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A resilient banking system in Indonesia is essential to withstand economic fluctuations that have significantly impacted Indonesia, especially during financial crises. To address these challenges, effective macroprudential policies are required to support the development of a high-performance banking sector. This research examines the impact of macroprudential policies on the performance of conventional banks in Indonesia. The research uses time-series data from 2014 to 2023 obtained from the Indonesian Financial Services Authority (OJK) and the Central Bank of Indonesia (BI). The data is analysed using the Vector Autoregression (VAR) method. The variables estimated include macroprudential policy instruments, including the Macroprudential Intermediation Ratio, Countercyclical Capital Buffer, Loan-to-Value ratio, Minimum Statutory Reserves, and Return on Assets. The results of the study found that most macroprudential measures do not have a substantial impact on the performance of conventional banks in Indonesia. Only Minimum Statutory Reserves significantly affect Return on Assets. Additionally, most variables do not exhibit reciprocal relationships. However, some variables display unidirectional effects. Specifically, the Countercyclical Capital Buffer has a significant causal impact on Return on Assets, while Minimum Statutory Reserves also play a notable role in affecting Return on Assets. Moreover, there is a causal relationship between the Macroprudential Intermediation Ratio and Minimum Statutory Reserves, as well as between the Countercyclical Capital Buffer and Minimum Statutory Reserves. The results of this study can contribute to policies in helping regulators formulate strategies to deal with future economic crises by ensuring that existing policies can maintain financial stability. [ABSTRACT FROM AUTHOR]

The robust growth demonstrated by the Islamic Banking Industry over the last decade invites serious attention towards less attended areas of Islamic Banking Liquidity Creation, credit concentration, and risk-related financial stability. This study addresses the relationship between liquidity creation and solvency risk during the period of 2004–2021 in the presence of the moderating role of bank credit concentration while comparing Islamic and conventional banks in Pakistan and Malaysia. This study reveals that the relationship of bank liquidity creation is negative and significant with solvency risk across Islamic and conventional banks in Pakistan and Malaysia. This negative relationship has been positively and significantly moderated (reversed) by credit concentration. The result is robust to different regression estimation methods (fixed effect, random effect, GLS) and alternative measures of liquidity creation (Cat fat, Cat nonfat). Further, our study also observes that this relationship holds true while making a comparative analysis of Islamic and conventional banks in Pakistan and Malaysia. Islamic Banks in Pakistan faced more solvency risk while creating liquidity (both on and off-balance sheet) in the presence of moderation of credit concentration than Malaysian Islamic banks and Pakistani conventional banks, thereby showing an immediate need to establish a solvency risk management framework and a diversified loan portfolio strategy. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this research study is to examine the banking preferences of Kuwaiti university students, their preferences between Islamic and conventional, the reasons supporting their choice and, as a measure of satisfaction, the likelihood of them recommending their bank to their friends and family. Design/methodology/approach: We conduct a short survey among undergraduates using a 4-item paper questionnaire physically distributed and collected at a Kuwaiti business school. The large response (n= 503) is analysed and descriptive statistics used to present the results Findings: Results indicate a majority prefer Islamic banking and that the main reason for this is their religion. Those students who opted for conventional banks gave social reasons such as recommendation for their choice. A higher level of satisfaction was recorded for Islamic banking customers. We conclude that Islamic banks have managed to match their ethical and religious appeal with the delivery of efficient and convenient banking services that are valued by the student segment. Practical Implications: Our results are of interest to those offering retail banking services in binary markets where conventional banks compete with Islamic banks in addition to researchers in this domain. For Islamic banks, the significance of maintaining a strong reputation with the underpinning of robust Shariah principles is emphasized. Originality: The paper contributes fresh understanding to the acceptance of and satisfaction with Islamic banks and their products and services among a strategically important segment. It provides evidence suggesting a bright future for Islamic banking in Kuwait and the wider Gulf region. [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]

