The Impact of the International Financial Crisis on the Performance of Islamic Banks in MENA Countries

Zarrouk, Hajer

doi:10.1108/s1569-3759(2014)0000095011

Cited by 18 publications

(16 citation statements)

References 3 publications

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“…Kinerja keuangan perbankan yang dilihat melalui rasio-rasio keuangan dapat dijadikan sebagai variabel pengamatan. Hal tersebut dilakukan oleh Zarrouk (2014) yang menggunakan rasio profitabilitas, likuiditas, risiko dan solvabilitas,serta efisiensi sebagai dasar pengamatan performa keuangan bank syariah saat terjadi krisis keuangan tahun 2008.…”

Section: Ketahanan Bank Umum Syariahunclassified

Ketahanan Bank Umum Syariah di Indonesia Terhadap Fluktuasi Makroekonomi dalam Negeri dan Suku Bunga Dana Federal Reserve

Jatmiko

Djatnika

Setiawan

2021

J. Appl. Islam. Econ. Financ.

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The development of banking in a country cannot be separated from internal and external factors that can influence it. The monetary crisis in 1998 and the global financial crisis in 2008 are some examples that show that the banking sector can be affected by the surrounding economic conditions, both from within and outside the country. The purpose of this study is to determine the resilience of Islamic commercial banks in Indonesia if there are shocks that occur in macroeconomics, in this case, namely inflation, exchange rates, Bank Indonesia benchmark interest rate (BI rate), SBIS yields (rSBIS) and Federal Reserve funds interest rates. (FFR). This study uses the Vector Autoregression (VAR) and Vector Error Correction Model (VECM) methods. The conclusion of this study is that Non-Performing Financing (NPF) and Return on Assets (ROA) in Islamic commercial banks in Indonesia tend to be more resistant to fluctuations that occur in domestic macroeconomics and FFR. The Capital Adequacy Ratio (CAR) is relatively stable in responding to a shock, while the Return on Equity (ROE) and Financing Deposit Ratio (FDR) have fluctuated in the long term in other words, they are more vulnerable to shocks and fluctuations that occur in domestic macroeconomic variables and FFR.

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Section: Ketahanan Bank Umum Syariahunclassified

Ketahanan Bank Umum Syariah di Indonesia Terhadap Fluktuasi Makroekonomi dalam Negeri dan Suku Bunga Dana Federal Reserve

Jatmiko

Djatnika

Setiawan

2021

J. Appl. Islam. Econ. Financ.

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“…Besides, they found that the profitability and the quality of the loans negatively influenced the efficiency of the two banks' types. On the other hand, the expenditures revealed a positive association with the efficiency of the two banks' types Zarrouk (2014) He tested the effect of the financial crisis on the performance of 43 Islamic banks in 10 MENA countries over the period (2005)(2006)(2007)(2008)(2009)(2010). He revealed that Islamic banks are not immune to the effects of the crisis.…”

Section: Researcher(s)mentioning

confidence: 99%

Comparative Study of Ambiguity Resolution Between the Efficiency of Conventional and Islamic Banks in a Stable Financial Context

Haddad¹,

Ammari²,

Bouri³

2019

IJEFI

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Based on the weak results of previous researches on the efficiency's topic of Islamic and classical banks, we noticed that they were paradoxical results that are sometimes complementary and sometimes contradictory. Several studies have confirmed the effectiveness and resilience of Islamic banks in the face of financial shocks and crises during periods of disruption and financial imbalances, while others have supported the priority of conventional banks. Each stream of research has defended its contextual visions by the necessary specific arguments. But during the economic stable periods, the question does not have the answer so far. In this article, two samples were taken from two reference populations of all existing classical and Islamic banks in the selected countries. The choice of banks is limited to countries whose banking systems incorporate both Islamic and conventional banks regardless of the proportion of each system in the country's banking market. Subsequently, each list bank was reduced on the basis of qualitative and quantitative filtering criteria. Therefore, each conventional bank has its closest Islamic equivalence in terms of capital and size taken from the same country. Consequently, the sample size was reduced to 63 banks each over the period (2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018). The banks selected to form the two samples are all large and listed in different stock exchanges around the world. The results of our research showed that theoretically, Islamic finance is enjoying a growing reputation, as it is considered potentially ethical finance. However, empirically, Islamic banks are less efficient than their conventional counterparts during a financial stable period.

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“…They held a dominant share in Bangladesh's financial sector compared to the most recent IBs. Zarrouk (2014) MENA countries (2005)(2006)(2007)(2008)(2009)(2010) FRA method IBs are not immune from the effects of the crisis. After the crisis, the profitability of IBs in the countries of the GCC have decreased drastically.…”

Section: Profitability Measurement Ratio Of Conventional and Islamic Banks (Net Profit Margin)mentioning

confidence: 99%

Are the Islamic Banks Really more Profitable than the Conventional Banks in a Financial Stable Period?

Haddad

Ammari²,

Bouri

2019

Asian Economic and Financial Review

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The international banking sector is dominated by the conventional banks but the global market share of the Islamic banks is increasing gradually. This study determines which model maximizes a bank's profitability in several heterogeneous contexts and over a financial stable period (2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018). Most previous studies examined banking profitability in commercial conventional and Islamic banks providing a limited literature. We retained three categories for each type of banks (commercial, investment and universal) because of the predominance of these categories in the money market. Within the framework of this study, two samples were taken from two reference populations. Basic populations were composed of all active conventional and Islamic banks existing in the selected countries. The choice of the banks is limited to the countries whose banking structures incorporate simultaneously the two types of banks independently of the proportion of each system in each country banking market. We then reduced the size of each population focusing on qualitative and quantitative filtering criteria, so that each conventional bank had its Islamic equivalence in terms of capital and size in the same country. This restriction reduced the sample size to 63 large banks for each type. The two banks' samples were selected from sixteen countries and were listed in different stock exchanges around the world. Consequently, the empirical results showed that the conventional banks were more profitable than the Islamic banks during the period of financial stability. Contribution/ Originality:The study offers the first logical analysis that allows economic agents to differentiate between Conventional Banks (CBs) and Islamic Banks (IBs). It helps them choose the most profitable one based on a single parameter of profitability that reflects a targeted bank characteristic.

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The Impact of the International Financial Crisis on the Performance of Islamic Banks in MENA Countries

Cited by 18 publications

References 3 publications

Ketahanan Bank Umum Syariah di Indonesia Terhadap Fluktuasi Makroekonomi dalam Negeri dan Suku Bunga Dana Federal Reserve

Ketahanan Bank Umum Syariah di Indonesia Terhadap Fluktuasi Makroekonomi dalam Negeri dan Suku Bunga Dana Federal Reserve

Comparative Study of Ambiguity Resolution Between the Efficiency of Conventional and Islamic Banks in a Stable Financial Context

Are the Islamic Banks Really more Profitable than the Conventional Banks in a Financial Stable Period?

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