scholarly journals DO ISLAMIC BANKS CONTRIBUTE TO ECONOMIC GROWTH? EVIDENCE FROM THE GCC COUNTRIES

2020 ◽  
Vol 10 (5) ◽  
pp. 352-360
Author(s):  
Fatima Zahra Bendriouch ◽  
Harit Satt ◽  
Mohamed M’hamdi
Keyword(s):  
Economic Growth ◽  
Islamic Banks ◽  
Gcc Countries

Bridging the digital divide through ICT

2013 ◽  
Vol 30 (4) ◽  
pp. 358-365 ◽  
Author(s):  
Adboulaye Kaba ◽  
Raed Said
Keyword(s):  
Economic Growth ◽  
Information Technology ◽  
Digital Divide ◽  
Significant Relationship ◽  
Gulf Cooperation Council ◽  
Arab Countries ◽  
Government Support ◽  
Global Information ◽  
Gcc Countries ◽  
Ict Infrastructure

Bridging the gap of the digital divide can play an important role in education, employment and economic growth of any country. The present study attempts to examine and analyze the digital divide status of the Gulf Cooperation Council (GCC) countries compared with countries of the Association of Southeast Asian Nations (ASEAN) and other Arab countries. It uses 19 indicators of four factors adapted from The Global Information Technology Report 2009–2010 to measure the digital divide. Findings of the study indicated that GCC countries have a better ICT infrastructure than the ASEAN and other Arab countries. Similarly, the results of the study revealed that GCC nations have more ICT users than the ASEAN and other Arab countries. However, the study found no significant differences among these groups of countries in regard to government support and usage of ICT. Findings of the Analysis of Variance (ANOVA) show that, across the three groups of countries, the influence of ICT infrastructure is consistently significant in narrowing the digital divide. The regression results also prove a significant relationship between government support for ICT and government usage of ICT.

Fair value and banking contagion

2016 ◽  
Vol 7 (3) ◽  
pp. 215-236 ◽  
Author(s):  
Leila Gharbi ◽  
Halioui Khamoussi
Keyword(s):  
Data Model ◽  
Banking Sector ◽  
Fair Value ◽  
Islamic Banks ◽  
Fair Value Accounting ◽  
Content Type ◽  
Gcc Countries ◽  
Conventional Banks ◽  
Value Changes ◽  
The Impact

Purpose This paper aims to explore empirically the impact of fair value accounting on banking contagion in a comparative context between Islamic banks and conventional banks. Design/methodology/approach The analysis of the impact of fair value changes on banking contagion is carried out through a panel data model. This study covers 20 Islamic banks and 40 conventional banks operating in the Gulf Cooperation Council (GCC) countries during nine years from 2003 to 2011. Findings Empirical evidence shows that there is a significant change in dynamic volatility in GCC banking sector because of financial crisis 2008. However, results fail to confirm the hypothesis that fair value accounting is significantly associated with an increase of banking contagion for both Islamic and conventional banks operating in GCC countries. Originality/value The outcome of this study provides some insights for academicians, accountants as well as regulators in terms of enhancing the effectiveness of accounting practices.

Does bank governance affect risk and efficiency? Evidence from Islamic banks in GCC countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samir Srairi ◽  
Khawla Bourkhis ◽  
Asma Houcine
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Risk Taking ◽  
Audit Committee ◽  
Governance Structure ◽  
Board Structure ◽  
Islamic Banks ◽  
Bank Efficiency ◽  
Content Type ◽  
Gcc Countries