Purpose – We examine the effects of environmental, social, and governance (ESG) disclosure and green building policies on the stock returns of Islamic and conventional banks. Methodology – Data were obtained from 17 Islamic banks and 17 conventional banks from eight countries (Arab Saudi Arabia, UAE, Qatar, Kuwait, Malaysia, Indonesia, Pakistan, and Bahrain) over seven years from 2017 to 2023. We conducted panel least squares with fixed effects (dummy variables) for cross-sections using EViews to process the data. Findings – The estimated results show that the green building policy variable is statistically significant to the stock return of Islamic banks, while the environmental, social, and governance variables are not. Meanwhile, the social dimension is statistically significant for the stock returns of conventional banks, but environmental, governance, and green buildings are not. Implications – Investors and policymakers should consider the implementation of ESG and green building policies to contribute on sustainability issues and gain financial return. Originality – This study tests non-financial performance, such as ESG disclosure and green building policy, on the stock returns of Islamic and conventional banks, which has not been extensively studied by the existing literature.

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 European Journal of Islamic Finance is the property of University of Turin / Universita degli Studi di Torino 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 paper examines whether the different corporate governance structures of conventional banks (CBs) and Islamic banks (IBs) have varying effects on their respective climate‐related disclosure (CRD). Employing a unique dataset of CBs and IBs' CRD and corporate governance structures for the period of 2016–2019, we found that their respective corporate governance structures did indeed affect their CRD in different ways. Our findings suggest that CBs disclose more climate‐related information than IBs because IBs focus on Sharia compliance which does not emphasise the protection of the environment, while CBs may be more responsive to shareholders' and stakeholders' demands on climate and environment. These effects were stronger with the quality of governance, that is, CBs disclose more climate‐related information with the governance quality, while IBs disclose even less when their governance quality increases. The findings of this study have important implications for climate change, especially the Paris Accord and The 26th Meeting of the Conference of Parties (COP26). There are also policy implications for sustainable financial markets and the financial services sector. [ABSTRACT FROM AUTHOR]

The insolvency risk has an important part in the development and sustainability of the banking industry. The fall in financial parameters due to the Covid-19 outbreak suggests that banks are at risk of insolvency. The study aims to detect and assess developments in insolvency risk in Islamic and conventional banking between 2018 and 2023. The methods used were Z-score, X-score, G-score, and panel data regression. The results indicate that internal factors, namely Loans to Assets at the Top Four Conventional Commercial Banks (BUK), Cost Income Ratio at BUK, Income Diversity, and Total Assets at Islamic Commercial Banks (BUS), have a significant negative effect on the Z-score value. External factors, namely Gross Domestic Product at BUS and BUK, have a substantial negative effect, and Interest Rates at BUK have a significant positive effect on the Z-score value. Islamic and conventional banking must preserve the bank's health by increasing capital, retaining factors important to the Z-score, and conducting additional research with more diversified variables and objects to improve efficiency and stability. A more thorough theoretical model for recognizing and controlling insolvency risk in both kinds of banking can be created using these insights. The article's conclusions can help Indonesian banks create more effective risk management plans. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economics & Human Development is the property of Association of Arab Universities 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.)

The conceptual framework of Islamic banking and finance is predicated on prohibiting riba (interest) and avoiding business practices that contravene ethical norms, potentially leading to injustice. Notwithstanding its professed commitment to eschew interest-based transactions, there is a prevalent concern among scholars and researchers that Islamic banking remains susceptible to the vicissitudes of interest rate fluctuations. This research examines the nexus between interest rates and Islamic bank financing within the United Kingdom, which is recognised as a pivotal centre for Islamic Finance in Europe. Employing a panel dataset that includes 60 observations spanning from 2008 to 2021, derived from the annual reports of the four full-fledged Islamic banks in the UK, and utilising the Random Effect model, our analysis discloses a negative, albeit statistically insignificant, correlation between the financing activities of Islamic banks and interest rates in the UK. Furthermore, the study elucidates that interest rates adversely impact deposit accumulation in Islamic banks, consequently hindering their capacity to extend credit to their clientele. As a result, it becomes imperative for Islamic banks to diminish their dependency on conventional interest rates to maintain the trust of stakeholders, who are motivated by the intention to avoid interest-based transactions in all their manifestations. This study contributes to the enrichment of the extant literature by convincingly demonstrating that the influence of interest rates on Islamic banking financing in the UK aligns with the findings from other jurisdictions reported in similar research endeavours.

