07. Journal of Islamic Financial Studies






e-ISSN 2469-259X​​
Managing Editor: Bora Aktan
Email: jifs@uob.edu.bh
No Publication Fee



Aims and Scope


The Journal of Islamic Financial Studies (JIFS) is a double-blind peer-reviewed international academic journal which adopts a continuous publication model, embraces several key aims and a defined scope to navigate the dynamic landscape of Islamic as well as traditional business research.

The core objectives:
  • Promote high-quality research in Islamic finance: JIFS aims to be a leading platform for scholars and practitioners to disseminate cutting-edge research and contribute to the development of Islamic and conventional business and finance theory and practice.
  • Enhance knowledge dissemination: The continuous publication model facilitates rapid publication, ensuring research reaches readers promptly and informs current discussions and debates in the field.
  • Increase accessibility and inclusivity: By breaking away from fixed issue schedules, JIFS welcomes a wider range of submissions and encourages diverse perspectives on Islamic and conventional business and finance
  • Foster open dialogue and collaboration: The continuous format allows for prompt responses to published articles through comments and discussions, fostering a dynamic and collaborative research environment.

  • The Scope:
  • Theoretical and empirical research: JIFS welcomes submissions from various methodological approaches, including theoretical studies, empirical analyses, and case studies, that contribute to our understanding of Islamic and conventional business and finance principles, models, and practices.
  • Broad range of topics: The journal covers a wide spectrum of themes within Islamic finance, encompassing financial institutions, instruments, products, regulations, ethical considerations, and social impact.
  • Interdisciplinary approach: JIFS encourages research that fosters dialogue between Islamic finance and other disciplines, including economics, finance, law, and social sciences. This comparative approach promotes deeper understanding and strengthens the interconnectedness of knowledge within the broader financial landscape.
  • Global perspective: The journal welcomes research from across the globe, recognizing the diverse and evolving nature of both Islamic business and finance practices as well as conventional ones and comparative analyses in different countries and regions. JIFS is interested in research addressing current and emerging challenges in the following categories
    (including but not limited to):
  • Theory of Conventional and Islamic Business and Finance
  • Islamic and Conventional Business and Globalization
  • Sustainable Business, Finance and Sustainable Development
  • Financial Innovations and Islamic Business
  • Use of AI in Islamic Banking and Finance
  • Financial Technology (Fintech)
  • Islamic and Conventional Financial Products and Securitization
  • Financial Markets, Institutions, and Instruments
  • Investment Strategies
  • Corporate Social Responsibility and Business Ethics
  • Islamic Corporate Governance
  • Socially Responsible Investing (SRI)
  • Legal, Regulatory, And Institutional Foundations of Islamic Finance
  • Islamic Commercial Jurisprudence
  • Islamic Banking Techniques and Their Conformity with The Islamic Law
  • Financial Engineering and Risk Management
  • Global and Regional Integration of Financial Markets
  • Behavioral Economics and Finance
  • Insurance and Takaful
  • Corporate Finance
  • Public Finance
  • Green Finance
  • Islamic Accounting Practices and Principles
  • Islamic Endowment Funds
  • Entrepreneurship and Small Business Ownership


  • Open Access Policy

    The Editorial Office fully supports the global movement for free and open access to academic research results publication. We are convinced that free of charge online accessibility of research results promotes the development of university education and sciences worldwide. Thus, the Board takes an obligation to post in a timely manner every new issue of the journal for free download and further reading and to maintain the permanent archive of all published issues on the site of the journal. We are welcoming everybody who joins the community of our readers. However, we also expect that all works published online would not be subject to plagiarism and would be referenced properly in all further sources. Business Model / Publishing Fees

    The journal is fully funded by the following organization:
    University of Bahrain

    Therefore, the Editorial Board has currently the capacities not to ask for publishing fees from the authors' side. In case if financial situation changes in the future – the Board will post this information online and notify via the email all concerned parties about such changes.​


