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1 – 10 of 887Hashem Alshurafat, Omar Arabiat and Maha Shehadeh
This paper aims to explore the intention to adopt the Metaverse in Islamic banks, with a particular focus on evaluating perceived usefulness, ease of use, user satisfaction and…
Abstract
Purpose
This paper aims to explore the intention to adopt the Metaverse in Islamic banks, with a particular focus on evaluating perceived usefulness, ease of use, user satisfaction and the influence of religiosity. Integrating the technology adoption model (TAM) and religiosity intention model, this study will dissect the multidimensional aspects influencing the acceptance of Metaverse technologies.
Design/methodology/approach
Surveying Islamic bank professionals in Jordan, this study used a structured questionnaire and data augmentation to analyze Metaverse adoption factors. Using partial least squares-structural equation modeling, the relationships between ease of use, usefulness, religiosity and satisfaction were explored.
Findings
The study identifies pivotal relationships among perceived usefulness, ease of use, user satisfaction and religiosity in the context of adopting metaverse technologies in Islamic banks in Jordan. Evidence highlights the dominant role of perceived usefulness and ease in influencing both intention to use and satisfaction levels. Religiosity, while not a direct influencer, plays a collaborative role, underscoring a balanced mix of technological and religious elements that will potentially shape the adoption trajectory of metaverse technologies within this specific banking sector.
Practical implications
Integrating metaverse technologies in Islamic banks necessitates balancing technological advances with Sharia compliance. The study underscores the importance of aligning user experience with religious values and fostering innovation within Islamic ethical guidelines.
Originality/value
This study uniquely integrates the TAM and religiosity-intention model to explore metaverse adoption in Islamic banks, unveiling a nuanced interplay between technology and religious values. It offers practical insights for tailoring innovations in the Islamic financial ecosystem.
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This current study draws a comparison between the performance indicators of public sector banks (PSBs) and private sector banks (or non-PSBs) in India. The study controls for the…
Abstract
Purpose
This current study draws a comparison between the performance indicators of public sector banks (PSBs) and private sector banks (or non-PSBs) in India. The study controls for the impact of COVID-19.
Design/methodology/approach
The study uses strongly balanced panel data for seven years of 12 PSBs and 10 non-PSBs from the Nifty PSU Bank Index and Nifty Private Bank Index. The study applies panel data methodology to arrive at the results.
Findings
The study demonstrates that the behavior of indicators of performance and returns volatility for PSBs and non-PSBs differs substantially. While factors like capital adequacy ratio (CAR), cost management (COST), liquidity (LIQ), inflation and economic growth exhibit a similar impact on both categories of Indian banks, the effect of credit risk (RISK), market power (POWER) and COVID-19 on performance and returns stability is different for PSBs and non-PSBs.
Research limitations/implications
There is a limited sample size of banks in India.
Practical implications
PSBs and non-PSBs need distinct treatments when calibrating performance indicators.
Social implications
The performance and stability of banks are essential for society at large, the depositors and the investors.
Originality/value
The study provides vibrant implications for insight for banks to calibrate the variables that determine performance and stability, regulators and policymakers for effective governance of the banking ecosystem and effective utilization of public funds and capital. The findings are relevant for policymaking today, when the government is considering the privatization of a few PSBs.
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The aim of this paper is to investigate and to measure the efficiency of Islamic banks through a comparative study with their conventional counterparts during the coronavirus…
Abstract
Purpose
The aim of this paper is to investigate and to measure the efficiency of Islamic banks through a comparative study with their conventional counterparts during the coronavirus period for the case of MENA region.
Design/methodology/approach
Indeed, this study will use the parametric method for a panel of 92 banks, including 27 Islamic banks and 65 conventional banks, over a ten-year period (2012–2021) and from eight MENA countries, namely, Bahrain, Egypt, Jordan, Kuwait, Qatar, UAE, Yemen and Tunisia.
Findings
The findings show that Islamic banks are more profitable than conventional banks before and during Covid-19, this result can be explained by the effectiveness of Shariah principles, differences in cost control, management and resource allocation. In addition, this study found that conventional banks outperformed Islamic banks after Covid-19.
Originality/value
This is a recent empirical study that investigates a timely and important topic.
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Syaima Binti Adznan, Zulkarnain Bin Muhamad Sori and Shamsher Mohamad
The purpose of this paper is to examine and compare the trend of intellectual capital disclosures (ICD) of Islamic banks under the International Financial Reporting Standards…
Abstract
Purpose
The purpose of this paper is to examine and compare the trend of intellectual capital disclosures (ICD) of Islamic banks under the International Financial Reporting Standards (IFRS) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) regimes over a seven-year period (2012–2018).
Design/methodology/approach
A self-developed checklist was developed to measure the extent of ICD practices of Islamic banks in both regimes.
