Bank Competition–Stability Relations in Pakistan: A Comparison between Islamic and Conventional Banks

Hassan, M. Kabir; Ijaz, Muhammad; Khan, Mushtaq Hussain

doi:10.33736/ijbs.3733.2021

Cited by 6 publications

(4 citation statements)

References 58 publications

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“…Regarding the East Asian banking sector (Indonesia and Malaysia), Ali et al (2020) showed an increase in system stability due to the enhanced competition from Islamic banks. A similar finding was obtained by Hassan et al (2021) in Pakistan's dual banking sector.…”

Section: Introductionsupporting

confidence: 84%

The Contribution of Islamic and Conventional Banks to Financial Stability in Indonesia

2023

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This study aims to examine an asymmetric relationship between Islamic and conventional bank contributions to financial stability in Indonesia. Adopting non-linear autoregressive distributed lag (NARDL), the study utilizes time-series data from 2004m1-2021m9, consisting of financial stability as a dependent variable, proxied by non-performing loans (NPLs) and ZSCORE. Islamic and conventional banks as independent variables were measured by total financing and total assets. Furthermore, we used interest rates and inflation as complementary variables. The findings reveal that Islamic and conventional banks affect financial stability in the short and long run. However, conventional banks contribute to financial stability more than Islamic banks. The asymmetric relationship explains that an increase/decrease in the independent variables to the same degree does not have the same impact on the dependent variable. This research implies that the financial authorities need to increase their awareness of the presence of asymmetric relationships when designing monetary policy to achieve and maintain financial stability. Finally, the study also fills the current research gap by measuring the contribution of Islamic and conventional banks to financial stability from an asymmetric relationship viewpoint.JEL Classification: E60, G20, G21How to Cite:Fakhrunnas, F., Nahda, K., Chowdhury, M.A.M. (2023). The Contribution of Islamic and Conventional Banks to Financial Stability in Indonesia. Etikonomi, 22(1), 213–232. https://doi.org/10.15408/etk.v22i2.26656.

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Section: Introductionsupporting

confidence: 84%

The Contribution of Islamic and Conventional Banks to Financial Stability in Indonesia

2023

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“…Loans (NPL). Other studies in this research line that are more recent can for example be seen in Boubakri et al, (2023), Nurfalah et al, (2023, Kayani (2023), Mawardi et al, (2023), Aydemir et al, (2022), Kayhan & Bayat (2021), Nurfalah & Rusydiana (2021), and also Hassan et al, (2021). Other studies certainly need to be further elaborated.…”

Section: Cluster 2: Comparison Between Islamic and Conventional Banki...mentioning

confidence: 71%

Islamic Banking Performance: How Far has It been Reviewed?

Maulida

2024

PML

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The study aims to analyze the development of Islamic banking performance research. The data sources used in this research are scientific publications indexed in the Scopus database with a period range from 1990 to March 21, 2024. This research uses bibliometric research methodology with the help of Biblioshiny-R software. The results show that MK Hassan and IIUM Malaysia are the authors and institutions that produce the most publications related to Islamic banking performance. Meanwhile, Indonesia and Malaysia are the two most productive countries in this study area. As for the research path analysis, there are at least 2 research paths related to the topic of Islamic banking performance contained in the Scopus database, namely: (1) Islamic banking performance towards social and financial responsibility, and (2) Comparison between Islamic and conventional banking in facing the global financial crisis. Both lines need to be explored further with elaboration on topics that have not been widely researched.

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“…The Hungarian Journal of Marketing and Management tes have more market power than traditional banks, while in non-Islamic states, it is the opposite (Kabir Hassan et al 2021, Khattak et al 2022, (Risfandy et al 2022. Also, the relationship between competition and the market power of banks depends on the level of regulation.…”

Section: Marketing and Menedzsmentmentioning

confidence: 99%

Competitiveness in Banking Sector: A Systematic Literature Review

Begimkulov

2023

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THE AIMS OF THE PAPER The concept of bank competitiveness has attracted increasing scientific attention. The current paper explores the directions and trends of research on bank competitiveness measures by reviewing recently published journal articles. METHODOLOGY The research follows the systematic literature review method. First, a set of keywords were defined. Then, the keywords were combined with the Boolean operator “AND” to identify articles in the two biggest scientific databases: Web of Science and Scopus. The identified papers were filtered and screened following the PRISMA method of selection. At the final stage, 33 articles were included. MOST IMPORTANT RESULTS Based on the analysis of published papers, the author identified the main research streams within bank competitiveness:risk-stability, market power, macroeconomic context, information technology, and new applications. Also, within the context of growing digitalization, little attention is paid to the influence of information technology on bank competitiveness. RECOMMENDATIONS Within the context of the growing importance of technological innovations in the financial sector (e.g., financial technology startups), there is still a lack of research on the influence of technological innovations implemented by banks on their competitiveness. Also, considering that the existing methods of measuring competitiveness in banks often provide conflicting information, developing new ways of estimating competitiveness considering the level of digitalization is necessary.

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Bank Competition–Stability Relations in Pakistan: A Comparison between Islamic and Conventional Banks

Cited by 6 publications

References 58 publications

The Contribution of Islamic and Conventional Banks to Financial Stability in Indonesia

The Contribution of Islamic and Conventional Banks to Financial Stability in Indonesia

Islamic Banking Performance: How Far has It been Reviewed?

Competitiveness in Banking Sector: A Systematic Literature Review

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