scholarly journals Life after Debt: The Effects of Overleveraging on Conventional and Islamic Banks

2020 ◽  
Vol 13 (6) ◽  
pp. 137
Author(s):  
Samar Issa
Keyword(s):  
Global Financial Crisis ◽  
The United States ◽  
The Other ◽  
Islamic Banks ◽  
Global Crisis ◽  
The United Kingdom ◽  
The Difference ◽  
Conventional Banks ◽  
The One ◽  
Conventional And Islamic Banks

It is generally argued that Islamic banks are safer than conventional banks. The prime reason is that their product structure is essentially asset-backed financing, while conventional banks rely heavily on leveraging, which was considered one of the main causes of the 2008 global financial crisis. This paper examines the riskiness of Islamic and conventional banks during the 2008 global crisis by measuring overleveraging, defined as the difference between actual and optimal debt. This research conducted empirical analysis on the overleveraging of 20 banks (10 conventional and 10 Islamic banks) from five different countries, namely, Bahrain, Kuwait, Malaysia, the United States, and the United Kingdom. The analysis is double-folded: on the one hand, the results in this paper suggest that excess debt, rather than the mere holding of debt, was the reason behind the severe financial meltdown in 2007–2009; on the other hand, this paper shows that Islamic banks, in most of the countries in context, performed better during the recent crisis, but were subject to the second-round effect of the global crisis around the years of 2011–2013.

Central Banks and Their Limits in a Pandemic

2021 ◽  
pp. 97-112
Author(s):  
Christian Hofmann
Keyword(s):  
Financial Stability ◽  
Global Financial Crisis ◽  
The United States ◽  
Central Banks ◽  
Current Crisis ◽  
Global Context ◽  
The United Kingdom ◽  
Ambiguous Situation ◽  
The One ◽  
The Global Financial Crisis

This chapter details the reactions of central banks to the current Covid-19 pandemic and contrasts them with their monetary policy operations during normal (non-crisis) times and their reactions to the Global Financial Crisis (GFC) of 2007–2009. It situates the response of central banks in Asia within a global context, examining and comparing the responses of central banks in the United States, the Euro area, the United Kingdom, Japan, Singapore and Hong Kong. Moreover, the chapter explains why this crisis is unprecedented, making it dangerous in terms of financial stability and state finances and difficult for central banks to return to normality. In the current crisis, central banks find themselves in an ambiguous situation. On the one hand, they are better prepared than they were thirteen years ago when the GFC erupted. On the other hand, relying on experience from the GFC comes with risks. No two crises are ever the same, and this is especially true for the Covid-19 pandemic. Financial markets and economies are not the triggers of this crisis as they were in many previous crises when central banks had to react swiftly and forcefully; instead, they have fallen victim to a calamity that paralyzes society, trade, and business globally.

Banking stability in the MENA region during the global financial crisis and the European sovereign debt debacle

2017 ◽  
Vol 18 (4) ◽  
pp. 381-397 ◽  
Author(s):  
Naama Trad ◽  
Houssem Rachdi ◽  
Abdelaziz Hakimi ◽  
Khaled Guesmi
Keyword(s):  
Global Financial Crisis ◽  
Islamic Banks ◽  
Mena Region ◽  
Data Set ◽  
Content Type ◽  
Negative Effect ◽  
Macroeconomic Effect ◽  
Conventional Banks ◽  
The Global Financial Crisis ◽  
Conventional And Islamic Banks

