examines the relationship between corporate governance (CG) and SCD and the results indicate that foreign investors, institutional investors, board size, board independence, SSB reputation and SSB size are vital and influence the extent of SCD level. The study also conducted several tests to examine the main findings' robustness. The findings deliver valuable in‐depth empirical insights to regulatory bodies on the current SCD practises of IFIs to assist policymakers in modifying reporting frameworks or guidelines accordingly. In addition, this research can support academics, policymakers or standard setters and managers interested in seeking information about SCD and CG. [ABSTRACT FROM AUTHOR]

This article investigates the impact of bank size and business model on bank risk‐taking within the framework of the prospect theory. To fulfil this objective, we use the adjusted thermal optimal path model. The results suggest that conventional banks adopt the same risk‐taking behaviour for performance measures, regardless of their size. However, the size mainly influences the attitudes of managers towards Islamic banks. On the other hand, small Islamic banks, whether under‐ or over‐performing, take excessive risks. This behaviour is mainly explained by loss aversion. However, large Islamic banks that situated above the target are risk‐averse, since they adopt defensive behaviour. The results reveal that for risk measures and for both small and large banks, a bank's business model does not affect managers' attitude to risk. Therefore, small (large) banks adopt excessive risk‐taking (risk‐averse) behaviour and an offensive (defensive) strategy. The study has important implications for GCC banking regulators, supervisors, and market participants. Thus, our findings imply that understanding the impact of the bank size and business model on the risk‐taking behaviour of Islamic and conventional banks can help them reduce their risk and mitigate moral hazard and regulatory arbitrage behaviour. [ABSTRACT FROM AUTHOR]

This article investigates the relationship between corporate governance structures and financial flexibility for conventional and Islamic banks in the Middle East and North Africa (MENA) region. We construct a novel financial flexibility index (FFI) for the banking sector and examine the impact of the Shari'ah supervisory board (SSB), board size, and risk governance on financial flexibility. We find that board size and risk governance significantly affect banks' financial flexibility for Islamic and conventional banks. However, Shari'ah governance rules determine how that relationship is manifested in Islamic banks. We show that SSB size and busy SSBs enhance Islamic banks' financial flexibility. Our results show that Western corporate governance structures may lead to suboptimal financial flexibility. Banking policies should re‐evaluate the impact of one‐size‐fits‐all approaches to corporate governance while promoting 'soft policies' to banking regulation that are value‐enhancing for the banking sector. [ABSTRACT FROM AUTHOR]

This article discusses the principles of Islamic economics and how they differ from mainstream economic theories. It explains that Islamic economics is based on Sharia law and rejects the payment of interest, which is seen as exploitative. Instead, Islamic economics focuses on efficiency in the use of scarce resources and incorporates principles of profit and loss sharing. The article also discusses the development of Islamic banking and finance and the challenges it faces in adhering to Sharia principles. It concludes that Islamic economics is incompatible with macroeconomic policies and does not have relevance to the analysis initiated by John Maynard Keynes. [Extracted from the article]

Islamic principles are heralding a variety of implications for business and accounting. Reflecting upon Islamic practices, this study engages with the notion of ESG conduct and its disclosure in accounting reports. While drawing from key Islamic texts and relevant prior literature, the present research elaborates and discusses fundamental Islamic principles of relevance and delineates what they suggest for ESG reporting. A grounded theory method was used for data collection. Online in-depth semi-structured interviews were deployed to 16 Islamic "finance and accounting specialists." Primary data analysis was done with MAXQDA. In the next step, the three-step encoding method was accomplished. The survey revealed 53 reporting implementation codes in three dimensions comprising environmental, social, and corporate governance. In addition, a comparative view of corporate governance under Islamic and non-Islamic economic schools was illustrated. The execution of ESG accounting practices might be beneficial in overcoming the problem of traditional accounting, which fails to incorporate environmental, social, and ethical hidden costs. The conclusion discusses the perspective of the Islamic view in ESG reporting by incorporating the concept of Tawhid, which provides holistic guidance based on Islamic beliefs, values, and concepts. The obtained framework contributes to Islamic accounting at the intersection of sustainable strategies. [ABSTRACT FROM AUTHOR]

