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Article
Publication date: 24 April 2024

Arushi Jain

This study empirically demonstrates a contradiction between pillar 3 of Basel norms III and the designation of Systemically Important Banks (SIBs), also known as Too Big to Fail…

Abstract

Purpose

This study empirically demonstrates a contradiction between pillar 3 of Basel norms III and the designation of Systemically Important Banks (SIBs), also known as Too Big to Fail (TBTF). The objective of this study is threefold, which has been approached in a phased manner. The first is to determine the systemic importance of the banks under study; second, to examine if market discipline exists at different levels of systemic importance of banks and lastly, to examine if the strength of market discipline varies at different levels of systemic importance.

Design/methodology/approach

This study is based on all the public and private sector banks operating in the Indian banking sector. The Gaussian Mixture Model algorithm has been utilized to classify banks into distinct levels of systemic importance. Thereafter, market discipline has been observed by analyzing depositors' sentiments toward banks' risk (CAMEL indicators). The analysis has been performed by employing the system Generalized Method of Moments (GMM) to estimate models with different dependent variables.

Findings

The findings affirm the existence of market discipline across all levels of systemic importance. However, the strength of market discipline varies with the systemic importance of the banks, with weak market discipline being a negative externality of the SIBs designation.

Originality/value

By employing the Gaussian Mixture Model algorithm to develop a framework for categorizing banks on the basis of their systemic importance, this study is the first to go beyond the conventional method as outlined by the Reserve Bank of India (RBI).

Details

The Journal of Risk Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 3 May 2023

Rabia Asif and Adeel Nasir

This study aims to provide a comprehensive bibliometric investigation of the antecedents to financial stability in Islamic banking, a transition economy with a volatile stock…

Abstract

Purpose

This study aims to provide a comprehensive bibliometric investigation of the antecedents to financial stability in Islamic banking, a transition economy with a volatile stock market focusing on banks following the Shariah approach.

Design/methodology/approach

The data for this analysis was extracted from the Scopus database, which combines a comprehensively crafted abstract and citation database with augmented data and linked scholarly works across various disciplines. It quickly finds relevant research and provides access to reliable data and analytical tools. This study deploys “bibliometrix 3.0,” a biblioshiny R-package for influential structure and the VOS viewer for intellectual structure.

Findings

The investigation’s main findings revealed that 1,910 documents were published from 1987 to 2022. Published manuscripts received 39,050 citations, with an average of 10.18 citations per year. However, the instructed empirical research was experienced during 2009 and 2020, while earlier periods (1987–2008) were relatively inactive where banking was considered protective in the presence of BASEL-II capital accords regulations. While the International Journal of Bank Market has been at the top of the list to publish articles related to the area under investigation, the Journal of Banking and Finance is ranked one of the most cited articles. Malaysia has been at the top of the list of countries to research Islamic Sharia compliance principles in the banking industry, and International Islamic University Malaysia has produced enough evidence in this regard. The intellectual structure provided essential foundations for future research, and the bibliometric coupling approach was used.

Practical implications

While most of the banking research has been conducted to determine the banking business efficiency, risk and profitability, little focus is given to financial stability and that too concerning the Islamic banks. Therefore, researchers need to investigate this horizon from an Islamic banking point of view and focus on key issues that discriminate between Islamic and conventional banks in determining their stability level.

Originality/value

Briefly, to the best of the authors’ knowledge, this study would be the first to provide bibliometric information about financial stability keeping in view the sample data from banks with the Shariah approach. Furthermore, the proven analysis demonstrates a novel contribution that financially stable Islamic banks might strengthen the financial industry and overall economy.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 April 2024

Raheel Safdar, Afira Fatima and Memoona Sajid

This study aims to investigate differences between Islamic and conventional banks in Pakistan with respect to their operational efficiency, liquidity risk and asset quality…

Abstract

Purpose

This study aims to investigate differences between Islamic and conventional banks in Pakistan with respect to their operational efficiency, liquidity risk and asset quality. Importantly, in addition to full-fledged Islamic and conventional banks, this study also investigates a more recently emerged breed of hybrid banks, i.e. Islamic divisions of conventional banks.

Design/methodology/approach

Data for the period 2011–2020 was collected from financial reports of all full-fledged Islamic banks (5), Islamic banking divisions of conventional banks (8) and conventional banks (20) in Pakistan. Logistic regressions were designed to test the proposed hypotheses.

