scholarly journals English-7 The Merger and Acquisition Financial Performance Analysis of Conventional and Islamic Banks CASE OF KASB AND BANK ISLAMI

2021 ◽  
Vol 5 (2) ◽  
pp. 81-89
Author(s):  
Muhibullah Nahrio ◽  
Amanullah Parhyar ◽  
Noor Muhammad
Keyword(s):  
Mergers And Acquisitions ◽  
Market Development ◽  
Bench Mark ◽  
Islamic Banking ◽  
Market Penetration ◽  
Islamic Banks ◽  
Limited Data ◽  
Telecommunication Sector ◽  
The Impact ◽  
Conventional And Islamic Banks

Abstract Mergers and Acquisitions (M&A) are known as one of the major useful practice and strategies for market development, market penetration, extension and growth of the firm. (M&A) strategies have commonly used and adopted in all over the world, these (M&A) practice also adopted in Pakistan by many firm, recently in telecommunication sector (M&A) adopted by Mobilink and Warid Telecom. This study purposes to evaluate and analysis the impact of (M&A) on Islamic banking if commercial bank merged with Islamic Bank by using the analysis of  event study for the period of 2011 - 2017, In this paper Meezan bank limited data also analysis and Meezan bank limited result set as industry bench mark. Our findings indicate that merger of the company no relation or very week relation with Profitability.

scholarly journals MEMBANGUN KEUNGGULAN BERSAING DENGAN METODE ANALISIS SWOT 8 KUADRAN PADA PERBANKAN SYARIAH ( STUDI PADA BRI SYARIAH KOTA BATAM )

2019 ◽  
Vol 9 (2) ◽  
pp. 1
Author(s):  
Erman Syah
Keyword(s):  
Product Development ◽  
Banking Industry ◽  
Banking System ◽  
Growth Strategy ◽  
Market Development ◽  
Islamic Banking ◽  
Market Penetration ◽  
Islamic Banks ◽  
Islamic Bank ◽  
National Market

The development of Islamic banking in mature growing very rapidly, Islamic banking is considered as an alternative option for people who want to trade in sharia, Islamic banks are present in the community began in 1992, andthe institution until 2017 there were 12 Islamic banks, 22 Sharia Islamic rural banks and 155 units BPR in Indonesia, a very tight competition in the banking industry led to a strategy that should be done by the banking system. BRI Syariah Batam as a new Islamic bank in the Islamic banking industry and nationally are expected to compete for the national market share.The purpose of this study whether strategy should BRI Syariah Batam in order to be able to compete Kepualauan Riau, To know the strategies that should be used by the author using SWOT 8 Quadrant.From the results of research by analyzing the internal and external corporate Batam found that BRI Syariah expected to apply aggressive growth strategy by way of market penetration, market development and product development.

scholarly journals COMPETITION, DIVERSIFICATION, AND STABILITY IN THE INDONESIAN BANKING SYSTEM

2021 ◽  
Vol 24 ◽  
pp. 59-88
Author(s):  
Mudeer Ahmed Khattak ◽  
Mohsin Ali ◽  
Baharom Abdul Hamid ◽  
Muhammad Umar Islam
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Portfolio Diversification ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Stability ◽  
The Stability ◽  
The Impact ◽  
Important Policy Implication ◽  
Conventional And Islamic Banks

We examine the impact of competition and portfolio diversification on banking stability for conventional and Islamic banks in Indonesia. We find that the Islamic banking sector is less stable, when compared to the conventional banking sector. Competition in the banking sector reduces stability, while diversification enhances it. We find that competition negatively impacts the Islamic banks, but diversification has no impact on these banks. An interesting finding is that competition and diversification complement each other in enhancing the stability of the Indonesian banking sector. These findings carry an important policy implication for the banking sector of Indonesia.

