Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

“…We first assess the existence of multicollinearity problem before performing the estimation of current study model. Multicollinearity problem can only be declared when the value of Pearson correlation coefficients amongst explanatory variables surpasses the upper limit of 0.80 (Belkhaoui et al 2020 ; Gujarati and Porter 2003 ). Table 3 displays values of Pearson’s correlation coefficients for all independent variables which show that correlation amongst explanatory variables is substantially below the cut-off value of 0.8, except between PCDMB and DCPS .…”

How Islamic and conventional bank in Indonesia contributing sustainable development goals achievement

“…There are two banking systems in Indonesia, namely banks that apply interest system (conventional banks), and banks that apply buying and selling system (murabahah, isthisna, salam agreement) also cooperation system that will share the profits to the investors ((Islamic bank) (mudharabah and musyarakah agreement); Belkhaoui et al, 2020;Law No.10 of 1998-Amendment to Law No. 7 Yr 1992 concerning Banking, Pub.…”

“…The amount of credit given by banks will greatly affect the amount of income that will be earned (Agza & Darwanto, 2017;Almanaseer & AlSlehat, 2016;Al Karim & Alam, 2013). Although financing is the main income source for Islamic banks and credit as the main income source for conventional banks (Belkhaoui et al, 2020), they should keep paying attention to the goals of financing activities, that is to improve the quality of living standard of the community, as stated in Indonesia law Number 21 year 2008 about Islamic banking (Indonesian Bankers Association, 2015, p. 25). This research used total credit or total financing by banks in analyzing the correlation (Ghoniyah & Setyowati, 2019;Riyadi & Yulianto, 2014).…”

“…And the bad credit threatens to reduce bank revenues. On the other hand, banks have the obligation to provide sustained good performance so that they can maintain the company's existence, it is by generating profits (Belkhaoui et al, 2020;Ghoniyah & Aryani, 2018;Indonesian Bankers Association, 2015, p. 2). In other words, the quality of bad credits does not only indicate a bad condition of the debtor's business, it also can threaten the sustainability of the banks as the investors.…”

“…In other words, there is a tendency for Islamic banks to play with a higher level of risk. Therefore, Islamic banks still have to improve their risk management (Belkhaoui et al, 2020;Ghoniyah & Hartono, 2019a, p. 105).…”