Purpose: The primary objective of this study aims to intensively explore the environment of Indonesian regulations and laws related to the Islamic banking system and micro-, small- and medium-sized enterprises (MSME) and unveil the restrictive laws and regulatory flaws that potentially hinder the Islamic banking institution and MSME industry in achieving financial inclusion and promoting sustainable growth. Design/methodology/approach: This paper implements a qualitative method by implementing a multi-case study research strategy, both from the Islamic banking institutions and the MSME industries. The data were gathered primarily through an interview approach by adopting purposive uncontrolled quota sampling. Findings: The findings of this paper reveal two essential issues: First, the regulatory imbalances and restrictions could demotivate and hinder the efforts of Islamic banks in providing access to finance for the MSME segment, hence, encumbering the achievement of the financial inclusion agenda from the Islamic banking industry. Second, the flaws in MSME registration and taxation might discourage the formal MSMEs from extending their business license and prevent the informal MSME units from registering their business. This issue would potentially lower their chance of accessing external financing from the formal financial institutions and participating in supportive government programmes due to the absence of proper legality. Research limitations/implications: Since this paper only observed six Islamic banks and 22 MSME units in urban and rural locations in Indonesia using a case study approach, the empirical findings and case discussions were limited to those respective Islamic banks and MSME participants. Practical implications: By referring to the recommendations as presented in this paper, two critical policy implications could be expected from adopting the proposed recommendations, among others: By addressing the issues of the regulatory imbalance associated with the Islamic banking industry and introduce the deregulatory policies on profit and loss sharing (PLS) scheme implementation, this approach will motivate the Islamic banking industry in serving the MSME sector better and provide greater access to financial services, particularly in using the PLS financing schemes. By resolving the problems on MSME registration and taxation, this strategy will enhance the sustainability of the formal MSMEs' operation and encourage the informal ones to register, hence, improving their inclusion into the formal financing services and government assistance programmes. Originality/value: The present study attempts to address the literature shortcomings and helps to fill the gaps – both theoretical and empirical – by incorporating the multi-case study among Indonesian Islamic banks and MSMEs to extensively explore the Indonesia regulatory environment pertaining to the Islamic banking system (supply-side) and MSMEs (demand-side), and thoroughly investigates and reveals the restrictive laws and regulatory flaws that could potentially hinder the Islamic banking institutions and MSME industries in attaining financial inclusion and contributing to sustainable development. [ABSTRACT FROM AUTHOR]

