Dissertations / Theses on the topic 'Islamic and conventional banks'
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Abdul, Majid Mariani. "The efficiency of islamic and conventional banks." Thesis, Aston University, 2008. http://publications.aston.ac.uk/15262/.
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Bennasr, Nabil. "Islamic banks facing the conventional banking sector." Thesis, Université Côte d'Azur (ComUE), 2018. http://www.theses.fr/2018AZUR0004.
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Cette thèse analyse les conséquences de l’intégration d’un milieu bancaire conventionnel pour une banque islamique. Elle est composée de trois chapitres. Un premier traité de la conformité Sharia des banques islamiques. Cette conformité est assurée par un comité de supervision éthique. Nous détaillons le rôle et les tâches de ce comité de supervision éthique et montrons comment les contraintes réglementaires internationales ainsi que la pénurie éventuelle de personnels compétents pour alimenter ces sharia boards incitent la banque islamique à externaliser ce contrôle de conformité Sharia. En se proposant sur modèle théorique inspiré de Kornai, Maskin and Roland (2003), ce premier chapitre examine ainsi l'impact de l'externalisation de ce comité sur le business model de la banque islamique. Le deuxième chapitre est essentiellement empirique : nous comparons l'efficacité des deux modèles de banque, l’un internalisant (l’autre externalisant) le processus d’examen/ validation de la conformité Sharia. Pour procéder à cette étude empirique, nous examinons un échantillon d'une centaine de banques qui se divise en deux groupes de banques un premier qui externalise le contrôle de conformité Sharia et le deuxième l'internalise. Nous montrons que les banques sont plus efficaces lorsqu'elles externalisent ce processus de conformité. Finalement, un troisième chapitre traite la question de la création de liquidité au sein des deux banques, conventionnelle et islamique. Dans ce chapitre nous développons un modèle théorique inspiré de Diamond (2007) et nous comparons la création de liquidité de ces deux banques. Nous mettons en évidences les contraintes qui pèsent sur la banque islamique, elles se manifestent dans la structure du bilan des banques islamiques, un bilan qui présente un volume important d'actifs tangibles. On montre que la structure de ce bilan limite la possibilité pour les banques islamiques de concurrencer les banques conventionnelles et ainsi remet en cause leur capacité à intégrer un milieu bancaire conventionnelThis dissertation analyses the consequences of the integration of an Islamic bank into a conventional banking environment. The dissertation is composed of three chapters. The first examines the Islamic banks' compliance, which is ensured by a supervisory ethical committee. We examine the role and the tasks of this committee in detail, showing how international regulatory constraints, as well as a general lack of individuals with the required skills to sit on the Sharia boards, provide incentives for the Islamic bank to outsource the monitoring of Sharia compliance. Basing our study on a theoretical model, inspired by Kornai, Maskin and Roland (2003), this first chapter analyses how the outsourcing of this committee has an impact on the business model of the Islamic bank. The second chapter is largely empirical; we compare the effectiveness of two bank models, one in which the Sharia compliance validation process is internal, and one in which it is external. To test this empirical study, we analyze a sample of around 100 banks which are divided into two groups, one which outsources the Sharia compliance and monitoring and one which internalizes this process. We show that banks are more effective when they outsource the compliance monitoring process. Finally, the third chapter approaches the question of liquidity creation within two types of bank: Islamic and conventional. In this chapter, we develop a theoretical model inspired by Diamond (2007) and we compare the liquidity creation process in these two banks. We demonstrate the constraints that burden the Islamic bank, shown by the high volume of tangible assets in their balance sheets. We demonstrate that the structure of this balance sheet limits the possibilities for Islamic banks to compete with conventional banks, and thus brings into question their capacity to integrate a conventional banking environment
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Kabir, Md Nurul. "Credit Risk in Islamic and Conventional Banks." Thesis, Griffith University, 2016. http://hdl.handle.net/10072/366249.
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This thesis investigates several aspects concerning the financial stability of Islamic and conventional banks. This is important because the strong growth of Islamic banking, notwithstanding their marked uniqueness in operational and financing behaviour, combined with fierce global competition with the prevailing conventional bank system, raises concerns among regulators and practitioners about the long-run sustainability of Islamic banking. First, the thesis compares the level of financial stability in Islamic and conventional banks using three different methods of credit risk measurement. Second, it compares the effect of competition on stability across Islamic and conventional banks. Finally, it investigates whether efficiency significantly modulates the linkage between competition and stability in both Islamic and conventional banks.
In the first research question, the thesis considers the levels of credit risk in Islamic and conventional banks, for which existing literature finds no conclusive result. One problem with existing studies is the use of accounting information alone to assess credit risk and this could be especially misleading with Islamic banking. Using a market-based credit risk measure, namely, Merton’s distance-to-default (DD) model, we evaluate the credit risk of 156 conventional and 37 Islamic banks across 13 countries between 2000 and 2012. We also calculate the accounting information-based Z-score and nonperforming loan (NPL) ratio for the purpose of comparison. The results show that Islamic banks have significantly lower credit risk than conventional banks as based on DD. In contrast, and as expected, Islamic banks display much higher credit risk using the Z-score and NPL ratio. These findings suggest that the measure chosen plays a significant role in assessing the actual credit risk of Islamic banks.Thesis (PhD Doctorate)
Doctor of Philosophy (PhD)
Griffith Business School
Griffith Business School
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Beqiri, Arlinda. "Corporate Governance and Banking Governance within Conventional and Islamic banking systems. : A Cross-case Study between Conventional banks in Sweden and Islamic banks in UK." Thesis, Karlstads universitet, Handelshögskolan, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:kau:diva-47998.
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The aim of this study is to understand and analyse the relationship between corporate governance (CG) and banking governance (BG) in Conventional and Islamic banking systems. The reason for choosing this topic was because the regulations and banking systems within Conventional banks are differently in comparison to Islamic banks, which means that their corporate governance and banking governance are influenced by different mechanisms and therefore regulated differently. Since Conventional banks stands for a small amount of Islamic banks in their markets and Islamic countries do have Conventional banks in theirs, made this topic a good case study. Furthermore is Sweden a Conventional country where they don’t offer Islamic financial services and the UK is a Conventional country where they do, which was an interesting fact since both of them are European countries with similar regulations. The author of this thesis chose qualitative, semi-structured interviews, where six persons: three from Sweden and three from the UK stood for answers toward their banking systems. Since these respondents were standing on a high position within their organizations did they have the knowledge needed to answer the questions asked. The result showed that the relationship between CG and BC in Conventional and Islamic banking systems have an impact in the way different types of banks operate. Identifying the Conventional and Islamic banks differences and assessing on how the Corporate Governance and Banking Governance do operate solves the complexity in the system. Based on the findings, countries that are applying the Conventional system need to expand their regulations and mechanisms so that other systems could operate without a need for changes in their own. They also need to expand their knowledge, where the population needs to be familiar with other banking systems and services as well.
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Schoon, Natalie. "Residual income models and the valuation of conventional and Islamic banks." Thesis, University of Surrey, 2005. http://epubs.surrey.ac.uk/596/.
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Alsagheir, Abdullah Ibrahim M. "Strategizing in practice in Islamic and conventional banks in Saudi Arabia." Thesis, Durham University, 2014. http://etheses.dur.ac.uk/10555/.
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This empirical research has explored strategizing in the banking sector in a non-Western context. Attention was drawn to strategy meaning, strategizing activities and strategy practitioners. A comparison of strategizing was made between Islamic banks governed by Shari’ah and non Islamic ones. Strategy practices and strategy practitioners have received little research attention. Hence, this research is influenced by the strategy as practice perspective to describe the context for strategy actors and strategizing practices. The importance of this study is derived from its focus on the micro level of strategizing and strategists in a cross cultural context. Its focal point is strategy practitioners from different levels of the organisation. A multiple case study approach was adopted. Data were obtained via 41 semi-structured interviews with purposively selected strategy actors, complemented by secondary data, from six of the 12 commercial banks in Saudi Arabia: two Islamic ones, two local conventional ones and two international banks. Findings reveal that no single consensus definition was expressed by strategists, yet there were similarities in the various conceptualizations they offered. Thirteen practices employed by practitioners were identified and classified as recursive or adaptive. This research provides insights into who the strategists (internal and external) are by focusing on capabilities and engagement. Findings confirm that social norms could restrict certain actors’ participation, such as the cultural barrier to women’s participation. The engagement of strategy actors in different practices varied, which means different strategy practices could be practised by different strategy actors; moreover, they differed in their level of influence. In terms of differences between conventional and Islamic banks, there was no distinction in the way strategy was perceived and practised. The only distinctive aspect was in terms of strategy actors, where in the Islamic banks, the Shari’ah Board and Shari’ah Group played key roles. The research contributes to the emerging s-as-p perspective with micro level, cross-cultural data, identifying 13 practices and linking them to modes, timing and actors.
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Hayek, Ali. "An evaluation of Islamic versus conventional banks' efficiency : a global study." Thesis, University of Huddersfield, 2016. http://eprints.hud.ac.uk/id/eprint/30305/.
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The study compares the efficiency of Islamic and conventional banks, during the period 2006-2012, by employing a non-parametric approach- the Data Envelopment Analysis (DEA). In order to minimise the bias resulting from the inherent dependency in the first stage of the DEA, the DEA outcomes were replaced with the bootstrapped estimators and replicated them 500 times. Accordingly, confidence intervals are constructed for efficiency measures, which subsequently, improved further the accuracy of the findings and provided more reliable arguments for policy implications. The study applies a two-stage Data Envelopment Analysis. The first stage of the DEA compares banks based on their Overall Technical Efficiency (OTE) and its components (Pure Technical Efficiency (PTE) and Scale Efficiency (SE)). Although proven to be more resilient during the financial crisis (Farooq and Zaheer, 2015), the research found that Islamic banks to be normally on a par with their conventional counterparts in terms of PTE and that they were significantly higher in terms of OTE and SE . In addition, according to the study’s results, both Islamic and conventional banks suffered from managerial underperformance rather than a failure in operating at optimal production levels. In other words, Islamic and conventional banks were managerially inefficient in controlling their operating costs and utilising their resources. The second stage of the DEA, which accounts for the country- and bank- specific factors, confirms the findings that there was no significant difference in PTE between Islamic and conventional banks. Moreover, the findings imply that Islamic banks have no significance on pooled PTE and show no significant difference in PTE when compared to conventional banks during the entire period of the study including the financial crisis (2007-2009). In the light of the study’s empirical findings, Islamic banks should explore the benefits of moving to more diversified investments and tools in order to make use of their liquidity. Moreover, Islamic banks have to employ more solid risk management techniques in order to limit the number of risks, including credit risk, market risk, liquidity risk and operational risk, which may arise in the shari’ah banking industry. The research is extended to study the PTE determinants of four regions, namely, MENA, East Asia and Pacific, South Asia, and Europe and Central Asia. The outcomes show that PTE had a different significance for each region’s determinants related mainly to the levels of the indicators of governance, namely, Voice Accountability (VACC) and Regulation Quality (REGQ). The findings suggested that the more developed and democratic countries were favourable to banks having more operations that are efficient. In addition, these countries’ excessive regulation and supervision (i.e. limited financial freedom), encouraged financial institutions to create unclear new instruments and misjudge the risks. These resulted in the banks being less efficient. The study found, also, that there were different determinants for Islamic and conventional banks operating in Muslim and non-Muslim countries.
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Alkiyumi, Aiman Hamed Said. "Information asymmetry, credit risk, and profitability in Islamic and conventional banks." Thesis, University of Glasgow, 2018. http://theses.gla.ac.uk/8907/.
