Article

A critique of the role of Islamic banking in economic growth and financial stability of gulf cooperation council (GCC) economies

سبتمبر 12, 2017

DOI:

Publisher: Serials Publications

Tabash Anagreh Dhankar

This paper presents insights into the relationships between Islamic banking, economic growth and financial stability in GCC economies. The paper gives a critique on the impact of Islamic banking in the growth and stability of the economies of Gulf region. The critique analysis is given based on some of the previous published work by the authors on the relationships between Islamic banking, financial stability and economic growth in selected countries of Gulf region. The paper primarily is based on the analysis of four countries of GCC where Islamic banking has footprints. The countries are United Arab Emirates, Qatar, Kingdom of Saudi Arabia and Bahrain. The results of two empirical parts are presented through the paper. It explores that the contribution of Islamic banking in each country is according to the advancements of its financial systems and norms. In some countries, the relationship between Islamic banking and economic growth is supply-leading and in others is demand-following. It also shows that Islamic banking is a stable and less volatile during global financial crisis in 2008 in all countries under the study. The results of the critique viewpoints are encouraging the authorities and policy makers in the GCC countries to do further investments and projects using Islamic banking financing modes since they approved its stability under different financial crises and shocks.

Other Researches

An examination of consumers’ adoption of internet of things (IoT) in Indian banks

The purpose of this study is to find out the impact of awareness, privacy & safety, cost, convenience, social influence, and habits on the adoption of IoT in Indian banks. The sample size of 467 Indian customers has been taken for the study. The Con...

Green product as a means of expressing green behaviour: A cross-cultural empirical evidence from Malaysia and Nigeria

Due to overconsumption, there is no significant urgency than the climate emergency for the publicity of green products that may conceivably led to reducing environmental impact. Considering the limited studies as a means of comparing green behaviour...

An empirical examination of the impact of country-level corporate governance on profitability of Indian banks

The main aim of the present study is to examine the impact of country-level corporate governance on the profitability of Indian banks using a sample of 61 banks that is, 42 private and 19 public banks. The study employs descriptive statistics, corre...

Factors affecting financial performance of indian firms: An empirical investigation of firms listed on bombay stock exchange

The aim of this study is to examine the factors that influence the financial performance of Indian listed companies during the period ranging from 2010 to 2016. The sample size consists of 1598 companies listed in Mumbai Stock Exchange (MSE) in Indi...

Family ownership concentration and real earnings management: Empirical evidence from an emerging market

The paper examines the effect of family ownership concentration (FMOC) on real earnings management (REM) in manufacturing firms listed on Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). Data are gathered from 1,056 firm-year observat...

The relationship between credit policy and firms' profitability: Empirical evidence from Indian pharmaceutical sector

Credit policy plays a vital role in the operational efficiency of credit departments as it reduces the ambiguity of credit departments' functions by giving clear guidelines and instructions. It also reduces the loan default and speeds up accounts re...

Islamic Finance and Corporate Governance: A proposed Universal Mode

The purpose of this paper is to systematically synchronise the development of Shari'ah governance in the light of Islamic epistemology. The paper explores governance from the Islamic point of view by referring to various verses from the Holy Qur'an....

The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation

Corporate governance plays a vital role in creating a corporate culture of consciousness, transparency, and openness. In this context, this paper provides a brief view about the background of corporate governance mechanisms in India and Gulf Corpora...

The determinants of liquidity of Indian listed commercial banks: A panel data approach

The aim objective of this study is to examine the liquidity determinants of Indian listed commercial banks. The study has applied both GMM and pooled, fixed and random effect models to a panel of 37 commercial banks listed on the Bombay Stock Exchan...

The impact of oil price volatility, gross domestic product, foreign direct investment on islamic banking investments: An empirical evidence of the United Arab Emirates

The current paper examines the impact of oil price (OP) fluctuations on Islamic banking investments growth in the UAE. Besides, OP, the study also uses other variables like Gross Domestic Product and Foreign Direct Investment to identify the determi...

empirical investigation between liLiquidity and key financial ratios of Islamic banks of United Arab Emirates (UAE)

This paper empirically analyzes the impact of liquidity risk on key financial performance aspects of Islamic banks in the UAE. To document the association between liquidity risk and other performance ratios, time series data are taken for full-fledg...

The determinants of profitability of Indian commercial banks: A panel data approach

The current study examines the determinants of profitability of Indian commercial banks. The analysis is conducted over a period of 10 years in which the Indian banking sector has gone under different changes such as demonetization and issues relate...

The impact of demonetization on Indian firms’ performance: Does company’s age make a difference?

The main aim of this paper is to evaluate the impact of demonetization on Indian firm’s quarterly financial performance before and after demonetization period (March-December, 2017), and to find out if companies’ age helps to face financial disrupti...

Identifying critical success factors for sustainable growth of Indian banking sector using interpretive structural modeling (ISM

Purpose The purpose of this paper is to identify the critical success factors for sustainable growth of the Indian banking sector and develop a model for Indian banks by using interpretive structural modelling (ISM). It suggests some of the critical...

The role of tribalism as mediator between employee empowerment and organizational commitment in Yemeni Islamic banking sector

This study examined the influence of employee empowerment on organizational commitment, and the level to which Tribalism plays a role in the relationship between the former two variables in the context of Islamic banks in Yemen. Indeed, the rational...

Islamic financial investments and economic growth evidence from emerging economy, United Arab Emirates

The paper examines the role of Islamic banking investments in enhancing the emerging economic growth of United Arab Emirates (UAE). The study uses annual time series data to examine the relationship between the variables. Autoregressive distributed ...

Financial Performance Comparison of Islamic and conventional banks in the United Arab Emirates (UAE)

This paper examines the financial performance of Islamic and commercial banks in the United Arab Emirates (UAE). The paper gives an empirical insights and comparisons between the performance of Islamic and conventional banking sectors. The sample of...

The impact of political instability, macroeconomic and bank-specific factors on the profitability of Islamic banks: An empirical evidence

This study investigates the impact of political instability, macroeconomic and bank-specific factors on the profitability of Islamic banks in the context of Yemen. The study used two common measures of profitability, namely, Return on Assets (ROA) a...

Liquidity, profitability and solvency of UAE Banks: A comparative study of commercial and Islamic Banks

The present study aims to measure and evaluate the liquidity, profitability and solvency of Islamic and commercial banks in the United Arab Emirates (UAE). The study has used a sample of all fully-fledged Islamic banks and 14 commercial banks workin...

Critical challenges affecting Islamic banking growth in India using Analytical Hierarchy Process (AHP

The banking sector plays a vital role in growth-supporting factor for economic growth in the world’s fastest-growing economies like India. Recently, Islamic banking has become an increasingly popular method for alleviating poverty, financial inclusi...

Do Islamic banks contribute to growth of the economy? Evidence from United Arab Emirates (UAE)

Islamic finance has grown rapidly in the recent years particularly in the Middle East and the world. It receives a great attention of bankers and financial scholars due to its stability during financial shocks and crises. The paper uses empirical an...