Purpose: The choice between different financing sources is governed by a number of finance theories, particularly, trade-off theory and pecking order theory. However, the special characteristics of Islamic finance, which forces the exclusion of conventional bonds, leave Islamic banks with limited number of alternatives. Tier 1 sukuk are distinguished type of sukuk that combines the features of conventional bonds and stocks. This paper aims to answer the following question: Does the issuance of Tier 1 sukuk positively affect Islamic banks' profitability or is their impact concentrated on enhancing Islamic banks' capital adequacy ratios? Design/methodology/approach: The data set used in this study consists of all United Arab Emirates (UAE) Islamic banks that issued Tier 1 sukuk over the period 2010–2020. Pooled and fixed effects panel regressions of Tier 1 sukuk and other control variables on three proxies of Islamic banks' profitability were run. The selection of fixed-effect model is based on Hausman test, redundant fixed effects and likelihood ratio test. Findings: This study reveals novel findings. Tier 1 sukuk increases both earnings per share (EPS) and capital adequacy ratios. That is, this study finds that there is a positive significant impact of Tier 1 sukuk on EPS, which indicates that issuing more Tier 1 sukuk will generate more return to shareholders in terms of higher EPS because of the lower cost of Tier 1 sukuk compared to equity. However, this study finds that there is an insignificant impact of Tier on sukuk on both return on assets and return on equity. Hence, it is concluded that Tier 1 sukuk does not increase the risk appetite of UAE Islamic banks. Research limitations/implications: Tier 1 sukuk is a niche instrument that has been recently used by Islamic banks. Hence, there are a limited number of Islamic banks that have issued this type of sukuk and consequently limited number of observations. Therefore, with the increased use of this instrument, a larger set of data will be available for examination. In addition, future research could examine the relationship between issuing Tier 1 sukuk and profitability in other countries where such sukuk have loss absorption feature. The impact of other types of sukuk, such as liability sukuk, on Islamic banks' profitability could also be an interesting field of study. Practical implications: This study recommends Islamic banks to issue more Tier 1 sukuk to enhance their profitability indicators while meeting Basel III accord. This study also recommends investors to purchase the stocks of Islamic banks that issue Tier 1 sukuk because they are able to offer them higher EPS. The authors advise the UAE regulators to allow Islamic banks to issue Tier 1 sukuk with loss absorption feature to enable Islamic banks engage in more risky activities that usually provide larger profits. This study also suggests that the Islamic Financial Services Board (IFSB) reclassifies Tier 1 sukuk, with loss absorption feature, within the highest quality of capital, common equity Tier 1, to encourage Islamic banks to issue this type of sukuk, especially Basel III accord and IFSB 15 require higher ratios of common equity Tier 1 to risk-weighted assets. Originality/value: This research contributes to the existing literature in two ways. First, it adds to the existing literature on the impact of sukuk on Islamic banks profitability. That is, contrary to prior studies that merely investigate the impact of issuing ordinary sukuk on profitability, this study explores a distinguished type of sukuk, that is Tier 1 sukuk, that has been surprisingly ignored so far. Second, this study shows that it is not only capital adequacy ratios that have improved as a result of issuing Tier 1 sukuk but also Tier 1 sukuk reduce the cost of capital of UAE Islamic banks which has been reflected in a higher profitability proxied by EPS. Hence, these sukuk serve a dual function for Islamic banks by improving both capital adequacy and profitability ratios. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the extent and trend of corporate social responsibility (CSR) disclosure by UAE listed banks and the impact of corporate governance mechanisms on this disclosure. Design/methodology/approach: Content analysis of banks' annual reports from 2009 to 2019 was applied to investigate the CSR disclosure level by constructing a disclosure index. Panel data regressions were applied to analyze the impact of corporate governance mechanisms on CSR disclosure. Findings: UAE banks show an improving trend in the CSR disclosures. In addition, the board of directors and ownership structure are significantly and positively associated with the CSR disclosures. The results vary across the banking systems. Research limitations/implications: This study considers the extent of the CSR disclosure in UAE banks' annual reports, and future research should consider more industries and communication channels. Practical implications: This study sheds light on the extent of the CSR disclosure of UAE listed banks and assists UAE policymakers in implementing appropriate corporate governance mechanisms. Social implications: The findings provide banks with a better understanding of the benefits of strengthening corporate governance to improve their CSR disclosure. Originality/value: This study contributes to the literature by constructing a more comprehensive disclosure index and examining the impact of corporate governance mechanisms on CSR disclosure by considering both the conventional and Islamic banking systems. [ABSTRACT FROM AUTHOR]

Purpose: Green sukuk (GS) is an emerging financial tool that has gained momentum in recent years owing to increased attention being given to Islamic finance, socially responsible investing (SRI) and sustainability agendas. Yet, GS studies are fragmented, dispersed and lack comprehensive reviews. As a response to this gap in academia, this paper aims to synthesize the knowledge on GS into thematic clusters, providing a more comprehensive understanding of the subject and offering guidelines for future research. Design/methodology/approach: This study implemented a systematic literature review approach to analyse studies on GS that were published prior to and including June 2023. The PRISMA 2020 protocol was used in the sample selection process. A total of 62 peer-reviewed journal articles from six databases were identified and categorized into various themes. Findings: The results suggest that previous research has predominantly focused on the areas of GS advantages, drivers, market development and potential sectors, along with challenges and recommendations to improve the market. However, it was found that some other aspects, including GS pricing, performance and purchasing intention, require further research attention. The analysis also indicated that the use of theories in the GS context was limited, with only five theories employed in just four out of the 62 articles examined. Moreover, this paper's findings revealed that the studies employing quantitative and empirical analysis methods were limited to four articles. Geographically, most of the studies were conducted in Indonesia and Malaysia, while other countries with high-potential markets (e.g. GCC) had limited GS practices and studies. Practical implications: The results of this study have several practical implications. For investors, a review of GS will provide greater insight into the understanding of the GS market, helping them make better investment decisions. For policymakers, this paper empowers them with the knowledge to make informed decisions regarding GS markets by highlighting key recommendations identified in the literature. Finally, the proposed guidelines can be used in future research. Originality/value: While Green Bonds have received significant attention, there is a dearth of research on GS and those that exist are fragmented. A systematic literature review is necessary to identify knowledge gaps for future research. [ABSTRACT FROM AUTHOR]