The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

Design Analysis of CIMB Bank’s Website

2013 ◽  
Vol 66 (1) ◽  
Author(s):  
Muhammad Ridhwan Ab. Aziz ◽  
Mohammad Mahbub Alam Noorizzuddin Nooh
Keyword(s):  
Design Analysis ◽  
Islamic Banking ◽  
Website Design ◽  
Islamic Banks ◽  
Future Researcher ◽  
Market Shares ◽  
The World ◽  
Banking Institutions ◽  
Banking Institution ◽  
Conventional And Islamic Banks

Islamic banking has emerged in recent decades as one of the most important trends in the financial world, side by side with conventional banking. Website design has become a very powerful tool in disseminating information of a particular banking institution and this phenomenon has been fully utilized by both conventional and Islamic banks throughout the world. The purpose of this article is to analyze website design of CIMB Bank that offers both conventional and Islamic financing facilities. The methodology employed in this article is qualitative in nature through examining the websites of CIMB Bank. The finding shows that CIMB Bank needs to improve their both website designs in order to attract more customers to their websites and give true information with regard of their products and services. It is further suggested that future researcher tries to explore more in-depth website designs in terms of products and services provided by the conventional and Islamic banking institutions in order to increase their market shares. 

scholarly journals Role of Zakat as Social Finance Catalyst to Islamic Banking and Economic Growth

2017 ◽  
Vol 2 (2) ◽  
pp. 55-70 ◽  
Author(s):  
Ai Nur Bayinah
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Islamic Banking ◽  
Annual Data ◽  
Impulse Response Functions ◽  
Islamic Banks ◽  
West Java ◽  
Vector Autoregressive ◽  
The Impact ◽  
Integration Analysis

This paper is aimed to assess the contribution of Zakat in boosting Islamic banks’ financing and economic growth for the period 2011-2015, in 10 district/city of West Java Province, Indonesia. Through Vector Autoregressive (VAR) panel co-integration analysis, variance decompositions (VD) and impulse response functions (IRF), this study investigates Zakat, Islamic Banking, and economic growth nexus. Findings in this research highlight that Zakat has a significant impact on Islamic banking, so this institution would contribute to economic growth both in the short and the long run, with fluctuation in variance from the first year. The results lend support to the view that Zakat not only leads to social benefits but also has a positive impact on the economy through increasing Islamic banks’ financing. Therefore, this research will serve as a motivation for the industry players and regulators to continuously promote Zakat as a strategic policy. The originality of this research is to assess Zakat-led growth and finance by analyzing the impact of Zakat on the Islamic banking and regional economic outcome. Another novel aspect of this study is in the methodology as it employs VAR panel co-integration analysis, VDs and IRFs on the set of annual data. Keywords: Zakat, Islamic Banking Financing, Economic Growth, West Java

Macroeconomic shocks, fragility and home financing in Malaysia: can rental index be the answer?

2018 ◽  
Vol 9 (1) ◽  
pp. 17-44 ◽  
Author(s):  
Rosylin Mohd Yusof ◽  
Farrell Hazsan Usman ◽  
Akhmad Affandi Mahfudz ◽  
Ahmad Suki Arif
Keyword(s):  
Interest Rates ◽  
Islamic Banks ◽  
Macroeconomic Shocks ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Rental Rate ◽  
Conventional Banks ◽  
The Impact ◽  
Conventional And Islamic Banks

