Conventional bank and islamic banking as institutions: Similarities and differences
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| internalnotes | Abalkhail, M. and Presley, J.R. (2000), “How informal risk capital investors manage asymmetric information in profit/loss-sharing contracts”, in Iqbal, M. and Llewellyn, D.T. (Eds) (2002), Islamic Banking and Finance, New Perspectives on Profit-Sharing and Risk, Edward Elgar, Cheltenham; Northampton, MA, pp. 111-134. Abu-Bader, S. and Abu-Qarn, A.S. (2008), “Financial development and economic growth: the Egyptian experience”, Journal of Policy Modeling, Vol. 30 No. 5, pp. 887-898. Agarwal, S., Chomsisengphet, S., Liu, C. and Rhee, S.G. (2007), “Earnings management behaviors under different economic environments: evidence from Japanese banks”, Finance, Vol. 16 No. 3, pp. 429-443. Ajakaiye, O. and Tarp, F. (2012), “Finance and economic development in Africa: introduction and overview”, Journal of African Economies, Vol. 21 Nos 3/9. Al-Azuhaily, W. (2003), “Financial transactions in Islamic Jurispudence”, in Sudin, H. and Wan, N. (Eds) (2009), History and Development of the Islamic banking system. Islamic Finance and Banking System: Philosophies, Principles and Practice, McGraw Hill, pp. 93-162. Al-delaimi, K. and Battall, A.H. (2006), “Using data envelopment analysis to measure cost efficiency with an application on Islamic banks”, Vol. 4 No. 1, pp. 134-156. Al-Malkawi, H.A.N. and Abdullah, N. (2011), “Finance-growth Nexus: evidence from a panel of MENA countries”, International Research Journal of Finance and Economics, Vol. 63 No. 63. Ali, S. (2012), “Efficiency in Islamic banking during a financial crisis: an empirical analysis of forty-seven banks”, Journal of Applied Finance & Banking, Vol. 2 No. 3, pp. 163-197. Amer, R. and Shafiq, A. (2010), “Two paths to development; capitalist vs Islamic approach”, Islamic Banking and Finance, Evolution of the Islamic Financial System, Vol. 2, Routledge Taylor & Francis Group. Andersen, T.B., Jones, S. and Tarp, F. (2011), “The finance-growth thesis: a sceptical assessment”, Journal of African Economies, Vol. 21 Nos 57/88. Ankarloo, D. (2006), “New institutional economics and economic history”, paper presented at the Historical Materialism Conference: “New Directions in Marxist Theory”, London, 8-10 December, pp. 8-10. Azziaty, E. (2010), “Sistem matawang dawlah uthmaniyyah: aspek pembuatan, nilai dan transaksi pada Abad ke-16M”, Persidangan e-Muamalat, Jakim. Beck, T., Demirgüç-Kunt, A. and Merrouche, O. (2012), “Islamic vs. conventional banking: business model, efficiency and stability”, Journal of Banking & Finance, Vol. 37 No. 2, pp. 433-447. Beck, T., Levine, R. and Loayza, N. (2000), “Finance and the sources of growth”, Journal of Financial Economics, Vol. 58 No. 58, pp. 261-300. Bencivenga, V.R. and Smith, B.D. (1991), “Financial intermediation and endogenous growth”, The Review of Economic Studies, Vol. 58 No. 2, pp. 195-209. Bertacco, G. (2011), “Are bank special? Some notes on Tobin’s theory of financial intermediaries”, Journal of The Asia Pacific Economy, Vol. 16 No. 3, pp. 331-353. Bhattacharya, S. and Thakor, A.V. (1993), “Contemporary banking theory”, Journal of Financial Intermediation, Vol. 3 No. 1, pp. 2-50. Bieri, D.S. (2009), “Financial stability, the basel process and the new geography of regulation”, Cambridge Journal of Regions, Economy and Society, Vol. 2 No. 2, pp. 303-331. Boot, A.W.A., Thakor, A.V. and Boot, A.W.A. (1997), “Financial system architecture financial system architecture”, Vol. 10 No. 3, pp. 693-733. Bossone, B. (2001), What Makes Banks Special? A Study on Banking, Finance, and Economic Development, The World Bank, Washington, DC. Boulila, G. and Trabelsi, M. (2004), “The causality issue in the finance and growth nexus: empirical evidence from MENA countries”, Review of Middle East Economics and Finance, Vol. 2 No. 2, pp. 35-50. Boumediene, A. (2011), “Is credit risk really higher in Islamic banks?”, The Journal of Credit Risk, Vol. 7 No. 3, pp. 97-129. Brousseau, E. and Glachant, J.