Purpose This paper aims to focus on the main determinants of the performance and stability-banking sector in the Middle East and North Africa (MENA) region during the global financial crisis. Using a data set of 13 countries with both of 77 Islamic and 101 conventional banks during the period 2006-2013, empirical results show that specific variables allow explaining the change in the level of performance and stability for conventional and Islamic banks. However, the effect of some banks’ characteristics is not the same for the two bank groups. For the macroeconomic effect, it is observed that inflation exerts a negative effect on the bank performance except for conventional banks when it increases the profitability. Design/methodology/approach Using a data set of 13 countries with both of 77 Islamic and 101 conventional banks (CvB) during the period 2006-2013 and performing the generalized method of moments (GMM) method, the findings provide comprehensive evidence for the bank systems studied which are of interest also to policy makers and practitioners. Findings The main finding is that after the international financial crises of 2008, many worldwide banks have been experiencing crises in contrast to Islamic banks (IsB) which remain Gen more stable and more profitable. Foreign banks had a higher degree of exposure to risk, given their higher number of subsidiaries in the developed economies. As for the determinants of profitability, the bank-specific variables allow to explain the change in the level of performance and stability for conventional and Islamic banks. However, the effect of some banks characteristics is not the same for the two bank groups. For the macroeconomic effect, it is observed that inflation exerts a negative effect on the bank performance except for CvB when it increases the profitability measured by the return on assets (ROA). It is also found that the growth rate acts positively when the dependent variable is the ROA and negatively when the performance is measured by return on equity. Originality/value The inflation rate exerts a negative effect only on the ROA. This study differs from previous contributions in that it is tested the hypothesis of determinants of bank profitability and stability for both conventional and Islamic banks in the MENA region. It is of great interest to both policymakers and investors, with respect to regional development policies and dedicated portfolio investment strategies in each emerging region respectively. The authors adopted several ratios from the empirical literature on bank profitability and stability. Using a data set of 13 countries with both of 77 Islamic and 101 CvB during the period 2006-2013 and performing the GMM method, the findings have significant contributions to the literature by comprehensively clarifying and critically analyzing the current state of profitability and stability for both banks.

scholarly journals DOES ISLAMIC BANKING PROMOTE FINANCIAL STABILITY? EVIDENCE FROM AN AGENT-BASED MODEL

2021 ◽  
Vol 7 (2) ◽  
pp. 201-232
Author(s):  
Omer Faruk Tekdogan ◽  
Burak Sencer Atasoy
Keyword(s):  
Financial Stability ◽  
The Other ◽  
Islamic Banking ◽  
Bank Failures ◽  
Islamic Banks ◽  
Financial Industry ◽  
Financial Systems ◽  
Agent Based ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

Islamic banking has come to the forefront as being one of the fastest growing branch of the global financial industry in recent years. In this study we evaluate whether coexistence of Islamic and conventional banks promote financial stability. In this respect, we evaluate two types of financial systems: (1) A system solely comprised of conventional banks, (2) a dual system in which conventional and Islamic banks coexist and interact with each other. Accordingly, we design two agent-based models representing aforementioned systems and examine possible contagious effects and causes of bank failures by employing the volatility spillover methodology. We find that Islamic banks greatly promote stability by providing liquidity during financial shocks and create more liquidity per asset compared to conventional banks. We also find that they tend to hold more cash than conventional banks, which cushion the effects of a possible liquidity squeeze. Conventional banks, on the other hand, tend to have reserve deficits, which intensify during shock periods. We conclude that coexistence of both bank types creates a win-win situation and contributes to financial stability.

scholarly journals Necessity and Islamic juristic creativity

2021 ◽  
Vol 7 (1) ◽  
pp. 72-91
Author(s):  
Ahmed Al-Dawoody
Keyword(s):  
United States Of America ◽  
Islamic Law ◽  
The United States ◽  
The Other ◽  
Kingdom Of Saudi Arabia ◽  
The United Kingdom ◽  
English Speaking ◽  
Muslim Majority ◽  
The One ◽  
Law Making

This article studies one of the humanitarian challenges caused by the COVID-19 crisis: the dignified handling of the mortal remains of individuals that have died from COVID-19 in Muslim contexts. It illustrates the discussion with examples from Sunni Muslim-majority states when relevant, such as Egypt, the Kingdom of Saudi Arabia, Jordan, Morocco and Pakistan, and examples from English-speaking non-Muslim majority states such as the United Kingdom, the United States of America, Canada and Australia as well as Sri Lanka. The article finds that the case of the management of dead bodies of people who have died from COVID-19 has shown that the creativity and flexibility enshrined in the Islamic law-making logic and methodology, on the one hand, and the cooperation between Muslim jurists and specialised medical and forensic experts, on the other, have contributed to saving people’s lives and mitigating the effects of the COVID-19 pandemic in Muslim contexts.

Dissertations on Hungarian History completed since 1920

1973 ◽  
Vol 9 ◽  
pp. 266-293
Author(s):  
John Komlos
Keyword(s):  
United States ◽  
United Kingdom ◽  
The United States ◽  
The Other ◽  
The United Kingdom ◽  
The One ◽  
Academic Degrees

This compilation was conceived as a means of encouraging research in Hungarian history. It is limited to dissertations completed for academic degrees in Austria, Canada, France, Germany, the United Kingdom, and the United States. Unless otherwise noted, all entries refer to Ph. D. dissertations. In preparing the European entries, no attempt was made to distinguish between the degrees of Doctorat de Spécialité, Doctorat d'État, and Doctorat de l'Université, on the one hand, or Dissertationen and Habilitationsschriften, on the other. The chronological limits of the compilation extend from 1920 to 1972.