    Editor-in-Chief

    Dr. Abdulla Al Jalahma


    Managing Editor

    Dr. Gokhan Bora Aktan


    Editorial Boardr

  • Dr. Abdulrahman Al Saadi
  • Prof. Sasa Zikovic
  • Prof. Manuela Tvaronaviciene
  • Pr. Abdul Waheeb
  • Dr. Fuad Kreishan
  • Prof. Vidaburi Sander Raghavan
  • Dr. Farkhanda Shamim
  • Dr. Irina Aidrous
  • Prof. Khamis Hamad Al Yahya
  • Dr. Sara Al Balooshi
  • Prof. Bruce Burton
  • Dr. Chan Sok Gee
  • Dr. Yener Coskun
  • Dr. Mohammad Omar Farooq
  • Dr. Ammar Juraisat
  • Prof. Sayed Sadiq

  • Advisory Board

  • Dr. Nizam Yaqoobi
  • Prof. Ahmed El-Masry
  • Prof. Mondher Bellalah
  • Dr. Sutan Emir Hidayat

  • Instructions for Authors
    All contributions emailed to the editorial office for consideration are initially treated as authors' original research and are subject to double-blind peer-review according to the standard academic practice in the field.

    General Information
    Only papers in English are considered. Each article is reviewed by two experts, appointed by the Editorial Board, from the list of in-house reviewers approved by the Board who will examine the manuscript in terms of its relevance, originality of contribution and applicability. An electronic copy for anonymous consideration should be prepared in MS Word, Times New Roman following the technical requirements presented below. Contributions in pdf cannot be considered for technical reasons.

    Structure of the Article
    An article should preferable include the following structural units: title, authors' names and affiliations; abstract and keywords, introduction (with the object and goal of the research, the methods applied, the review of literature and its analysis, etc.), the main text, conclusions or recommendations, references at the end of the article. The authors may wish to provide personal data in a separate Word file. In any case, each submission would be anonymized and decoded before it is offered for blind review. Depending on the style and methodology of a particular research, some of the units may be omitted and added. However, the text should still maintain the internal logic of research material presentation which would be easy to follow by a reviewer, editor and further readers from the wider public.



    Format of the Article
    The text of the article should be with single intervals on 240​x170 mm format pages with the print area of 130×183 mm each. The length of the article cannot exceed 25 pages. The title of the article should be printed in 13 pt bold type, centered. There should be a single line space between the title and the author's name. The name and surname of the authors should be 9 pt bold type, also centred. Below the author's surname, the name of the institution (represented by the author or coauthors) must be printed in 8​ pt italic; its address and the author's contact e-mail, centred.

    Abstract and Keywords should be single spaced, 9 pt, in one column and after the institution address and space of three lines below the institution address should be left. Abstract and Keywords must be printed in bold.
    The size of the abstract – about 400-600 typographic characters overall. There should be a space of one line between the abstract and keywords.
    5-8 keywords should be provided which represent the core contents and central ideas of the paper.
    Introduction, main text and conclusions should be printed in 9 pt type single interval in one column at the distance of 1 line from keywords.
    Figures or tables should be of high printing quality. Graphics material of no less than 300 dpi, standard page size.

    If figures, tables, diagrams etc. are borrowed, not constructed/calculated by the author – this should be properly indicated with an exact reference.
    The titles of chapters and sub-chapters - 9 pt bold-regular, aligned left. Introduction, titles of chapters and conclusions must be numbered.
    The name of the author of the source, year of publication and pages should be presented in the text in brackets. The full list of references must be given after the conclusions. The word References is spelled in 9 pt bold-regular type, left ranged and the list of references goes in 9 pt. The references are to be presented in alphabetical order, in the original language of publication, while translation into English, whenever needed, is given in square brackets after.

    All references should be arranged according to Harvard style. For example, please, visit, for example:

    http://guides.library.uwa.edu.au/friendly.php?s=harvard​
    http://libguides.nus.edu.sg/c.php?g=145626&p=955164 ​
    http://libguides.nus.edu.sg/c.php?g=145626&p=955164 ​


    The authors are also encouraged to use the following template.
    JIFS Template​ ​
    Copyright 2023.docx ​

    Journal of Islamic Financial Studies (JIFS) is committed to upholding the highest standards of publication ethics and takes all possible measures against publication malpractice. Authors who submit papers to JIFS attest that their work is original and unpublished, is not under consideration for publication elsewhere. In addition, authors are supposed to confirm that their paper is their own; that it has not been copied or plagiarized, in whole or in part, from other works; and that they do not have any actual or potential conflicts of interest related to the presented work or commercial benefits associated with it.