-M. (2008), “New institutional economics: a guidebook”, in Huang, A. (Ed.) (2010), “The role of new institutional economics in licensing contracts”, MBAA Proceedings Paper. Chakraborty, S. and Ray, T. (2004), “Bank-based versus market-based financial systems: a growth-theoretic analysis”, Journal of Monetary Economics, Vol. 53 No. 2, pp. 329-350. Chapra, M.U. (2008), “The global financial crisis: can Islamic finance help minimize the severity and frequency of such a crisis in the future”, unpublished paper presented at the Forum on the Global Financial Crisis, Islamic Development Bank, 25 October. Choong, C. and Chan, S. (2011), “Financial development and economic growth: a review”, Vol. 5 No. 6, pp. 2017-2027. Chortareas, G.E., Girardone, C. and Ventouri, A. (2012), “Bank supervision, regulation, and efficiency: evidence from the European Union”, Journal of Financial Stability, Vol. 8 No. 4, pp. 292-302. Cohen, W.M. and Levinthal, D.A. (1990), “Absorptive capacity: a new perspective on learning and innovation”, Administrative Science Quarterly, Vol. 35 No. 1, pp. 128-152. Ismail, A.G. and Tohirin, A. (2010), “Islamic law and finance”, Humanomics, Vol. 26 No. 3, pp. 178-199. Coase, R.H. (1937), “The nature of the firm”, Economica, Vol. 4 No. 16, pp. 386-405. Danesh, I.A. (2007), “An investigation of Islamic banks performance: a comparison with conventional banks in Ftiti”. Demetriades, P.O. and Hussein, K.A. (1996), “Does financial development cause economic growth? Time-series evidence from 16 countries”, Journal of Development Economics, Vol. 51 No. 2, pp. 387-411. Diamond, D.W. (1984), “Financial intermediation and delegated monitoring”, The Review of Economic Studies, Vol. 51 No. 3, pp. 393-414. 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| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=12231 |
| spelling | 12231 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=12231 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Article Journal UniSZA Unisza unisza image/jpeg inches 96 96 86 86 750 1413 2015-08-16 10:34:28 1413x750 6531-01-FH02-FESP-15-03667.jpg UniSZA Private Access Conventional bank and islamic banking as institutions: Similarities and differences Humanomics Purpose The aim of this paper is to discuss the similarities and differences of both conventional and Islamic financial institutions from various institutional perspectives. Design/methodology/approach This conceptual paper describes the insights held by the financial institution theory which is discussed from the perspectives of the economics of the financial institution, legal environment, the political aspect of an institution, the philosophical underpinning, the components of institution and also the ethical role of institution. Then, this paper will proceed to justify the similarities and differences that have been observed between both institutions. Findings Discussions in this paper will reveal that specifically specific similarity is prevalent on the nature of the supervisory role. The differences between both institutions from the aspects of business organization, economic roles and law of origin have also been found. Research limitations/implications The similarities and differences that are established on both institutions will affect the structure of the financial contract and the design of financial systems. Originality/value The paper will contribute a new knowledge specifically on the design of the Islamic financial contract based on Shariah law at the initial phase. 