The Personnel of the Criminal Law in England and the United States

1955 ◽  
Vol 13 (1) ◽  
pp. 80-100
Author(s):  
J. C. Smith
Keyword(s):  
United States ◽  
Criminal Justice ◽  
Criminal Law ◽  
Criminal Procedure ◽  
The United States ◽  
The Other ◽  
Large Measure ◽  
Distribution Of Powers ◽  
The Difference ◽  
The One

The success of any system of law depends, in the last resort, on the personnel who administer it. However perfect the procedure of a system may be in theory, it will not work well in practice if the officials who operate it are inefficient or lack proper powers: whereas, with efficient personnel having adequate powers, imperfections of procedure may be of little consequence. The fundamental principles of criminal procedure are the same in England and the United States; yet in the one country there is satisfaction, amounting, perhaps, to complacency, with the operation of the criminal law; while in the other there is almost universal dissatisfaction. This dissatisfaction has provoked a great deal of detailed research in America into the deficiencies of criminal justice, by both public commissions and private individuals, and, consequently, the publication of much frank and vigorous criticism. An examination of this criticism shows that, in the opinion of the American commentators, the factor of personnel is at the root of a great many of their troubles.It is indeed the submission of this article that the important differences in the actual administration of the criminal law in England and America arise, in large measure, from the difference in status and character of the personnel who administer the law; and, in particular, from the differences in the distribution of powers among them. A comparison of some aspects of the powers, prestige, character and abilities of the judges, juries and counsel who, between them, are responsible for dispensing criminal justice in the higher courts in the two countries, will, it is believed, reveal that this is so.

scholarly journals Forign Influences on the Geopolitical Evolution of Cyprus

2019 ◽  
Vol 25 (1) ◽  
pp. 109-113
Author(s):  
Ileana-Gentilia Metea
Keyword(s):  
United States ◽  
United Kingdom ◽  
The United States ◽  
The Other ◽  
The United Kingdom ◽  
State Actors ◽  
The One ◽  
The Way

Abstract The moments of turning around in Cyprus’ history have long been a source of opportunity for various state actors on the international stage, mentioning, on the one hand, the main stakeholders, Greece, Turkey, on the other, the big players, the United States, the United Kingdom, Russia. The way they have taken advantage of certain situations has made a visible influence on the fate of the island’s inhabitants, but has also been a source of dispute at several levels: economic, geopolitical, geostrategic etc.

scholarly journals Selection Criteria for Conventional and Islamic Banks: An Empirical Analysis

2021 ◽  
Vol 8 (1) ◽  
pp. 38-60
Author(s):  
Atiq uz Zafar ◽  
Malik Muhammad ◽  
Bibi Akhtar
Keyword(s):  
Selection Criteria ◽  
The Other ◽  
Islamic Banks ◽  
Customer Preferences ◽  
Factors Influencing ◽  
Five Factors ◽  
Conventional Banks ◽  
Quick Service ◽  
Selection Of ◽  
Conventional And Islamic Banks

The current study investigates the bank selection criteria used by the customers of both the conventional and Islamic banks of Pakistan. From six different cities, a sample of 1000 customers was selected in order to find out the factors influencing their selection of a bank. The results showed that “Security of Money” was considered as the most important factor in the selection of banks, both by the customers of conventional and Islamic banks. The results also revealed that the customers of Islamic banks ranked “Competence of Staff”, “Online Banking Facility”, and “Confidentiality of Information” as the second, third and fourth most important factors in the selection of their respective banks. On the other hand, the customers of conventional banks emphasized “Availability of ATM Machines”, “Quick Service”, and “Friendly Behavior of Staff” as the second, third and fourth most important factors in bank selection. Further, the customers of Islamic banks ranked “Shari’ah Compliance” as the seventh most important factor, while the customers of conventional banks ranked it as the twentieth important factor out of the total twenty-five factors. Thus, to retain the existing customers and to attract new ones, both Islamic and conventional banks need to focus on customer preferences when offering their products.

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