Findings

The findings suggest that full-fledged Islamic banks are operationally less efficient and experience higher liquidity risk than conventional banks. However, the asset quality of Islamic banks is better than that of conventional banks. Next, in the robustness analysis, the authors extended the sample size by adding the Islamic divisions (window) of the conventional banks; they found almost the same result except for efficiency which turned out to be non-significantly related to bank type.

Practical implications

The findings are beneficial for investors, depositors, consumers and bank management in understanding the financial features of such as efficiency, liquidity and liquidity risk that separate Islamic banks from conventional banks.

Originality/value

The findings of this study present a clear picture to bankers and practitioners about some financial features of banking systems and depict that Islamic banks are in need to improve their liquidity risk management practices to compete with conventional banks.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 15 April 2024

Sarah Herwald, Simone Voigt and André Uhde

Academic research has intensively analyzed the relationship between market concentration or market power and banking stability but provides ambiguous results, which are summarized…

Abstract

Purpose

Academic research has intensively analyzed the relationship between market concentration or market power and banking stability but provides ambiguous results, which are summarized under the concentration-stability/fragility view. We provide empirical evidence that the mixed results are due to the difficulty of identifying reliable variables to measure concentration and market power.

Design/methodology/approach

Using data from 3,943 banks operating in the European Union (EU)-15 between 2013 and 2020, we employ linear regression models on panel data. Banking market concentration is measured by the Herfindahl–Hirschman Index (HHI), and market power is estimated by the product-specific Lerner Indices for the loan and deposit market, respectively.

Findings

Our analysis reveals a significantly stability-decreasing impact of market concentration (HHI) and a significantly stability-increasing effect of market power (Lerner Indices). In addition, we provide evidence for a weak (or even absent) empirical relationship between the (non)structural measures, challenging the validity of the structure-conduct-performance (SCP) paradigm. Our baseline findings remain robust, especially when controlling for a likely reverse causality.

Originality/value

Our results suggest that the HHI may reflect other factors beyond market power that influence banking stability. Thus, banking supervisors and competition authorities should investigate market concentration and market power simultaneously while considering their joint impact on banking stability.

Details

The Journal of Risk Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 26 March 2024

Achuthy Kottangal and Deepika Purohit

This study aims to analyze how conventional Bedouin weaving techniques have changed through the history of Israel, offering knowledge on the craft’s cultural relevance and…

Abstract

Purpose

This study aims to analyze how conventional Bedouin weaving techniques have changed through the history of Israel, offering knowledge on the craft’s cultural relevance and historical development among the Bedouin people and how their weaving and embroidery differ based on the three main geographic characteristics. It tries to comprehend the causes of the transition from organic to synthetic materials and the part played by the Lakiya Negev Bedouin Weaving women’s cooperative in maintaining this legacy.

Design/methodology/approach

The main goal of this study is to trace the emergence of Bedouin weaving traditions in the Negev Desert using a qualitative research methodology that combines historical analysis and ethnographic investigation. A thorough grasp of the subject’s significance is provided through the data gathering, which consists of interviews, archival research and field observations.

Findings

Through the years, Bedouin weaving techniques have significantly shifted away from using traditional organic materials in favor of synthetic replacements, according to the research. It emphasizes the crucial part played by the Lakiya Negev Bedouin Weaving women’s organization in safeguarding this traditional legacy and giving Bedouin women access to economic prospects.

Research limitations/implications

The limitation of the study includes its emphasis on the Negev region and the Israeli Bedouin community, which may not accurately reflect all Bedouin weaving techniques. Greater regional settings may be explored in future studies.

Practical implications

The investigation emphasizes the value of investing in initiatives for cultural preservation and the empowerment of underprivileged groups through economic possibilities.

Social implications

By preserving ancient weaving techniques, this research enables Bedouin women in the Negev Desert to maintain their cultural identity and socioeconomic well-being.

Originality/value

By emphasizing the socio-cultural dimensions and the organization’s role in preserving traditional craftsmanship in a changing socio-economic environment, this research presents a unique investigation of the evolution of Bedouin weaving techniques in Israel.

Details

Journal of Cultural Heritage Management and Sustainable Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-1266

Keywords

Article
Publication date: 1 April 2024

Ahmad Hidayat bin Md Nor, Aishath Muneeza and Magda Mohsin

This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and…

Abstract

Purpose

This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and post-bankruptcy stages.