Islamic banking continues to develop, particularly in product diversification, offering a wider variety of options that have positively impacted the public's willingness to conduct muamalah activities through Islamic banks. Various financing products provide customers with the convenience of selecting options that suit their needs. The object of this research, as explained by Husein Umar in Setiawan Santana, focuses on problematic financing, a condition where significant deviations occur in repayments, leading to delays or potential losses. Problematic financing represents a situation where loan repayment agreements face the risk of failure and tend to lead to potential losses. This study offers new insights by examining the role of Islamic law in managing problematic financing risk at Bank Syariah Indonesia (BSI). The novelty of the research lies in the further exploration of using Islamic contracts (akad) as the main foundation in regulating and resolving problematic financing. Through this approach, the research provides a fresh perspective on how Islamic banks can more effectively manage financing risks while adhering to Sharia principles. The impact of this research on Islamic banking is quite significant. The application of risk management based on Islamic law is expected to enhance public trust in Islamic banking and strengthen its stability in Indonesia. The use of akad as the legal basis in resolving problematic financing ensures transparency and fairness in line with Sharia principles. This provides protection for both customers and the bank, creating a stronger foundation for the sustainability of Islamic banking in the future. [ABSTRACT FROM AUTHOR]

The study aims at introducing Islamic banking as a solution to the issue of cash circulation outside the banking system in Algeria. It found that Islamic banking deposits knew slight growth during the study period while cash circulation outside the banking system did not decrease due to the limited spread and restricted range of products and offered services. The contributions of Islamic banking remain dependent on the privileges granted to public banks. [ABSTRACT FROM AUTHOR]

The study investigates the performance differentials between Islamic and conventional banks operating in Palestine across a number of dimensions. Research Problem: The study addresses the lack of comparative analysis between Islamic and conventional banks in Palestine, specifically examining performance disparities using the CAMEL approach. This is critical due to the recent trend of conventional banks acquiring Islamic banks, raising questions about the underlying performance differences. Purpose: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Methodology: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Results: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Recommendations: Islamic banks should refine their business models to adopt higher-risk, higher-profitability strategies and diversify their financing beyond Murabaha. Conventional banks should continue strengthening their liquidity positions and capital management to maintain their competitive edge. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Islamic Economics & Finance Studies is the property of Politik Ekonomik ve Sosyal Serdivan and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research deals with integration theory in measuring cultural diversity in the urban context. Cultural diversity is the recognition of the rights of all groups in society, so the presence of Muslims in Western society is an example of reflecting cultural diversity in the Western urban context. Integration theory is an attempt to bring a variety of theories and models into one framework. It consists of four quadrants, each quadrant representing a specific scale. Muslims represent the social part interacting with Western society, which is the subjective, individual and collective part of the integration theory (the first and third quadrants), and the Islamic religious buildings and their interaction with the urban context represent the objective part of the integration theory (the second and fourth quadrants). A specific questionnaire is chosen for each quarter and the results of the questionnaire provide a measure of the subjective and objective aspects of integration theory. The results showed that the subjective aspects of individuals and their relationship with Western society are the highest percentage of the objective aspects of the requirements of the Islamic religious building or the relationship of the religious building with the Western urban context. Multicultural planning has a role in integrating culturally diverse societies and achieving smooth interaction among its members. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between ownership structures and dividend policies for 46 Islamic and 75 conventional banks from 12 MENA and Asian countries between 2012 and 2020. Logit regression is employed to estimate the regression equation, centering on the moderating impacts of the COVID-19 pandemic and national culture. Our findings remain robust as we tackle the endogeneity issue using probit and logistic regression models. Asset growth and GDP growth serve as proxies for investment opportunities. Additionally, dividend per share acts as a proxy for dividend policy. Our findings emphasize how the ownership structure impacts dividend payouts in both banking systems. We observed positive relationships between dividend payouts and foreign ownership, bank size, age, and performance. Conversely, concentration of ownership and leverage negatively influence dividend payouts. The COVID-19 pandemic directly boosts the dividend policy for conventional banks and alters the relationship between foreign ownership and distribution policy in Islamic banks. Specifically, COVID-19 interacts with foreign and state ownership to reduce dividend payouts, but concentration of ownership does not show this effect. This study furnishes evidence affirming the significance of the ownership structure in shaping the dividend payout policy within Islamic and conventional banking. The results maintain their reliability across various estimation approaches. Moreover, this study accounts for the crisis period as a moderating factor influencing dividend payments. [ABSTRACT FROM AUTHOR]

The article focuses on a comparative examination of vision statements from Islamic banks (IBs) and Conventional banks (CBs) in the Middle East. Topics include common keywords and themes, the lack of futuristic elements in these statements, and recommendations for enhancing differentiation and technology integration in bank strategies.