31 3 Emerald Group Publishing Ltd. Emerald Group Publishing Ltd. 272-298 Abalkhail, M. and Presley, J.R. (2000), “How informal risk capital investors manage asymmetric information in profit/loss-sharing contracts”, in Iqbal, M. and Llewellyn, D.T. (Eds) (2002), Islamic Banking and Finance, New Perspectives on Profit-Sharing and Risk, Edward Elgar, Cheltenham; Northampton, MA, pp. 111-134. Abu-Bader, S. and Abu-Qarn, A.S. (2008), “Financial development and economic growth: the Egyptian experience”, Journal of Policy Modeling, Vol. 30 No. 5, pp. 887-898. Agarwal, S., Chomsisengphet, S., Liu, C. and Rhee, S.G. (2007), “Earnings management behaviors under different economic environments: evidence from Japanese banks”, Finance, Vol. 16 No. 3, pp. 429-443. Ajakaiye, O. and Tarp, F. (2012), “Finance and economic development in Africa: introduction and overview”, Journal of African Economies, Vol. 21 Nos 3/9. Al-Azuhaily, W. (2003), “Financial transactions in Islamic Jurispudence”, in Sudin, H. and Wan, N. (Eds) (2009), History and Development of the Islamic banking system. Islamic Finance and Banking System: Philosophies, Principles and Practice, McGraw Hill, pp. 93-162. Al-delaimi, K. and Battall, A.H. (2006), “Using data envelopment analysis to measure cost efficiency with an application on Islamic banks”, Vol. 4 No. 1, pp. 134-156. Al-Malkawi, H.A.N. and Abdullah, N. (2011), “Finance-growth Nexus: evidence from a panel of MENA countries”, International Research Journal of Finance and Economics, Vol. 63 No. 63. Ali, S. (2012), “Efficiency in Islamic banking during a financial crisis: an empirical analysis of forty-seven banks”, Journal of Applied Finance & Banking, Vol. 2 No. 3, pp. 163-197. Amer, R. and Shafiq, A. (2010), “Two paths to development; capitalist vs Islamic approach”, Islamic Banking and Finance, Evolution of the Islamic Financial System, Vol. 2, Routledge Taylor & Francis Group. Andersen, T.B., Jones, S. and Tarp, F. (2011), “The finance-growth thesis: a sceptical assessment”, Journal of African Economies, Vol. 21 Nos 57/88. Ankarloo, D. (2006), “New institutional economics and economic history”, paper presented at the Historical Materialism Conference: “New Directions in Marxist Theory”, London, 8-10 December, pp. 8-10. Azziaty, E. (2010), “Sistem matawang dawlah uthmaniyyah: aspek pembuatan, nilai dan transaksi pada Abad ke-16M”, Persidangan e-Muamalat, Jakim. Beck, T., Demirgüç-Kunt, A. and Merrouche, O. (2012), “Islamic vs. conventional banking: business model, efficiency and stability”, Journal of Banking & Finance, Vol. 37 No. 2, pp. 433-447. Beck, T., Levine, R. and Loayza, N. (2000), “Finance and the sources of growth”, Journal of Financial Economics, Vol. 58 No. 58, pp. 261-300. Bencivenga, V.R. and Smith, B.D. (1991), “Financial intermediation and endogenous growth”, The Review of Economic Studies, Vol. 58 No. 2, pp. 195-209. Bertacco, G. (2011), “Are bank special? Some notes on Tobin’s theory of financial intermediaries”, Journal of The Asia Pacific Economy, Vol. 16 No. 3, pp. 331-353. Bhattacharya, S. and Thakor, A.V. (1993), “Contemporary banking theory”, Journal of Financial Intermediation, Vol. 3 No. 1, pp. 2-50. Bieri, D.S. (2009), “Financial stability, the basel process and the new geography of regulation”, Cambridge Journal of Regions, Economy and Society, Vol. 2 No. 2, pp. 303-331. Boot, A.W.A., Thakor, A.V. and Boot, A.W.A. (1997), “Financial system architecture financial system architecture”, Vol. 10 No. 3, pp. 693-733. Bossone, B. (2001), What Makes Banks Special? A Study on Banking, Finance, and Economic Development, The World Bank, Washington, DC. Boulila, G. and Trabelsi, M. (2004), “The causality issue in the finance and growth nexus: empirical evidence from MENA countries”, Review of Middle East Economics and Finance, Vol. 2 No. 2, pp. 35-50. Boumediene, A. (2011), “Is credit risk really higher in Islamic banks?”, The Journal of Credit Risk, Vol. 7 No. 3, pp. 97-129. Brousseau, E. and Glachant, J.