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The thesis empirically investigates and compares some of the main aspects of Islamic and conventional banks during four periods: the pre-financial crisis, financial crisis, post-financial crisis and entire sample periods (2002-2015). Specifically, it investigates and compares the information asymmetry, credit risk and profitability in Islamic and conventional banks. For the information asymmetry investigation, a total sample of 211 Islamic and conventional publicly listed banks from Asia, Europe and Africa is used over the period 2002-2015. Quarterly data is retrieved from Datastream for the sample. However, for credit risk and profitability investigations, annual data for 225 Islamic and conventional banks are extracted from Datastream for the periods from 2002 to 2015 from Asia, Europe and Africa. The study aims to: (i) investigate and compare the degree of information asymmetry in Islamic and conventional banks for the pre-financial crisis, crisis, post-crisis and full sample periods; (ii) investigate and compare the degree of credit risk in Islamic and conventional banks for the pre-financial crisis, crisis, post-crisis and full sample periods; and (iii) investigate and compare the degree of profitability in Islamic and conventional banks for the pre-financial crisis, crisis, post-crisis and full sample periods. The empirical investigations provide important results in the three areas. First, the results show a significant difference in the information asymmetry level between Islamic and conventional banks for the crisis, post-crisis, and full sample periods. In fact, Islamic banks showed significantly lower information asymmetry levels than their counterparts in all information asymmetry proxy measures (i.e. Bid-Ask Spread, Share Turnover ratio and Stock Price Synchronicity SYNCH). These findings are robust with the intangibility ratio as a proxy of information asymmetry for all four periods (including the pre-crisis period). To the best of the author’s knowledge, such results are presented for the first time, and will add to the Islamic banking literature. Second, mixed results were found for the credit risk levels in Islamic and conventional banking credit risk for the four periods when Z-score and non-performing loans are used as credit risk proxy measures. However, the robustness check shows that there are no significant differences between Islamic and conventional banks in their credit risk for all of the different periods used in the study. This suggests that despite the different nature of both banks, their credit risk for the study periods do not statistically differ. These results contradict some prior studies conducted in the same area. Nevertheless, using only publicly listed banks, this thesis covers a longer period than other studies and investigates credit risk in four periods while using a combination of different control variables. Third, the results show that the profitability of Islamic banks is lower than conventional banks for the crisis, post-crisis and full sample period when using return-on-asset and return-on-equity as profitability measures. However, there are no significant differences between Islamic and conventional banks’ profitability during the pre-crisis period. These results are robust. Nevertheless, they affirm some prior studies’ findings and contradict others. This thesis uses up-to-date data for a longer period and investigates the profitability of publicly listed Islamic and conventional banks four different periods. Its findings add to the Islamic banking literature.
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Helmi, Mohamad Husam. "Essays on monetary policy with Islamic banks." Thesis, Brunel University, 2016. http://bura.brunel.ac.uk/handle/2438/12849.
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This thesis examines three different aspects of monetary policy in a varying sample of developing countries, with some Islamic banks. The first essay estimates a variety of interest rate rules for the conduct of monetary policy for Indonesia, Israel, South Korea, Thailand and Turkey, in both high and low inflation conditions. The findings are that the reaction of monetary policy to both inflation and output gaps differs between the high and low inflation regimes and that the exchange rate channel is important only in the low inflation regime. The second essay examines the bank lending channel of monetary transmission in Malaysia, a country with a dual banking system, with both Islamic and conventional banks. The results show that Islamic credit is less responsive to interest rates shocks than is conventional credit, in both high and low growth conditions. In contrast, the relative importance of Islamic credit shocks in driving output and inflation is greater under low -inflation conditions and higher Islamic credit leads to higher growth and lower inflation in such conditions. The third essay re-examines the question of causality between credit and GDP between two sets of countries one set without Islamic banks and the other set with dual banking systems, including some Islamic banks. The results suggest long-run causality from credit growth to GDP in countries with only Islamic banks.
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Yusoff, Remali. "The stability of deposits in Islamic banks versus conventional deposits in Malaysia." Thesis, Durham University, 2004. http://etheses.dur.ac.uk/1832/.
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Aldosari, Bader. "Are Islamic banks more resilient to financial crises? : a critical analysis of Islamic and conventional banks, with particular reference to Saudi Arabia." Thesis, University of Sussex, 2018. http://sro.sussex.ac.uk/id/eprint/80724/.
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This study seeks to determine whether the regulatory basis and operational structure of the Islamic financial model position it as the front-runner in terms of sustainability and resilience to financial crises. A critical review of the extant literature reveals that Islamic banks have performed better than conventional banks during economic shocks because Islamic banks are less exposed to risks. However, this study maps the profile of financial institutions that are generally resilient to financial crises, and notes that Islamic banks do not match this profile. Nonetheless, an assessment of the risk management strategies of Islamic banks reveals that they are in fact less likely to trigger instability when using profit-loss sharing schemes. The study utilises existing statistical data as part of the inter-disciplinary understanding of the effects of financial crises. The data is derived from various surveys and reports that chart overall performance considering the stressful financial environment of 2007-09 and beyond. This is complemented with original qualitative data that has been collected through surveys that identify the perceptions of key stakeholders in the banking sector on the resilience of their respective banking systems and how those systems could ultimately be improved. The traditional tripartite analysis of knowledge is adopted. The analysis at a generic level reveals that banks using the profit-loss sharing schemes match the profile of institutions that are generally more resilient to financial crises. The analysis at the level of the State reveals that where Islamic banks are accommodated within the same regulatory framework as conventional banks, the former are more resistant to financial shock. Lastly, the analysis at the level of individual banks reveals that the stress testing frameworks of the conventional banks may be rated as less effective than those of Islamic banks.
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Pervez, Avais. "Principles of Islamic Interest Free Banking in Pakistan: Study focusing on three Islamic Banks in Pakistan." Thesis, Mälardalens högskola, Akademin för hållbar samhälls- och teknikutveckling, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-13932.
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Islamic Banking, the Shariah (Islamic law) compliant banking for Muslims, is unarguably at the nascent stage of its development as a financial competitor and alternative to the conventional interest – based banking system practiced around the world. This thesis looks into the principles of Islamic banks of Pakistan and focusing three Islamic Banks in Pakistan. The thesis analyzes the findings of three banks made by interviews and compare with the conventional banking system, to check that are the principles different or same. This thesis is qualitative in nature, based on theoretical and empirical findings.
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Rehman, Asma Abdul. "A comparative study of risk management practices between Islamic and conventional banks in Pakistan." Thesis, Cardiff Metropolitan University, 2016. http://hdl.handle.net/10369/7915.
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Purpose: The purpose of this research study is to investigate the extent to which banks are using risk management practices in dealing with various risks and to compare risk management practices between Islamic and Conventional banks operating in Pakistan. Methodology: This is an empirical research study which has employed quantitative research methods. This study has used two sources of data, i.e. primary and secondary data. Secondary data is collected by using content analysis through annual reports of five Islamic and conventional banks for the six year time period from 2008 to 2013. The content analysis was performed by using frequency analysis and un-weighted index scoring. And primary data was collected through questionnaire from the senior managers, risk managers and CRO of Islamic and conventional banks. The sample size was consisting of 150 respondents from banks. The data was analysed by using descriptive statistics, regression analysis and Mann-Whitney U test. Findings: Islamic banks are found to be significantly different from their conventional counterparts in risk identification, risk management practices, liquidity risk analysis and risk governance. Moreover, risk identification, risk assessment and analysis, credit risk analysis and risk governance are most influencing and contributing variables in risk management practices of banks operating in Pakistan. Also, credit, liquidity, market and operational risk are found to be the most important risks faced by both conventional and Islamic banks. Practical Implication: Considering the importance of risk management practices in Islamic and conventional banks; Bankers, investors, regulators, and policymakers are likely to benefit from the results of the study as a guide, when developing and reforming the existing risk management practices. Originality: This study has extended the risk management practices model of banks by incorporating two more variables, i.e. liquidity risk analysis and risk governance into the model. Also, it is adding value methodologically, as data triangulation is used to draw a valid inference. So, this study will add value to literature and will be useful for Islamic banks, conventional banks, practitioners as well as for academic point of view.
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Al, Matrafi Mohammad T. "Efficiency and resource-based productivity of Islamic and conventional banks in the GCC states." Thesis, University of Portsmouth, 2017. https://researchportal.port.ac.uk/portal/en/theses/efficiency-and-resourcebased-productivity-of-islamic-and-conventional-banks-in-the-gcc-states(c739a65d-21e5-43c4-8f02-21bcd412fbf3).html.
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This research has made an attempt to measure the efficiency and productivity scores of a large number of banks in the Gulf Cooperation Council region, over the period 1998-2014. In the main the study attempts to find out if there had been significant differences in efficiency and productivity of the banking sector in the GCC before and after the financial crisis of 2007/8. Furthermore, it has aimed to find answer to the teasing question of whether the conventional banks in the region have performed better than the Islamic banks over the entire period of the study. This study offers a novel and comprehensive approach in measuring efficiency and productivity by incorporating the so-called the resource-based view (RBV) into the main body of literature. In doing so, a number of qualitative variables has been identified to represent the intangibles for those non-substitutable, rare capabilities resources which help produce sustainable competitive edge for a firm in a given industry. Using the relevant data for a large sample of banks in the GCC, the application of Data Envelopment Analysis (DEA) has produced a number of interesting findings. At country level, Bahraini and Kuwaiti banks have turned out to be more consistently efficient over time than the banks in the other four states. Furthermore, the examination of the performance of the newly established banks has shown that they have managed to perform better than the old established ones particularly since the financial recession of 2007/8. More specifically, when Islamic and conventional banks were compared, the estimated results showed that there had been no significant differences in efficiency and productivity between the two groups of banks. Nevertheless, the Islamic banks have demonstrated to have performed better since 2007/8. On the whole, it was demonstrated that as most banks exhibited severe decline in their performance immediately after the 2007/8 recession, the majority of such banks have now managed to return to pre-2007 era and a few have even shown much greater performance since 2010/11. Finally, the study concludes that in all cases the findings have suggested that the inclusion of RBV variables has enhanced and improved the relative efficiency scores for all, and that some banks have been able to maintain consistently higher efficiency primarily due to their competitive edge and capabilities.
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Mohd-Shariff, Ros Aniza Binti. "Service quality in Islamic and conventional banks in Malaysia : an explorative and comparative analysis." Thesis, Durham University, 2013. http://etheses.dur.ac.uk/7315/.
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Islamic banks now operate in competition with other Islamic banks, foreign Islamic banks and also with conventional banks offering banking products and services based on Islamic principles. However, it is known that the intense competition in banking industry results in providing better services to the customers as well as providing competitive products. The aim of this research, hence, is to explore and examine the perceived level of service quality of Islamic and conventional banks in a comparative manner through the perceptions of the customers in Malaysia. This research also aims to explore and examine the relationship between perceived customer satisfactions and the identified service quality dimensions in Islamic and conventional banks.Furthermore, the study also investigates the customers’ level of knowledge and awareness of relevant financial and banking concepts and terms in conventional and Islamic banking in Malaysia with the objective of establishing the sources of patronage and motivation in bank selection. Importantly, the study explores the expectations of the customers on these areas so that a comparison can be made within Islamic and conventional banks and also between these two bank categories to identify service quality gap. This study utilises a modified SERVQUAL model, which is based on the widely accepted SERVQUAL model and CARTER model to measure the service quality in Malaysian banks. In responding to the aims of this study, a questionnaire survey was utilised with 941 respondents, which was carried out in late2010 in large cities in Malaysia. In analysing the data, descriptive and inferential statistics analyses were employed. The approach taken by the study in examining the service quality gap is to compare the customers’ expectations with their actual perceptions. In addition, the study examined and analysed the customers’ satisfaction relationship with the service quality dimensions. The findings in relation to customers’ familiarity with Malaysian banking products and services evidenced that they possessed a higher level of knowledge and awareness of conventional banking services compared to Islamic banking services. The findings on the factors influencing banking selection criteria revealed that ‘religious obligation’ was the most important criterion for the Islamic banks’ customers, while ‘courteous and competent personnel’ was identified as the most important criterion for conventional banks’ customers. In addition, the findings on the factor analysis showed that for Islamic banks, all of the service quality factors could be grouped into three components: ‘service oriented factors’, ‘financial oriented factors’, and ‘religious obligation and image factors’. On the other hand, the factors for the conventional banks are re-classified with factor analysis as :‘service oriented factors’, ‘financial oriented factors’, and ‘marketing oriented factors’. As for the level of service quality, the main findings produced seven dimensions of service quality: (i) compliance with Islamic values; (ii) assurance; (iii) reliability; (iv) tangible; (v) empathy; (vi) responsiveness; and (vii) social responsibility. For the expectation part, the ‘reliability’ dimension scored the highest average mean for both categories (Islamic banks and conventional banks) while the lowest average mean score for both type of banks was the ‘tangible’ dimension. On the other hand, the ‘assurance’ dimension scored the highest average mean in the perception part of Islamic banks, while ‘reliability’ dimension scored the highest in the perception analysis related to conventional banks. In contrast, the lowest score of average mean for the perception of Islamic and conventional banks was the ‘empathy’ dimension. The results of the study depicts that all of the service quality gap values (perception minus expectation) were negative which showed that the performances were below expectations (obtaining a negative score), which led to a perception of low service quality. Finally, the regression analysis showed that the most important dimension that had positive direct effect on customers’ satisfaction is ‘tangible’ related factors. The study has significant implications for Malaysian banks in providing a direction for service quality improvement. It is expected that the study can inform the management of the banks in developing their marketing strategy, which is crucial for emerging intense competition in Malaysian banking in general and for Islamic banking in particular. Lastly, while the Islamic banks have been subjected to criticism for having poor service quality, this study shows that there was not much difference on the service quality gap (perception minus expectation) between the Islamic and conventional banks in Malaysia.
