scholarly journals DO RISK, BUSINESS CYCLE, AND COMPETITION AFFECT CAPITAL BUFFER? AN EMPIRICAL STUDY ON ISLAMIC BANKING IN ASEAN AND MENA

2018 ◽  
Vol 3 (2) ◽  
Author(s):  
Novita Kusuma Maharani ◽  
Bowo Setiyono
Keyword(s):  
Business Cycle ◽  
Islamic Banks ◽  
Banking Supervision ◽  
Minimum Capital ◽  
The Difference ◽  
Conventional Banks ◽  
High Level ◽  
The Impact ◽  
The Relationship ◽  
Unbalanced Panel Data

Basel III guidelines were released in 2010 by the Basel Committee on Banking Supervision (BCBS) as a revision of the previous Basel guidelines with the aim of strengthening the bank's capital and liquidity of banks. BCBS formulate a new policy that is the capital buffer. Capital Buffer is the difference between the minimum capital required by regulators with its overall capital and is considered a "cushion" against the shocks of the financial crisis. This study examine the impact of risk, business cycle, and competition on banks’ capital buffer. This paper used the sample of Islamic banks and conventional banks in ASEAN and MENA in the period 2011-2015 with unbalanced panel data. Using System GMM method to test the characteristics of Islamic banks in managing its capital. The finding indicates that the degree of capital buffer in islamic banks tend to adjust its risk. The result also shows that capital buffer decrease during economic expansion where banks act aggressively by extending their lending activities. The relationship between capital buffer and competition is positive in that the high level of competition to motivate banks to have higher capital.

scholarly journals The Determinants of Bank Profitability: How Malaysian Islamic Banks Response to the Financing Risk

2019 ◽  
Vol 6 (12) ◽  
pp. 1-15 ◽  
Author(s):  
Mohammad Taqiuddin Mohamad ◽  
Ahmad Azam Sulaiman@Mohamad ◽  
Khairul Hamimah ◽  
Nazri Muslim
Keyword(s):  
Interest Rate ◽  
Social Research ◽  
Global Market ◽  
Positive Sign ◽  
Islamic Banks ◽  
Data Set ◽  
Financing Risk ◽  
High Level ◽  
The Impact ◽  
The Relationship

The purpose of this article is to investigate the relationship between financing risk and profitability of Malaysian Islamic banks to find the impact of financing risk on bank profitably in achieving high level of stability. A regression analysis is built on an unbalanced panel data set comprising 175 observations of 17 top Malaysian Islamic banks over the period 1994-2015. To this end, the empirical data are collected from individual Islamic banks’ financial statements as submitted to the Central Bank of Malaysia for supervisory purposes. Complementary sources include the Global Market Information Database, the World Bank's Annual Report through the International Monetary Fund (IMF), Statistical, Economic and Social Research and Training Center for Islamic Countries (SESRTCIC) and Asian Development Bank (ADB). All the determinant variables included in the model have statistically significant impacts on Malaysian Islamic banks’ profitability. However, the effects are not uniform across profitability measures. Regression findings reveal that capital ratio, financing loss provision and liquidity ratio significantly affect the profitability of Islamic banks. Some variables of monetary policy variables such as interest rate and interbank rate have a significant role on the Islamic banks’ profitability. Interestingly, there is a difference of the two variables where interest rate shown negative sign while positive sign from interbank rate. Findings also suggest the economic conditions factors such as GDP growth and unemployment also affects the profitability of Islamic banks despite the sign is different.

Regulatory capital and stability of Islamic and conventional banks

2017 ◽  
Vol 10 (3) ◽  
pp. 312-330 ◽  
Author(s):  
Fakhri Korbi ◽  
Khemaies Bougatef
Keyword(s):  
Islamic Banks ◽  
Regulatory Capital ◽  
Bank Stability ◽  
Content Type ◽  
Failure Risk ◽  
Negative Effect ◽  
The Difference ◽  
Conventional Banks ◽  
The Stability ◽  
The Relationship

Purpose The purpose of this paper is twofold. First, it attempts to determine the factors that influence the stability of Islamic and conventional banks. Second, it focuses on the relationship between the regulatory capital and bank soundness. Design/methodology/approach Thus, the authors use the Z-score to assess the stability of Islamic and conventional banks operating in the Middle East and North Africa region over the period 1999 to 2014. Findings The comparative analysis reveals that Islamic banks seem to be less stable than their conventional peers. With regard to the determinants of bank stability, the findings suggest that the regulatory capital represents the primordial factor that reinforces the soundness of banking systems. The authors also find that bank stability depends on both bank-specific variables as well as macroeconomic and institutional variables. Interestingly, the corruption level turns out to have a significant negative effect on financial strength in the both types of banks. Originality/value The authors believe that investigating the relationship between regulatory capital and the failure risk in a comparative study between Islamic and conventional banks deserves a particular attention and looks very interesting because it will allow them to identify the difference between the factors explaining the failure risk of each type of banks. The authors also believe that the analysis of the relationship between corruption and bank stability is very interesting because corruption can be seen as an example of moral hazard which forces Islamic banks to use non-PLS instruments.