Purpose The motivation of the study is to shed further light on the question of whether the governance structure of Islamic banks (IBs) has an impact on the efficiency and risk of Islamic banks operating in the Gulf Cooperation Council (GCC) after the global financial crisis and during the period 2010–2018. This study aims to examine the extent of governance structure on the efficiency and risk of IBs as the effect of the financial crisis has been less on IBs. In addition, the authors are interested in the GCC region as it represents the hub of Islamic finance. Design/methodology/approach In this study, the authors examine how the banking governance structure affects the risk-taking and performance of IBs in the GCC countries between 2010 and 2018. The authors construct a banking governance index (CGI) composed of sub-indices for the board structure, risk management, transparency and disclosure, audit committee, Sharia supervisory board and investment account holders. Unlike the majority of previous studies, bank performance is measured with technical efficiency scores using a data envelopment analysis and the authors use a comprehensive CGI. Findings The results show that IBs in GCC countries adhere to 54% of the attributes covered in the CGI. The authors also note a lack of disclosure regarding the investment account holders and the audit committee. As well, the results indicate that bank governance is positively associated with risk-taking and bank efficiency. Banking risk is influenced by the Sharia board and risk management while bank efficiency is affected by the characteristics of the board structure and investment account holders. Originality/value To the best of the authors’ knowledge, this is the first study that has developed a comprehensive governance index for IBs in GCC countries that includes a wide range of governance dimensions. The study contributes to the literature on governance in the banking sector by simultaneously examining its impact on the risk-taking and efficiency of IBs and recognizes the dynamic relation between these three variables for IB.

scholarly journals Role of Zakat as Social Finance Catalyst to Islamic Banking and Economic Growth

2017 ◽  
Vol 2 (2) ◽  
pp. 55-70 ◽  
Author(s):  
Ai Nur Bayinah
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Islamic Banking ◽  
Annual Data ◽  
Impulse Response Functions ◽  
Islamic Banks ◽  
West Java ◽  
Vector Autoregressive ◽  
The Impact ◽  
Integration Analysis

This paper is aimed to assess the contribution of Zakat in boosting Islamic banks’ financing and economic growth for the period 2011-2015, in 10 district/city of West Java Province, Indonesia. Through Vector Autoregressive (VAR) panel co-integration analysis, variance decompositions (VD) and impulse response functions (IRF), this study investigates Zakat, Islamic Banking, and economic growth nexus. Findings in this research highlight that Zakat has a significant impact on Islamic banking, so this institution would contribute to economic growth both in the short and the long run, with fluctuation in variance from the first year. The results lend support to the view that Zakat not only leads to social benefits but also has a positive impact on the economy through increasing Islamic banks’ financing. Therefore, this research will serve as a motivation for the industry players and regulators to continuously promote Zakat as a strategic policy. The originality of this research is to assess Zakat-led growth and finance by analyzing the impact of Zakat on the Islamic banking and regional economic outcome. Another novel aspect of this study is in the methodology as it employs VAR panel co-integration analysis, VDs and IRFs on the set of annual data. Keywords: Zakat, Islamic Banking Financing, Economic Growth, West Java

Deposits structure, ownership concentration and corporate governance disclosure in GCC Islamic banks

2018 ◽  
Vol 9 (4) ◽  
pp. 587-606 ◽  
Author(s):  
Rihab Grassa
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Far East ◽  
Policy Implications ◽  
Ownership Concentration ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
Transparency And Disclosure ◽  
Governance Disclosure