Purpose: The purpose of this study is to provide quantitative information about the development of Islamic financial management literature. For this purpose, it is aimed to draw attention to the development of this field by revealing the literature gap in the field of Islamic financial management. Design/methodology/approach: In this study, the document analysis method is used and the Web of Science (WOS) site is used to obtain the desired data. The time range of the study covers the years 1980–2023/January. The results obtained from the scans were analyzed by the bibliometric analysis method. The data obtained within the scope of the study are classified and analyzed using the VOSviewer program, which is one of the many software developed for scientific mapping analysis. The obtained data are presented in a certain order with the visual mapping method. Findings: In the analyses made, bibliometric analysis based on document review and including the subject of "Islamic financial management" in the WOS database between the relevant years has not been used in any study, which points to an important gap in the literature. However, 3,022 studies on "Financial management" and 1,830 studies on "Islamic finance" have been identified. Although there is no data on "Financial Management", the subjects of "Islamic finance" and "Financial management" related to the subject have been evaluated in terms of countries, the most publishing organizations, authors, publications and word–word groups, using the bibliometric analysis method, as well as making numerical and visual evaluations. These studies show that an infrastructure to include the subject of "Islamic financial management" has not been formed in the literature. Practical implications: This study points to an important gap in the literature. The subjects of "Islamic finance" and "Financial management" have been sufficiently covered in the literature separately. By combining this knowledge with new studies there appears an environment where original studies on the subject of "Islamic financial management" can be made and this study is aimed to shed light on this virgin area. Originality/value: In the literature bibliometric analysis based on document review including the subject of "Islamic financial management" has not been used in any study. To the best of the author's knowledge this study is the first in the literature to address the related issue and with it an important gap in the literature has been identified and an important case that will be a source for future studies has been revealed. [ABSTRACT FROM AUTHOR]

Copyright of Arts Magazine is the property of Thamar University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Arts Magazine is the property of Thamar University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Al-Anbar University for Islamic Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Islamic Banking and Finance (IBF) advocates relentlessly promote it as a more inclusive and less rapacious (i.e., "participatory") alternative to conventional finance as it ostensibly eschews interest-based, collateralized debt in favor of Profit and Loss Sharing (PLS, or Islamic venture capitalism). The US$ three trillion global IBF industry, they argue, "invests" in a wide range of economically beneficial activities and expands the pool of eligible beneficiaries. IBF's critics have long argued that it is "a distinction without a difference" that uses close analogues of conventional financial products (aka the "murabahah syndrome"), and equity participation (PLS) has an insignificant share of global IBF assets. However, between 2006–2020, Islamic banks in Pakistan (an IBF pioneer) seemingly shifted away from conventional debt-analogue products to PLS financing. A closer analysis of these "participatory" Pakistani IBF products confirms the Kuran Thesis—that IBF will invariably and continually emulate conventional banking due to unchangeable environmental factors—since the banks developed new PLS financial products that allowed them to avoid being seen as ribawi (usurious) banks without having to take on the risks associated with actual venture capitalism. IBF, therefore, continues to be a higher cost, murabahah syndrome, version of conventional banking. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Mevzu is the property of Ali Sever and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Payment clearing is important to ensure that the payment is transferred or the cash from one bank account moves to the other bank. The banking system in Iraq follows two sorts of clearance systems which are the IBCS (Inter Bank Clearing System) and C-ACH (Check Automated Clearing House System). Though the Central Bank of Iraq (CBI) has already modernized the payment clearing systems, the country's banks still use the interbank clearing systems. In this background, the current study is a first-of-its-kind attempt to compare and contrast the IBCS and C-ACH systems so as to understand the benefits and disadvantages associated with these two clearance systems and identify the optimal one. For this study, the researcher used secondary data available from the CBI for the study period between 2O18 and 2O22. The collected data was analyzed for descriptive statistics and correlation to validate the hypotheses. The Mann Whitney U test and independent sample T-test were conducted in the study. From the study outcomes, it is clear that there exists a significant difference between the systems' performance in terms of number of transfers in dollars and Iraqi dinars as well as the distribution of bank transfers through checks in dollars and Iraqi dinars. Between the systems (IBCS and C-ACH) under study, the C-ACH system gained prominence with the highest number of transfers and the distribution of bank transfers through checks. The study results confirm the increasing penetration of the electronic clearing system while the policy makers in the government and decision makers at the CBI must devise strategies to bring all the participant banks in the country under a unified clearing system so that the end consumer gains benefits in terms of cost, time, data security, ease and so on. [ABSTRACT FROM AUTHOR]

