Islamic financial system and conventional banking: A comparison

Salman, Asma; Nawaz, Huma

doi:10.1016/j.aebj.2018.09.003

Cited by 96 publications

(82 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This is in line with the explanation regarding Islamic banks, which are financial institutions that function to facilitate economic mechanisms in the actual industry through business activities based on sharia principles (Setyowati et al, 2017). Sharia banking operational activities to encourage the business world to provide financing (Salman & Nawaz, 2018).…”

Section: Introductionsupporting

confidence: 79%

Economic Turmoil in Islamic Banking Investment

Budiandru

Yuniarti

2020

Etikonomi

View full text Add to dashboard Cite

Investment financing is one of the operational activities of Islamic banking to encourage the real sector. Islamic banking provides funding for investment because it can increase economic growth. This study aims to analyze the effect of economic turmoil on Islamic banking investment financing, analyze the response of Islamic banking investment financing to the financial crisis, and analyze each variable's contribution in explaining the diversity of Islamic banking investment financing. This study uses monthly time series data from 2009 to 2020 using the Vector Error Correction Model (VECM) analysis. This study's results indicate that the exchange rate, inflation, and interest rates have a significant effect on Islamic banking investment financing in the long term. The response to Islamic banking investment financing is the fastest to achieve stability when responding to shocks to the composite stock price index. In contrast, the most significant contribution in explaining the diversity of levels of Islamic banking investment financing comes from inflation. Islamic banking can increase the proportion of funding for investment. With an increase in investment financing, customers will have a more substantial business scale to boost economic growth.JEL Classification: E22, G11, G24

show abstract

Section: Introductionsupporting

confidence: 79%

Economic Turmoil in Islamic Banking Investment

Budiandru

Yuniarti

2020

Etikonomi

View full text Add to dashboard Cite

show abstract

“…Islamic banks work independently, and attract consumers at large in Pakistan [11]. The problem this study is going to address concerns proper learning among the employees about Islamic banking practices, and then the sharing of this knowledge about Islamic banking practices to ensure innovation in products and services, which is needed to attract and retain customers in the banking sector [12]. This study focuses on the knowledge, abilities and skills of the personnel working in those Islamic Banks under investigation.…”

Section: Problem Statementmentioning

confidence: 99%

The Impact of Knowledge Sharing and Innovation on Sustainable Performance in Islamic Banks: A Mediation Analysis through a SEM Approach

Abbas

Hussain

et al. 2019

Sustainability

View full text Add to dashboard Cite

This research is among the very few studies seeking a focalized examination on the relationship between knowledge sharing within a firm and organizational innovation. This specific study establishes that the knowledge sharing and innovation processes in Islamic banks are integral parts of the survival and progress of business organizations. Knowledge sharing and creativity are essential elements in the development of innovative strategies, but few studies have sought to investigate this relationship. This study proposes a framework with five hypotheses, which predicts the influences of knowledge sharing and organizational innovation on the Pakistani banking sector. This survey scrutinizes the impacts of knowledge sharing and innovation, and its primary objective is to determine how learning in Islamic banks mediates the relationship, and enhances the performance, of Pakistani Islamic banks. The authors distributed a self-administered survey, and randomly selected 554 employees from Mirpur AJ&K, Rawalpindi and Islamabad, Pakistan. We screened and tested the data received using SPSS version 25 for analysis purposes to measure the strength of the relationships which exist among the studied variables. The findings indicate that all of the proposed hypotheses have significant positive relationships, proving that knowledge sharing and organizational innovation have mediating impacts upon organizational learning. The findings can also be used to propose a systematic and holistic framework for attaining an improved performance in Islamic banks through the mediating role of organizational learning. This study offers empirical evidence and original data to examine the connection between knowledge sharing, innovation processes and learning culture in Islamic Banks. The generalizability of these findings is restricted to Islamic banks, and the study delivers valuable insights and suggestions for imminent research studies.

show abstract

“…This second hypothesis has been confirmed as Islamic banks not only lack the scalar advantages needed to leverage network efficiencies to create additional gains and growth, but they lack the technical efficiencies needed to develop new, innovative financial instruments to meet the changing needs of their Muslim consumers. The evidence predicts that over the long term, such efficiencies will manifest in the form of strategic partnerships and new organisational structures; however, in their current state, Islamic banks are resistant to accelerated change as they slowly and cautiously develop operational business models that avoid risk and mitigate any potential threat of violating Shariah law (Salman and Nawaz, 2018;Alexakis et al, 2019). On a regional level, however, evidence (e.g.…”

Section: Discussion Of Hypothesesmentioning

confidence: 99%

Assessment of Financial Performance and Efficiency of Islamic and Traditional Banks in the Post-Crisis Period

Alebrahim¹

2019

IJBM

View full text Add to dashboard Cite

Much of the research surrounding Islamic banking has focused on the 2008 financial crisis and the distinctions between conventional and Islamic institutional performance. Given the consensus that due to lower risk profiles and higher efficiency performance, Islamic banking outperformed its conventional counterparts during that tumultuous period, it is important to extend the academic focus beyond this narrow timeframe. The current investigation has applied a systematic methodology to review quantitative data from several emergent studies regarding post-crisis performance comparisons between Islamic and conventional banking institutions. At the risk of regional or institutional bias, these findings have demonstrated a higher degree of volatility in technical and scale efficiency amongst Islamic institutions since 2010, yet simultaneously, a higher overall efficiency rate of 0.886 when contrasted with the average total efficiency of 0.771 in conventional banks. The evidence highlights a positive correlation between the risk-adverse investments utilised by the Islamic banking system, but suggests that there is significant opportunity for growth through network consolidation and institutional expansion in order for these banks to take advantages of regionalised economies of scale.

show abstract

Islamic financial system and conventional banking: A comparison

Cited by 96 publications

References 9 publications

Economic Turmoil in Islamic Banking Investment

Economic Turmoil in Islamic Banking Investment

The Impact of Knowledge Sharing and Innovation on Sustainable Performance in Islamic Banks: A Mediation Analysis through a SEM Approach

Assessment of Financial Performance and Efficiency of Islamic and Traditional Banks in the Post-Crisis Period

Contact Info

Product

Resources

About