The dynamic relationship between macroeconomic conditions, global gold prices, and stock market performance has been a major focus in various studies. This study investigates the impact of inflation, BI rates, and gold prices on the stock prices of Islamic and conventional banks in Indonesia. Using monthly data from January 2021 to December 2023. The method employed panel data regression using the Random Effect Model. The findings indicate that inflation has a negative and significant impact on the Islamic banks stock prices, while BI rates has insignificant effect. On the other hand, inflation has a positive and significant effect on the conventional banks’ stock prices, along with BI rates also having a positive and significant impact. However, global gold prices do not have a significant effect on the stock prices of either Islamic or conventional banks. These results provide deeper insights into how macroeconomic factors influence the performance of the stock market for Islamic and conventional banks in Indonesia.

This study utilizes firm-specific and macroeconomic data, including the number of internet users proxied as fintech, as well as ESG variables, to empirically examine the impact on the profitability and non-performing loans (NPLs) of Islamic and traditional banks in developing countries with a focus on Islamic financing. This study aimed to ascertain if our findings aligned with the New Empirical Industrial Organization (NEIO) and Tripple Bottom Line/Quadruple Bottom Line (TBL/QBL) paradigms. We collected data from more than 600 financial institutions, including both Islamic and conventional banks, from 2005 to 2022. This study complements the literature by examining a wide range of years and banks in QISMUT + 3 countries, as well as investigating the impact of the number of internet users as proxied by fintech variable and ESG variables both on NPLs and profitability indicators in both Islamic and conventional banks in Islamic finance-oriented countries. In terms of persistence, traditional banks are superior to Islamic banks, and banks with sufficient capital are more competitive and efficient in generating profits. Islamic banks (IB) outperformed conventional banks (CB) during the global financial crisis; however, CB outperformed IB in terms of credit risk management. IBs compete more effectively than CBs do because they provide unique Sharia-compliant financial products. Furthermore, the ESG and fintech proxies play a significant role in determining bank asset quality and financial performance. The results are expected to improve the understanding of Islamic banking by bankers, investors, academics, and policymakers, as well as help in policy development for the banking industry in these countries.

Purpose: This paper aims to examine the determinants of the dividend distribution policy in a banking setting. Design/methodology/approach: Using a sample of 48 Islamic banks and 94 conventional banks from 15 Islamic countries over a period spanning from 2012 to 2019, we document the effect of board gender diversity, executive director profile and governance mechanisms on dividend payment decisions. We also analyze the moderating effect of Islamic banks on the relationship between gender diversity and dividend policy. Findings: We find new evidence on the role of women directors in determining dividend distribution policy and confirm the risk aversion hypothesis, hence contributing to the ongoing debate on gender diversity literature. Our results show that the moderating role of Islamic banks is effective only for small banks. Practical implications: Our findings have practical implications for shareholders, managers and financial analysts as they suggest rationalizing dividend distribution strategies. Originality/value: Our study contributes to the growing body of knowledge on dividend policy, gender diversity and Islamic banks. [ABSTRACT FROM AUTHOR]

This document is a compilation of academic articles and journals that explore the conversion of conventional banks to Islamic banks in Indonesia and other countries. The articles cover a range of topics including the reasons for conversion, the effects on assets and market share, challenges faced during the process, and the performance of Islamic banks compared to conventional banks. The articles provide valuable insights into the factors influencing conversion, customer preferences, and the legal aspects of the process. [Extracted from the article]

