scholarly journals Studi Empiris Kekuatan Stabilitas Keuangan Perbankan Syariah di Indonesia

2019 ◽  
Vol 8 (2) ◽  
pp. 147
Author(s):  
Elok Heniwati
Keyword(s):  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Islamic Banking ◽  
Insolvency Risk ◽  
Conventional Banks ◽  
The Stability ◽  
The Global Financial Crisis

The study aims to examine the stability of Islamic banking in Indonesia after the global financial crisis. This study is significant, considering the rapidly growth of Islamic banking in Indonesia and uniqueness of its operating systems and products. By using secondary data from the annual reports of the banking sector listed on the Indonesia Stock Exchange (IDX) for the period from 2013 to 2016, regression analysis with the ZSCORE function (insolvency risk) as the dependent variable and a number of predictor variables (firm-specific, macroeconomic and governance) are used as tools for achieving research objectives. To check the robustness of the research findings, a model with different specifications has been used. The results indicate that profitability and firm size have a significant influence on the insolvency risk (ZSCORE) of banks and empirical factors that influence these risks differ between Islamic banks and conventional banks.

scholarly journals Profitability Determinants of Kuwait Banking Industry: Comparative Analysis between Islamic and Conventional Banks

2018 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Muhamad Abduh ◽  
Mohamed Saeed Issa
Keyword(s):  
Financial Crisis ◽  
Credit Risk ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Islamic Banking ◽  
Macroeconomic Conditions ◽  
External Variables ◽  
Conventional Banks ◽  
The Global Financial Crisis ◽  
The Impact

<p><em>This study is aimed at evaluating the impact bank specific and macroeconomic variables including the global financial crisis upon the performance of Islamic and conventional banks in Kuwait. The data are collected from nine banks operated in Kuwait over the period of 2005 to 2012 with four of them are Islamic banks and five are conventional banks. The ROA and ROE are used to measure profitability while the size, credit risk, bank diversification, efficiency, capital strength, and liquidity were used to measure bank specific variables. There are also three external variables that would be used to measure macroeconomic condition i.e. GDP growth, inflation, and financial crisis. The findings from pooled OLS have shown that credit risk, liquidity and efficiency significantly affecting profitability for both Islamic and conventional banks. For macroeconomic conditions, GDP is positively significantly affecting profitability of Islamic banking sector, while inflation is negatively affecting the profitability of conventional banking sector. The result also evidence that Islamic banking sector is more stable than the conventional banking sector in terms of their performance during and after the crisis period.</em></p>

scholarly journals Global Financial Crisis of Islamic and Conventional Banking in Middle East – A Case Study in Turkey

2017 ◽  
Vol 9 (8) ◽  
pp. 239
Author(s):  
Ayman Abdal-Majeed Ahmad Al-Smadi ◽  
Mahmoud Khalid Almsafir ◽  
Muzamri Bin Mukthar
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Secondary Data ◽  
Islamic Banking ◽  
The Social ◽  
The Global Financial Crisis ◽  
The Impact

The financial tools all over the world become extremely decisive in these days. The main goal of this paper is to measure then to discuss the impact of performance of conventional and Islamic banking in Turkey during the financial crisis. some variables such as profitability, liquidity, operational efficiency and business growth are used as a measuring factor to determine the performance for both financial models. The period of study is taken during the financial crisis in 1997 and during the global financial crisis in 2007. The comparison in this study is made between the performances of Islamic banking  and conventional banking in Turkey.Some secondary data had examines in this study which was drown from the annual report from one of Turkey bank since 2002 until 2013. SPSS (Statistical Package for the Social Sciences) “18.0” has been used to compare between Islamic finance model and other model. The findings of this paper shows that Islamic financial system is performing superior than conventional financial system for the period of this study. Hence, it can be concluded that the system of Islamic banking is able to sustain and compete with the conventional banking system especially during any financial crisis.

Incentives for conventional banks for the conversion into Islamic banks: evidence from Bangladesh

2020 ◽  
Vol 11 (2) ◽  
pp. 273-287
Author(s):  
Yasushi Suzuki ◽  
S.M. Sohrab Uddin ◽  
A.K.M. Ramizul Islam
Keyword(s):  
Secondary Data ◽  
Current Mode ◽  
Regulatory Framework ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Reserve Requirement ◽  
Content Type ◽  
Islamic Countries ◽  
Conventional Banks

