The impact of bank capital on profitability and risk in GCC countries: Islamic vs. conventional banks

2019 ◽  
Vol 9 (3) ◽  
pp. 243
Author(s):  
Habib Hasnaoui ◽  
Ibrahim Fatnassi
Keyword(s):  
Bank Capital ◽  
Gcc Countries ◽  
Conventional Banks ◽  
The Impact

Fair value and banking contagion

2016 ◽  
Vol 7 (3) ◽  
pp. 215-236 ◽  
Author(s):  
Leila Gharbi ◽  
Halioui Khamoussi
Keyword(s):  
Data Model ◽  
Banking Sector ◽  
Fair Value ◽  
Islamic Banks ◽  
Fair Value Accounting ◽  
Content Type ◽  
Gcc Countries ◽  
Conventional Banks ◽  
Value Changes ◽  
The Impact

Purpose This paper aims to explore empirically the impact of fair value accounting on banking contagion in a comparative context between Islamic banks and conventional banks. Design/methodology/approach The analysis of the impact of fair value changes on banking contagion is carried out through a panel data model. This study covers 20 Islamic banks and 40 conventional banks operating in the Gulf Cooperation Council (GCC) countries during nine years from 2003 to 2011. Findings Empirical evidence shows that there is a significant change in dynamic volatility in GCC banking sector because of financial crisis 2008. However, results fail to confirm the hypothesis that fair value accounting is significantly associated with an increase of banking contagion for both Islamic and conventional banks operating in GCC countries. Originality/value The outcome of this study provides some insights for academicians, accountants as well as regulators in terms of enhancing the effectiveness of accounting practices.

Types of banking institutions and economic growth

2020 ◽  
Vol 13 (4) ◽  
pp. 553-578
Author(s):  
Khaled Elmawazini ◽  
Khiyar Abdullah Khiyar ◽  
Asiye Aydilek
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Banking Sector ◽  
Empirical Literature ◽  
Content Type ◽  
Gcc Countries ◽  
Before And After ◽  
Endogenous Growth Model ◽  
Conventional Banks ◽  
The Impact

Purpose This paper aims to compare the effects of Islamic and commercial banks on economic growth among the Gulf Cooperation Council (GCC) countries during 2001–2009 (before and during the financial crisis) and 2010–2017 (after the financial crisis). Design/methodology/approach The authors use a cross-sectionally correlated and timewise autoregressive (CCTA) model. The authors also extend the theoretical endogenous growth model developed by Pagano (1993) by introducing the developments in Islamic and commercial financial markets. Findings The authors find that Islamic banks fueled economic growth more than conventional banks before and after the financial crisis. The authors conclude that finance is a major determinant of economic growth, but finance does not follow economic growth. The results show that the ethical principles of Islamic finance can positively affect economic growth. Originality/value The authors contribute to the empirical literature first by examining feedback causality and cointegration between the banking sector and economic growth by examining the impact of the interaction between the banking sector and rule of law on economic growth in the GCC countries instead of a single country, second by providing both of the theoretical and empirical analysis and third by distinguishing between Islamic and conventional banks.

scholarly journals Does country governance foster revenue efficiency of Islamic and conventional banks in GCC countries?

2016 ◽  
Vol 11 (2) ◽  
pp. 181-211 ◽  
Author(s):  
Fakarudin Kamarudin ◽  
Fadzlan Sufian ◽  
Annuar Md. Nassir
Keyword(s):  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Political Stability ◽  
Positive Influence ◽  
Least Square ◽  
Content Type ◽  
Gcc Countries ◽  
Conventional Banks ◽  
Revenue Efficiency ◽  
The Impact

Purpose – The purpose of this paper is to provide new empirical evidence on the impact of country governance on the revenue efficiency of Islamic and conventional banks. The empirical analysis is confined to Islamic and conventional banks operating in the Gulf Cooperation Council (GCC) countries banking sectors during the period of 2007-2011. Design/methodology/approach – The analysis comprises two main stages. In the first stage, the authors employ the data envelopment analysis (DEA) method to compute the revenue efficiency of Islamic and conventional banks. The authors then used the multivariate panel regression analysis with the ordinary least square and generalized method of moments as an estimation method to investigate the potential determinants and the effect of country governance on the revenue efficiency. Findings – The empirical findings indicate that greater voice and accountability, government effectiveness, and rule of law enhance the revenue efficiency of both Islamic and conventional banks. The authors find that regulatory quality exerts positive influence on Islamic banks, while the impact of political stability and control of corruption enhances the revenue efficiency of conventional banks. Originality/value – The study on the specific revenue efficiency concept of Islamic and conventional banking is still in its formative stage. In regards, majority of the studies that examined the effect of governance on bank efficiency have focused more on the corporate or bank governance that affects the governance within the institution. Thus, to the best of the knowledge, no study has been done to address the effect of country governance on the revenue efficiency of Islamic and conventional banks specifically on the GCC countries.

scholarly journals BANKS EFFICIENCY, OWNERSHIP TYPE AND LISTING STATUS IN GULF COOPERATION COUNCIL COUNTRIES: A CROSS-COUNTRIES ANALYSIS