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Alkandi, Ibrahim Ghazi M. "Strategy implementation in Saudi Arabian Islamic and conventional banks : a comparative analysis of strategic cases." Thesis, Durham University, 2015. http://etheses.dur.ac.uk/11084/.
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One of the most important capabilities that an organisation can develop is an effective strategy implementation process, which enables that firm to compete in a given market. Within the framework of strategy implementation, this study focuses in a comparative manner on the implementation processes for strategic management within conventional and Islamic banks in Saudi Arabia. In this thesis, a particular strategy implementation framework is adopted from Okumus (2001 and 2003). This framework offers in a systematic form an explicit explanation of the entire strategy implementation process, therefore providing a comprehensive framework through an integrated systematic understanding. An extensive review of the strategy implementation literature reveals fifteen factors that can influence the strategy implementation process and its outcomes, with these factors taking roles in enhancing the process and resulting in successful implementation outcomes. These factors are organised into four categories or groups: (i) organisational groups; (ii) project groups; (iii) process groups, and (iv) outcomes, each of which contains sub-factors to make them measurable. In operationalising the research, an inductive research approach has been adopted for this study; the data was collected via semi-structured interviews followed by a questionnaire survey used as a support tool. The whole sampled included two Saudi Arabian Islamic and two Saudi Arabian conventional banks as case studies. This study employs face-to-face semi-structured interviews with each of the selected bank’s decision-makers as its primary tool for data collection. The elite interview sample consists of in total eight top managers belonging to four banks: two Islamic and two conventional banks. Each bank has its recent strategic case implementations analysed through the primary data collected. The sample of the interview schedule consists of the top management who were involved in the strategic decision of two conventional and two Islamic banks in Riyadh, Saudi Arabia. The primary criteria of choosing the sample were that those mangers should have a great influence and experience of the strategic decision as well as the ability of declaring the required information. In relation to the questionnaires, the sample included Middle management levels who are only involved in the strategic cases being implemented and studied. Consequently, 260 questionnaires were distributed among the banks; 120 were returned as complete, to be used in the analysis. The response rate, hence, is approximately 46%. The results show that there are clear trends in how the Saudi Arabian` banks’ approach in their strategy implementation, common factors influencing the strategy implementation process and its outcomes, and various considerations regarding the role of religion in both Islamic and conventional types of banks. The subsequent statistical and econometric analysis of the questionnaire data indicates that factors from three of the main groups significantly influence strategic decision outcomes, thereby determining successful strategy implementation. These influential factors are as follows: (i) process and personnel factors, including involvement and communication; (ii) project factors such as time and the priority of the decision; (iii) organisational factors, including top management support, religion, and organisational structure. Further, it is also revealed that in each case the correlation coefficients are positive between independent factors and the outcomes indicating the presence of positive correlation between the outcome and the process factors. The findings of this study contribute to the literature on strategic implementation management by providing a critical and empirical analysis of the sampled Islamic and conventional banks in Saudi Arabia. The findings may in addition prove useful to the leadership of those banks in their attempts to understand the interrelationship between the process and the outcomes of their strategy implementation decisions, by drawing out both tangible and intangible results of strategy decisions.
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Aldoseri, Mahfod. "A Comparison of Credit, Liquidity and Operational Risk Management in Islamic and Conventional Banks: Evidence from Saudi Arabia." Thesis, Griffith University, 2017. http://hdl.handle.net/10072/380068.
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Like their conventional counterparts, Islamic banks face a variety of risks when conducting
business, including operational, credit, liquidity, foreign exchange, interest rate, and market risk.
To address these risks, banks of all types employ risk management practices as a way of improving
bank performance and reducing any potential damage. The purpose of this thesis is to examine the
risk management practices implemented in both Islamic and conventional banks in Saudi Arabia,
the primary focus being the analysis of the relationship between risk management practices and
financial performance, concentrating on the operational, credit and liquidity risks prevalent in
Saudi Arabia, and the effectiveness of current risk-management strategies and practices. There is
particular attention on the differences in risk management practice in both types of banks and the
implications this may have for their performance and sustainability.
The empirical analysis employs a sample of 12 banks operating in Saudi Arabia throughout the
period from 2005 to 2014. Eight of these are conventional banks and the remainder are Islamic
banks. The thesis employs a two-step approach to analyze risk management practices. In the first
step, financial data is used to quantitatively determine the credit, liquidity, and operational risks
faced by both Islamic and conventional banks within Saudi Arabia, the aim being to recognise the
level of influence each aspect plays in risk management practices. To accomplish the objective of
analysing the relationships between risk management practices and financial performance, the
thesis also examines the current risk situation in both Islamic and conventional banks.
The posited determinants of risk include bank size, non-performing loans (NPLs), the capital
adequacy ratio (CAR), the debt-to-equity ratio (DER), asset management (ASM) and management
efficiency (MGT). Mann–Whitney tests reveal no statistically significant difference between
Islamic and conventional banking in terms of operational risk. Therefore, we reject the hypothesis
that Islamic banks have less exposure to operational risks than conventional banks, along with the
hypothesis that argues that Islamic banks are generally less exposed to liquidity risks than
conventional banks. The difference between the mean values suggests that conventional banks
hold more liquid assets than Islamic bank and that banks providing Islamic products and services
are less exposed to credit risks than other banks. Overall, conventional banks in Saudi Arabia have a higher return on equity than Islamic banks. Conventional banks also appear to perform more
efficiently than Islamic banks. This has important implications for the future business behavior of
the Islamic banking sector in Saudi Arabia.
In the second step, the thesis draws on a purpose-built survey to gather information relating to
current risk management practices in Islamic and conventional banks. The analysis scores each
Islamic bank according to its risk management practices, and compares across important categories
of practice, including Understanding Risk and Risk Management (URM); Risk Identification (RI);
Risk Assessment and Analysis (RAA); Risk Monitoring (RM); and Credit Risk Analysis (CRA).
This enables a finer analysis of the possible reasons for any deficiencies in risk management
practices using the institution-level data in the first analysis. The results demonstrate that all of
these practices play an important role in determining the efficiency and effectiveness of bank risk
management in the banks concerned. However, risk assessment and analysis (RAA) and risk
monitoring (RM) are the most influential in determining the quality of credit, liquidity, and
operational risk management. This suggests that both Islamic and conventional banks in Saudi
Arabia need to concentrate more on these areas. In contrast, the most significant factor in liquidity
risk management practice is comprehension of the potential risks and risk management (URM).
This thesis adds to the extant literature in several ways. Foremost is that this is first study conducted
specifically using Saudi Arabian banks which examines the risk management practices applied by
both Islamic and conventional banks, focusing on their operational, credit and liquidity risks. The
findings of this research are informative for banking stakeholders, including policy makers,
regulators, the central bank, government, and bank managers, both in Saudi Arabia and other
developing countries with a dual-banking system including Islamic banks. Although this thesis has
contributed significantly towards our knowledge of risk management practices in banking, it does
include some limitations, all of which suggest future directions for research. Most importantly, the
results in part rely solely on self-reporting by participants, which may not reflect changes in credit,
liquidity and operational risks over time. The cross-sectional data in the survey may also be
affected by the participant previous experiences or by their psychological state at the time of completing the survey.Thesis (PhD Doctorate)
Doctor of Philosophy (PhD)
Dept Account,Finance & Econ
Griffith Business School
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Alharthi, Majed. "The determinants of efficiency, profitability and stability in the banking sector : a comparative study of Islamic, conventional and socially responsible banks." Thesis, University of Plymouth, 2016. http://hdl.handle.net/10026.1/5324.
Full textAbstract:
This study aims to investigate the determinants of efficiency, profitability and stability in the banking sector across the world over the period 2005-2012. In this study, efficiency is measured using data envelopment analysis (DEA), which is divided into technical efficiency (TE), pure technical efficiency (PTE), and scale efficiency (SE). The profitability is represented by return on assets (ROA), return on equity (ROE), and net interest margin (NIM). Furthermore, the z-score and capital ratios are the main indicators for stability. The data includes 323 banks (43 Islamic, 242 conventional, and 38 socially responsible banks [SRBs]) from around the world, covering 37 countries. The statistical methods to find the determinants are ordinary least square (OLS) and fixed effects model (FEM). The data for this study was extracted from the Bankscope and World Bank databases. According to efficiency, the DEA measures demonstrate that socially responsible banks (SRBs) are the most efficient banks. This is due to the fact that SRBs management employ minimum inputs; one of the main characteristics of SRBs is the saving of resources (inputs). In contrast, the least efficient scores are achieved by conventional banks. As conventional banks have higher interest expenses to pay. In terms of Islamic banks, the larger banks were found to be more efficient. Furthermore, lending services are important to maximise outputs effectively. Additionally, efficiency in Islamic banks is influenced significantly by earnings. Islamic banks with higher capitalisation were found to be more efficient, and new Islamic banks operate better than older banks. Regarding the macroeconomic factors, countries with better market capitalisations include more efficient Islamic banks. Based on the conventional banks’ findings, banks with a higher size performed better than the smaller sized banks. The loans profits increased the efficiency significantly. Focusing on age, the more recent banks achieve better efficiency scores. The three types of ownership (foreign, domestic, and public) reflect inverse correlations with DEA. With regards to the external variables, the wealth of the country is highly important in terms of efficiency. In addition, stock market growth supports the efficiency positively and significantly, while inflation and the global financial crisis (GFC) influenced the efficiency negatively and significantly. Concentrating on SRBs, banks with more capitals operated more efficiently than lower capitalised banks. Additionally, GDP, inflation and market capitalisation enhanced efficiency significantly. Overall, the relationship between the control of corruption and efficiency is positive and significant in Islamic, conventional and socially responsible banks. Tighter controls on corruption have led to better efficiency. Regarding the profitability, the highest ROA and ROE were attained by conventional banks. This is because the main aim for conventional banks is to achieve returns, and charging interest maximises their earnings. On the other hand, SRBs scored the lowest ROA and ROE as those banks are primarily concerned with providing social and environmental services over profits. According to NIM, Islamic banks do not have interest expenses, which can allow them to score the highest NIM measures in this study; while conventional banks have the minimum NIM ratios due to higher interest expenses. Based on the Islamic banks’ results, Islamic banking was affected positively by total assets of banks. In addition, the stable Islamic banks achieved greater profits based on the strong associations between z-score and earnings. This contradicts the relationship between profitability ratios and capital ratios, which indicate negative and significant correlations. Depending on country-specific factor, Islamic banks in higher productivity countries could not exploit the growth to gain higher profits. This results in a weakness for Islamic banks in terms of being resistant to higher inflation rates. For the conventional banks, size of bank and capital are highly important for profits. The conventional banks can concentrate on providing more loans to maximise their returns. The stability of conventional banks also has positive and significant associations with profitability ratios. Concerning the SRBs, profitability ratios are affected significantly and positively by stability (z-score) and market capitalisation growth. On the other hand, foreign, domestic and public ownerships negatively impacted the profits. According to industry-specific variables, GDP growth reduces profits significantly. For the stability, SRBs are demonstrably the most stable and resilient system against financial crisis. Accepting more deposits and attaining greater profits significantly increase the stability of all banks and lower the risk of insolvency. Overall, listed banks were found to be more efficient, profitable, and stable than unlisted banks. This study helps managers and policy makers within the banking sector to reduce costs and increase profits with lower risks. In addition, finding the positive determinants allows managers to make more decisions based on positive factors. On the contrary, through raising efficiency, profitability and stability in banking, managers can aim to avoid negative variables altogether. Finally, this study contributes to the literature in terms of adding socially responsible banks into the equation. In addition, comparing efficiency, profitability and stability simultaneously is a new method that can allow bankers to build effective strategic decisions based on the determinants.