Purpose The skyrocketing rise of Islamic banking is noticeable in not only Islamic countries but also non-Islamic countries during the past few decades. Many conventional banks have started Islamic banking generally by maintaining separate branches/windows and occasionally by pursuing a complete conversion strategy. Following the global trend, two of the full-fledged Islamic banks adopted a conversion strategy consecutively in 2004 and 2008 in Bangladesh. The number of the conversion case is still limited. At this backdrop, this study aims to identify the incentives in the conversion strategy into Islamic banks. Design/methodology/approach Using the secondary data from the annual reports of the sample banks for both pre- and post-conversion periods, this study adopts the “case study” approach upon the comparison with the performance of conventional banks and other types of Islamic banks. Findings It is apparent that higher reserve requirement for conventional banks provides the incentive for the conversion into Islamic banks given with less reserve requirement. Under the protective regulatory framework, these converted Islamic banks may have enjoyed the rent for learning during the initial phase after the conversion, even though majority of the funds of these banks are collected from high-cost mudaraba time deposits. Basically, the credit strategy of the converted banks has been quite conservative, resulting in the concentrated portfolio selection on the asset-backed financing. However, the recent engagement of these banks in the Shari'ah-based participatory financing makes their performance a bit vulnerable. Research limitations/implications It is becoming difficult to justify a protective regulatory framework for incubating infant Islamic banks if the rent for learning given under the framework would not encourage them to challenge and absorb the risk and uncertainty associated with Shari’ah-based participatory financing. The current mode of profit–loss sharing (PLS) makes it difficult for the regulators to create an appropriate incentive for Islamic banks to challenge the equity-based financing. Originality/value The number of the conversion case is limited. Less has been done to investigate the reasons why the conventional banks opt for the conversion into Islamic banks, particularly in Bangladesh.

Assessing the Inter Bank Disparity in Non-Performing Assets (NPAs) Management in Indian Public Sector Banks

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 49-59
Author(s):  
Dhananjaya K. ◽  
Krishna Raj
Keyword(s):  
Public Sector ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Public Sector Banks ◽  
Recovery Mechanisms ◽  
The Stability ◽  
The Global Financial Crisis

In a bank-dominated financial system like India, the strength of the overall financial system or financial stability highly depends on the soundness of banks. Indian Banking system proved to be strong and resilient during the global financial crisis of 2008. But of late, there has been increased concerns about the continued deterioration in the stability of the banking sector. Financial stability report of RBI confesses to the fact that the risks to Indian banking sector have been increasing in the post-recession period particularly the risk of accumulating NPAs. This study attempts to analyse the trend in profitability, NPAs, and the effectiveness of recovery mechanisms and interbank disparity in NPA management with respect to public sector banks. We found that the profitability of public sector banks is declining in the post-crisis period and the amount of NPA has been on the rise. Further, the recovery mechanisms have proved to be ineffective in containing the problem of bad debts.

Factors Influencing the Margins of Islamic Banks

2018 ◽  
Vol 19 (4) ◽  
pp. 1026-1036
Author(s):  
Nurhafiza Abdul Kader Malim ◽  
M.K. Normalini
Keyword(s):  
Global Financial Crisis ◽  
Positive Impact ◽  
Liquidity Risk ◽  
Institutional Development ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Factors Influencing ◽  
Conventional Banks ◽  
The Global Financial Crisis

This article investigates the factors influencing the margins of Islamic banks in 15 countries for the period 2007–2013. The article also analyses the effect of the global financial crisis (2007–2009) on the Islamic banks’ margins. Despite the rapid growth of Islamic banking, the margins of Islamic banks remain higher than conventional banks. The margins reflect the costs of financial intermediation, as higher margins may discourage clients from using bank services. The findings reveal that the margins of Islamic banks are affected mainly by capital adequacy, overhead costs, liquidity risk, bank size and institutional development. Interestingly, the crisis has a positive impact on Islamic banks’ margins. These findings will be useful for the design of policies in narrowing the margins.

scholarly journals Performance Evaluation of the Jordanian Commercial Banks Based on Bankometer Parameters

2017 ◽  
Vol 9 (12) ◽  
pp. 249
Author(s):  
Tawfiq Ahmed Mousa
Keyword(s):  
Performance Evaluation ◽  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Model Analysis ◽  
Vital Role ◽  
The Global Financial Crisis

Due to the vital role of banking sector in every country’s economy, the sustainability of this sector became a priority especially in the aftermath of the global financial crisis of 2007-2008. The main objective of this study is to assess the soundness of Jordanian commercial banks listed in Amman’s Stock Exchange (ASE) during the period (2008-2015). The study applied the Bankometer model analysis and concluded that all banks under study are safe in terms of all parameters of the model despite the slowdown of economy and the regional instability.

scholarly journals Determining the Impact of Intangible Assets on Intellectual Capital and Competitive Advantage in Banking

2020 ◽  
Vol 9 (1) ◽  
pp. 105-144
Author(s):  
Ramla Sadiq ◽  
Safia Nosheen
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Banking Sector ◽  
Intangible Assets ◽  
Robustness Analysis ◽  
Secondary Data ◽  
Annual Reports ◽  
Islamic Banks ◽  
Conventional Banks ◽  
The Impact