Purpose: Proponents of Islamic banking believe that this banking model is relatively superior in times of financial crises. This study aims to examine whether Islamic banks were more resilient to the coronavirus 2019 (COVID-19) pandemic than their conventional peers, especially in terms of two of the most important banking risks, capital and liquidity risks. Design/methodology/approach: The authors use a regression model to examine whether Islamic banks were more resilient to the recent health crisis, as compared to their conventional counterparts. The results are robust to alternative crisis time periods, the use of different model specifications and the inclusion of different control variables. Findings: Unlike during the 2007–2008 global financial crisis (GFC), Islamic banks have not performed relatively well during the more recent crisis caused by the COVID-19 pandemic. The results show that Islamic banks experienced an increase in both capital and liquidity risks. The results also indicate a decrease in bank profitability, improved solvency and asset quality and a decrease in operational risk. Originality/value: This study contributes to the literature on banking business model and resilience to economic crises. Contrary to some expectations and to their performance during the GFC of 2007–2008, Islamic banks were found to be more vulnerable during the COVID-19 pandemic than conventional banks. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to analyze Islamic financial institutions' (IFIs) current financial engineering and product development procedures. Design/methodology/approach: The paper is quantitative in nature and the survey questionnaire were collected from managers and IF experts working for Islamic Banks, Takaful and other IFIs in Turkey, Malaysia and UAE. Two-stage structural equation modeling was used to test the hypothesis. Findings: The findings highlighted that the Shari'ah Supervisory Board, Strategy and Planning of IFIs, Legal and Regulatory framework, pricing of a new product and financial performance positively impact the new product development (NPD) process. At the same time, Islamic values have no significant positive impact. Research limitations/implications: When generalizing the research results, data collection from the right departments was the main limitation of the current study. Future research may opt to collect data only from Product Development Departments. Practical implications: The findings of this study will allow IFIs to reflect on their present methods, procedures and Shari'ah compliance framework for the NPD process. Originality/value: Factors affecting the product development and financial engineering process are discussed in the literature. The findings of this study can be regarded as building blocks for future academic research on product development and financial engineering in Islamic finance. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the simultaneous effect of variations in the Capital Adequacy Ratio and Credit Risk of Islamic banks of the Gulf Cooperation Council under the influence of the Basel III regulations using an innovative approach. Design/methodology/approach: This approach highlights the critical importance of the Basel III reform in preserving the stability of the regional and international financial sector in the Gulf Cooperation Council and globally by examining the complex dynamics between Capital Adequacy Ratio and Credit Risk and their interaction under regulatory constraints. The annual reports and financial performance of 26 Islamic banks were analyzed over the period 2013–2021. Findings: The findings highlight the critical importance of the Basel III reform in preserving the stability of the regional and international financial sector in the Gulf Cooperation Council and globally by examining the complex dynamics between Capital Adequacy Ratio and Credit Risk and their interaction under regulatory constraints. The annual reports and financial performance of 26 Islamic banks were analyzed over the period 2013–2021. Originality/value: The insights from findings help define effective strategies to manage and mitigate Credit Risk while strengthening solvency under Basel III prudential supervision. Policymakers, regulatory authorities and banking institutions can optimize the management of Credit Risk and create a robust and stable financial environment for Islamic banks. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine information (stock return, volatility and extreme risk) spillovers and interconnectedness within dual-banking systems. Design/methodology/approach: Using multilayer information spillover networks, this paper conduct a deep analysis of contagion dynamics among 24 Islamic and 46 conventional banks from 2006 to 2022. Findings: The findings show the network's rapid response to financial shocks. Through cross-sector analysis, this paper identify information spillovers between and within Islamic and conventional banking systems. Furthermore, this research illustrates distinct roles played by Islamic and conventional banks within the multilayer network structure, contingent upon the nature of the financial shock. Practical implications: Understanding the differential roles of Islamic and conventional banks in information transmission can aid policymakers and financial institutions in devising more effective risk management strategies, thereby enhancing financial stability within dual-banking systems. Originality/value: This study contributes to the literature by emphasizing the necessity of examining contagion mechanisms beyond traditional single-layer network structures, shedding light on the shadow dynamics of information transmission in dual-banking systems. [ABSTRACT FROM AUTHOR]