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Etab, Menan. "The internal and external contingent factors that affect the determination of profitability in Islamic banks in comparison to conventional banks in Egypt." Thesis, De Montfort University, 2016. http://hdl.handle.net/2086/13111.
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Islamic banking system is one of the fastest growing segments of the international financial industry. This system has been receiving a growing attention nowadays especially after the global financial crisis which gave Islamic banks an opportunity to prove their resilience and contribution to financial and economic stability. The beginning of the Islamic banking in its contemporary mode was in the sixties of the past century by the first modern Islamic banking experiment which was undertaken in Egypt in 1963 by Ahmad Al-Najjar. Islamic financial institutions are established to operate commercial banking activities within an Islamic teaching perspective which depends on the elimination of any prohibited element in Islamic Shariah jurisprudence such as interest, gambling, speculation, dealing in pork or alcohol. The very distinct nature of Islamic banking led to a growing interest in determining the success factors of such type of banks especially that in most of the cases they operate with conventional banks vis a vis within the same market and sometimes under the same regulatory framework. The aim of this research is to make a comparative study between the performance of Islamic banks and conventional banks in the Egyptian financial market. The study is an attempt to determine the internal and external contingent factors that affect the profitability of Islamic banks in Egypt in comparison to conventional banks while taking into consideration the fact that both types of banks operate under the same rules and regulations. The goal is to discover whether the different nature of operations between the two types of banks is likely to affect their determinants of performance. The main motivation for undertaking this research is to fill the gap in literature and provide some information that might benefit both academics and practitioners in this field. A thorough revision of the literature suggested contingency perspective as the most suitable and appropriate theoretical framework for this type of research (Thomas, 1991; Schweikart, 1985; Otley, 1980). Data were gathered in this research through the collection of annual financial reports for the two Islamic banks working in Egypt and a sample of eleven conventional banks registered in the stock market. The study covered the period from 2002 to 2010. The findings indicate that in general, the performance of conventional banks in Egypt outweighed that of their Islamic counterparts. Moreover, it can be concluded from the results of the study that there are differences between the profitability determinants of Islamic banks and conventional banks. And eventually, it can be inferred that the nature of operations has an effect on the determination of profitability in Islamic banks and conventional banks.
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Camdzic, Emir. "An exploratory study on corporate reputation practices and challenges in the UK banks : a comparative study between Islamic and conventional banks." Thesis, University of Bolton, 2018. http://ubir.bolton.ac.uk/1967/.
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This study aims to investigate the concept of corporate reputation through the current practices of Islamic and conventional banks in the UK and to indentify to what extent Islamic banks adhere to the principles of Islamic banking and finance in light of the corporate reputation. In that attempt, the research investigates the concept of corporate reputation including the measurement scales as well as the theories related to the concept. In addition, the research moves beyond and further explores determinants of corporate reputation from the Islamic finance perspective which are derived from the overall objectives (maqasid al Shari'ah). Through the stakeholder theory, the research utilises pre-existing reputation measurement scales to investigate the social dimensions of sampled Islamic and conventional banks in the UK. In conducting the research, the study brings together the set of primary data from the internal and external stakeholder groups. Questionnaire survey was administered to the external stakeholders where 205 valid responses were obtained and further analysed. In addition, a number of semi-structured interviews were conducted with the senior managers and Shari'ah board member in order to verify the findings obtained through the questionnaire surveys. The findings indicate that the perceptions of the Muslim customers toward their banks, both Islamic and conventional, are somewhat similar. However, some of the dimensions such as trust and emotional appeal, were found to be higher with the customers of Islamic banks. The findings reveal that a very small proportion of the targeted sample population were sole customers of Islamic banks, however, they showed a lot more passion and positive regards toward their banks. Corporate social responsibility, as one of the dimensions of corporate reputation, is found to be lacking from Islamic banks and they were seen as not engaged in CSR activities as much as their conventional counterparts, mainly due to their limited capital. In addition, it was also found that the majority of respondents believed that the existence of Islamic banks is CSR activity itself. The results also indicate that the corporate culture seems to be stronger at Islamic banks and the bond between customers and employees is very strong where customers feel more valued and appreciated than those respondents from the conventional banks. In terms of further investigating the determining factors of corporate reputation, its monitoring and measurement, the study indicates that Islamic banks, in comparison to conventional banks, are enjoying higher level of trust. However, relatively small number of customers of Islamic banks is due to its technological limitations which are not as developed as in conventional banks. This has been found as one of the important aspects to which Islamic banks need to pay more attention in order to enhance their corporate reputation. This research is useful as it further explores the concept of corporate reputation within the boundaries of Islamic banking and finance and to investigate how corporate reputation may be better understood and examined. It also draws the attention to the executives of Islamic banks to how opinions, beliefs and expectations of their internal and external stakeholders are important in maintaining positive corporate reputation. The research adds value to the relevant body of knowledge as the literature on the concept of corporate reputation from the Islamic finance perspective is very limited.
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Ravishankar, Manasvini Ms. "Effects of Regulatory Change on Stock Prices and Profitability of Islamic and Conventional Banks in Malaysia." Scholarship @ Claremont, 2014. http://scholarship.claremont.edu/cmc_theses/952.
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Abstract
Islamic Banking, a growing banking segment related consistent with Sharia law and principles. Since its establishment in 1983, the use of Islamic Banking has grown rapidly in Malaysia as a result of the Malaysian government active effort to make “Malaysia, Asia’s Islamic finance hub.” This study investigates the impact of various regulation changes – applicable to both conventional and Islamic Banking – in Malaysia, on the volume of financing of Islamic Banks. The main way to accommodate for possible omitted variable bias was by including control variables including the production index, real effective exchange rate, price index against the return on assets, return on equity and net income margin ratio. This study was conducted using an autoregressive-distributed lag model, and an event study. Ultimately, the abnormal returns for Islamic vs. Conventional Banks – though statistically significant individually during the event studies, on average were not statistically significant. The implication is that were the sample size to be larger, we may be able to find more statistical significance, but given that the bank population in Malaysia is so small, it is hard to find a statistically significant trend.
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Al-Saie, Riyad Saleh. "Corporate culture and performance : a comparison between Islamic and conventional banks in the Kingdom of Bahrain." Thesis, Durham University, 2017. http://etheses.dur.ac.uk/12356/.
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The main purpose of this dissertation is to investigate and test the proposition that corporate culture is a necessary component of financial organization effectiveness and to examine the notion that a positive relationship exists between certain corporate values and financial performance. The study implies that the five organizational values that emerged from the two best-performing banks (generalists) were strategically important for the success of the two institutions. The regression analyses imply a positive relationship between the two generalists' Net Operating Income (NOI) and Innovativeness. Although there is also a positive relationship between Corporate Governance and NOI, it is less significant than the aforementioned corporate value.
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Alalawi, Esam Ismaeel. "Workplace perceived gender discrimination in the Bahraini banking sector : a case analysis of Islamic and conventional banks." Thesis, Brunel University, 2017. http://bura.brunel.ac.uk/handle/2438/14734.
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This qualitative study explores the interrelationship between perceived gender discrimination and its antecedents and consequences while examining the concept of the glass ceiling that presents some barriers to the career advancement of Bahraini female workers in the banking sector. The study examines female bankers’ perception of the existence of both gender discrimination and the glass ceiling concept in this sector. It first examines the factors that cause such phenomena at three different levels namely societal, institutional and individual. The study then verifies the effects of some identified antecedents i.e. whether they foster or lower the perceived gender discrimination and how such effects happen. Furthermore, the study examines the same factors to ascertain if they are barriers that hinder women’s career advancement or enablers that support their advancement as there is a lack of empirical studies on the effect of the factors of the three mentioned levels to women’s career advancement especially in non-western context (Tlaiss, 2010; Hejase et al., 2013; Yokkongdi & Benson, 2005). The study also examines the consequences of perceived gender discrimination that occurs at the individual level. Some previous studies related to this research topic adopted the quantitative approach, hence; this is a qualitative based research that examines the perception of the respondents whose experiences and opinions expound the context. This led to understanding subjective areas such as respondents’ emotions and experiences that address the nature of perceived gender discrimination and the concept of glass ceiling in the Bahraini banking sector, focusing on “How” and “Why” type of questions instead of stressing on the quantities. The existing literature of gender discrimination especially about the area of underrepresentation of female workers in higher positions especially in financial services sector including banking is minimal. (Bruckmuller & Branscombe, 2010; Elumti et al., 2009; Durbin & Conley, 2010). This approach unveils the research questions by conducting in-depth semi-structured interviews with 26 Bahraini females as most of the previous studies examined both male and female perceptions while this research focusing at female only to make it more gender specific. The respondents hold managerial and non-managerial positions in both Islamic and conventional banks in the kingdom of Bahrain. The aim of the interview was to extract their perceptions on the factors and the consequences of gender discrimination as well as the barriers and challenges that hinder their advancement to higher managerial levels. The study captures the factors and the consequences of gender discrimination as well as the most common barriers that impede the Bahraini females’ career advancement within an Islamic and Arabic cultural context. The themes that emerged from the analysis are used to discuss the research issues in the light of previous research findings from different empirical studies. This study identifies different ways of finding factors of perceived gender discrimination and their effects as well as the challenges that may hinder the women’s career advancement in this sector. This study discovers that perceived gender discrimination exists in the Bahraini banking sector especially in areas such as hiring preference and receiving of benefits and compensations. This study also unearths the existence of glass ceiling, which is related to the gender inequality in the advancement opportunities to higher positions especially in the areas such as obtaining a promotion and holding managerial positions in the banks. The study finds out various factors that cause the perceived gender discrimination and the glass ceiling in the Bahraini banking sector which are classified at three levels as explained above.
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Raouf, Hajar. "Risk governance, financial performance and financial stability : comparative studies between conventional and Islamic banks in the GCC countries." Thesis, Durham University, 2018. http://etheses.dur.ac.uk/12650/.
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The banking institutions confront a wide range of complex risks while carrying out their traditional and innovative business activities. As financial risk management dwells at the heart of their business model, its governance is of crucial importance to achieve their performance targets while maintaining the required level of safety and stability within the national and global financial systems. The governance structures and mechanisms pertaining to the management of all types of risks are therefore of high-level concern for banks and for the regulators, particularly after the global financial crisis (GFC). Since the weaknesses in the risk management practices were identified as key contributor to the GFC, a substantial number of reports, peer-reviews and recommended guidelines published by international bodies such as the OECD, the BCBS and the FSB emphasize the important role of risk governance in ensuring financial health and stability of the financial sector in the post-crisis era. The academic evaluation of the role of risk governance in banks before and after the GFC remains limited despite the established theoretical nexus between bank governance and performance on the one hand and between bank governance and financial stability on the other hand. Given the above, the main aim of this thesis is to contribute to this nascent body of knowledge by examining the soundness of the risk governance frameworks and empirically evaluating their associations with various key indicators of banks’ performance and financial stability. To widen the scope of the analysis, the study is carried out on a sample of conventional and Islamic banks with the objective of comparing the results from the two distinct banks’ types. The interest to examine the particular case of Islamic banks stems from the results of some research that show their better performance and resilience during the GFC. The thesis is structured as three essays to evaluate the soundness of the risk governance frameworks, a novel ‘Risk Governance Index’ (RGI) has been developed that accounts for the most important determinants identified in academic and regulatory literature. The RGI is used in dynamic panel regressions to study the causality effects of risk governance with three key proxies of financial performance (namely ROAA, ROAE and Cost-to-Income) and bank’s stability indicators (namely the z-score, the capital adequacy ratio, the ratio of loan loss reserves to gross loans and the ratio of liquid assets to deposits and short-term funding). Dynamic models using the two-step Generalized Method of Moments are estimated to assess the impact of RGI and various bank-specific and macroeconomic variables on the dependent variables. The main findings from the three empirical essays show that the different nature of the two banks’ type induces different impacts of RGI on performance and stability. Specifically, conventional banks show better risk governance structures relative to Islamic banks which also enable them to achieve higher operational performance and to improve their stability. Islamic banks, however, need to improve their risk management governance practices as in addition to having weaker structures that impact financial stability adversely, there are limitations to appropriately benefit from the good risks to increase their profitability.