Purpose This paper aims to assess the effects of deposits structure and ownership structure on the GCC Islamic banks’ corporate governance disclosure (CGD) practices. Design/methodology/approach The study is based on a sample of 38 Islamic banks operating in five Gulf Cooperation Council (GCC) countries, and the authors observed them over the period from 2006 to 2011. The authors used the transparency and disclosure score, developed by Standard & Poor’s (S&P), to identify the sample’s CGD scores. Findings This paper’s findings suggest that the level of CGD is lower for Islamic banks with higher ownership concentration, for levered Islamic banks and for Islamic banks with greater concentration of nonprofit-sharing investment accounts (PSIA) and is higher for Islamic banks with greater concentrations of PSIA; the Islamic bank size; the bank age; listed bank and the country transparency index. By disaggregating the total CGD into the three sub-categories, the authors are able to specify, also, the components of corporate governance (CG) impacted by various determinants. Research limitations/implications This paper is subject to a number of limitations. First, there is manual scoring of annual reports (subjectivity). Second, the research focuses exclusively on the GCC context and excludes the other Middle East, Southeast Asia and Far East countries, where ownership structure and deposits structure might affect CGD differently. Third, the governance score, which is used in this research, is developed by S&P and does not take into account the characteristics of Islamic banks. Practical implications The findings of this paper suggest many policy implications. First, through the optimization of ownership structure, GCC countries’ regulators have to improve the Islamic banking system’s CG mechanisms through the optimization of ownership structure (dispersed ownership) to promote transparency and disclosure. Second, regulators and policymakers should revise guidelines with the main purpose of protecting PSIA’ holders (considered to be minor shareholders without voting power) through promoting disclosure and transparency. Third, the findings can be useful for many international supervisory bodies, like the Islamic Financial Services Board (IFSB) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), in evaluating transparency and disclosure standards. Originality/value This study is expected to be useful for all market participants, namely, investors, financial analysts, managers, marker regulators and many international Islamic supervisory bodies, such as the IFSB and AAOIFI, by providing new requirements on CGD in the GCC region and in better understanding its determinants for Islamic banks in this region.

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

2020 ◽  
Vol 8 (1) ◽  
pp. 1750258 ◽  
Author(s):  
Samir Belkhaoui ◽  
Naif Alsagr ◽  
Stefan F. van Hemmen ◽  
Mohammed M. Elgammal
Keyword(s):  
Islamic Banks ◽  
Gcc Countries

scholarly journals The Effect of Financial Leverage on The Islamic Banks’s Performance in The Gulf Cooperation Council (GCC) Countries

2019 ◽  
Vol 11 (1) ◽  
pp. 13
Author(s):  
Abdesslam Menacer ◽  
Abdulazeez Y. H. Saif-Alyousfi ◽  
Nor Hayati Ahmad
Keyword(s):  
Agency Cost ◽  
The Other ◽  
Islamic Banks ◽  
Financial Leverage ◽  
Gcc Countries ◽  
Thomson Reuters ◽  
Effect Regression ◽  
Equity Ratio ◽  
Earning Power ◽  
The Impact

This study examines the impact of the financial leverage on the Islamic banks’ performance in the GCC countries during the period from 2005-2017. The population of this study included the Islamic banks in the GCC countries. Thirteen years data of 25 listed Islamic banks in the GCC countries were used, wereby these data were retrieved from the Thomson Reuters DataStream. This study utilized the fixed effect regression model. The findings show that the financial leverage a has significant impact on the performance of the Islamic banks’ performance in the GCC region. More specifically, the financial leverage has a positive and significant impact on ROA, ROE, and Tobin’s Q of the Islamic banks in the GCC countries, thus indicating that the higher is the financial leverage the higher is the performance of the Islamic banks in the GCC region. However, the results of this study do not provide evidence to support the Agency Cost Theory that implies a decrease in the performance when equity ratio is increased. On the other hand, the findings provide evidence to support the Signaling Theory that argues that banks are expected to have a better performance credibly in transmitting this information through the higher capital. The findings imply that the level of financial leverage committed by the Islamic banks depends on their flexibility in adjusting their debt value and earning power.

Islamic Banking in GCC

2020 ◽  
pp. 1-16
Author(s):  
Eda Orhun
Keyword(s):  
Financial Crisis ◽  
Literature Review ◽  
Performance Comparison ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Products ◽  
Gcc Countries ◽  
Before And After ◽  
Time Periods ◽  
Conventional Banks

This chapter offers a literature review discussing the origin, history, and the growth of Islamic Banking, especially in the GCC countries. It provides detailed information regarding how Islamic Banking evolved throughout the years and what are the current Islamic financial products. Another interesting topic covered in this literature review is the performance comparison of Islamic and conventional banks during different time periods. Accordingly, the chapter explores how the financial standing of Islamic banks altered in comparison to conventional banks before and after the financial crisis of 2008 by presenting earlier studies from various countries. It is concluded that some potential challenges and future opportunities of the Islamic Banking are yet to be explored.

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