Purpose: Islamic banking and microfinance institutions (MFIs) share the core objective of serving the underprivileged. This study aims to investigate whether Islamic banking development facilitates (greases) or hinders (sands) the social mission of MFIs. Design/methodology/approach: Data for 19 countries covering the period 2010–2018 were collected from the World Bank, Bank Focus and International Monetary Funds and analyzed using conventional econometric methods. Endogeneity-corrected techniques and alternative proxies were employed to ensure robust results. Findings: The study revealed that Islamic banking development (proxied by the size of the Islamic banking assets) weakens the depth of outreach of MFIs (measured by average loan size). In countries with growing Islamic banking, MFIs appear to shift their focus toward wealthier clients, potentially due to market saturation among the poor. This is evidenced by MFIs offering larger loans, suggesting a mission drift toward profit maximization. Therefore, it can be inferred that competition from Islamic banks, to some extent, erodes the social mission of MFIs. Originality/value: This study is among the few to examine the recent and comprehensive relationship between Islamic banking development and the social mission of MFIs. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the effect of the diversity of the board of directors (BOD) and the shariah supervisory board (SSB) on credit risk, insolvency, operations, reputation, rate of deposit return risk (RDRR) and equity-based financing risk (EBFR) of Islamic banks (IB). Design/methodology/approach: The study uses 68 IBs from 19 countries covering 2009 to 2019. BOD and SSB diversity attributes data were hand-collected from the annual reports. Financial data were collected from the bankscope database. The robustness test and two-step system generalized method of moment estimation technique were used to address potential endogeneity issues. Findings: This study provides evidence that diversity in the experience and cross-membership of board members decreases the risk. Gender diversity increases the risk, but the BOD's education level diversity has no relationship with risk. More interestingly, influences in the experience and cross-membership of the SSB's members positively influence risk. However, members' education levels and gender diversity have not been proven to affect risk. Practical implications: The paper recommends that Islamic banking authorities play a stronger role and make a greater effort in driving corporate governance reform. Also, determining individual characteristics of the board is a requirement to become a member of a BOD or an SSB. Originality/value: This paper expands the commitment literature through the diversity of the BOD's and the SSB's members in terms of their education levels, experience, cross-membership and gender. This study expands the list of potential risks for IBs, by including the RDRR and EBFR. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to investigate the link between Islamic finance for entrepreneurship activities and economic growth in Malaysia within the model of endogenous growth. Design/methodology/approach – This study applied a parametric analysis represented by vector autoregression (VAR) Granger causality and a non-parametric analysis represented in the bootstrapped quantile regression to examine the effect of Islamic finance for entrepreneurship activities on economic growth within the model of endogenous growth. This paper used a sample of all Islamic banks working in Malaysia covering a period from 2014 first quarter until 2019 third quarter (2014Q1–2019Q3). Findings – The findings demonstrated that Islamic finance for entrepreneurship activities are promoting economic growth in Malaysia which indicates that Islamic finance is a vital contributor to economic growth through financing entrepreneurial domains small and medium-sized enterprises. Practical implications – The analysis in this paper would fill the literature gap by investigating the link between Islamic finance for entrepreneurship activities and economic growth within the model of endogenous growth in Malaysia as this study serves as a guide for the researchers and decision-makers to the necessity of merging Islamic finance as a major player in the economy to finance the entrepreneurial domain which contributes to economic growth. Originality/value – This study is the first that investigates the relationship between Islamic finance for entrepreneurship activities and economic growth empirically using the causality and quantile regression within a new theoretical approach over the model of endogenous growth to provide a proven valuable experiment from Malaysia concerning Islamic finance for the entrepreneurial domain which promotes economic growth.