scholarly journals The Impact of Financial Performance on Corporate Social Responsibility: An Empirical Analysis of Conventional and Islamic Banks of Pakistan

2018 ◽  
Vol 2 (2) ◽  
pp. 01-18
Author(s):  
Ummara Fatima ◽  
Uzma Bashir
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Banking Sector ◽  
Annual Reports ◽  
Islamic Banks ◽  
Conventional Banks ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

The study explores how financial performance (FP) affects the corporate social responsibility (CSR) of the banking sector of Pakistan. Further, it also elaborates the comparison between FP and CSR of Islamic and conventional banks of Pakistan. The study is based on the annual reports of banks listed at Pakistan Stock Exchange (PSE) for the years 2010-2016. The study used several panel data diagnostic tests and three regression models to check the relationship between FP and CSR of Islamic and conventional banks of Pakistan, while taking leverage and size as control variables. The results indicate that in case of conventional banks the relationship between ROE and CSR is negative. Here, the results are consistent with the agency theory which states that investment in CSR related activities is a waste of resources. While return on asset (ROA) is depicting negative and insignificant relationship with CSR, which depicts that FP does not have any impact on the investment in CSR initiatives. In the case of Islamic banks, the relationship between return on equity (ROE) and CSR is positive and significant. Here, the results support social contract and stakeholder theories. The research has important practical consequences that will help the banking industry managers to adopt optimal investment strategies about CSR related activities. The study provides guidelines to conventional banks to invest more in CSR in the same way Islamic banks are doing. The findings of the study lay some foundations upon which a more detailed analysis of CSR of banks could be based.

scholarly journals Family Business and Financial Performance: What are the Effects of Tax Cut Policy on Them in Uzbekistan?

2020 ◽  
Vol 6 (4) ◽  
pp. 27-45
Author(s):  
Yusupov Jasurbek ◽  
Sakata Kei
Keyword(s):  
Financial Performance ◽  
Family Business ◽  
Family Firms ◽  
The Family ◽  
The Difference ◽  
The Impact ◽  
The Relationship ◽  
Unbalanced Panel Data ◽  
Business Study

This study is the first comprehensive empirical study to examine the relationship between the family business and the firm’s performance in Uzbekistan. In this research, we investigate the relationship between family firms and financial performance using enough extensive unbalanced panel data from 2012 through 2015 on 3148 non-banking/non-government firms. Moreover, we analyze the impact of tax cut policy on SMEs, including family firms from a case study of Uzbekistan by using the difference-in-difference estimator. These two will be a major contribution to the family business study field in Uzbekistan.

scholarly journals Modes of Islamic financing and aggregate economic output: evidence from Islamic banking industry of Pakistan

2021 ◽  
Vol 190 (5-6(2)) ◽  
pp. 109-118
Author(s):  
Adil Saleem ◽  
◽  
Judit Sági ◽  
Judit Bárczi ◽  
◽  
...  
Keyword(s):  
Industrial Production ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Economic Output ◽  
Long Run ◽  
Conventional Banks ◽  
Asset Quality ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

With the evolution of Islamic banking, the economic impact of Islamic finance has been studied by many authors. Islamic banks significantly differ from conventional banks in terms of underlying contracts. The asset side of Islamic banks is composed of different modes of financing, which can be categorized at participatory and non-participatory modes of financing. This study aims to examine the relationship of modes of Islamic financing in connection to the real economic output of Pakistan. Using quarterly data from 2005 to 2019, we use autoregressive distributive lag (ARDL) model to analyze the impact of modes of Islamic financing and industrial output. Our findings reveal that non-participatory modes of Islamic financing play a significant role in deriving a healthy aggregate economic output. Therefore, Industrial production found to have a significant positive long run relationship with non-participatory Islamic financing. However, financing modes based on partnership does not have significant impact on total industrial production. The results also show that poor asset quality hinders the production process in the long run and decreases the economic outcome.

scholarly journals Examining the Relationship between Efficiency and Capital Adequacy Ratio: Islamic versus Conventional Banks --- An Empirical Evidence on Egyptian Banks

2018 ◽  
Vol 7 (2) ◽  
pp. 232 ◽  
Author(s):  
Hassan Mohamed Mohamed Hafez
Keyword(s):  
Financial Crisis ◽  
Significant Relationship ◽  
Global Financial Crisis ◽  
Negative Relationship ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Conventional Banks ◽  
The Global Financial Crisis ◽  
High Level ◽  
The Relationship

