Search Results

You are looking at 1 - 10 of 30 items for :

  • "Islamic banks assets" x
Clear All
Mr. Jemma Dridi and Maher Hasan
This paper examines the performance of Islamic banks (IBs) and conventional banks (CBs) during the recent global crisis by looking at the impact of the crisis on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share. Our analysis suggests that IBs have been affected differently than CBs. Factors related to IBs‘ business model helped limit the adverse impact on profitability in 2008, while weaknesses in risk management practices in some IBs led to a larger decline in profitability in 2009 compared to CBs. IBs‘ credit and asset growth performed better than did that of CBs in 2008-09, contributing to financial and economic stability. External rating agencies‘ re-assessment of IBs‘ risk was generally more favorable.
Patrick A. Imam and Mr. Kangni R Kpodar

: Share of Islamic Bank Assets in Total Banking Assets, Tobit model, Panel, 1992-2006 Figures 1. Number of Islamic Banks in Selected Countries (2006) 2. Share of Islamic Banks in Total Banking System in Selected Countries (2006) 3. Share of Credit by Islamic Banks in Total Banking Credit (1992-2006) 4. Comparing Investment by Islamic Banks with Credit by Conventional Banks in Selected Countries (1992-2006) 5. Oil Price Index (Jan 92 – Dec 09) Appendices 1. Poisson Model 2. Tobit Model Table 3. Determinants of Islamic Banking Diffusion: Number of

Mr. Jemma Dridi and Maher Hasan

Factors Affecting Changes in Assets Between 2007 and 2009 Figures 1. Global Assets of Islamic Finance 2a. Islamic Banks Assets 2b. Banking System Assets 3. Initial Conditions, 2008 4. Return on Equity and Return on Assets, 2005–07 5. Nonperforming Loans, 2007 6. Change in Profitability 7. Bahrain Offshore: Change in Profitability 8. Non-performing Loans, 2009 9a Average Return on Average Equity, 2008–09 9b Average Return on Average Assets, 2008–09 10a. IB Return on Investment and IAH’s Return 10b. CB Credit and Deposit Interest Rate Boxes

Maher Hasan and Mr. Jemma Dridi

internationally, strong credit growth was followed by a sharp decline in credit once the crisis hit, this was not the case for Islamic banks. Because high credit growth is sometimes achieved at the expense of strong underwriting standards, we identified this as an area for supervisors to monitor. The growth of Islamic banksassets likewise proved strong. We found that, on average, their asset growth was more than twice that of conventional banks during 2007–09, but it started decelerating in 2009, indicating that Islamic banks were less affected than conventional banks by

Patrick A. Imam and Mr. Kangni R Kpodar
This paper investigates the determinants of the pattern of Islamic bank diffusion around the world using country-level data for 1992 - 2006. The analysis illustrates that income per capita, share of Muslims in the population and status as an oil producer are linked to the development of Islamic banking, as are economic integration with Middle Eastern countries and proximity to Islamic financial centers. Interest rates have a negative impact on Islamic banking, reflecting the implicit benchmark for Islamic banks. The quality of institutions does not matter, probably because the often higher hurdle set by Shariah law trumps the quality of local institutions in most countries. The 9/11 attacks were not important to the diffusion of Islamic banking; but they coincided with rising oil prices, which are a significant factor in the diffusion of Islamic banking. Islamic banks also appear to be complements to, rather than substitutes for, conventional banks.
Patrick A. Imam and Mr. Kangni R Kpodar

next section. We also refine our analysis using techniques appropriate for count data: a zero inflated Poisson model and a negative binomial model (see appendix tables 3 and 4 ). The first corrects for the excessive number of zeros arising from underreporting and the fact that Islamic banks have begun to diffuse only in recent years. The second allows for overdispersion, relaxing the Poisson model assumption of equal mean and variance. Overall, the results are similar to those of the Poisson model. Determinants of the Share of Islamic Bank Assets in

Samy Ben Naceur, Mr. Adolfo Barajas, and Mr. Alexander Massara
The paper analyses existing country-level information on the relationship between the development of Islamic banking and financial inclusion. In Muslim countries—members of the Organization for Islamic Cooperation (OIC)—various indicators of financial inclusion tend to be lower, and the share of excluded individuals citing religious reasons for not using bank accounts is noticeably greater than in other countries; Islamic banking would therefore seem to be an effective avenue for financial inclusion. We found, however, that although physical access to financial services has grown more rapidly in the OIC countries, the use of these services has not increased as quickly. Moreover, regression analyis shows evidence of a positive link to credit to households and to firms for financing investment, but this empirical link remains tentative and relatively weak. The paper explores reasons that this might be the case and suggests several recommendations to enhance the ability of Islamic banking to promote financial inclusion.
Samy Ben Naceur, Mr. Adolfo Barajas, and Mr. Alexander Massara

Banking Variables: IB 0 = Islamic Bank Assets per adult (US$ 1,000), IB 1 = Number of Islamic Banks per 100,000 adults. GDP per capita OIC OIC × IB 0 GDP per capita OIC OIC × IB 1 GDP per capita OIC OIC × IB 0 GDP per capita OIC OIC × IB 1 Source: Source: Bankscope World Bank Islamic Bank Database Accounts 57.480 *** (6.46) −132.70 (0.47) −80.890 * (1.97) 50.150 *** (6.02) 312.40 (1.06) −754.00 (0.38) 55.910 *** (6.47) −250.600 (0.95) −54

Ms. Ritu Basu, Mr. Ananthakrishnan Prasad, and Mr. Sergio L. Rodriguez

I. Introduction 1. This study assesses the monetary policy operational framework for Islamic banking in the Gulf Cooperation Council (GCC) countries, where Islamic bank assets have become a significant part of total assets in the banking systems. The paper also identifies challenges, and outlines options available to achieve a more effective monetary transmission mechanism. 2. Shari’ah-compliant assets represent a significant portion of total banking assets of the GCC. While in the Middle East and North Africa (MENA) region Islamic banking assets

International Monetary Fund. Middle East and Central Asia Dept.

particular, the weaker performance of Islamic banks in 2009 was largely driven by the United Arab Emirates and Qatar, where they had a considerably higher exposure to the real estate and construction sectors. Banks are expected to post additional provisions in 2009. A more complete view of the impact of the crisis on the two groups of banks will become available next year. Table 1 Market Share and Average Annual Asset Growth of Islamic and Conventional Banks in Selected Countries (Percent) Islamic BanksAssets in Total Assets in 2008 Growth Rate