As Islamic banks grow and evolve, pricing methods for their services have become essential to study and implement. This study highlights the significance of understanding the factors influencing Islamic banking service pricing in Algeria. The study aims to analyze how Islamic banks price their services, with a focus on cost, market, and value strategies. Additionally, it seeks to evaluate and recommend ways to enhance the current practices of banks operating in the national market. Algeria is experiencing rapid growth in Islamic banking, making it an ideal location to study this subject. The country is home to two Islamic banks, Al Baraka Bank and Al Salam Bank. Algeria was selected as a new market to allow the findings to be applicable to similar situations elsewhere. The research utilizes secondary data obtained from available information on Islamic bank service fees, comparing them with those of traditional banks. It also conducts financing simulations in both banks and compares them with the traditional theoretical framework. Data was gathered from various sources, including bank websites, annual reports, and previous studies. The research reveals that Algerian Islamic banks do not prioritize scientific methods in pricing their services. The results suggest that these banks operate within a traditional framework under the oversight of the central bank. The central bank's rules depend on the prices of services conventional banks offer. This shapes how customers perceive these banks as representatives of Islamic banking. Islamic banks can utilize the study's results to develop pricing strategies that are more effective and compliant with Islamic law. Regulators can utilize these findings to formulate enhanced policies to bolster the Islamic banking sector. The results also assist researchers in delving deeper into the realm of Islamic banking service pricing. This study refutes the hypothesis that Algerian Islamic banks have enhanced the efficiency of their service pricing by adopting models in line with Islamic finance principles, such as profit-sharing, while considering market conditions and service value. They should embrace more pragmatic and beneficial pricing strategies that align with Islamic law, cater to customer needs, and enhance their competitiveness and value in the national banking market.

The role of artificial intelligence in shaping Islamic finance services reflects a fusion of modern technology and Islamic principles, offering innovative opportunities to enhance financial services in ways that are compatible with Islamic law. This research paper aims to study the role of artificial intelligence in shaping Islamic finance services by addressing key theoretical literature related to artificial intelligence and Islamic finance and examining their relationship. Using a descriptive-analytical approach, the paper reviews current and future applications of artificial intelligence in financial services, as well as the major challenges in applying artificial intelligence in Islamic finance. The study concludes that artificial intelligence can enhance innovation in the Islamic finance sector by providing advanced and innovative solutions that better meet customer needs.

Purpose: This research investigates the Islamic banks' intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic growth and poverty alleviation as a predictor and mediator variable. Design/methodology/approach: A total of 297 observations were extracted from 33 Indonesian districts and 14 Islamic banks during the period 2012-2020. Fixed-effect regression analysis was used to examine variable's interactions. Findings: The empirical results indicate that Islamic banks have adopted a channelling role towards redistributing capital from lender to borrower. Besides, there are crucial roles in developing economies and reducing poverty at the district level. This study also reinforces the critical role of financing in mediating the relationship between branches and deposits as predictor variables and GDP and poverty as outcome variables. Research limitations/implications: The current study was limited to Indonesian Islamic banks and the district's perspective. Future research needs to cover sub-districts and other poverty measurements (e.g. human education and development perspectives), including conventional and Islamic banks. It can help practitioners, regulators and researchers observe the dynamic behaviour of the banking sector to understand its role in the economic and social fields. Practical implications - Bank managers and regulators should promote branches, deposits and financing. It also enlightens people about the essential role of Islamic banks and their fundamental operations in business and economics. Originality/value: This study contributes to economic literature, bank managers and local governments' decision-making processes by developing and testing an economic growth and poverty model. [ABSTRACT FROM AUTHOR]

This study aims to analyze the efficient market form of the Jakarta Islamic Index. The methodology used is an event study with a window period of 20 days, including ten days before and ten days after the announcement of composition changes held twice a year. The sample consists of 102, with 30 companies listed during the study period and 36 companies excluded and re-listed following the composition change announcements. The analysis technique used is the Paired Sample T-test. The findings reveal no differences in abnormal returns and trading volume activity before and after the announcement. This suggests that the market had already absorbed the announcement information before the event, resulting in a weak reaction and indicating that the announcement did not significantly impact the Jakarta Islamic Index. This implies that the index operates in a semi-strong form of market efficiency. Consequently, companies listed in the index may need additional strategies to improve their stock performance. To provide further insight, this study also examines the average stock trading activity of companies that enter and exit the composition of the Jakarta Islamic Index for the 2019-2023 periods.

This study examines the financial implications of religious restrictions by analyzing how changes in the Shariah compliance status of stocks affect their price and trading volume. Employing the market model in an event study approach and using data from Malaysian firms between 2000 and 2016, the study focuses on 30 announcements from the Security Commission Malaysia’s List of Shariah Compliant Securities (LSCS), resulting in 370 additions and 284 deletions from the compliance list. The findings indicate that the inclusion of stocks in the compliance list generates longterm demand driven by Islamic institutional and Muslim retail investors, leading to a permanent increase in abnormal returns and trading volume. Conversely, the removal of stocks from the compliance list induces short-term negative abnormal returns and increased trading volume, reflecting selling pressure. These results contribute to understanding the financial consequences of religious restrictions, highlighting the influence of Shariah compliance on stock market performance and investor behaviour.