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Alotaibi, Mohammed Naif A. "Exploring the demand and supply conditions of e-commerce and e-banking services in Saudi Arabian conventional and Islamic banks." Thesis, Durham University, 2015. http://etheses.dur.ac.uk/11142/.
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The extensive use of technology by banks and financial institutions aims to respond to customers’ demands by providing efficient, speedy and convenient financial services. After developing the e-banking services, banks have also expanded their online services into e-commerce. Developments of e-banking services and e-commerce have been the case with the majority of banks including Islamic banks in the GCC region. The main aim of this research is to explore the demand and supply conditions of e-commerce through e-banking services in Saudi Arabian conventional and Islamic banks. In doing so, this research aims to assess the level of customer awareness of e-commerce and to explore customers’ motivation in Saudi Arabian conventional and Islamic banks. In addition, this research further explores and evaluates customers’ use of e-commerce and e-channels banking services, and the obstacles faced including security issues. In an attempt to locate the supply side related issues, the study aims also to explore perceptions of the IT managers in the six banks. In the study, data were collected through a survey questionnaire to measure the opinions and perceptions of bank customers, and interview surveys were utilised for assessing the supply conditions. To achieve the aims of this research, firstly, this research presents the initial findings with the objective of developing a better understanding of customers’ preferences based on their opinions and perceptions, expressed through a questionnaire survey with a sample of 198 Islamic and conventional bank customers representing six banks in the country; secondly, to further the analysis of this research, an empirical study is presented by using a series of semi-structured interviews with IT managers at three different levels of the sampled banks in Saudi Arabia. The findings over five empirical chapters demonstrate that the majority of the respondents from both the banks appear to understand and have awareness of the importance of e-commerce especially and e-banking services in particular. The findings also indicate that the majority of the respondents from both banks tend to be equally motivated to deal with e-commerce using banking facilities available for them. In search of motivational factors, this research found that the benefits and the 24/7 availability of e-commerce and e-banking services were the main factors motivating participants to deal with e-commerce and use e-banking services. The findings also indicate that the customers of Islamic banks have a better understanding of using e-commerce and e-banking services. Furthermore, the findings show that customers experienced personal, institutional and macro level obstacles to using e-commerce in both the bank types. Moreover, the customers of Islamic and conventional banks appear to understand the importance of security issues in e-commerce through e-banking services as well as banks. The findings also show that the government of Saudi Arabia has played a key role to improve the environment of e-banking services in Saudi banks. Finally, the interviewees’ analysis indicates the weaknesses in the telecommunication infrastructure. Based on the findings this study suggests that e-commerce through e-banking services can play an important role in expanding business opportunities in Saudi Arabia, while they facilitate individual engagement with commercial activities. Since the technology is expanding and advancing rapidly, and to address the future challenges in IT especially in the e-banking services, it is essential that the necessary infrastructure should be developed to take advantage of the opportunity.
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Moin, Muhammad Shehzad. "Performance of Islamic Banking and Conventional banking in Pakistan : a Comparative Study." Thesis, Skövde : University of Skövde. School of Technology and Society, 2008. http://www.diva-portal.org/smash/get/diva2:113713/FULLTEXT01.
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Pamungkas, Putra. "Empiral essays on issues in conventional and islamic banking : case of Indonesia." Thesis, Limoges, 2020. http://www.theses.fr/2020LIMO0024.
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Cette thèse met en lumière trois questions importantes dans le secteur bancaire indonésien, à la fois conventionnel et islamique. Dans le premier chapitre, nous examinons la relation entre les prêts bancaires et l'inégalité des revenus en considérant un large éventail de catégories de prêts. Nous constatons que seuls les prêts aux PME et aux banques rurales atténuent l'inégalité des revenus. À l'inverse, les prêts aux entreprises, que ce soit pour les fonds de roulement ou les investissements, ainsi que les prêts aux consommateurs, exacerbent les inégalités de revenus. La relation change pour les provinces ayant un niveau de développement économique plus faible. Dans le deuxième chapitre, nous examinons la discipline imposée par les déposants aux banques en démêlant l'impact du macro risque et du micro risque. Nos conclusions montrent que les déposants considèrent que les niveaux de risque macro et micro sont tous deux pris en compte par les banques pour discipliner les banques. Les grands déposants non assurés sont plus efficaces pour discipliner les banques, ce qui met en évidence la crédibilité du système d'assurance en place. Le type de propriété de la banque est également important pour expliquer la différence de discipline du marché par les déposants. Dans le troisième chapitre, nous examinons si l'introduction d'une assurance-dépôts islamique (IDI) peut affecter le flux de dépôts et/ou le prix des banques islamiques en Indonésie par rapport aux banques conventionnelles. Nous exploitons, pour cela, un effet exogène dans l'annonce, en décembre 2014, d'une séparation du système d'assurance des dépôts de l'assurance unifiée des dépôts pour les banques conventionnelles et islamiques en deux fonds différents en Indonésie. Nous constatons que l'annonce d'une assurance des dépôts conforme à la charia a un impact significatif sur la croissance des petits dépôts. Nos résultats montrent qu'il y a une croissance différente des dépôts après l'annonce par l'IDIC de la séparation du fonds d'assurance des dépôts. Ils montrent que l'annonce augmente la croissance des dépôts des banques islamiques par rapport aux banques conventionnellesThis dissertation highlights three important issues in Indonesian banking both conventional and Islamic banking. In the first chapter, investigates the relationship between bank lending and income inequality by considering a broad range of loan categories. we find that only SME and rural bank lending mitigate income inequality. Conversely, business lending, either for working capital or investment purposes and also consumer lending exacerbate income inequality. The relationship changes for provinces with a lower level of economic development. In the second chapter, we examine the discipline imposed by depositors to banks by disentangling the impact of macro risk and micro risk. Our findings show that both macro and micro levels of risk are considered by depositors to discipline banks. Large uninsured depositors are more effective in disciplining banks highlighting the credibility of the insurance system in place. Bank ownership type also matters in explaining the difference in market discipline by depositors. In the third chapter, we paper investigates whether the introduction of an Islamic Deposit Insurance (IDI) may affect the deposit flow and/or the price for Islamic banks in Indonesia vis-à-vis conventional banks. We exploit, for that, an exogenous effect in the announcement in December 2014 of a deposit insurance scheme separation from the unified deposit insurance for conventional and Islamic banks into two different funds in Indonesia. We find that the announcement of sharia-compliant deposit insurance has a significant impact on growth of small deposits. Our results show that there is a different deposit growth after the IDIC announces the separation of the deposit insurance fund. It shows that the announcement increases the deposit growth of Islamic banks compared to conventional banks
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Soloiman, Daniel. "An explorative and comparative analysis of customers' perception and expectations of service quality in the Islamic and conventional banks of Kuwait and Qatar." Thesis, Durham University, 2013. http://etheses.dur.ac.uk/9425/.
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The fast-moving global banking sector has become highly competitive in order to survive. This includes Islamic banks in the GCC region, which strive to not only thrive, but to insulate themselves from possible regional and global meltdowns. In order to stay ahead of their competition, it is imperative that the services provided to customers are of the highest quality to ensure the optimum level of customer satisfaction, which ultimately results in improved customer loyalty and reduced attrition rate. This research aims to explore, measure and compare the perceived service quality levels of Kuwait and Qatar’s Islamic and conventional banks, based on customers’ perceptions and expectations of perceived service quality. The research presented in this thesis also aims to determine which service quality dimensions make the greatest contribution to overall customer satisfaction. In addition, this study attempts to determine the consumers’ level of awareness and familiarity of banking products and services. Utilising a modified version of the SERVQUAL model, this study measures and tests nine service quality dimensions through a questionnaire survey: tangibles, assurance, empathy, reliability, responsiveness, cooperative social responsibility, technology, competitiveness and religious compliance. A questionnaire survey was distributed in order to gather data from which 1,082 responses were returned (581 from Qatar and 501 from Kuwait). The empirical findings reveal that customers in conventional banks have higher levels of awareness and familiarity of banking products and services compared to Islamic banks in Kuwait and Qatar. Furthermore, the findings indicate that all of the banks in the study produced a negative service quality gap (perception minus expectation) for all service quality dimensions, which indicated the expectations of customers were not met. The findings revealed that respondents from Kuwait Islamic and conventional banks are satisfied with the overall service quality based on customers’ perception. However, the opposite is the case for both types of Qatari banks, although it was ‘close’ to satisfaction. Overall, Kuwaiti conventional banks have better service quality scores compared to Islamic banks based on the modified SERVQUAL model dimension gap differences, while in regard to Qatar, Islamic banks have higher service quality than conventional banks. The findings also demonstrate that ‘assurance’, ‘empathy’ and ‘responsiveness’ dimensions scored the highest expectation mean for Qatari and Kuwaiti Islamic and conventional banks, while ‘religious compliance’ and ‘assurance’ dimensions scored a high perception mean for Qatari and Kuwaiti Islamic banks. In regard to Kuwaiti and Qatari conventional banks, ‘assurance’ and ‘technology’ scored the highest mean perception score. Regression analysis shows that ‘assurance’ was found to be the most important predictors of customer satisfaction based on respondents’ perception and expectations for all types of banks in Kuwait. Customers in Qatar rated ‘empathy’ and ‘assurance’ as the most important predictors of customer satisfaction. Furthermore, the study also found that customer demographics have a significant effect on their perception and expectations of service quality in Kuwaiti and Qatari Islamic and conventional banks. The factor analysis revealed that the customers of Islamic and conventional banks reorganize the service quality dimensions into various components differently than the modified SERVQUAL dimensions. For Kuwaiti and Qatari Islamic banks, the customers revealed ‘management, establishment and confidentiality’ to be the highest-ranked service quality component, while for Kuwait conventional banks, ‘customer service’ was found to be the highest-ranked.
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Mohammed, Abdul-hussein Jasim. "Measuring the determinants of capital adequacy and its impact on efficiency in the banking industry : a comparative analysis of Islamic and conventional banks." Thesis, University of Bolton, 2018. http://ubir.bolton.ac.uk/2030/.
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In terms of profit maximization, being efficient, is one of the key concerns of banks, the regulators are more concerned with setting the most appropriate policies and standards to optimize their role in achieving financial stability in the market. More precisely, capital adequacy standards are among the top priorities of the regulators in the banking sector. In addition, due to the unique nature of Islamic financial principles, the Islamic banks face different challenges when it comes to capital requirements and bank efficiency related issues compared to conventional banks. Therefore, this research aims to examine capital adequacy requirements and measure the key factors that may have an impact. Furthermore, this research assesses the impact of the capital adequacy requirements on the efficiency of Islamic and conventional banks in the case of the Gulf Cooperation Council (GCC) region. Following the existing literature related to banking, this study developed two regression models; the first one was applied to examine the determinants of the capital adequacy ratio. The Data Envelopment Analysis (DEA) was used to investigate the level of efficiency, and then, the second regression model was used to examine the relationship between the capital adequacy ratio and the efficiency of the banks. The examined data are obtained from 50 banks, 25 Islamic banks and 25 conventional banks, in the GCC countries over the period between 2006 and 2015. The overall results are consistent with most of the developed hypotheses indicating that liquidity has a significant negative effect on the capital adequacy of Islamic and conventional banks. The results also confirmed that credit risk has a significant positive effect on the capital adequacy of Islamic and conventional banks. Furthermore, the results confirmed that bank profitability has a significant positive effect on the capital adequacy of Islamic and conventional banks together. Net interest income remains an insignificant association with the capital adequacy requirements of the examined banks. The results confirmed that management quality stays in a positive significant association with capital adequacy requirements in the case of both Islamic and conventional banks in the GCC region over the period between 2006 and 2015. Based on the results delivered through the DEA method, the empirical results reveal that the efficiency of Islamic banks are less efficient than conventional banks in the GCC region. Such results could be due to the unique nature of the Islamic financial principles that impose more complexity to the Islamic financial products and operations that in turn leads to lower efficiency compared to the conventional banks. The empirical results, consistent with the developed hypothesis, reveal that the capital adequacy negatively affects the banks efficiency of the examined GCC banks. However, the results show that such effect is lower in the case of the Islamic banks compared to the conventional banks. The obtained result could be due to financial operations that are based on Islamic financial principles.