Findings
The results revealed a moderate increase in ICD practices over the period of the study. However, there is no significant difference in ICD between the two financial reporting regimes i.e. IFRS and AAOIFI-based banks. In fact, most of the IFRS-based banks have better ICD than AAOIFI-based banks throughout the analysis period. This study contributed to the ICD literature by introducing Shariah capital as a new category of information to disclose besides the common disclosure on human capital, relational and structural related information by the Islamic banks.
Practical implications
It is important for Islamic banks to distinguish themselves from conventional banks and ICD can be a conduit to show their uniqueness. The introduction of Shariah capital in this study reflects the main objective of Islamic bank’s existence, and it should become an important element in ICD. In fact, some form of guidelines or policy by regulating agencies could facilitate the ICD by Islamic banks and reflect the truth about their ability to capitalize on Intellectual capital and disclose about these practices to their stakeholders.
Originality/value
The introduction of Shariah capital as a new component to the existing components (i.e. human capital, structural capital and relational capital) of intellectual capital brings a new perspective to the research on ICD of Islamic banks. This paper further contributes to the scarce evidence of ICD of Islamic banks globally.
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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.
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Diego Monferrer Tirado, Lidia Vidal-Meliá, John Cardiff and Keith Quille
This research aims to determine to what extent corporate social responsibility (CSR) actions developed by bank entities in Spain improve the vulnerable customers' emotions and…
Abstract
Purpose
This research aims to determine to what extent corporate social responsibility (CSR) actions developed by bank entities in Spain improve the vulnerable customers' emotions and quality perception of the banking service. Consequently, this increases the quality of their relationship regarding satisfaction, trust and engagement.
Design/methodology/approach
Data from 734 vulnerable banking customers were analyzed through structural equations modeling (EQS 6.2) to test the relationships of the proposed variables.
Findings
Vulnerable customers' emotional disposition exerts a strong influence on their perceived service quality. The antecedent effect is concentrated primarily on the CSR towards the client, with a residual secondary weight on the CSR towards society. These positive service emotions are determinants of the outcome quality perceived by vulnerable customers, directly in terms of higher satisfaction and trust and indirectly through engagement.
Practical implications
This research contributes to understanding how financial service providers should adapt to the specific characteristics and needs of vulnerable clients by adopting a strategy of approach, personalization and humanization of the service that seems to move away from the actions implemented by the banking industry in recent years.
Originality/value
This study has adopted a theoretical and empirical perspective on the impact of CSR on service emotions and outcome quality of vulnerable banking customers. Moreover, banks can adopt a dual conception of CSR: a macro and external scope toward society and a micro and internal scope toward customers.
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Othmane Touri, Rida Ahroum and Boujemâa Achchab
The displaced commercial risk is one of the specific risks in the Islamic finance that creates a serious debate among practitioners and researchers about its management. The…
Abstract
Purpose
The displaced commercial risk is one of the specific risks in the Islamic finance that creates a serious debate among practitioners and researchers about its management. The purpose of this paper is to assess a new approach to manage this risk using machine learning algorithms.
Design/methodology/approach
To attempt this purpose, the authors use several machine learning algorithms applied to a set of financial data related to banks from different regions and consider the deposit variation intensity as an indicator.
Findings
Results show acceptable prediction accuracy. The model could be used to optimize the prudential reserves for banks and the incomes distributed to depositors.
Research limitations/implications
However, the model uses several variables as proxies since data are not available for some specific indicators, such as the profit equalization reserves and the investment risk reserves.
Originality/value
Previous studies have analyzed the origin and impact of DCR. To the best of authors’ knowledge, none of them has provided an ex ante management tool for this risk. Furthermore, the authors suggest the use of a new approach based on machine learning algorithms.
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Moutaz Abojeib, Mohammad Ghaith Mahaini and Mhd Osama Alchaar
This paper aims to investigate the zakat disclosure of Islamic banks at the global level. It is important for depositors and shareholders of Islamic banks to know whether the bank…
Abstract
Purpose
This paper aims to investigate the zakat disclosure of Islamic banks at the global level. It is important for depositors and shareholders of Islamic banks to know whether the bank is paying zakat on their behalf or not. Additionally, disclosing the calculation method used is also necessary to eliminate uncertainties resulting from ambiguous reporting that can mislead the stakeholders. This issue becomes more obvious when considering that depositors and shareholders may have different accounts with different Islamic banks, which makes it quite confusing to have multiple ways of zakat calculation or different approaches on who is the party that pays it. This study analyzes the current practices across 13 countries and recommends best practices.