This paper aims to investigate the relationship between the efficiency of banks in Egypt and capital adequacy ratios. We collected data on a sample of 40 banks comprising Islamic banks, conventional and conventional banks with Islamic windows pre and post the global financial crisis from year 2002 to 2015. We used data envelopment analysis liner programming (DEA) to calculate the efficiency of banks then we used a panel regression analysis through the application of Eviews software to investigate the relationship between the efficiency of banks and capital adequacy ratios. Pre the financial crisis, results, concluded that, there is a significant positive relationship between the efficiency of banks and capital adequacy ratios, credit risk, profitability, bank size and the quality of management. Whilst a significant negative relationship with the liquidity. The efficiency of conventional banks outperformed the efficiency of Islamic and conventional banks with Islamic windows. The increase in capital follows an increase in the level of risk borne by banks and increases capital adequacy ratios which leads to a rise in the loan portfolio and therefore, increase the level of loans provisions, which confirms the high level of efficiency for banks. Capital increase provide an additional protection against any additional risks. Post the financial crisis, the efficiency of banks has been affected especially for conventional banks. The efficiency of conventional and conventional banks with Islamic windows shows a negative significant relationship with capital adequacy ratios. The efficiency of Islamic banks outperformed other banks and shows a positive significant relationship with capital adequacy ratios. Results revealed that the efficiency of banks determines the level of capital and risk borne by banks.

scholarly journals Quality of Care Provided by Family Caregivers of Older People With Dementia: Measurement and Interpretations

2020 ◽  
Vol 4 (Supplement_1) ◽  
pp. 152-152
Author(s):  
Afeez Hazzan
Keyword(s):  
Quality Of Care ◽  
Older People ◽  
Family Caregivers ◽  
Family Caregiver ◽  
Primary Reason ◽  
People With Dementia ◽  
High Level ◽  
The Impact ◽  
The Relationship

Abstract Family caregivers of older people living with dementia are relatives, friends, or neighbors who provide assistance related to this condition, but who are unpaid for the services they provide. Although caregiving could be personally rewarding, many caregivers report a high level of strain. Compared to caregivers of older adults who do not have dementia, family caregivers of older people living with dementia report lower quality-of-life (QoL). In a published systematic review examining the relationship between family caregiver QoL and the quality of care provided, only one study was found to be somewhat relevant. The study suggested that the primary reason for an absence of research into the link between family caregiver QoL and quality of care was the absence of a questionnaire for measuring quality of care in dementia. Therefore, any attempt to investigate the impact of caregiver QoL on the care provided to older people with dementia must first address the lack of an instrument to measure quality of care. To address this issue, we interviewed approximately 20 family caregivers in order to elicit feedback on measurements and interpretation of the quality of care provided by family caregivers of older people living with dementia. Content analysis of the interview transcripts revealed that the quality of relationships with family, caregiver availability to provide or supervise care, and availability of paid or volunteer help are important for the quality of care provided. These results have important implications, particularly for the development of an instrument to measure quality of care in dementia.

scholarly journals The role of L/W in the solar radiation for Saharian cities

2019 ◽  
Vol 91 ◽  
pp. 05006
Author(s):  
Rami Qaoud ◽  
Alkama Djamal
Keyword(s):  
Solar Radiation ◽  
Solar Energy ◽  
Energy Levels ◽  
Direct Solar Radiation ◽  
Test Field ◽  
Natural Lighting ◽  
The Difference ◽  
The Impact ◽  
The Relationship

The urban fabric of the desert cities is based on the principle of reducing the impact of urban canyons on direct solar radiation. Here comes this research, which is based on a comparative study of the periods of direct solarisation and values of the solar energy of urban canyons via two urban fabrics that have different building densities, where the ratio between L/W is different. In order to obtain the real values of the solar energy (thermal, lighting), the test field was examined every two hours, each three consecutive days. The measurement stations are positioned by the three types of the relationship between L/W, (L≥2w, L=w, L≤0.5w). According to the results, we noticed and recorded the difference in the periods of direct solarization between the types of urban engineering canyons, reaching 6 hours a day, the difference in thermal values of air, reaching 4 °C, and the difference in periods of direct natural lighting, reaching 6 hours. It should be noted that the role of the relationship between L/W is to protect the urban canyons by reducing the impact of direct solar radiation on urban canyons, providing longer hours of shading, and reducing solar energy levels (thermal, lighting) at the urban canyons. This research is classified under the research axis (the studies of external spaces in the urban environment according to the bioclimatic approach and geographic approach). But this research aims to focus on the tracking and studying the distribution of the solar radiation - thermal radiation and lighting radiation - in different types of street canyons by comparing the study of the direct solarization periods of each type and the quantity of solar energy collected during the solarization periods.

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.

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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