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Baej, Yahia Mohamad A. H. "A Comparison of Key Dimensions in Conventional and Islamic Banking: An International Perspective with Implications for the Bank Transformation Process in Libya." Thesis, Griffith University, 2014. http://hdl.handle.net/10072/366756.
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Shariah-compliant or Islamic banking is new one of the fastest growing financial services sectors worldwide. While Muslims view this banking model as providing a religious-based alternative to the financial products and services offered by conventional banks, they are also an alternative banking system either fully or partially adopted by banks in more than fifty countries. The premise of Islamic banking is entirely based on the principles of Shariah (Islamic) law that prohibits contracts that involve interest (Riba), uncertainty (Gharar), gambling (Maysir), injustice (Dhulm) as well as the practice of other noncompliant products and services. Nevertheless, despite these apparent restrictions on their activities, the number of international institutions converting their operations in full or in part to Islamic banking is steadily growing.Thesis (PhD Doctorate)
Doctor of Philosophy (PhD)
Griffith Business School
Griffith Business School
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Mohammad, Sabri. "Liquidity creation and liquidity risk exposures in the banking sector : a comparative exploration between Islamic, conventional and hybrid banks in the Gulf Corporation Council region." Thesis, Durham University, 2014. http://etheses.dur.ac.uk/10890/.
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Banks as intermediary institutions raise funds by offering deposits and invest them in assets, by means of which they transform the maturities of their positions on the balance sheet. Such a function enables the banks to channel available liquidity into investments whereby they contribute to economic growth. In other words, when banks use their liquid liabilities to finance illiquid assets, they consequently create liquidity and hence promote productive investments that boost the economy. However, as a result of such a function, banks may face the risk of illiquidity that may cause an early liquidation of productive business activities, which in turn may lead to a disruption to the economy. Given the importance of the liquidity transformation function of banks, this research examines the ability of Islamic banks in creating liquidity in a comparative manner with conventional and hybrid banks in the Gulf Corporation Council (GCC) countries. In doing so, this study also explores the key determinants of such a function in the identified bank types. This study, furthermore, assesses the liquidity risk that Islamic banks are exposed to in comparison with conventional and hybrid banks and investigates the significant factors that may affect such exposures in the case of the GCC region. In conducting the empirical study, this research examined 58 GCC commercial banks during the period between 1992 and 2011 through developing two empirical models through panel data regressions with a fixed effects model in relation to the identified aims. In the first empirical model, the results demonstrate that Islamic banks create higher levels of liquidity than conventional and hybrid banks in the examined sample. The results also show that officially supervisory power, stringency on capital regulations and banking activity restrictions negatively and significantly determine the liquidity creation of the examined banks. The empirical results also detect a positive and significant impact of restrictions on the banking market entry standards on liquidity creation. In addition, while this study found that credit risk has a negative and significant impact on liquidity creation, the results show a positive and significant association between liquidity creation and bank size. This study also finds insignificant positive association between GDP and liquidity creation of the examined GCC banks. In the second model in this study, further statistical and empirical evidence demonstrates that Islamic banks are more exposed to liquidity risk than conventional and hybrid banks in the case of the examined sample of the GCC region. In addition, the results show that the stringency on capital regulations, credit risk, banks size and GDP has a negative and significant impact on liquidity risk. Moreover, the results detect that liquid assets and long- term debts are positively associated with liquidity risk exposures. While the empirical results show that the liquid assets significantly affect liquidity risk, the results detect an insignificant impact of long-term debt on the liquidity risk exposures of the examined banks in the GCC region. Accordingly, it can be stated that the empirical results of this study, consistently with the conceptual framework of Islamic financial principles as well as with previous studies, stress the importance of exploring the liquidity creation and liquidity risk in promoting the role of banks in the economic system and highlighting their key determinants that need to be well examined to fully understand the liquidity creation and liquidity risk issues.
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Ghares, Mariem. "La place des valeurs dans la prise de décisions stratégiques : étude comparative entre banque islamique et banque classique." Thesis, Bordeaux 4, 2013. http://www.theses.fr/2013BOR40036.
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Dans ce temps de crise, nombreuses sont les préoccupations qui réclament une moralisation du management. La revendication d’une référence valeurs s’est répandue dans les entreprises afin de servir de catalyseur aux comportements managériaux. L’objectif de cette thèse est d’analyser les valeurs énoncées par les deux types de banques islamiques et classiques, dans une dynamique stratégique afin de déterminer le rôle que peuvent jouer les valeurs dans le processus de prise de décisions stratégiques. D’abord, nous avons recensé les valeurs mises en avant par chaque banque. Ensuite, nous avons tenté de comprendre la perception et l’appropriation de ces valeurs dans leur pratique de management, notamment les projets stratégiques. Enfin, un audit de conformité aux valeurs s’est avéré intéressant pour mesurer les écarts par rapport à l’incarnation des valeurs.Sur le plan méthodologique, cette recherche s’inscrit tout d’abord dans une étude exploratoire dont les résultats vont servir à construire un nouveau cadre théorique d’analyse, ensuite nous avons procédé à une analyse intra-cas pour étudier en profondeur la problématique dans les cas retenus et pour terminer, une analyse inter-cas a eu lieu en vue d’effectuer l’étude comparative qualitativeIn a period of economic crisis, there are more and more concerns about moralizing management methods. Claims of values as a background of managerial behavior are becoming common in business. This thesis has as objective to analyze and compare, in a strategic and dynamical way, the set of values of both conventional and Islamic banks. The aim is to determine the potential role of values in the process of strategic decisions making. First, we identified the set of values displayed by each bank. Then we searched to understand the appropriation of these values in managerial practices especially in strategic projects. Finally, an audit was proposed in order to measure deviations from the displayed values. This research is an exploratory study. Indeed, research results were first used to build a new theoretical framework which served, in a second step, to analyze in depth the selected case studies. Finally, the same framework was again used in order comparative qualitatively these case studies
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Almutairi, Humoud. "A comparison between Islamic and conventional home financing in Kuwait : client perceptions of the facilites offered by the National Bank of Kuwait and Kuwait Finance House." Thesis, Durham University, 2010. http://etheses.dur.ac.uk/543/.
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This study determines the awareness of the Islamic home inance products compared with conventional home financing, as well as clients’ perceptions of home financing, with the National Bank of Kuwait represented as a traditional Bank and the Kuwait Finance House as an example of an Islamic Bank. This comparison is important since it is new in this area and ives the clients an overview about available home finance. In addition, new students can benefit from this study to build on and start from where I finished. The empirical research was conducted utilizing both quantitative and qualitative methods, as well as a case study and interviews, which is a method known as the triangulation technique. Questionnaires were distributed to 200 clients who had applied for home financing from both banks, using 100 clients from each bank. To sum up, it can be argued that an examination of Islamic banking as symbolized by the Kuwait Finance House has revealed that this type of financial institution has experienced a boom and has been successful in establishing itself as a practical substitute to conventional banking, in spite of what have been seen as authoritarian and nonflexible rules and regulations governing the activities of this type of financial institution. Islamic banks have experienced a boom and have been successful in developing alternative methods for attracting and utilizing funds in money-making outlets, regardless of the fact that they are comparative beginners in the field. Future prospects for the banks are even more promising, as experience is likely to improve the capability of these institutions to compete and to improve their performance.
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Benabdelmoula, Faiza. "Les déterminants d’octroi de crédits bancaires aux entreprises : étude comparative entre la banque Conventionnelle et la banque Islamique." Thesis, Université Côte d'Azur (ComUE), 2017. http://www.theses.fr/2017AZUR0030/document.
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Les banques islamiques sont complètement différentes des banques conventionnelles. Elles sont pilotées par les principes de la finance islamique. Lors de la prise de décision pour accorder un crédit, les banques islamiques utilisent des outils et des méthodes spécifiques différents de ceux qui sont utilisés dans les banques conventionnelles. Le processus de décision d’octroi de crédit aux entreprises est complexe dans les deux types de banques. Cette thèse cherche à comprendre ce processus et à comparer les déterminants d’endettement dans les deux catégories de banques dans la mesure où elles n’évaluent pas l’entreprise selon les mêmes critères. Par exemple, le partage du risque, qui est une caractéristique du fonctionnement de la banque Islamique, implique la garantie d’une bonne rentabilité des projets financés. Ainsi, nous avons présenté l’état de l’art des deux types de financement pour mieux comprendre les différences de fonctionnement. Les théories qui ont été sollicitées sont la théorie de Trade Off et la théorie de Pecking Order. La régression sur données de panel confirme que les déterminants d’octroi d’un crédit aux entreprises diffèrent selon la banque. Cette différence est due aux principes spécifiques des banques islamiquesIslamic Banks are thoroughly different from Conventional Banks. They are led by Islamic Finance principles. Indeed, during the decision-making process regarding a loan application from a company, Islamic Banks use their own tools and specific methods. Nevertheless, the two decision-making processes are highly complex. Thus, the aim of our research is to understand the different processes and compare the debt determinants for each kind of bank in so far as they don’t use the same criteria to estimate a company. For example, the risk-sharing, which is one of the features of the Islamic Bank, implies the guarantee of a good Return On Investment. In order to bring some answers relative to the two kind of financing, we exposed the state of the art. We notably mobilized two theories: The Trade Off Theory and the Pecking Order Theory. The regression in panel data confirmed that the Islamic Bank and the Conventional Bank don’t lean on the same determinants in their decision-making process. The specific principles of the Islamic Bank explain this difference
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Abedifar, Pejman. "Issues in islamic and conventional banking." Limoges, 2013. http://aurore.unilim.fr/theses/nxfile/default/38ef8099-4bde-4264-b3aa-a882f13e4f29/blobholder:0/2013LIMO1008.pdf.