This research has investigated the impact of market competition on efficiency and profitability in banking sector of Pakistan with mediating role of credit risk. Panel data of 19 conventional banks operating in Pakistan has been used for the time period of 2006-2016. By using Panel data techniques this study has found that market competition has significant impact on profitability and efficiency of Pakistani banks. Credit risk is positively and significantly related with market competition. Moreover, the impact of credit risk on banks profitability and efficiency is significant and negative. The empirical findings show that credit risk mediates the relationship between market competition and ROA as well as market competition and cost efficiency. The results of this study may help to suggest modifications in current banking principles to boost market competition, to certify financial stability and to increase banks efficiency and profitability. [ABSTRACT FROM AUTHOR]

The banking industry serves a crucial role in the economy. Unpredictable conditions, such as the COVID-19 outbreak, have had a widespread effect on global health and banking. The study examines the performance differences between conventional and Sharia banks in the pre-pandemic and during the pandemic. In addition, the study also assesses whether conventional banks are more resilient during times of crisis compared to Sharia banks or vice versa. This quantitative study uses a paired sample T-test as the research method. Secondary data from Indonesian Banking Statistics were used in this study. Data was collected two years before the COVID-19 pandemic (2018-2019) and during the COVID-19 pandemic (2020-2021). Regarding ROA and NPL, the results show that Sharia banks did better than conventional banks during the crisis. Conventional banks suffered a deteriorating CAR and NIM during 2020-2021. Even though this study shows that the financial performance ratios of both types of banks go up and down in different ways, the overall financial performance ratios are still within the limits set by Bank Indonesia. This study supports the central bank and financial service authority's strategy and measures in sustaining the financial service industry during a troubled time like the pandemic in 2020-2021 based on these notions. In conclusion, we emphasize the importance of bank management exercising greater caution in allocating funds to corporations and effectively monitoring their debtors to mitigate the risk of a rising non-performing loan ratio.

This study was conducted to measure and compare the productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic. The number of samples used in this study was 105 banks consisting of 95 conventional banks and 10 Islamic banks. The level of productivity was measured using the Malmquist Productivity Index (MPI) method and Data Envelopment Analysis (DEA) with an intermediation approach, while the productivity of conventional and Islamic commercial banks was compared using normality and different tests. The results showed that the productivity level of the Islamic banks with a Total Factor Productivity Changes (TFPCH) value of 1.001 was driven by technological advances. Meanwhile, the conventional banks were not productive. On the other hand, the results of the different tests showed that there was no significant difference between the productivity level of the conventional and Islamic banks. Conventional banks must enhance innovations in the use of technology in their operational activities to improve their productivity and maintain their high efficiency achievement. Meanwhile, Islamic banks could improve their efficiency in the operational activities so that they would achieve higher productivity and to innovate continually with the use of technology. During the study observation, there was no study comparing between the productivity level of conventional and Islamic commercial banks during the COVID-19 pandemic in Indonesia. Therefore, this research was the first study to discuss the comparison of productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic.

Altın, insanlık tarihinde uzun çağlar boyunca para olarak kullanılmıştır. Günümüz piyasalarında ise altının klasik fıkıh kitaplarında yer alan sarf akdine benzer yahut ondan çok daha farklı ve karmaşık mübadele işlemlerine konu olduğu görülmektedir. İşte bu noktada altınla ilgili günümüzdeki işlemlerin İslam hukuku açısından hangi kategoride, nasıl değerlendirileceği sorunu ve bu sorunun çözümü gündeme gelmektedir. Bu yazıda Yusuf Erdem Gezgin’in konuyla ilgili olarak kaleme aldığı “Finansal Piyasalarda Altın Mübadele İşlemleri İslam Hukuku Açısından Bir İnceleme” adlı eserinin tanıtımı yapılacaktır. Yazar, literatüre kazandırdığı bu eserde finansal piyasalardaki altın işlemlerini ele almıştır.

