Download or read book An Empirical Analysis of Financial Performance of Retail and Wholesale Islamic Banks in Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic banking, as an alternative to conventional banking system, is currently one of the most rapidly growing segments of the global financial market industry operating with more than 300 institutions spread over 75 countries. Undoubtedly, Islamic banks has cogent contribution towards the economic growth of any nation. This paper explores the analysis of the financial performance of retail and wholesale Islamic Banks operating in the Kingdom of Bahrain. For the empirical investigation, six retail and seven wholesale Islamic banks were selected for the study. Financial ratio analysis, standard deviation and correlation analyses were employed for the time period 2009-2013. The study found that there is a negative relationship among asset utilization ratio with staff cost to income ratio, operational efficiency ratio and cost to income ratio of retail Islamic Banks. Empirical results for wholesale Islamic banks revealed that there is a positive relationship among staff cost to income ratio, operational efficiency ratio and cost to income ratio.
Download or read book An Empirical Analysis of Performance of Retail and Wholesale Conventional Banks in Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The main purpose of this study is to examine the financial performance of retail and wholesale conventional banks in Bahrain. The study covers a period of five years from 2009 to 2013. Ratio analysis was used to analyse the comparative financial efficiency of banks under study and correlation analysis was used to test the significance. Descriptive statistical analysis was used to measure the dispersion and the stability-variability of the ratios. The results indicate that wholesale banks are more efficient than retail banks in terms of overall cost to income and asset utilisation whereas retail banks are more efficient than wholesale banks in staff cost to income and operations. Correlation analysis showed a high positive correlation of staff cost to income ratio with operational efficiency ratio and cost to income ratio in retail banks and positive correlation of staff cost to income ratio with operational efficiency ratio and cost to income ratio in wholesale banks.
Download or read book Islamic Banks and Financial Stability written by Martin Cihák and published by International Monetary Fund. This book was released on 2008 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The relative financial strength of Islamic banks is assessed empirically based on evidence covering individual Islamic and commercial banks in 18 banking systems with a substantial presence of Islamic banking. We find that (i) small Islamic banks tend to be financially stronger than small commercial banks; (ii) large commercial banks tend to be financially stronger than large Islamic banks; and (iii) small Islamic banks tend to be financially stronger than large Islamic banks, which may reflect challenges of credit risk management in large Islamic banks. We also find that the market share of Islamic banks does not have a significant impact on the financial strength of other banks.
Download or read book An Empirical Analysis of the Flow of Islamic Banking and Economic Growth in Bahrain written by Mosab I. Tabash and published by . This book was released on 2016 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic banking and finance is one of the most rapidly growing segments of the global financial system and was expected to have a significant relationship and contribution towards the economic growth of any country. This paper explores empirically the relationship between the development of Islamic finance system and economic growth in kingdom of Bahrain. Using econometric analysis, annually time-series data of economic growth and Islamic banks' financing from 1990 to 2008 were used. We use Islamic banks' financing credited to private sector through modes of financing as a proxy for the development of Islamic finance system and Gross Domestic Product (GDP), as a proxy for economic growth. For the analysis, the unit root test, co-integration test and Granger causality tests were done. Our empirical results generally signify that in the long run Islamic banks' financing is positive and significantly correlated with economic growth in Bahrain which reinforces the idea that a well-functioning banking system promotes economic growth. The results obtained from Granger causality test reveals a positive and statistically significant relationship between economic growth and Islamic banks' financing in the long-term.
Download or read book The Economics of Money and Banking written by Mosad Zineldin and published by Coronet Books. This book was released on 1990 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study deals with one of the most remarkable phenomena in the Middle East financial world - the absolute prohibition of interest charges or payments, a system which distinguishes it from their Western counterparts. Islamic economics and finance which has been apparent during the last four decades. What has been missing up to now is a comprehensive empirical investigation that analyzes the performance of Islamic banks and evaluates their successes and failure in the light of their conformity to Islamic ideologies and principles. on Islamic banking in order to narrow the gap between Muslim economists and scholars, and Western economists alike. The book should also be of interest to anyone wishing to build their background knowledge of Islamic and Western banking services, financial services generally and the historical development of money and banking.
Download or read book A Comparison of Financial Performance of Islamic and Conventional Banks in Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays a key role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and conventional banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic shariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and conventional banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community, efficiency and productivity of both streams of banks.
Download or read book Sectoral Distribution and Islamic Finance written by Mohammad Omar Farooq and published by . This book was released on 2019 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proponents of Islamic finance argue that unlike conventional finance it emphasizes the real economy. Such emphasis should be reflected in the sectoral distribution in an economy. In this paper, in light of a conceptualization of the real economy, the sectoral distribution of financial activities of conventional and Islamic banks in Bahrain is explored. The paper uses the data available from the Central Bank of Bahrain (CBB) regarding the sectoral distribution in both conventional and Islamic banks. The breakdown of banks into both retail and wholesale banks as well as onshore and offshore banks is examined to identify any important trends or patterns in light of the conceptualization of the real economy. The analysis of data finds certain concentration in the real estate sector. Islamic banks also have a bias toward consumer finance, which has implications in promoting a debt culture. Several other gaps between the commonly proclaimed merits of Islamic finance and the praxis in reality are also identified. The research is based on a single country, Bahrain, a financial hub for both conventional and Islamic banks. Even though Bahrain has a diversified economy, it is still limited in terms of some key sectors, such as manufacturing and agriculture. Thus, broader study including other countries with major presence of Islamic banks would be the next step in this research. Bias to certain sectors can be problematic in case of a potential crisis. Also, in certain respects, such as bias of Islamic banks toward consumer finance, it might be serving to promote debt culture that many developed countries are already beset with. The research can create better awareness about various patterns of sectoral distribution.