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This dissertation comprises three chapters. The first chapter explores risk and stability features of Islamic banking using a sample of 553 banks from 24 countries between 1999 and 2009. The results show that small Islamic banks have lower credit and insolvency risks than their conventional Counterparts. Little evidence is found to support that Islamic banks charge rents to their customers for offering Sharia compliant financial products. Moreover, the loan quality of Islamic banks is less responsive to domestic interest rates compared to conventional banks. In the second chapter, using quarterly data of 7,578 U. S. Community banks between 2003 and 2010, the impact of seven non-interest income businesses on bank lending is studied. The findings show that for banks with total assets above100 million non-interest income activities influence credit risk and loan portfolio compositions. Banks which emphasize fiduciary and life insurance businesses appear to have a lower credit risk. Moreover, a greater reliance on loan servicing is associated with lower lending-deposit spreads. The results provide little evidence to support whether cost complementarity can explain the joint production of non-interest income and lending. The third chapter analyses whether the coexistence of Islamic banks alongside conventional banks has any significant influence on the size and quality of the banking system and economic growth. The possible impact of Islamic banking presence on the performance of conventional banks is also examined. 22 Muslim countries with a dual banking system during the 1999-2009 period are studied. The results show a positive relationship between the market share of Islamic banks and savings mobilization. The operation of more efficient Islamic banks improves credit allocation across private and Governmental sectors and reduces lending-deposit spreads. Moreover, a larger market share of Islamic banking is associated with lower credit risk and cost inefficiency, but higher lending-deposit spreads of small conventional banks in certain countriesCette thèse est composée de trois chapitres. Le premier chapitre explore les problématiques de risque et de stabilité de l'activité des banque Islamiques en utilisant un échantillon de 553 banques réparties dans 24 pays entre 1999 et 2009. Les résultats montrent que les banques islamiques de petite taille ont des risques de crédits et d'insolvabilité plus faibles que leurs homologues dans la banque traditionnelle. Il existe en revanche peu d'éléments pour soutenir l'existence de charges imposées par les banques islamiques en contrepartie de leur offre de produits compatibles avec la Sharia. En outre, l'étude montre que la qualité des crédits est moins sensible aux variations des taux d'intérêts domestiques pour les banques islamiques que pour les banques traditionnelles. Le second chapitre utilise des données collectées trimestriellement pour 7,578 banques Américaines entre 2003 et 2010 dans le but d'étudier l'impact de sept activités distinctes, sources de revenus hors intérêts, sur l'activité de crédit bancaire. Les résultats montrent que les activités sources de revenus hors intérêts influencent à la fois la composition du portefeuille de prêts et le risque de crédits des banques disposant d'un total de l'actif dépassant les 100 millions de dollar. Les banques qui privilégient les activités d'assurances vies et fiduciaires présentent des niveaux de risques de crédits plus faibles. De plus, une dépendance accrue à l'activité d'octroi de crédit entraîne des marges réduites sur l'activité de crédit. Il est cependant difficile de se prononcer sur une éventuelle complémentarité des coûts qui expliquerait la double tenue d'activités hors d'intérêts et d'activités de crédits. Enfin, le troisième chapitre de la thèse analyse la coexistence des banques Islamiques aux côtés des banques traditionnelles et tout particulièrement son influence sur la croissance économique et sur la qualité et la taille du système bancaire. Ce chapitre s'intéresse aussi à l'éventuel impact de la présence des banques Islamiques sur les performances des banques traditionnelles. L’étude porte sur 22 pays musulmans présentant les deux types de banque au sein de leurs systèmes bancaires sur la période 1999- 2009. Les résultats font apparaître une relation positive entre la part de marché des banques Islamiques et la mobilisation de l'épargne. La présence des banques Islamiques les plus efficientes améliore l'allocation de crédits entre les secteurs privés et publics tout en réduisant les marges d'intérêt sur les crédits. En outre, les résultats font état d'un risque de crédit et d'inefficiences-coûts plus faibles lorsque la part de marché des banques Islamique est plus élevée, au prix en revanche de marges de crédits plus élevées appliquées par les banques traditionnelles de taille modeste dans certains pays de l'échantillon
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Ozturk, Huseyin. "Three essays in Turkish banking : development banks, Islamic banks and commercial banks." Thesis, University of Leicester, 2015. http://hdl.handle.net/2381/31399.
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This thesis is composed of three empirical chapters each of which examines separate segments of Turkish banking system from different perspectives. First empirical chapter investigates regional loan distribution of development banks. The findings in this chapter suggest that political connection has played a significant role in development lending. There is also geographical bias which leads to higher volumes of loans in the regions close to the capital city. Second empirical chapter examines Islamic banks and compares them with conventional banks in terms of profitability and competition grounds. The results reveal that Islamic banks earn more returns with respect to conventional banks. The results also suggest that the regulatory changes of the last decade improve market power of these banks. The last empirical chapter investigates micro structure of Repo and Reverse Repo Market of Turkey in which only commercial banks can transact. This chapter initially presents the network topologies of this market that helps one to understand the characteristics of complex network in this market. This chapter then computes a connectivity measure and investigates the drivers of connectivity out of domestic and external factors. Although results provide very rich insights, external factors dominate the behaviour of network in this market.
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Ben, Amar Amine. "Les canaux de transmission de la politique monétaire en finance non-conventionnelle." Thesis, Paris Sciences et Lettres (ComUE), 2018. http://www.theses.fr/2018PSLED037.
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Gouvernée par un socle juridique d’inspiration religieuse, le fonctionnement de la banque islamique est, sur le plan théorique, différent de celui de la banque conventionnelle. Bien que la littérature portant sur les mécanismes de transmission de la politique monétaire dans un cadre conventionnel soit abondante, rares sont les travaux, théoriques et empiriques, qui examinent le rôle des banques islamiques dans cette transmission. En effet, la littérature existante ne présente pas de schéma analytique complet permettant d’appréhender clairement le rôle des banques islamiques dans la transmission de la politique monétaire, et d'identifier et spécifier la nature des interactions entre banques islamiques et banques conventionnelles. L’ambition de la présente thèse, structurée en trois chapitres, consiste donc à étudier par quels mécanismes et dans quelles mesures la banque centrale est susceptible de réguler l’activité économique en présence de banques islamiquesGoverned by a religiously inspired legal framework, Islamic banking is, in theory, different from conventional banking. While the literature on the transmission mechanisms of monetary policy in a conventional framework is abundant, very little research, theoretical and empirical, has been focused directly at the role of Islamic banks in this transmission. Indeed, the existing literature does not present a complete analytical framework allowing a full and clear understanding of the role of Islamic banks in the transmission of monetary policy, and to identify and specify the nature of the interactions between Islamic and conventional banks. The aim of this thesis, made up of three chapters, is to study by which mechanisms and to what extent the central bank is likely to regulate the economic activity in the presence of Islamic banks
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Abdullrahim, Najat. "Service quality of English Islamic banks." Thesis, Bournemouth University, 2010. http://eprints.bournemouth.ac.uk/15833/.
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Britain has the most active and developed Islamic banking sector in the European Union. This sector is set to grow with both Islamic and non-Islamic banks now offering a range of Sharia compliant products. However, are these banks meeting the service quality needs of their customers? Previous studies on service quality within Islamic banks have been restricted to Muslim-based countries and whilst English Muslims will have the same religious beliefs, their values may have been altered by the western society in which they live and work. Hence existing service quality tools are likely to be unsuitable for this market. Using mixed methods, this research developed a modified SERVQUAL model for measuring service quality in English Islamic banks. The resulting instrument is intended to help the managers of Islamic banks based in England to measure their service quality and focus their attention on the service quality dimensions that matter most to Muslim customers Items for the new service quality instrument were taken from the original SERVQUAL model, previous studies that modified SERVQUAL and eight focus groups conducted with members ofthe English Muslim community. The resulting instrument was tested via a questionnaire with more than 300 Muslims in England resulting in the EIBSQ, an English Islamic Banking Service Quality tool. This measures service quality as perceived by English Muslims. Using factor analysis, the instrument includes thirty-four items, which are grouped into five dimensions. The five dimensions are: responsiveness, credibility, Islamic tangibles, accessibility, and bank image. One of the key contributions ofthis thesis is the proposed EIBSQ. Previous studies using SERVQUAL reveal that the use of this original scale in an international context raises a legitimate concern about validity across borders and the scale construct as items can be affected by different contexts. To the researcher's knowledge, very few service quality models have been developed for the Islamic banking industry and none exists to measure the quality of service and customer satisfaction for the English Islamic banking industry.
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Al-Sadah, Anwar Khalifa Ibrahim. "Corporate governance of Islamic banks : its characteristics and effects on stakeholders and the role of Islamic banks' supervisors." Thesis, University of Surrey, 2007. http://epubs.surrey.ac.uk/655/.
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Ahmad, Abu Umar Faruq. "Islamic banking in Bangladesh /." View thesis, 2002. http://library.uws.edu.au/adt-NUWS/public/adt-NUWS20030723.130611/index.html.
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Thesis (Master of Laws (Hons.)) -- University of Western Sydney, 2002."A thesis submitted in fulfillment of the requirement for the degree of Master of Laws (Honours)" Bibliography : leaves 215-221.
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Yip, Hsien Chang John. "Income diversification and performance of Islamic banks." Thesis, University of Manchester, 2012. https://www.research.manchester.ac.uk/portal/en/theses/income-diversification-and-performance-of-islamic-banks(9c528c96-9fab-4ca9-9f8f-d7ef830db6e7).html.
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This thesis investigates the effect of income diversification on the performance of Islamic banks in Malaysia, Saudi Arabia, Kuwait, United Arab Emirates, Bahrain and Qatar where they operate alongside conventional banks in a dual banking system. Accounting data was drawn from 68 conventional and 42 Islamic banks from 1997 to 2009. The main focus was to see whether a greater reliance on non-financing income impacts on earnings quality and if so, how this may vary between Islamic and conventional banks. Commission and fee income, trading income and other non-financing income constitute non-financing income. For conventional banks, this is known as non-interest income, but in Islamic banking the payment and receipt of interest is prohibited so this ‘other income’ is referred to as non-financing income (that is, income unrelated to deposit-taking and loan granting). Islamic banks operate as universal banks and offer retail and wholesale financing plus investment banking services. Using various empirical approaches, we find that non-financing income positively influences banks’ risk-adjusted performance on a net overall impact basis, after taking into account, the consequential indirect impact arising from changes in income diversification (provided that the increase in non-financing income is carried out up until the optimal share of non-financing income of 0.5). Greater income diversification on its own, increases income volatility and this negatively impacts bank’s risk-adjusted performance, more so, when income diversification exceeds the optimal score of 0.5. Islamic banks are found to be more focused on deposit/loan financing and less diversified in terms of non-financing income activities compared to conventional banks. We find that Islamic banks appear to be less susceptible to earnings volatility given their lower diversified income source. Islamic banks have lower profitability (on average) on a risk-adjusted basis when compared to their conventional counterparts.
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Noraini, Mohd Ariffin. "Enhancing transparency and risk reporting in Islamic banks." Thesis, University of Surrey, 2005. http://epubs.surrey.ac.uk/911/.
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Muljawan, Dadang. "An analysis of capital regulation for Islamic banks." Thesis, Loughborough University, 2002. https://dspace.lboro.ac.uk/2134/6803.
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This thesis makes a theoretical contribution to the design of the capital adequacy assessment framework for Islamic banks. The proposed capital regulation is aimed at enhancing the Islamic banks' operational sustainability. The first analytical section in the thesis discusses the nature of sharing contracts. The analysis helps to explain the current reluctance to use sharing contracts by the players in the Islamic banking system. Each individual will always try to optimise his utility, monetarily as well as religiously, as a form of compliance with religious rules. However, in an adverse condition, religious and risk-averse customers will compromise the two utility objectives (i.e. adopting hybrid types of contract that, to some extent, deliver his minimum required financial return besides also complying with religious norms). The second analytical section in the thesis discusses possible improvements to the capital regulation of Islamic banks. This includes the possibility of enhancing the fiduciary as well as the agency roles performed by the Islamic banks. The analysis produces a number of propositions. The first proposition is to require the banks to have prudent assets-liabilities (capital) structures and to have adequate financial cushions. The second proposition is to require the shareholders of Islamic banks to observe a minimum level of financial participation; and to require the banks to disclose crucial financial information to investors. Theoretically, the higher the level of financial participation and the higher the quality of information provided, the better the quality of the contract entered into by the banks and 'their customers. The last part of the discussion, embracing empirical analysis, shows the important role played by capital in absorbing temporary financial shocks (especially when debt-based deposits are dominant). The discussion also covers the possibility of using statistical techniques for assessing the soundness of Islamic banks' operational activities.
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Ismail, Sherif. "Accountability practices of Islamic banks : a stakeholders' perspective." Thesis, University of Plymouth, 2015. http://hdl.handle.net/10026.1/4256.