-M. (2008), “New institutional economics: a guidebook”, in Huang, A. (Ed.) (2010), “The role of new institutional economics in licensing contracts”, MBAA Proceedings Paper. Chakraborty, S. and Ray, T. (2004), “Bank-based versus market-based financial systems: a growth-theoretic analysis”, Journal of Monetary Economics, Vol. 53 No. 2, pp. 329-350. Chapra, M.U. (2008), “The global financial crisis: can Islamic finance help minimize the severity and frequency of such a crisis in the future”, unpublished paper presented at the Forum on the Global Financial Crisis, Islamic Development Bank, 25 October. Choong, C. and Chan, S. (2011), “Financial development and economic growth: a review”, Vol. 5 No. 6, pp. 2017-2027. Chortareas, G.E., Girardone, C. and Ventouri, A. (2012), “Bank supervision, regulation, and efficiency: evidence from the European Union”, Journal of Financial Stability, Vol. 8 No. 4, pp. 292-302. Cohen, W.M. and Levinthal, D.A. (1990), “Absorptive capacity: a new perspective on learning and innovation”, Administrative Science Quarterly, Vol. 35 No. 1, pp. 128-152. Ismail, A.G. and Tohirin, A. (2010), “Islamic law and finance”, Humanomics, Vol. 26 No. 3, pp. 178-199. Coase, R.H. (1937), “The nature of the firm”, Economica, Vol. 4 No. 16, pp. 386-405. Danesh, I.A. (2007), “An investigation of Islamic banks performance: a comparison with conventional banks in Ftiti”. Demetriades, P.O. and Hussein, K.A. (1996), “Does financial development cause economic growth? Time-series evidence from 16 countries”, Journal of Development Economics, Vol. 51 No. 2, pp. 387-411. Diamond, D.W. (1984), “Financial intermediation and delegated monitoring”, The Review of Economic Studies, Vol. 51 No. 3, pp. 393-414. Diamond, D.W., Philip, H. and Dybvig, P.H. (1983), “Bank runs, deposit insurance, and liquidity”, Journal of Political Economy, Vol. 91 No. 3, pp. 299-314. Drake, L., Hall, M.J.B. and Simper, S. 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| spellingShingle | Conventional bank and islamic banking as institutions: Similarities and differences |
| summary | Purpose The aim of this paper is to discuss the similarities and differences of both conventional and Islamic financial institutions from various institutional perspectives. Design/methodology/approach This conceptual paper describes the insights held by the financial institution theory which is discussed from the perspectives of the economics of the financial institution, legal environment, the political aspect of an institution, the philosophical underpinning, the components of institution and also the ethical role of institution. Then, this paper will proceed to justify the similarities and differences that have been observed between both institutions. Findings Discussions in this paper will reveal that specifically specific similarity is prevalent on the nature of the supervisory role. The differences between both institutions from the aspects of business organization, economic roles and law of origin have also been found. Research limitations/implications The similarities and differences that are established on both institutions will affect the structure of the financial contract and the design of financial systems. Originality/value The paper will contribute a new knowledge specifically on the design of the Islamic financial contract based on Shariah law at the initial phase. |
| title | Conventional bank and islamic banking as institutions: Similarities and differences |
| title_full | Conventional bank and islamic banking as institutions: Similarities and differences |
| title_fullStr | Conventional bank and islamic banking as institutions: Similarities and differences |
| title_full_unstemmed | Conventional bank and islamic banking as institutions: Similarities and differences |
| title_short | Conventional bank and islamic banking as institutions: Similarities and differences |
| title_sort | conventional bank and islamic banking as institutions: similarities and differences |