The aim of this research is to identify the impact of macroprudential policy related to the financing ratio for micro small medium enterprises (MSME) to each bank's MSME credit growth and non-performing loan (NPL). This research used a panel data analysis using the pooled least square (PLS) model conducted on the financial data of 40 public conventional banks for the observation during the period from 2012 to 2021 with MSME's credit growth and NPL as the dependant variables and the policy, bank's characteristics, and macroeconomic factors as independent variables. The results reveals that the policy significantly affects MSME's credit growth and NPL. This study ultimately provides input for banks to fulfill the financing ratio in order to comply with the regulator but should be selective in terms of MSME's financing. The findings of this research inquire regulator to reevaluate the requirement target for all banks to achieve minimum financing MSME ratio. [ABSTRACT FROM AUTHOR]

The rising adoption of FinTech is changing the financial sector. However, the determinants of FinTech have not been examined thoroughly. The purpose of this paper is to examine whether corporate governance is related to FinTech products in the banking sector, given that governance may influence the quantity and quality of innovation. Specifically, we investigate the association between the size of the board of directors, the percentage of independent directors on the board and FinTech services. Furthermore, we show how the composition of the board can influence the association between FinTech services and a bank's performance. Using a sample of 12 Saudi banks for the period 2014–2019, we find that board size is significantly and negatively associated with a bank's FinTech score. We further show that independent members on the board contribute to performance by bringing more FinTech services (innovation development) to the banks. As the first study examining the determinants of FinTech in the Saudi banking sector, this paper may help regulators to better understand the drivers of FinTech and its quality in the banking sector. [ABSTRACT FROM AUTHOR]

Risk management has emerged as a critical element across several economic sectors, with particular significance in the banking industry. The governing bodies of these industries encounter a multitude of threats stemming from the escalation of an unpredictable economic environment the intricacy of transactions and big data, and several other concealed factors. The primary aim of the present research is to investigate the impact of certain financial risks, including capital risk, liquidity risk, and operational risk, on the financial performance of both commercial and Islamic banks operating within the banking sector of the United Arab Emirates. The study will focus on the time frame spanning from 2015 to 2022. The data used in this study was sou reed from the annual reports of banks, which were acquired from the official websites of the Abu Dhabi Securities Exchange and the Dubai stock market. The most prevalent indicators used to assess a bank's financial performance are Return on Assets (ROA) and Return on Equity (ROE). In contrast the financial risk metrics included three distinct categories of risk: capital risk, liquidity risk, and operational risk. The findings indicate that there is a statistically significant positive relationship between capital risk and both return on assets (ROA) and return on equity (ROE). However, it was observed that neither liquidity risk nor operational risk had a statistically significant impact on either of the financial performance metrics. Moreover, the size of a bank has a notable and favorable impact on both return on assets (ROA) and return on equity (ROE). The ramifications of the study's conclusions have significant importance for regulators, bank management and investors. I Policymakers need to prioritize the enhancement of the regulatory framework pertaining to caboutements in order to the financial stability of banks. Bank managers should give priority to the management of capital risk and the size of the bank in order to their financial performance. In order to optimize profits, it is important for investors to carefully evaluate and take into account the many risk considerations associated with their investment selections. JEL: G20, G21 [ABSTRACT FROM AUTHOR]

Copyright of Zarqa Journal for Research & Studies in Humanities is the property of Zarqa Journal for Research & Studies in Humanities 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 paper presents a comparative analysis of Islamic banks and conventional banks in Indonesia using monthly data retrieved from OJK from January 2015 to May 2024. The method used is Mann-Whitney for non-parametric analysis to compare two groups whether they are different or indifferent. This is because the data does not fulfill the assumptions of normality and homogeneity, even though graphically it does. Return on Assets is used as a measurement parameter of the banking performance of both Islamic and Conventional banks. The data was then tested to see the resilience of their performance during the Pandemic crisis using dummy analysis. The results show that in general, Conventional Banks have better performance compared to Islamic Banks. However, separately analyzed, Islamic Banks performed better during the COVID-19 pandemic, while the performance of Conventional Banks worsened due to the presence of the pandemic crisis. This study gives insightful information about the banking picture in Indonesia. Thus it can be used as a reference for the government to take appropriate policies to enhance the development of both Islamic and conventional banks. [ABSTRACT FROM AUTHOR]