Purpose This study aims to investigate the interactions among macroeconomic variable shocks, banking fragility and home financing provided by conventional and Islamic banks in Malaysia. Identifying the causes of financial instability and the effects of macroeconomic shocks can help to foil the onset of future financial turbulence. Design/methodology/approach The autoregressive distributed lag bound-testing cointegration approach, impulse response functions (IRFs) and forecast error variance decomposition are used in this study to unravel the long-run and short-run dynamics among the selected macroeconomic variables and amount of home financing offered by both conventional and Islamic banks. In addition, the study uses Granger causality tests to investigate the short-run causalities among the selected variables to further understand the impact of one macroeconomic shock to Islamic and conventional home financing. Findings This study provides evidence that macroeconomic shocks have different long-run and short-run effects on amount of home financing offered by conventional and Islamic banks. Both in the long run and short run, home financing provided by Islamic banks is more linked to real sector economy and thus is more stable as compared to home financing provided by conventional banks. The Granger causality test reveals that only gross domestic product (GDP), Kuala Lumpur Syariah Index (KLSI)/Kuala Lumpur Composite Index (KLCI) and house price index (HPI) are found to have a statistically significant causal relationship with home financing offered by both conventional and Islamic banks. Unlike the case of Islamic banks, conventional home financing is found to have a unidirectional causality with interest rates. Research limitations/implications This study has focused on analyzing the macroeconomic shocks on home financing. However, this study does not assess the impact of financial deregulation and enhanced information technology on amount of financing offered by both conventional and Islamic banks. In addition, it is not within the ambit of this present study to examine the effects of agency costs and information asymmetry. Practical implications The analysis of cointegration and IRFs exhibits that in the long run and short run, home financing provided by Islamic banks are more linked to real sector economy like GDP and House Prices (HPI) and therefore more resilient to economic vulnerabilities as compared to home financing provided by conventional banks. However, in the long run, both conventional and Islamic banks are more susceptible to fluctuations in interest rates. The results of the study suggest that monetary policy ramifications to improve banking fragility should focus on stabilizing interest rates or finding an alternative that is free from interest. Social implications Because interest plays a significant role in pricing of home loans, the potential of an alternative such as rental rate is therefore timely and worth the effort to investigate further. Therefore, Islamic banks can explore the possibility of pricing home financing based on rental rate as proposed in this study. Originality/value This paper examines the unresolved issues in Islamic home financing where Islamic banks still benchmark their products especially home financing, to interest rates in dual banking system such as in the case of Malaysia. To the best of the authors’ knowledge, studies conducted in this area are meager and therefore is imperative to be examined.

Empirical evaluation of structure-conduct-performance paradigm as applied to the Iranian Islamic banking system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Ghaemi Asl ◽  
Muhammad Mahdi Rashidi ◽  
Alireza Ghorbani
Keyword(s):  
Market Structure ◽  
Market Share ◽  
Balance Sheet ◽  
Empirical Evaluation ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Simple Regression Model ◽  
The Impact

Purpose This paper aims to investigate the impact of market structure and market share on the performance of the Islamic banks operating in the Iranian banking system based on the structure-conduct-performance (SCP) paradigm. Design/methodology/approach The Iranian Islamic banking system’s market structure is evaluated by using the econometrics method to test the validity of the traditional SCP paradigm. For this purpose, the authors estimate a simple regression model that is consisted of several independent variables, such as the market share, bank size, real gross domestic product, liquidity and Herfindahl-Hirschman index as a proxy variable for concentration and one dependent variable, namely, the profit as a proxy for performance. The panel data includes a data sample of 22 Islamic banks operating from 2006 to 2019. Data are extracted from the balance sheet of Islamic banks and the time-series database of the Central Bank of Iran and World Bank. Findings The study’s findings indicate that both concentration and market share have a positive impact on the performance of banks in the Iranian Islamic banking system. This result is contradicted with both traditional SCP and efficient structure hypotheses; however, it confirms the existence of oligopoly or cartel in the Iranian Islamic banking system that few banks try to gain the highest share of profit and maintain their market share by colluding with each other. This result is in contradiction with other research studies about the market structure in the Iranian banking system that claimed that banks in Iran operate under monopolistic competition. In addition, it shows that the privatization of some banks in Iran does not improve and help competition in the Iranian banking system. Originality/value This paper is a pioneer empirical study analyzing the market structure, concentration and collusion based on the SCP paradigm in Iranian Islamic banking. The results of the study support the existence of collusive behavior among the Islamic bank in Iran that is not aligned with Sharia. This study clearly shows the difference between ideal Islamic banking and Islamic banking in practice in Islamic countries. This clearly indicates that only prohibiting some operations like receiving interest, gambling and bearing excessive risk is not enough. In fact, the Islamic banking system should be based on the Sharia rule in all aspects and much more modification and study have to be done to achieve an appropriate Islamic banking system. These possible modifications to overcome the issues of cartel-like market structure and collusive behavior in the Iranian Islamic banking system include making the Iranian banking system more transparent, letting foreign banks enter the Iranian banking system and minimizing the government intervention in the Iranian banking system.