    Overall, in all its practices, policies and procedures the Editorial Board is doing its best to follow the common International standards.

    DUTIES OF EDITORS

    Decision on Publication of Articles

    The Editor in Chief of JIFS is responsible for deciding which of the articles submitted to the journal should be published. The Editor in Chief is also guided by the policies of the Scientific Publishing Center of the University of Bahrain and subjected to such legal requirements regarding libel, copyright infringement and plagiarism.

    Review of Manuscripts

    Decision-making Editor in Chief must ensure that each manuscript is initially evaluated by the editor/co-editor, making use of appropriate software to examine the originality of the contents.
    The choice of a particular software for plagiarism check is subject to chief editor/host editor preferences and general availability/access. In contradictory cases two or more ways can be applied to make sure higher efficiency of plagiarism testing is reached. The text is forwarded to blind review only AFTER the positive result (that is, no borrowings detected) is known.
    Each of two anonymous reviewers is supposed to provide a recommendation on whether to publish (or not) the manuscript in its present form or to modify it for further publishing. In case of contradiction and/or bias presented in the reviews, the final decision remains to be the responsibility of the editor in chief. However, if the latter decides against the decision of a reviewer – the chief editor is expected to provide feedback to the reviewer explaining the reasons behind such a decision. In case two reviews of the same text provide the opposite, contradicting results – the final decision remains to be the responsibility of the chief editor.
    We expect our reviewers provide their feedback in a timely and polite manner, with the max accurate wording and well-grounded explanation of their views and decisions. The review timing, depending on the load and reviewers' availability, may be from 3 weeks up to 3 months (in extraordinary cases).

    Confidentiality

    The Editors in Chief/editors and any editorial staff must not disclose any information about a submitted manuscript to anyone other than the corresponding author, reviewers, potential reviewers, and the publisher.
    The Editorial Board does not communicate on publishing decisions with third parties, other than authors directly, even in those cases when third party represents the same institution to which an author is affiliated.

    DUTIES OF REVIEWERS

    Promptness

    In case, a reviewer feels that it is not possible for him/her to complete the review within the indicated time framework - this must be communicated to the chief editor, so that the manuscript could be reassigned to another reviewer.
    Confidentiality


    All information regarding manuscripts and provided on the pages of the manuscripts under review should be kept confidential and treated as privileged information.


    Acknowledgement of Sources


    Regardless the results of plagiarism check, the reviewers are responsible, inter alia, for analyzing the reference list used and literature review within the text so that to assess proper citing and relevance of the sources chosen to the topic and the problem posed. All borrowed fragments must be accompanied by relevant citations data. All quotes must be arranged according to internationally acknowledged standards of referencing.

    DUTIES OF AUTHORS

    Data Access and Retention

    Authors may be asked at any stage of paper consideration to provide the related raw data and calculations for additional review and double check. Such data should be also kept in store after the actual publication of the paper for at least 2 calendar years after the article was published.

    Originality and Plagiarism

    All texts submitted are treated by default as authors' original contribution at which all borrowed data are referenced properly. Any violations related to copyright and authorship as well as repeated attempts to present plagiarized work as own may become the reasons for author's ban, temporary or permanent, from all further cooperation with the journal.


    ​Multiple Publications

    It is among the top priority policies for the journal to prevent and avoid by all means what is known as research salami and/or texts cloning. Thus, we ask all our authors to restrain from multiple publishing and/or duplication of the materials for publishing in several journals in parallel. We treat such behavior as unacceptable; therefore, cases of obvious research results repetition would be considered as self-plagiarism and banned accordingly.

    Authorship of the Paper

    Authorship of an article should be limited specifically to those who indeed contributed to the initial concept, design, methodology, carrying out the research and follow-up analysis of the results. All those with significant contributions to the empirical part of the research study should be listed as coauthors. Other contributors who participated indirectly and/or insignificantly could be mentioned in the acknowledgement lines.

    Disclosure and Conflicts of Interest

    I​f the authors anticipate a potential conflict of interests related to copyright or commercial interest – they are encouraged to inform the editorial office explaining the situation and the potential risks, however, the conflict itself should be resolved independently.
    All sources of financial support/ grant sources/sponsorship/product placement fees related to publication should be mentioned in the acknowledgement lines with the exact and accurate indication of all necessary data (e.g., project # and name, sponsoring institution etc.).