Design/methodology/approach

The research adopts a qualitative research method, using a desktop research approach. Primary sources and secondary sources are examined to gather information and draw conclusions.

Findings

This study presents a comprehensive insolvency model designed for Islamic banks, rooted in Shariah principles. The model covers pre-insolvency, bankruptcy (taflis) and post-bankruptcy stages, incorporating key Shariah parameters to ensure adherence to Islamic finance principles. It addresses challenges such as adapting to dynamic financial landscapes and varying interpretations of Shariah principles. Notably, the model recognizes the separate legal personality of Islamic banks and emphasizes transparency, fairness and compliance with religious obligations. In the post-bankruptcy stage, directors are urged to voluntarily settle remaining debts, aligning with ethical and Shariah-compliant standards.

Originality/value

The study contributes to the stability and growth of Shariah-compliant financial systems by extending insolvency principles to Islamic banks, providing a foundation for future research and policymaking specific to this context.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 8 August 2023

Syed Faisal Shah

This paper has analysed the impact of cultural dimensions, investor sentiment and uncertainty on bank stock returns. Also, the study examined the influences of the interaction…

Abstract

Purpose

This paper has analysed the impact of cultural dimensions, investor sentiment and uncertainty on bank stock returns. Also, the study examined the influences of the interaction between cultural dimensions and individual (private) sentiment (investor sentiment).

Design/methodology/approach

To meet the study's objectives, a two-step generalised method of moments estimator was applied to the study sample, which included 105 banks in the nine Middle East and North African region countries between 2010 and 2020.

Findings

The cultural dimensions of individualism and masculinity were found to have a positive and significant effect on banks' buy and hold stock return (BUH). At the same time, power distance and uncertainty avoidance were discovered to have negative effects. Besides, the findings revealed that the interactions of power distance, individual sentiment and uncertainty avoidance had positive and significant relationships with banks' BUH. However, individualism, individual sentiment and masculinity had inverse relationships with banks' BUH. Furthermore, the findings revealed that investor sentiment positively influenced banks' BUH. Finally, uncertainty influenced banks' BUH stock returns positively.

Research limitations/implications

Important implications for participants in the financial sector and governments may be learnt from this study's conclusions. Due to cultural biases, this study's findings suggested that investors overreact in the stock market.

Originality/value

Additionally, this research comprises one of the few studies that have overviewed the link between classical and behavioural finance in MENA countries with distinctive cultural characteristics.

Details

Journal of Economic Studies, vol. 51 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 19 April 2024

Knut S. Vikør

While most West European nations were formed around pre-existing entities that could be called “countries” before the modern age, this was not the case in the Middle East. Some…

Abstract

While most West European nations were formed around pre-existing entities that could be called “countries” before the modern age, this was not the case in the Middle East. Some entities, like Egypt, did have a clear political and cultural identity before colonialism, others, like Algeria, did not. This chapter discusses the four states of the Maghreb: Morocco, Algeria, Tunisia and Libya, through the perspective of “country creation” going into and coming out of colonial rule. We can see here two “models” of fairly similar types of historical development, one showing a gradual process through a protectorate period to relatively stable modern nations, another through violent conquest and direct colonization ending in violent liberation and military and wealthy but fragile states. The article asks whether these models for the history of country creation and the presence or absence of pre-colonial identities can help explain the modern history and nature of these states in the Arab Spring and the years thereafter. Then, a more tentative attempt is made to apply these models to two countries of the Arab east, Syria and Iraq. While local variations ensure that no model can be transferred directly, it can show the importance of studying the historical factors that go into the transition from geographical region to a country with people that can form the basis of a nation.

Details

A Comparative Historical and Typological Approach to the Middle Eastern State System
Type: Book
ISBN: 978-1-83753-122-6

Keywords

Article
Publication date: 12 April 2024

Mohammad Saud Khan, Bronwyn Pamela Wood, Sarfraz Dakhan and Asif Nawaz

This paper aims to examine female entrepreneurship perceptions at the nexus of understandings of Muslim behaviour in Pakistan, the “formula” of Shapero for considering…

Abstract

Purpose

This paper aims to examine female entrepreneurship perceptions at the nexus of understandings of Muslim behaviour in Pakistan, the “formula” of Shapero for considering entrepreneurial intentions and the viewpoints of young Pakistani women.