The phenomenon of increasing customers of take-over financing from conventional banks to Islamic banks is an interesting trend to study. This research purpose is to investigate the influence of murabahah financing margins, customer religiosity to customer interest and decision making. The method used is a sequential mixed method. The instrument quantitative is a questionnaire, and the qualitative method is an interview. 199 pensioner customers participated in the survey. Internal consistency is measured by Cronbach’s alpha value. The accuracy of the structural equation modeling (SEM) and hypothesis testing was evaluated using AMOS version 23. The research findings indicate, there was a significant influence between customer religiosity on customer interest and customer interest on decision making. Meanwhile, the murabahah financing margin has no significant influence on customer interest and decision making, as well as between customer religiosity and decision making. Murabahah financing margins and customer religiosity have an influence of significance when mediated by the variable of customer interest. In conclusion, Murabahah financing margin, and customer religiosity does not have a direct significant influence on decision making without being mediated by the variable of customer interest. These results indicate that Islamic bank managers can take advantage of this research variable to increase customer interest so that customer decision making also increases. This study has practical implications for conventional banks and sharia banks. Sharia banks are an opportunity to attract customers from conventional banks, while conventional banks are a challenge because their customers have the potential to take over Islamic banks. AcknowledgmentsThe authors are grateful to the Rector of the State Islamic Institute of Sultan Amai Gorontalo, and the State Islamic University of Alauddin Makassar for funding this research collaboratively, and to the respondents who have taken the time to fill out the research questionnaire so that research data can be collected.

Risk management has emerged as a critical element across several economic sectors, with particular significance in the banking industry. The governing bodies of these industries encounter a multitude of threats stemming from the escalation of an unpredictable economic environment, the intricacy of transactions and big data, and several other concealed factors. The primary aim of the present research is to investigate the impact of certain financial risks, including capital risk, liquidity risk, and operational risk, on the financial performance of both commercial and Islamic banks operating within the banking sector of the United Arab Emirates. The study will focus on the time frame spanning from 2015 to 2022. The data used in this study was sourced from the annual reports of banks, which were acquired from the official websites of the Abu Dhabi Securities Exchange and the Dubai stock market. The most prevalent indicators used to assess a bank's financial performance are Return on Assets (ROA) and Return on Equity (ROE). In contrast, the financial risk metrics included three distinct categories of risk: capital risk, liquidity risk, and operational risk. The findings indicate that there is a statistically significant positive relationship between capital risk and both return on assets (ROA) and return on equity (ROE). However, it was observed that neither liquidity risk nor operational risk had a statistically significant impact on either of the financial performance metrics. Moreover, the size of a bank has a notable and favorable impact on both return on assets (ROA) and return on equity (ROE). The ramifications of the study's conclusions have significant importance for regulators, bank management, and investors. IPolicymakers need to prioritize the enhancement of the regulatory framework pertaining to caboutements in order to the financial stability of banks. Bank managers should give priority to the management of capital risk and the size of the bank in order to their financial performance. In order to optimize profits, it is important for investors to carefully evaluate and take into account the many risk considerations associated with their investment selections.JEL:G20, G21

