Can the Islamic bank be an emerging leader? A panel data causality analysis

Jawadi, Fredj; Cheffou, Abdoulkarim Idi; Jawadi, Nabila

doi:10.1080/13504851.2015.1125426

Cited by 13 publications

(4 citation statements)

References 11 publications

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“…This means that an increase in NPLs in the banking sector could directly weaken a country's economy because constant interest payments without considering profits and losses can be burdensome to business actors. Furthermore, when the NPL value increases, it becomes challenging for banks to conduct liquidity processes to finance the business sector, weakening economic growth (Ahmad et al, 2016;Jakubík & Reininger, 2014;Louzis et al, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

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Khasanah¹,

Wicaksono²

2021

Development Management

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The study aims to measure the intermediary performance of Islamic banks in relation to economic growth in Indonesia in the short and long term. There are four main variables used, namely financing, fund placement in BI (Central Bank of Indonesia), investment in securities, and third-party funds in all Islamic banks from 2007 to 2019. The data were tested using vector error correction models (VECM), Granger Causality, Impulse Response Function (IRF), and Variant Decomposition (VDC) to examine causality relationships, the short- and long-term effects, shocks, and variances in Islamic bank intermediary performance to economic growth. The results show that there is a two-way causality relationship between financing and third-party funds to economic growth. While in the short term, fund placement in BI, investment in securities, and financing have a significant influence on economic growth, but in the long run, only the placement of funds in BI will affect economic growth. Also, only fund placement in BI can shock and significantly contribute to economic growth in the long term. The overall intermediary performance of Islamic banks has not contributed to Indonesia’s economic growth in the long term.

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Section: Literature Reviewmentioning

confidence: 99%

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Khasanah¹,

Wicaksono²

2021

Development Management

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“…Por outro lado, alguns estudos mostram que os BIs diferem pouco dos bancos convencionais, descobrindo que os dois tipos de bancos estão indiretamente em concorrência (Jawadi, Cheffou, & Jawadi, 2016b). Além disso, os BIs foram criticados por não serem suficientemente éticos e transparentes para fornecer um modelo típico com o qual liderar bancos convencionais (Imam & Kpodar, 2010;Jawadi, Cheffou, & Jawadi, 2016a).…”

Section: Revisão Da Literaturaunclassified

influência do ambiente geográfico no desempenho dos bancos islâmicos

Khatib¹

2021

Rev. Cat. Cien. Cont.

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O objetivo do presente artigo é examinar a influência do ambiente geográfico no desempenho de bancos islâmicos presentes em quatro regiões: África, Ásia, Europa e América do Norte. Para atingir esse objetivo, foram utilizados dados diários de 113 bancos islâmicos entre os anos de 2010 e 2019. Foram aplicadas diferentes abordagens metodológicas, como análise de componentes principais e regressão quantílica com efeitos fixos para dados em painel. Como resultados, descobrimos que a análise dos componentes principais mostra que o desempenho dos bancos islâmicos varia entre as regiões. A regressão do painel linear destaca que o ambiente geográfico afeta positiva e significativamente o sistema bancário islâmico, sugerindo a importância dos efeitos dessa externalidade. Finalmente, o efeito ambiental parece variar com os quantis, trazendo efeito positivo para o quantil mais baixo e efeito negativo para o quantil mais alto. Essa especificação quantílica aponta para a não linearidade na relação ambiente-desempenho do banco islâmico, refletindo uma disciplina variável no tempo imposta pelo conselho da Shariah ou de Lei Islâmica. Essa descoberta ajuda a explicar melhor a principal diferença entre os bancos islâmicos no oriente e os do ocidente e, também, permite que os investidores ajustem suas opções de portfólio ao considerar os produtos dos bancos islâmicos de acordo com as especificidades regionais.

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“…On the other hand, some studies show that IBs differ little from conventional banks, finding that the two types of banks are indirectly in competition (Jawadi, Cheffou and Jawadi, 2016b). In addition, IBs have been criticized for not being sufficiently ethical and transparent in providing a typical model with which to lead conventional banks (Imam and Kpodar, 2010;Jawadi, Cheffou and Jawadi, 2016a).…”

Section: Literature Reviewmentioning

confidence: 99%

influence of the geographical environment on Islamic banking performance

Khatib¹

2021

Rev. Cat. Cien. Cont.

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The main goal of this study is to examine the influence of the geographic environment on the performance of Islamic banks present in four regions: Africa, Asia, Europe and North America. To achieve this goal, we have used daily data from 113 Islamic banks between 2010 and 2019. We applied different methodological approaches, such as principal component analysis and quantile regression with fixed effects for panel data. As a result, we found that the analysis of the main components shows that the performance of Islamic banks varies between regions. The regression of the linear panel highlights that the geographic environment positively and significantly affects the Islamic banking system, suggesting the importance of this aspect’s effects. Finally, the environmental effect seems to vary with the quantiles, bringing positive effect to the lower quantile and negative effect to the highest quantile. This quantile specification points to the environment-performance nonlinear relationship of the Islamic bank, reflecting a discipline variable in the time imposed by the Council of Shariah or Islamic Law. This discovery helps to better explain the main difference between Islamic banks in the East and those in the West, and also allows investors to adjust their portfolio options when considering the products of Islamic banks according to regional specificities.

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Can the Islamic bank be an emerging leader? A panel data causality analysis

Cited by 13 publications

References 11 publications

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influência do ambiente geográfico no desempenho dos bancos islâmicos

influence of the geographical environment on Islamic banking performance

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