2021 ◽  
pp. 309-319
Keyword(s):  
Data Envelopment ◽  
Islamic Banks ◽  
Tobit Regression ◽  
Ownership Type ◽  
Second Stage ◽  
Gcc Countries ◽  
Using Data ◽  
Tobit Regression Analysis ◽  
Conventional Banks ◽  
The Impact

Using data from 2005-2013, this paper analyzes banks efficiency across the GCC countries. This study examines the efficiency of GCC conventional and Islamic banks across the GCC countries while considering the impact of ownership type and listing status on banks efficiency by employing the Data Envelopment Analysis (DEA) and a second stage Tobit regression analysis with bootstrapping. It is found that GCC conventional banks are by far more efficient than GCC Islamic banks and this conclusion holds across all GCC countries. It is also found that GCC state-owned banks outperform the GCC private-owned banks in general and across all GCC countries; and interestingly, GCC listed banks were less efficient than GCC unlisted banks. More, the main source of inefficiency in GCC banks was the scale inefficiency and GCC banks exhibited a decreasing return to scale. Therefore, GCC policymakers and regulators should not support any expansionary strategy in their banking industry.

scholarly journals Assessing the Impact of Bank Concentration and Liquidity of Refah Bank Branches on Profitability during the Period1383-190

2014 ◽  
Vol 4 (1) ◽  
pp. 248
Author(s):  
Hossin Ostadi ◽  
Nastran Monsef
Keyword(s):  
Commercial Banks ◽  
Bank Capital ◽  
Factors Affecting ◽  
Bank Branches ◽  
Independent Variables ◽  
Bank Deposits ◽  
The Impact ◽  
Bank Concentration ◽  
Research Period

Profitability is an important factor to show this articledoeswhat is the role of the intermediary bank to collect your savings and allocation of loans.  Given the importance of profitability indicators in this study, the factors affecting the profitability of commercial banks in Iranare analyzedwith emphasis on the degree of centralization and bank deposits. Dependent variable is indicators of profitability (ROE, ROA) and bank deposits, bank size, bank capital, focus on liquidity and banking requirements are independent variables. Correlation analysis and OLS regression are used and the research period is 1381 to 1390 that the country's territory where bank branches.Our results indicate that the effect of bank size on profitability is positive and the increase in bank size on profitability is increased. Impact on the profitability of bank deposits is positive, ie increasing the profitability of bank deposits increased. Finally, the impact of bank concentration on profitability is positive. Increasing the bank's focus profitability increases. Moreover, the results adversely affect the liquidity of the index is profit. 

What Drives Banking Profitability During Financial Crisis and Political Turmoil? Evidence from the MENA Region

2021 ◽  
pp. 097491012110311
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Financial Crisis ◽  
Political Instability ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Net Income ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Conventional Banks ◽  
The Impact

The purpose of the study is to identify bank specific, macroeconomic, and stability determinants of both conventional and Islamic bank performance. We also try to identify evidence on the impact of financial crisis and political instability during the Arab Spring (AS) period. The study covers a sample of 123 banks (34 Islamic banks and 89 conventional banks from 13 Middle East and North Africa [MENA] countries) over the period 2000–2013. We use different proxies of performance as dependent variables: return on asset (ROA), return on equity (ROE), net income margin (NIM), and estimate several regressions using the dynamic generalized method of moments. Our results reveal that bank size, asset quality, specialization, and diversification are the major bank specific factors affecting performance of Islamic and conventional banks. Besides, macroeconomic indicators (GDP and inflation) and regulatory quality influence both types of banks differently. Finally, both the financial crisis and political instability negatively affect bank performance.

The Relationship between Mentoring Functions and Employee Performance: Mediating Effects of Protégé Relational Self-Efficacy

2021 ◽  
Vol 2 (2) ◽  
pp. 187-204
Author(s):  
Muhammad Shoukat Malik ◽  
Muhammad Kashif Nawaz
Keyword(s):  
Self Efficacy ◽  
Employee Performance ◽  
Mediating Effect ◽  
Citizenship Behavior ◽  
Future Research ◽  
Relational Self ◽  
Mentoring Functions ◽  
Conventional Banks ◽  
The Impact ◽  
The Relationship

Organizational scholars concurred that positive workplace relationships with others can helps employee to gain from these relationships but, they lack insights into how or why this occurs. Moreover, the relationship dynamics focus on what the relationships provide without considering the how these relationships initiated, builds and maintains. To line of this, the current study aims to find the impact of mentoring functions (career, psychosocial, role modeling) and employee performance (career success, organization citizenship behavior, and job performance) via mediating effect of relational self-efficacy. For this purpose, the data were gathered from 310 branch banking employees of Pakistani conventional banks. PLS-SEM was used for data analysis. The results indicate that there is direct relationship between mentoring functions and employee’s performance. Moreover, the finding also shows that employee relational self-efficacy mediates the relationship between mentoring functions and employee performance. Theoretical and practical implications are discussed along with suggestions for future research.

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