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This study explores the concept of accountability in Islamic Banks (IB), which may achieve through disclosure. It aims to measuring the bank’s disclosure levels which contains Sharia, Social and Financial (SSF) as well as determinants and consequences of this disclosure. It moreover aims to identify the gap between Islamic banks’ board and stakeholders concerned with the accountabilities priorities of IBs. To achieve these objectives the researcher conducted six empirical studies. The first three empirical studies uses content analysis to measuring compliance level with Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards as well as measuring the and sharia, social and financial disclosure (SSFD). It furthermore adopts Ordinary Least Squares (OLS) to identify the determinants of SSF reporting related to firm characteristics and corporate governance of Board of Directors (BOD) and Sharia Supervisory Board (SSB). The fourth empirical study uses the same method (manual content analysis) and OLS to measuring the economic consequences of SSFD on the firm value through testing the impacts of disclosure on market capitalization and return on assets. The fifth empirical study adopts questionnaire as well as Structural Equation Modelling (SEM) to measures the non-economic consequences of SSFD though surveying the perceptions of stakeholders who deal with IBs about the increasing SSFD on loyalty; trust and satisfaction. Finally, the sixth empirical study uses questionnaire to explore the consequences of SSF practices on the perceptions 600 stakeholders who deal with IBs and non-customers who do not deal with IBs. Highlighting the distinctions between economic and non-economic consequences of disclosure in the study enables the researcher to obtain greater insights into the implications of SSF reporting. Moreover, exploring accountability practices from different viewpoints (management, stakeholders and non-customers) and based on different methods (content analysis and questionnaire) allows the researcher to obtain greater insights into IBs accountabilities’ practices. This study provides several interesting findings. With regard to the disclosure and compliance levels, the study finds a variation between IBs in the number of SSFs disclosed, with a notably low level of non-financial reporting (Sharia and social). It also finds high compliance level with AAOIFI standards related to financial and Sharia reporting and low compliance levels with social reporting requirements. Concerning with the determinants of disclosure; the analysis shows positive significant association of disclosure levels with existing Sharia auditing department; auditor; size and profitability. It also finds that corporate governance mechanisms play an important role in improving SSF reporting. The analysis indicates that corporate governance mechanism of board of directors (BOD) as well as Sharia supervisory board (SSB) are the main determinants behind the disclosure levels for IBs such as SSB size, SSB reputation; BOD independence, duality in position and ownership structure. Concerned with the economic consequences of disclosure, the study finds that Sharia, social and overall disclosures have a positive impact on Firm Value (FV) based on the accounting-based measure (ROA). It moreover finds that Sharia and overall disclosure has a positive significant impact on the FV based on market-based measure (Market Capitalization). It argues that the association between disclosure and FV is sensitive to the category of disclosure and the proxy employed for FV. Consequently, the study provides evidence that the SSF disclosures not derived from the same factors, and both have a different impact on firm value. With regard to the non-economic consequences of disclosure, the results indicate that there is a significant association between disclosure and stakeholders’ trust, satisfaction, and loyalty. The results furthermore indicate that there is a partial mediating of trust and satisfaction in the relationship between disclosure and loyalty. A pyramid of IBs’ accountabilities from stakeholders’ perspectives shows the importance of Sharia, then financial and social accountability for both stakeholders and non-customers. It moreover shows that the main criterion of stakeholder’s selection of IBs was Sharia, financial then social factors. Stakeholders who deal with IBs are satisfied about the practices of these banks. Both of groups believe that IBs may guide by Sharia, financial then social objectives. The results identifies gap between the orientation of IBs’ board based on the disclosure and orientation of stakeholders and non-customers based on their perceptions towards SSF accountability. The main originality for this study is measuring SSFD for most of Islamic banks around the world from different perspectives and methods as well as identifies the main determinants and consequences of this disclosure. These results have several implications for regulators, policy makers, managers, IBs, investors, FASB and AAOIFI. For instance, the present study has revealed that disclosure of SSFs - especially non-financial ones - was limited in many annual reports as well as websites. Therefore, regulatory bodies may identify a minimum level of SSFs to publish by each IB. The study has crucial implications to how IBs may improve its Sharia compliance disclosures to create a competitive advantage. The present study is one of the first to investigate the determinants and consequences for SSF disclosure for IBs based on a holistic model. Moreover, the current study is one of the first to investigate the non-economic consequences for corporate disclosure. The current study has some limitations, in either sample or data; disclosure indices; approach; or in its research methodology, which have to consider as potential avenues for future research.
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Lall, Rabia D. "Islamic finance versus conventional finance and the taxation consequences." Master's thesis, University of Cape Town, 2013. http://hdl.handle.net/11427/5905.
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Includes abstract.Includes bibliographical references.
The focus of this research paper is to discuss the underlying principles of Islamic finance and its tax implications for investors and financial institutions. The nature of Islamic financial products is compared to its conventional financial counterpart to identify whether differences exist between Islamic and conventional finance from a tax perspective. The proposed changes to the South African Income Tax Act No. 58 of 1962 relating to Islamic finance contain deeming provisions to provide tax neutrality between Islamic and conventional finance. It appears that certain international tax issues for Islamic finance have not yet been addressed by the proposed changes and will have to be considered for the tax neutrality to be achieved.
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Ismail, Abdul Ghafar. "Monetary policy in deregulated commercial banks and in the presence of Islamic banks." Thesis, University of Southampton, 1994. https://eprints.soton.ac.uk/421966/.
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Shaharuddin, Amir. "A study on Mudarabah in Islamic law and its application in Malaysian Islamic banks." Thesis, University of Exeter, 2010. http://hdl.handle.net/10036/107900.
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The contrast between the theory and practice of Islamic banking is generally acknowledged by many scholars. After more than three decades in operation, the rapid growth of the Islamic banking industry is, in reality being driven by the application of the debt-like contracts (e.g. murÁbaÎah and ijÁrah) rather than the profit and loss sharing contracts (e.g. muÃÁrabah and mushÁrakah). As the adaptation of the former contracts creates "unauthentic" Islamic financial products, many have questioned their compliance with sharÐÝah principles. The present study analyses this issue by examining the application of muÃÁrabah rules in Malaysian Islamic banking practices. It evaluates the extent to which the current practices fulfil the principles and the ethical framework of the muÃÁrabah contract as propounded by the classical jurists. The study also analyses the justifications of Malaysian sharÐÝah scholars for modification of the doctrine, adapting it to the modern banking business. The study found that the local sharÐÝah scholars have adopted an incoherent legal methodology when making their ijtihÁd. They can be very rigid, concentrating solely on the legal technicality and at the same time be very flexible, adapting an unregulated doctrine of maÒlaÎah. Therefore, some of their resolutions could be seen as contradictory to the rulings found in classical fiqh.
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Basri, Mohd Faizal. "The performance of Malaysian Islamic banking industry and the impact of foreign Islamic banks." Thesis, Durham University, 2016. http://etheses.dur.ac.uk/11580/.
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Malaysia’s determination to become a hub for Islamic banking in Southeast Asia has led the Central Bank of Malaysia to grant licenses to foreign Islamic banks to operate in the country. Due to the intense competition among Islamic banks, the introduction of more innovative products is projected to tap investment opportunities not only for Malaysia but also for the rapidly growing Southeast Asian region. This research assesses the significance of Malaysian Islamic banking since the introduction of the first Islamic bank two decades ago, and evaluates the competition among the Islamic banks in the country. The research evaluates the impact of foreign Islamic banks in Malaysia by measuring their contribution to the growth of the Malaysian Islamic banking industry. In relation to this, the study is designed to address three primary areas. First, to measure the performance of the Islamic banks in Malaysia by using financial ratios, data envelopment analysis (DEA), and the Malmquist Productivity Index. Second, to compare and evaluate the nature of competition and market structure of the Islamic banks in the country by employing the bank concentration ratio (CRk), Herfindahl-Hirschman Index (HHI), and the Panzar-Rosse (PR) model. Lastly, to validate the relationship between competition among Islamic banks in Malaysia and their financial performance. The selected financial ratios indicated that domestic Islamic banks performed better during the 2005 to 2012 period in terms of profitability, but the foreign Islamic banks excelled in terms of liquidity, risk, and solvency ratios. DEA results showed that the domestic Islamic banks are considered more efficient with the majority of domestic Islamic banks outperforming the foreign Islamic banks. Banks like Maybank Islamic, CIMB Islamic, and Alliance Islamic are considered among the top performers for technical efficiency and scale efficiency. The study also found that based on the Malmquist Productivity Index, the least efficient banks based on DEA have improved in technical efficiency, technology, and total factor productivity (TFP). The study also found that between 2008 and 2012, the Malaysian Islamic banking industry operated in monopolistic competition conditions with a moderately concentrated market structure. The introduction of foreign Islamic banks caused the market structure to become more competitive and less concentrated by comparing the results that include foreign Islamic banks against results generated with a subsample of domestic Islamic banks only. BNM’s financial reform and liberalisation of financial system proved to induce competition making the financial system more resilient, competitive, and dynamic. The Islamic banks have recorded consistent increased annual performance with the under-performing Islamic banks catching up to the top performers.
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Haque, Mohammad Fazal. "Exploring product development process in Islamic banks with special reference to Islamic trade financing." Thesis, Durham University, 2016. http://etheses.dur.ac.uk/11503/.
Full textAbstract:
Islamic banking (IB) is a rapidly growing sector within the global financial system with annual growth of nearly 15%. IB or Shari’ah banking as an alternative mode of banking to the conventional banking is not only restricted to Muslim societies. In particular, after the financial crisis during 2008-2009 when Shari’ah compliant assets passed the resilience test, the operations of IB has increased and geographically expanded to many countries. Today more than 500 institutions spread over globally are practicing Islamic banking and finance. Nevertheless, Islamic banking (IB) is still rather a smaller player compared to the conventional banking. One of the limitations is that IB product range is small compared to conventional banking, because IB products are restricted to remain within the tenets of Shari’ah and must follow the maqasid al- Shari'ah or the objectives of Shari’ah. Development of new products in IB hence is essential for the growth and sustenance of the sector. Therefore, conducting an in-depth study on the product development processes (PDP) in Islamic banks is a matter of academic interest with practical and professional implications. This research, hence, is a product of such motivational factors, which aimed at exploring the PDP through the opinions of participants working in relevant departments of full-fledged Islamic banks and Islamic windows in a number of countries through a questionnaire survey. By aiming that, this research surveyed 22 banks from 8 countries in South East Asia and GCC which are the main hubs of IB today. The survey was conducted through a structured questionnaire, which covered main pillars of PDP including strategy, resources, processes and Shari’ah approval processes. A special focus was given to trade financing products to have a product level deeper understanding. The research findings enabled a deeper understanding of the product development processes among Islamic banks. First, the broad finding indicated that though most of the banks' overall strategy and mission-vision statements talked about innovation at high level, but at the implementation level the focus were diluted. As per the findings 95% of the banks overall strategy agreed for innovation but only 50% banks allocated budget and 63% of banks put target for number of new products to be developed. Hence, as indicated by this study, the Islamic banks were in general slow on giving priority towards the development of new products. Second, the deeper findings of the study revealed that the strategies of product development are not standard among the Islamic banks, as various factors influence the product development. First geographical location is an important factor that influences the PDP. Second the nature of IB business (full-fledged or Islamic window) plays a role. Similarly the age, size and ownership structure of the Islamic bank are also important factors of influence in PDP. As examples, the strategies and product development processes in Malaysia vary with Bangladesh and that in GCC; the Islamic windows of conventional banks show significantly different results in developing new Islamic products compared to full-fledged Islamic banks. By emphasizing that larger product range is a critical success factor of growth for IB, this research provides a valuable contribution to the deeper understanding of PDP in Islamic banks.
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Suleman, Yasser. "The legislative challenges of Islamic banks in South Africa." Thesis, Stellenbosch : Stellenbosch University, 2011. http://hdl.handle.net/10019.1/21644.
Full textAbstract:
Thesis (MBA)--Stellenbosch University, 2011.The Islamic Banking industry has been one of the fastest growing industries worldwide with a compound annual growth rate of 28% between 2006 and 2009(Reuters, 2010). These growth rates were experienced amidst the worst economic meltdown the world has seen in decades. This is a clear indication that there is a high level of confidence in the industry. Although the industry has existed for centuries, the past few decades have brought about a revival in Islamic banking. Many Western countries are recognising the industry’s importance and have taken various steps in supporting the establishment of it. South Africa has also taken such steps and has a vision of becoming a hub for Islamic banking on the African continent. This mini thesis examines the differences in nature of the underlying principles of Islamic and conventional banking which then brings to the fore the various challenges that exist in the unhindered functioning of Islamic banks within Western countries. These challenges revolve around institutional and legal frameworks, regulatory and supervisory bodies, South African Reserve Bank requirements, interest, taxation and conceptual understandings. In order to provide recommendations to address these challenges, case studies of Islamic banking in both, Islamic and Western countries were conducted. These case studies provided insight into how countries have addressed similar challenges and to what degree were they successful. This provided the basis from which recommendations were made for Islamic banking to function efficiently and effectively in South Africa and for the country to achieve its goal of becoming a hub of Islamic banking on the African continent.