Design/methodology/approach

Data collected from 555 women between 18 and 30 years of age, undertaking tertiary-level business studies in Pakistan constitute the sample of the study, and structural equation modelling was used to test the hypotheses.

Findings

This study finds that the respondents’ perceptions of Islam positively impact the formula at the feasibility component, whilst also inverting the desirability component, therefore, resulting in a “does not equal” outcome for intentions.

Originality/value

To the best of the authors’ knowledge, this work is one of the first to empirically examine the role of Islamic perception in shaping entrepreneurial intentions through the individual components of desirability, feasibility and propensity to act. It puts forth contextual deliberations for a meaningful heterodoxy in light of female entrepreneurship in an Islamic country.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Open Access
Article
Publication date: 1 November 2023

Hamed Abdelreheem Ead

The purpose of the paper is to showcase the significant achievements of Egypt's scientists in the 20th century across various fields of study such as medicine, physics, chemistry…

Abstract

Purpose

The purpose of the paper is to showcase the significant achievements of Egypt's scientists in the 20th century across various fields of study such as medicine, physics, chemistry, biology, math, geology, astronomy and engineering. The paper highlights the struggles and successes of these scientists, as well as the cultural, social and political factors that influenced their lives and work. The aim is to inspire young people to pursue careers in science and make their own contributions to society by presenting these scientists as role models for hard work and dedication. Ultimately, the paper seeks to promote the importance of science and its impact on society.

Design/methodology/approach

The purpose of this review is to present the scientific biographies of Egypt's most distinguished scientists, primarily in the field of Natural Sciences, in a balanced and comprehensive manner. The work is objective, honest and abstract, avoiding any bias or exaggeration. The author provides a clear and concise methodology, including a brief introduction to the scientist and their field of study, an explanation of their major contributions, the impact of their work on society, any challenges or obstacles faced during their career and their lasting legacy. The aim is to showcase the important achievements of these scientists, their impact on their respective fields and to inspire future generations to pursue scientific careers.

Findings

The group of outstanding scientists in 20th century Egypt were shaped by various factors, including familial upbringing, education, society, political and cultural atmosphere and state support for scientific research. These scientists made significant contributions to various academic disciplines, including medicine, physics, chemistry, biology, mathematics and engineering. Their impact on their communities and cultures has received international acclaim, making them role models for future generations of scientists and researchers. The history of these scientists highlights the importance of educational investments and supporting scientific research to foster innovation and social progress. The encyclopedia serves as a useful tool for students, instructors and education professionals, preserving Egypt's scientific heritage and honouring the scientists' outstanding accomplishments.

Research limitations/implications

The encyclopedia preserves Egypt's scientific heritage, which has been overlooked for political or other reasons. It is a useful tool for a variety of readers, including students, instructors and education professionals, and it offers insights into universally relevant scientific success factors as well as scientific research methodologies. The encyclopedia honours the outstanding scientific accomplishments of Egyptian researchers and their contributions to the world's scientific community.

Practical implications

The practical implications of this paper are several. First, it highlights the importance of education, family upbringing and societal support for scientific research in fostering innovation and social progress. Second, it underscores the need for continued funding and support for scientific research to maintain and build upon the accomplishments of past generations of scientists. Third, it encourages young people to pursue scientific careers and make their own contributions to society. Fourth, it preserves the scientific heritage of Egypt and honors the contributions of its outstanding scientists. Finally, it serves as a useful tool for students, instructors and education professionals seeking to understand the factors underlying scientific success and research methodologies.

Social implications

The social implications of the paper include promoting national pride and cultural identity, raising awareness of the importance of education and scientific research in driving social progress, inspiring future generations of scientists and researchers, reducing socioeconomic disparities and emphasizing the role of society, politics and culture in shaping scientific researchers' personalities and interests.

Originality/value

The paper's originality/value lies in its comprehensive documentation of the scientific biographies of Egypt's most prominent scientists in the 20th century, providing unique insights into the factors that contributed to their development and their impact across various academic disciplines. It preserves Egypt's scientific heritage and inspires future generations of scientists and researchers through the promotion of educational investments and scientific research. The encyclopedia serves as a useful tool for education professionals seeking to understand scientific success factors and research methodologies, emphasizing the importance of supportive and inclusive environments for scientific development.

Details

Journal of Humanities and Applied Social Sciences, vol. 6 no. 2
Type: Research Article
ISSN: 2632-279X

Keywords

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