This paper carries out the empirical tests in order to validate the hypothesis that resource intangibility, in the form of intangible assets, contributes towards the intellectual capital, and the competitive advantage in the banking sector. Furthermore, it also determines whether the intangibility of a banks' resources contribute towards the sustainability of the competitive advantage. Finally, it determines which aspects of the banking performance, the intangible assets actually contribute to. In this context, this research utilizes the secondary data, which is extracted from the annual reports of commercial banks that are listed on the primary stock exchanges of Pakistan. The sample that is taken into consideration is divided into two main categories in order to carry out the analysis. These categories include the classification into the Islamic banks and the conventional banks. The Islamic window operations have not been included in the analysis,as the details required for the variable calculations are not consistently available. Moreover, this bifurcation in the sample is also a unique aspect of this research,as the prior literature primarily focuses on the determinants of the intellectual capital in the banking sector. However though, there is no direct study regarding the differences in the resource intangibility in the Islamic banks and the conventional banks, and their subsequent impact on the intellectual capital and competitive advantage. The time frame for the analysis is taken from the year FY2008-FY2018 .Also,the findings of this study lead to striking implications for both the Islamic banking theory and the managerial practices in the banking sector of Pakistan. The resource intangibility is to be managed very differently across both categories. Where the intangible assets represent a significant contribution to both the intellectual capital and the competitive advantage for Islamic banks, the yal sore present a negligible impact on the intellectual capital,and the competitive advantage for conventional banks. This holds true for the conventional performance measures that are taken for the banking sector as well, as shown in the robustness analysis.

scholarly journals Effect of Bank Assets Securitization in Investment Flows: A Cross-Country Analysis

2019 ◽  
Vol 5 (4) ◽  
pp. 13-17
Author(s):  
Akbarali Akhmedov ◽  
Umidjon Duskobilov
Keyword(s):  
Banking Sector ◽  
Global Financial Crisis ◽  
Active Role ◽  
Financial Architecture ◽  
Country Analysis ◽  
Cross Country ◽  
Investment Tool ◽  
The Stability ◽  
The Global Financial Crisis ◽  
The Impact

In modern financial architecture, banks actively engage in financial market operations to ensure the stability and efficiency of their activities. The latest trends in banking sector highlight the active role commercial banks play by securing their assets in securitization practices. The lessons from the global financial crisis show that securitization is one of the main methods for securing the soundness of bank assets as an investment tool. This paper investigates the impact of bank assets securitization on investment flows in 30 advanced and transition economies by applying GMM method. The results proved that securitization of bank assets significantly stimulates the inflow of investments towards selected economies.

scholarly journals The Effect of Public Ownership, Risk Management Committee, Bank Size, Leverage, and Board of Commissioners on Risk Management Disclosures (Empirical Study in Banking Sector Companies Listed on the Indonesia Stock Exchange for the Period 2011-2015)

2018 ◽  
Vol 8 (1) ◽  
pp. 12
Author(s):  
Nisa Nailur Rahma ◽  
Luciana Spica Almilia
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Secondary Data ◽  
Annual Reports ◽  
Public Ownership ◽  
Management Committee ◽  
Management Disclosures ◽  
Risk Management Committee

Every company is defi nitely at fi nancial risk or operational risk. In a uncertain econimic situation, risk management is one of the ways to reduce and deal with the possible risk faced by the company. This research aims to analyze the effect of public ownership, risk management committee, bank size, leverage and the board of commissioners on the disclosure of risk management. The population used in this study is secondary data derived from annual reports of conventional banking companies listed on the Indonesia Stock Exchange (IDX), period 2011-2015. A sample of 35 companies is obtained through purposive sampling method. The statistical method used is regression analysis. Hypothesis test is conducted by t test and F test. The results of this study show that (1) public ownership has no effect on risk management disclosure, (2) risk management committe has an effect on risk management discolsure, (3) bank size has no effect on risk management disclosure, (4) leverage has an effect disclosure risk management, (5) the board of commissioners has an effect on risk management disclosure.

scholarly journals The Effect Double Job of Audit Committee Member in Remuneration Committee on Audit Fees

2020 ◽  
Author(s):  
Ahmad Irsyad Fauzan Akbar ◽  
Adi Firman Ramadhan
Keyword(s):  
Audit Committee ◽  
Banking Sector ◽  
Stock Exchange ◽  
Committee Member ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Audit Fees ◽  
Total Sample ◽  
Annual Reports ◽  
Control Variables

The purpose of this study is to examine the effect of double job member of audit committee in remuneration committee on audit fees. This study refers to the Kalerkar (2012), by modifying the use of control variables and research samples. The dependent variables of this study is audit fees, the independent variable is double job in membership of audit committee at remuneration committee, this study also uses control variables to determine audit fees, there are audit risk, audit complexity, auditor characteristics, and audit committee characteristics. This study uses secondary data from annual reports and financial reports of all banking sector companies listed on the Indonesia Stock Exchange (IDX) in 2014-2017. The research sample was taken by purposive sampling method. The total sample in this study is 41 companies. The analysis method used in this study is the multiple linear regression analysis. The results of this study indicate that double job in membership of audit committee at the remuneration committee negatively affects the price of audit fees. Keywords: Audit Fees, Audit Committee, Remuneration Committee, Double job member of audit committee in remuneration committee.

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