Ramifications of varying banking regulations on performance of Islamic Banks
Recent financial crises have highlighted the importance of banking regulations to hedge against the high risk accredited to imbalances in banks' balance sheets. Nonetheless, banking regulations may have adverse effects. On the one hand, they serve as prudential measures that alleviate the effec...
Main Authors: | , , |
---|---|
Format: | Article |
Language: | English |
Published: |
Elsevier
2019-03-01
|
Series: | Borsa Istanbul Review |
Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845017301795 |
id |
doaj-de4cacf54f7349249c6e548e2d8f42d7 |
---|---|
record_format |
Article |
spelling |
doaj-de4cacf54f7349249c6e548e2d8f42d72020-11-25T00:13:55ZengElsevierBorsa Istanbul Review2214-84502019-03-011914964Ramifications of varying banking regulations on performance of Islamic BanksNafis Alam0Sara Sophia Binti Zainuddin1Syed Aun R. Rizvi2Henley Business School, University of Reading Malaysia, Persiaran Graduan, Kota Ilmu, Educity 79200 Iskandar Puteri, Johor, Malaysia; Corresponding author.Nottingham University Business School, The University of Nottingham Malaysia Campus, Jalan Broga, Semenyih, 43500 Selangor, MalaysiaSuleman Dawood School of Business, Lahore University of Management Sciences, D.H.A, Lahore Cantt. 54792, Lahore, PakistanRecent financial crises have highlighted the importance of banking regulations to hedge against the high risk accredited to imbalances in banks' balance sheets. Nonetheless, banking regulations may have adverse effects. On the one hand, they serve as prudential measures that alleviate the effects of crises on the stability of the banking system while on the other hand; they may increase the cost of intermediation and reduce banks' profitability. Implementation of non-suitable regulations such as Islamic banks adopting conventional banks regulations could also impair banks' performance. This paper analyses the linkages between bank regulatory and supervisory structures associated with Basel III's pillars has any significant impact on Islamic banks' performance in Asia and Gulf Cooperation Council (GCC) using two-step Generalized Methods of Moments (GMM) technique. Findings suggest that regulatory variables are positively significant with Islamic banks' performance in Asian region but not in the GCC. JEL classification: G21, L5http://www.sciencedirect.com/science/article/pii/S2214845017301795 |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Nafis Alam Sara Sophia Binti Zainuddin Syed Aun R. Rizvi |
spellingShingle |
Nafis Alam Sara Sophia Binti Zainuddin Syed Aun R. Rizvi Ramifications of varying banking regulations on performance of Islamic Banks Borsa Istanbul Review |
author_facet |
Nafis Alam Sara Sophia Binti Zainuddin Syed Aun R. Rizvi |
author_sort |
Nafis Alam |
title |
Ramifications of varying banking regulations on performance of Islamic Banks |
title_short |
Ramifications of varying banking regulations on performance of Islamic Banks |
title_full |
Ramifications of varying banking regulations on performance of Islamic Banks |
title_fullStr |
Ramifications of varying banking regulations on performance of Islamic Banks |
title_full_unstemmed |
Ramifications of varying banking regulations on performance of Islamic Banks |
title_sort |
ramifications of varying banking regulations on performance of islamic banks |
publisher |
Elsevier |
series |
Borsa Istanbul Review |
issn |
2214-8450 |
publishDate |
2019-03-01 |
description |
Recent financial crises have highlighted the importance of banking regulations to hedge against the high risk accredited to imbalances in banks' balance sheets. Nonetheless, banking regulations may have adverse effects. On the one hand, they serve as prudential measures that alleviate the effects of crises on the stability of the banking system while on the other hand; they may increase the cost of intermediation and reduce banks' profitability. Implementation of non-suitable regulations such as Islamic banks adopting conventional banks regulations could also impair banks' performance. This paper analyses the linkages between bank regulatory and supervisory structures associated with Basel III's pillars has any significant impact on Islamic banks' performance in Asia and Gulf Cooperation Council (GCC) using two-step Generalized Methods of Moments (GMM) technique. Findings suggest that regulatory variables are positively significant with Islamic banks' performance in Asian region but not in the GCC. JEL classification: G21, L5 |
url |
http://www.sciencedirect.com/science/article/pii/S2214845017301795 |
work_keys_str_mv |
AT nafisalam ramificationsofvaryingbankingregulationsonperformanceofislamicbanks AT sarasophiabintizainuddin ramificationsofvaryingbankingregulationsonperformanceofislamicbanks AT syedaunrrizvi ramificationsofvaryingbankingregulationsonperformanceofislamicbanks |
_version_ |
1725392331918540800 |