Design/methodology/approach
The objective of the paper objective is achieved through analyzing the annual reports of 34 Islamic banks in 13 countries for the years 2014 and 2019. It further quantifies the zakat disclosure by constructing a zakat disclosure index. This index considers the disclosure of four major constituents covering the amount and the responsibility for payment, the calculation method, the involvement of the Shariah board and the zakat duty on investment account holders. For further robustness, this study is further supported by content analysis measures using the zakat word count in annual reports.
Findings
The results indicate a major issue in zakat disclosure. The overall average of disclosure index is low. Most of the banks disclose limited information about zakat, such as the amount and the responsibility for payment, in their annual reports. Less than 40% of the examined banks disclose information about the role of the Shariah board in zakat calculation, and a very limited number of banks (9%) are found to disclose enough details about the zakat calculation method. Furthermore, none of the examined banks mentions the zakat due for the investment accounts. Overall, zakat disclosure of most of the banks, whether following Accounting and Auditing Organization for Islamic Financial Institutions or otherwise, are found to be not up to the expected best practices.
Research limitations/implications
Among the limitations of this study is the sole dependence on annual reports of Islamic banks without considering other means that banks might be using to communicate zakat-related matters to stakeholders. Examples of such means include a website, social media and other direct or indirect marketing materials. Additionally, the results of this study shall not be overgeneralized regarding differences between countries because the sample does not include all Islamic banks in the selected country. Future research may use the proposed zakat disclosure index on a country-specific data sample.
Practical implications
The findings have significant implications as they raise a serious concern regarding the sufficiency of the Islamic banks’ disclosure about a core area of their responsibility, that is, the zakat. The index developed can be a tentative measure of zakat disclosure transparency pending further review. The result further suggests looking at the composition of members of Shariah boards to include at least one member with a sound accounting background. Zakat is a religious duty; therefore, a perceived lack of transparency on the amount, method of calculation and how the zakat is paid may affect the future injection of capital into Islamic banks.
Originality/value
An important contribution of this paper lies in the fact that the collected data is not provided in any available database. Rather, it is manually captured from the individual annual reports of reviewed Islamic banks. Further, this paper proposes an index to measure the zakat disclosure at bank and country levels.
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This study aims to investigate the role of bank ownership (foreign versus domestic) and the type of service (Islamic versus conventional) on bank lending to large enterprises and…
Abstract
Purpose
This study aims to investigate the role of bank ownership (foreign versus domestic) and the type of service (Islamic versus conventional) on bank lending to large enterprises and small and medium enterprises (SMEs).
Design/methodology/approach
Based on previous literature, the study proposes that foreign banks lend more to large enterprises and less to SMEs than domestic banks do. It also proposes that Islamic banks lend more to SMEs than conventional banks do. It utilizes unique hand-collected data of Jordanian banks from 2007 to 2018 to carry out its investigation. It applies regression estimation methods and propensity score matching to test its hypotheses.
Findings
Consistent with prior empirical evidence, the findings show that foreign banks lend significantly less (more) to SMEs (large enterprises) than their domestic counterparts. However, the findings indicate that Islamic banks lend significantly less to SMEs than their conventional counterparts. Further analysis shows that Islamic banks operating in Jordan are ultimately owned by foreign investors hence their incentives to adopt full features of Islamic financial instruments are confounded by their incentives to utilize transaction lending technologies which in turn attenuates the expected positive impact of Islamic banking services on SMEs finance.
Originality/value
This research provides novel evidence on the impact of Islamic banks on SMEs finance as the results suggest that the success of Islamic finance in bridging the gap of SMEs finance is conditional on embracing its full features.
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Charles Ackah, Gertrude Dzifa Torvikey, Faustina Obeng Adomaa and Kofi Takyi Asante
The marginalisation of female entrepreneurs in accessing credit is well documented. Yet, how female entrepreneurs navigate through the marginalisation to gain funding is…
Abstract
Purpose
The marginalisation of female entrepreneurs in accessing credit is well documented. Yet, how female entrepreneurs navigate through the marginalisation to gain funding is under-explored.
Design/methodology/approach
The authors address this gap using qualitative data from 30 female entrepreneurs in three neighbourhoods with varying socio-economic characteristics in Ghana's capital, Accra.
Findings
The authors find a marked aversion to bank loans among respondents. Consequently, they nurtured trust in their social circles in order to facilitate access to informal credit from internal (e.g. family and friends) and external (e.g. trade credit, associations and religious organisations) sources. This aversion to loans from formal financial institutions (FFIs) had a socio-cultural aspect, including cumbersome application procedures, a deep-rooted fear of the social consequences of defaulting and religious prohibition against interest payment for Islamic traders.
Social implications
This paper shows that providing formal access to credit is not enough to support women's entrepreneurship if the socio-cultural factors inhibiting women's access to credit from FFIs are not addressed.
Originality/value
The findings suggest that trust is an important factor that bridges the gap in female entrepreneurs' access to funding given their heavy reliance on informal sources of funding.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0090
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