Download or read book Performance and Risk Analysis of the Islamic Banks written by Seref Turen and published by . This book was released on 2018 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to investigate quantitatively and also at micro level the claim that Islamic banking offers high performance and stability. In order to evaluate the risk-return characteristics of the Islamic banks, Bahrain Islamic Bank (BIB) has been taken as an example. Research is conducted through three different methods: Financial ratio analysis and stock analysis both indicate that BIB offers a higher return and a lower coefficient of variation than the other commercial banks. Portfolio analysis, too, shows that BIB's stock is the best for the purpose of portfolio diversification. The results of the investigation can be used as a partial but quantitative explanation to the arguments whether the profit sharing concept of Islamic banking can achieve a higher profitability and lower risk than conventional commercial banks.
Download or read book Business Development via AI and Digitalization written by Allam Hamdan and published by Springer Nature. This book was released on with total page 1112 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Comparative Study of Income and Cost Efficiency of Islamic and Conventional Banks of Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays an important role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and non-Islamic banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic sariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and non-Islamic banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community efficiency and productivity of both streams of banks.
Download or read book An Overview of Islamic Finance written by Mr.Mumtaz Hussain and published by International Monetary Fund. This book was released on 2015-06-02 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.
Download or read book The Effects of the Global Crisis on Islamic and Conventional Banks written by Jemma Dridi and published by . This book was released on 2005-10-31 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the performance of Islamic banks (IBs) and conventional banks (CBs) during the recent global crisis by looking at the impact of the crisis on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share. Our analysis suggests that IBs have been affected differently than CBs. Factors related to IBs‘ business model helped limit the adverse impact on profitability in 2008, while weaknesses in risk management practices in some IBs led to a larger decline in profitability in 2009 compared to CBs. IBs‘ credit and asset growth performed better than did that of CBs in 2008-09, contributing to financial and economic stability. External rating agencies‘ re-assessment of IBs‘ risk was generally more favorable.
Download or read book Banking Efficiency in Bahrain written by Khaled A. Hussein and published by . This book was released on 2004 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Islamic Finance in Europe written by Valentino Cattelan and published by Edward Elgar Publishing. This book was released on 2013-01-01 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: Highlighting the impact of current globalization on financial markets, this topical book challenges the universality of Western property rights and interprets Islamic finance in Europe as part of a plural financial system, where different conceptions of economic justice(s) co-exist and influence each other. The contributing authors analyse key economic development and social integration issues from an Islamic perspective and outline the European approach to accommodating Islamic finance, with particular regard to the peculiarities of individual nation-states. Set in this context, the book presents financial pluralism as a device to enhance a level playing field in the global marketplace, as well as to foster a plural open society. Providing a comprehensive and methodological guide to Islamic finance in Europe, this book will prove an illuminating and informative read for academics, students and policymakers with an interest in the impact on financial regulation of an increasingly globalized world.
Download or read book Dilemmas and Challenges in Islamic Finance written by Yasushi Suzuki and published by Routledge. This book was released on 2018-03-09 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: The phenomenal growth of Islamic finance in the last few decades has been accompanied by a host of interesting questions and challenges. One of the critical challenges is how Islamic financial institutions can be motivated to participate in the 'equity-like' profit-and-loss sharing (PLS) contracts. It is observed that Islamic banks are reluctant to participate in the pure PLS scheme which is manifested by the rising concentration of investment on murabaha or mark-up financing. This phenomenon has been the hotbed of academic criticism on the contemporary practice of Islamic banking. This book explains the 'murabaha syndrome' in light of the incentive provided by the current institutional framework and what are the changes required in the governance structure to mend this anomaly.
Download or read book Case Studies in Islamic Banking and Finance written by Brian Kettell and published by John Wiley & Sons. This book was released on 2011-08-15 with total page 193 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based around 13 individual cases, this book will stimulate discussion and develop the reader's understanding of Islamic finance by contrasting their existing theoretical knowledge against practical examples.
Download or read book Risk Analysis for Islamic Banks written by Hennie van Greuning and published by World Bank Publications. This book was released on 2008 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic world and is not restricted to Islamic countries, but is spreading wherever there is a sizable Muslim community. According to some estimates, more than 250 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15 percent annually for the past several years. The market's current annual turnover is estimated to be $70 billion, compared with a mere $5 billion in 1985, and is projected to hit the $100 billion mark by the turn of the century. Since the emergence of Islamic banks in the early 1970s, considerable research has been conducted, mainly focusing on the viability, design and operations of a deposit-accepting financial institution, which operates primarily on the basis of profit and loss partnerships rather than interest. This publication provides a comprehensive overview of topics related to the assessment, analysis, and management of various types of risks in the field of Islamic banking. It is an attempt to provide a high-level framework (aimed at non-specialist executives) attuned to the current realities of changing economies and Islamic financial markets. This approach emphasizes the accountability of key players in the corporate governance process in relation to the management of different dimensions of Islamic financial risk.
