Interest-free monetary policy and its impact on inflation and unemployment rates

Selim, Mohammad; Hassan, M. Kabir

doi:10.1108/ijif-06-2018-0065

Cited by 22 publications

(19 citation statements)

References 22 publications

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“…(Christiano, Eichenbaum, & Trabandt, 2016). Interest free monetary policy is proved to be better as compared to interest based policy (Selim, & Hassan, 2019).…”

Section: Islamic Banks and Employment Generationmentioning

confidence: 99%

Islamic Banks’ Financing and Employment Generation: The Case of Punjab, Pakistan

Mahmood¹,

Ashraf²

2019

J. Islam. bus. manag.

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The objective of this study is to assess the impact of Islamic financing modes on employment through asset formation and value creation of Islamic Banking in Punjab, Pakistan. Data was collected from two randomly selected Islamic Banks in Pakistan namely Meezan Bank and Al-Baraka Bank (Pakistan) Ltd. Multistage sampling procedure was used for selection of sample respondents from three regions of Punjab. List frame of the study consisted of respondents/firms utilizing finance from selected Islamic Banks located in each district. The sample of the study comprised of 206 small and medium firms who utilized Islamic modes of financing to get financing for their business. Variables of the model comprised of employment generation, asset formation, technology, firm age and business size. Least square regression model was used for analysis of the cross sectional data. All the independent variables of the model have significant effect on dependent variable. Empirical results revealed that only asset formation has direct relationship with employment generation. Technology, firm age and business size have inverse relationship with employment generation capacity of the borrowing firms utilizing Islamic finance. The study concluded that in Pakistan, the SME's used financing tool to enhance the assets by adopting the technological change. The results of the study will support policy makers, practitioners and planners to make more informed business decisions.

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“…(Christiano, Eichenbaum, & Trabandt, 2016). Interest free monetary policy is proved to be better as compared to interest based policy (Selim, & Hassan, 2019).…”

Section: Islamic Banks and Employment Generationmentioning

confidence: 99%

Islamic Banks’ Financing and Employment Generation: The Case of Punjab, Pakistan

Mahmood¹,

Ashraf²

2019

J. Islam. bus. manag.

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“…For example, Hamza and Saadaoui [36], Imam and Kpodar [37], and Bashir [38] found a positive relationship between the economic development of the country and the effectiveness of alternative financing. On the contrary, Selim and Hassan [39] concluded that the increase in the unemployment rate in the country would adversely affect the success of the banking industry. In addition to the studies mentioned, Kusmayadi et al [40] and Abidin and Haseeb [41] also investigated which factors affect the effectiveness of alternative financing.…”

Section: Literature Reviewmentioning

confidence: 99%

Gaussian-Based Soft Computing Approach to Alternative Banking System for Sustainable Financial Sector

et al. 2021

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This study aims to identify the necessary strategies for the development of a sustainable financial system. For this purpose, a novel approach could be provided for soft computing with Gaussian-based fuzzy DEMATEL approach to understand the significant levels and impact-relation degrees of these criteria. For robustness check, this evaluation has also been performed for triangular and trapezoidal fuzzy sets. There are many novelties of this study. Firstly, computer science has a significant role in the decision-making process. Another specificity is that the use of Gaussian numbers with fuzzy numbers is a new area. In addition, interval type-2 fuzzy (IT2F) sets also provide a significant advantage in decision-making under uncertainty. The results demonstrate that the size of the alternative financing, investment in efficient projects, and effective advertisement/promotions are the most important items to affect the performance of alternative banking system of emerging economies. Hence, it is recommended that the new banking applications should be applied by the state or the state can provide some incentives for foreign banks to invest in emerging economies, such as tax reduction. Another important point is that the financial intermediations should generate a component financial analysis team to examine the financial reports of the companies in detail so that the financial credibility of these companies can be evaluated more effectively.

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“…A recent study by Selim and Hassan (2019) assessed the role of interest-free monetary policy on the misery index. And for the case of 12 countries, the results showed a negative effect of interest free financial expansion on misery index, which includes a decrease in inflation.…”

Section: Empirical Reviewmentioning

confidence: 99%

Inflationary Dynamics of Consumer and Producer Financing – A case of Islamic and Conventional Banking in Pakistan

Manzoor

Arshed

2021

IJIEF

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One of the objectives of macroeconomics is to stabilise purchasing power for the masses, which remains a leading economic problem in Pakistan for years. Economists are convinced about the existence of some degree of inflation in the economy to mobilize economic resources, with the condition to keep it to a minimum. Currently, Islamic finance is setting its firm footing in Pakistan and competing with the conventional financial system. Both of these financial systems provide their services to consumers and producers, which implicates inflation differently. Under this scenario, this study sets to compare the Shari’ah compliant financing provided by Islamic financial institutes and human made standards of conventional financial institutions. This study explores the effect of consumer financing and producer financing of Islamic and conventional banks on the inflation of Pakistan. Quarterly secondary data extracted from the State Bank of Pakistan (SBP) reports and International Financial Statistic (IFS). Empirical results displayed that Islamic consumer financing, as expected in theory, helps to control inflation. The preaching of moderation in Islamic finance makes Islamic consumer financing less inflationary and asset-based Islamic producer financing will perform better in reducing inflation. Islamic consumer financing is well participating in the management of inflation. However, Islamic producer financing lacks inflation curtailing ability. The small share in the financial market, and lack of long term investment plans, are the few reasons why Islamic producer financing is not managing inflation.

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Interest-free monetary policy and its impact on inflation and unemployment rates

Cited by 22 publications

References 22 publications

Islamic Banks’ Financing and Employment Generation: The Case of Punjab, Pakistan

Islamic Banks’ Financing and Employment Generation: The Case of Punjab, Pakistan

Gaussian-Based Soft Computing Approach to Alternative Banking System for Sustainable Financial Sector

Inflationary Dynamics of Consumer and Producer Financing – A case of Islamic and Conventional Banking in Pakistan

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