Competitive conditions and market power of Islamic and conventional commercial banks

2014 ◽  
Vol 5 (1) ◽  
pp. 29-46 ◽  
Author(s):  
Hichem Hamza ◽  
Safa Kachtouli
Keyword(s):  
Southeast Asia ◽  
Market Power ◽  
Traditional Approach ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Lerner Index ◽  
Conventional Banks ◽  
Conventional And Islamic Banks ◽  
Concentration Ratios

Purpose – The expansion of the Islamic banking industry seems to accentuate the banking competition in MENA and Southeast Asia where conventional and Islamic banks coexist. In this context, the research aims\ to examine the competitive conditions and the market power of the conventional and Islamic banks during the period 2004-2009 in MENA and Southeast Asia region. Design/methodology/approach – The authors use a variety of structural and non-structural measures related to the traditional approach and the new empirical approach of the industrial organization. The methodology is based on set of measures of the competition and market power. The first measure is a set of concentration ratios (C3, C5) and Herfindahl-Hirschman index (HHI). The second measures are the Panzar and Ross H statistic and the Lerner index based on econometric estimations with the aim of evaluating the structure of market and measuring its power in terms of price setting. Findings – The results indicate that under the HHI index, both markets are low concentrated, while according to the concentration ratios, the Islamic market is considered as moderately concentrated. The estimations results, through the H-PR-statistic of Panzar and Ross related to degree of competition and the Lerner index of market power, indicate that both markets are characterized by a monopolistic competition and the Islamic banking expressed a high degree of market power. Research limitations/implications – The research focuses exclusively on the countries where the data are available and excludes the other countries where competition and market power might have different forms. Practical implications – In a competitive environment, each bank is required to analyze the structure of its market and competitive conditions, in order to develop a business strategy and effective action plans. In the context of the multiplication of the Islamic banks in the MENA and Southeast Asia, the enhancement of Islamic bank competitiveness by offering new products is determinant for their success. Originality/value – To the best of the authors' knowledge few studies have examined this subject in a comparative analysis between the Islamic and conventional banks. So the authors contribute to the literature on Islamic banking by considering a sample of Islamic and conventional banks operating in the same countries in order to examine the existence or not of difference between them.

scholarly journals How Efficient is the Islamic Banking Model in Pakistan?

2017 ◽  
Vol 6 (1) ◽  
pp. 111-125
Author(s):  
Tahseen Mohsan Khan ◽  
Mohsan Khan Rizwan ◽  
Saima Akhtar ◽  
Syed Waqar Azeem Naqvi
Keyword(s):  
Credit Risk ◽  
Asset Management ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Management Capability ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

The purpose of this study is to analyze the conventional and Islamic banking in Pakistan. For this study, a sample of 19 conventional banks and five Islamic banks was selected. The CAMEL approach is used to evaluate the performance of both conventional and Islamic banks. Ten ratios were used to measure profitability, liquidity and credit risk. Our findings suggest that Islamic banks are less efficient than conventional banks in asset management, management capability and liquidity. Conventional banks have better earning capability in terms of return on assets and overhead ratios. The analysis also shows that Islamic banks have better capital adequacy than conventional banks.

scholarly journals Restructuring of Indian Telecom Industry: Emergence of Reliance Jio and M and A Cases involving Airtel-Telenor and Vodafone-Idea

2018 ◽  
Vol 14 (1) ◽  
Author(s):  
Saurav Kumar
Keyword(s):  
Mergers And Acquisitions ◽  
Market Penetration ◽  
Competitive Strategies ◽  
Market Shares ◽  
Mobile Industry ◽  
The World ◽  
Telecom Industry ◽  
Short Span ◽  
To Come ◽  
The Impact

Mobile industry in India is has become one of the fastest developing industries world over. Indian mobile subscribers have become used to touch mobiles within a relatively short span of time. India is the second biggest market in the world for mobile services and it is a good avenue for network providers from India and abroad. Global providers too have occupied and earned reasonable market shares in the Indian mobile industry. Jio’s practically free offers have created fundamental changes in consumer behavior along with competitor strategies. The moves made by this new entrant has affected the equilibrium in the mobile industry and made rival players vulnerable, so much so that many of them have resorted to mergers and acquisitions to avoid bleeding away to bankruptcy. All major players in the industry, e.g. Airtel, Idea, Vodafone etc. are strategically responding to Jio’s market penetration move. To come to a position of strenght in the industry, Idea and Airtel are entering into ventures with Vodafone and Telenor respectively. Through this paper the author wishes to make an attempt to examine the impact of Jio on competitive strategies of rivals in the Indian telecom industry.

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