Types of banking institutions and economic growth

Elmawazini, Khaled; Khiyar, Khiyar Abdullah; Aydilek, Asiye

doi:10.1108/imefm-09-2018-0304

Cited by 15 publications

(19 citation statements)

References 70 publications

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“…In the presence of a dual banking system (i.e., Islamic and conventional), it is highly relevant to study the Islamic finance-growth nexus by considering the conventional banking in line with Islamic financial depth. Secondly, studies conducted in Pakistan (Asif et al 2014;Nawaz et al 2019;Shah and Raza 2020) only used total Islamic advances, whereas a relative development of Islamic finance compared to conventional banking should be captured by utilizing the concept of Islamic financial depth (as suggested by Anwar et al 2020;Elmawazini et al 2020). Furthermore, the ability of a financial sector (Islamic or conventional) to channel the funds was considered in previous studies, and can be captured by the number of Islamic and conventional branches (Islamic and conventional financial intermediation).…”

Section: Islamic Finance-growth Nexusmentioning

confidence: 99%

“…Therefore, Islamic financial depth is measured through total Islamic banking financing. as a percentage of nominal GDP (Anwar et al 2020;Boukhatem and Moussa 2018;Elmawazini et al 2020;Zarrouk et al 2017), to represent the size of Islamic financial depth in Pakistan. However, conventional financial depth is considered through total loans disbursed by conventional banks as a percentage of nominal GDP.…”

Section: Datamentioning

confidence: 99%

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Islamic Financial Depth, Financial Intermediation, and Sustainable Economic Growth: ARDL Approach

2021

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The pre-eminence of Islamic finance from the perspective of economic growth has been a long-standing debate. In recent decades, there has been a paradigm shift from interest-based banking to Islamic financial system. This study intends to examine the dynamic interaction of Islamic financial depth (IFD), Islamic financial intermediation (IFI), and asset quality with economic growth in a dual banking system. The paper employs autoregressive distributive lag regression (ARDL), error correction model (ECM) and Granger causality to examine the long and short run linkage by using the quarterly data of Pakistan from 2005 to 2019. The authors run two models to analyze the relative importance of financial depths (Islamic and conventional), financial intermediation (Islamic and conventional), and asset quality of both financial systems. A long-run relationship flowing from finance to growth in both Islamic and conventional finance models has been observed in our study. Furthermore, the findings recommend that strong financial intermediation plays an imperative role in driving economic growth by both financial sectors. The presence of a higher degree of Islamic financial assets in the economy contributes towards economic growth in the short-run. The results show that asset quality possibly plays an important intervening role in the overall finance-growth nexus.

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Section: Islamic Finance-growth Nexusmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Islamic Financial Depth, Financial Intermediation, and Sustainable Economic Growth: ARDL Approach

2021

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“…Such studies have explored the impact of bank-specific factors such as risk, market power, size and capitalization on bank performance. More recently, research has focused on the impact of macroeconomic factors on bank performance (Koju et al, 2019;Nieto, 2019;Serrano, 2019;Moudud-Ul-Huq, 2019;Arham et al, 2020;Rashid and Khalid, 2020;Nugroho et al, 2020;Elmawazini et al, 2020;Anwar et al,2020). Moreover, to date, empirical research has concentrated on a specific country, mainly the banking system of the USA (Berger, 1995;Teixeira et al, 2020) and the banking systems in other developed countries such as the UK (Valverde and Fern andez, 2007), Finland (Huhtilainen, 2020) and Italy (Barra and Zotti, 2019).…”

Section: Related Literaturementioning

confidence: 99%

Determinants of banks’ risk-taking behavior, stability and profitability: evidence from GCC countries

Saif‐Alyousfi

Saha

2021

IMEFM

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Purpose This paper aims to examine the effect of bank-specific, financial structure and macroeconomic factors on the risk-taking behavior, stability and profitability of banks in Gulf Cooperation Council (GCC) economies during 1998–2017. Design/methodology/approach The authors use a two-step system generalized method of moments dynamic model to analyze the data. Findings The results show that non-traditional activities increase the risk and decrease the stability and profitability of banks that are highly capitalized, highly liquid and large. Banks in this group are less engaged in securities investments and their higher degree of loan exposure leads to a decrease in risk and an increase in their stability and profitability. Higher concentration increases the risk and decreases the stability and profitability of banks that are less capitalized, less liquid and small. Banks with a higher share of non-traditional activities are riskier and less stable and less profitable before the financial crisis. The study finds that banks with relatively higher capitalization and high lending growth rates are riskier, profitable and less stable during the crisis. Larger commercial banks are less risky and more stable and profitable than smaller banks before the global financial crisis. Islamic banks performed better in terms of fee income, capitalization, liquidity, asset quality and have higher market concentration than conventional banks. Originality/value The study provides the first comprehensive empirical evidence on the drivers of risk-taking behavior, stability and profitability of the GCC banks. It also investigates the differences across these variables based on the characteristics of financial strength such as capitalization, liquidity and size; before, during and after the financial crisis; and differences between Islamic and conventional banks.

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“…Meanwhile, the share of Islamic banking as a percentage of total banking in GCC countries increased from 31% in 2008 or after the crisis to 45% in 2017. The Islamic banking sector has grown at an annual rate of around 17% during 2009-2013, which includes the period of the post-2008 global crisis (Elmawazini et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Marketing Ethics At Islamic Banks: Principles And Practices

Hadi

Cahyo

Budi

2021

JISEL

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This article highlights the principles and implementation of Islamic banking marketing ethics. Ethics based on sharia principles are an essential differentiator from their competitors. It begins from the 4 P's marketing mix framework, namely product, price, promotion, and place. This article is qualitative descriptive research using literature review. This article employs secondary data from 11 articles. The data that has been collected then analyzed with descriptive information. Therefore, through 4 P's marketing mix lens, this article finds a lack of ethical marketing practices in Islamic Banking from the ethical ideals espoused in the literature. This study analyzes the ethical marketing practices of Islamic banks which can be used as an evaluation of policies in the Islamic financial industry.

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Types of banking institutions and economic growth

Cited by 15 publications

References 70 publications

Islamic Financial Depth, Financial Intermediation, and Sustainable Economic Growth: ARDL Approach

Islamic Financial Depth, Financial Intermediation, and Sustainable Economic Growth: ARDL Approach

Determinants of banks’ risk-taking behavior, stability and profitability: evidence from GCC countries

Marketing Ethics At Islamic Banks: Principles And Practices

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