Copyright of Atebe is the property of Social Sciences University of Ankara 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 article aims to lay the foundation for what I call a ‘global participatory model of interest-free financing without a religious connotation’. Here we propose a nonreligious, scalable, profitable, and sustainable financing model to serve the banking systems that are not interest-free financing regulated. This argument is predicated on the idea that Islamic banking applications are revised from conventional commercial formulas that are used in traditional business settings. In addition to the benefits of the interest-free finance system and the ease with which the interest-free conventional business formulas can be modified and applied in the conventional banking system, regardless of its label. The approach of this article depends on the theoretical analysis of the similarities and differences of the modes of finance of the conventional and interestfree systems. In addition, our observation is that the products of interest-free formulas are now pursued in some countries in a conventional setting without having an Islamic classification. Although this global participatory model is likely conceivable, some constraints are ahead. These constraints include the absence of suitable models/channels for providing interest-free financing in the conventional banking systems that meet customer needs, the weak previous conventional system experience in interest-free financing, fear of failure with this new type of financing in the traditional system, and the wide-ranging incorrect view that interest-free finance is only religious, charity-based, and non-profitable system of finance. [ABSTRACT FROM AUTHOR]

This study conducts a systematic literature review on corporate social responsibility (CSR) disclosure and Islamic and conventional banks' financial performance. Several studies show a relation between CSR disclosure and bank performance. This research critically reviews the theoretical perspectives, impacts, issues and suggests future research based on the reviewed articles. This study uses a systematic review method to analyse 34 articles published between 1994 and 2020. The articles are published in 28 different journals, and notable journals include the Journal of Banking and Finance, Journal of Business Ethics and Review of Quantitative Finance and Accounting. This study also highlighted the issues, gap of CSR indicators, performance evaluation of conventional and Islamic banks and theoretical underpinnings. The findings of the systematic review show that the majority of the countries still follow voluntary CSR disclosure. Besides, studies emphasizing CSR and Islamic banks are limited. The theoretical perspective of Islamic banks CSR is required to develop based on Islamic principle. Lastly, this study highlighted 25 future research questions based on the review of prior literature. Future research questions will help researchers fill the existing research gap and contribute to CSR research in banking. [ABSTRACT FROM AUTHOR]

Collecting zakah funds through conventional banks is vulnerable to elements of usury. Whereas, Islamic legal norms have strictly regulated that all assets must be protected from the element of usury, including Zakah funds. This research analyzes the collection of zakah funds by zakah fund collection institutions which is carried out by giving muzaki (zakah givers) the option to transfer zakah funds using conventional bank accounts. This paper discusses two schemes,i.e: first, the mechanism for collecting zakah funds through conventional bank accounts; second, analyzing the collection of zakah funds from the perspective of Muamalah Fiqh, namely using the Tabarru agreement. The research method uses empirical juridical with a qualitative approach. The results show, the mechanism for collecting zakah funds through conventional bank accounts is that muzakki are given the option to transfer zakah funds to a conventional bank account or sharia bank, which is owned by the institution collecting zakah funds; then the institution collecting zakah funds separates the bank interest from conventional banks for the public needs, such as building roads, public toilets, bridges, etc; and finally distributing it to Mustahiq. According to Fiqh Muamalah, the factors that cause a transaction to be haram are haram because of its substance, haram in addition to its substance and the cancellation of the contract. Meanwhile, the permissibility of a haram transaction must be channelled for social benefit, because this action is better than entrusting non-halal funds to a Sharia Bank.

AbstractOur study investigates the influence of information and communication technology (ICT) applications at the national level on the efficiency of Islamic banks (IBs) and conventional banks (CBs) operating in Gulf Cooperation Council (GCC) countries. We analyze data collected from both CBs and IBs in GCC countries over the period spanning from 2006 to 2021. Specifically, ICT in this context refers to the extent to which ICT is applied on a national scale, encompassing activities both within and outside the banking sector. In our basic regression, we observe that ICT negatively impacts both types of bank efficiency, with the effect varying depending on the type of bank. Notably, the coefficient of IBs is slightly higher than that of CBs. Country governance (GC) moderates the negative effect of ICT on both types of bank efficiency. Additional robustness tests indicate that ICT is negatively related to both types of bank efficiency.