    Fundamental Errors in Published Works

    If an author discovers a significant error or inaccuracy in his/her own already published work, it is the author's obligation to promptly notify the editorial office with the retraction request providing all necessary details. In all retraction procedures the Editorial Board intends to follow the standard COPE rules and recommendations.

    This journal is indexed by these worldwide databases:

  • EconLit
  • Google Scholar
  • Road - Directory of open access
  • EBSCO
  • Gale, a Cengage Company
  • CABELL’s

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    Search Results

    Now showing 1 - 10 of 43
    • Item
      The Reality of SMEs in Arab Nations: Experience of Egypt, Jordan and Bahrain
      (2019-12-01) Abou Elseoud, Mohamed Sayed; Kreishan, Fuad M.; Ali, Mahmood Asad Moh’d; Deprtment of Economics and Finance, College of Business Administration, University of Bahrain & sadat Academy; Faculty Of Business Adminstration and Econams, Al-Hussein Bin Talal University, Jordan; Department of Management and Marketing, College of Business Administration, University of Bahrain; Bahrain; Jordon; Bahrain
      The study aims at analyzing the current state of the SMEs sector in three Arab countries, Egypt, Jordan and Bahrain; therefore, we adopt descriptive and analytical approaches. Findings show that SMEs sector plays a vital role in the region as a major source of various economic contributions, but it faces domestic and external challenges, which could hinder its resilience and competitiveness. Most of SMEs are concentrated in the trade sector; other important sectors include small-scale workshops, hotels and restaurants as well as contracting. They are less important in industry and other capital-intensive sectors, and finally, the study recommends specific suggestions, which could enhance the contribution of SMEs sector in national income of the Arab countries.
    • Item
      Banking Structure and Riba-Interest Equation: The Case for Ta’awuni (cooperative) Finance
      (2019-12-01) Farooq, Mohammad Omar; Department of Economics and Finance, University of Bahrain; Bahrain
      This conceptual paper is provoked by two interrelated queries. (a) Did Islamic finance industry adopt the wrong banking structure by choosing commercial banking as its core structure? (b) Does riba prohibition requires nuanced understanding in case of financing in a mutually beneficial, cooperative framework? Currently adopted banking structure fails to contribute to some imperatives: spreading ownership, shared prosperity, profit sharing beyond transaction level, and adequate risk-sharing. This paper contributes toward filling a gap by raising the issue of compatibility of commercial banking with Islamic imperatives, while dealing with the issue of riba-interest equation in the context of cooperative (Ta’awuni) banking and finance.
    • Item
      Why Foreign Banks Fail in Emerging Economies: Risk Management Perspective from Pakistan
      (2019-12-01) Ghauri, Shahid Mohammad Khan; Masood, Omar; Javaria, Kiran; Asia-e-University, Malaysia; School of Accountancy and Finance, University of Lahore Islamabad, Pakistan; School of Accountancy and Finance, University of Lahore Islamabad, Pakistan; Malaysia; Pakistan; Pakistan
      The tenacity of this paper is to understand the concept of ‘relative efficiency’ as an alternative measure to assess bank performance, and to investigate the progressive performance of foreign and domestic banks in Pakistan. A very steady growth is observed in assets of foreign banks in Pakistan although Pakistani banking sector has very limited contribution of foreign banks but its historic contribution is much accountable towards economic growth. The significance of this study is that we have conducted the study in Pakistan which was not explored earlier. A research design is the structure for investigation and way of finding out the answer of research question (Huizinga, 1999). We have conducted this research under the umbrella of Quantitative paradigm. Our preferred methodology is CAMELS. This system was developed by ACCION (Americans for Community Co-operation in Other Nations) in 1980’s to help regulator banks of North America (hUallachain, 1994). CAMELS methodology adopted by North America Bank regulators to know the financial and managerial reliability of commercial lending institutions. For sample selection of the banks, we used criteria sampling method that is a type of non-probability sampling. We took sample data of 16 banks working in Pakistan from the period of 2014-2016. Groups are structured according to their ownership status. After assessment of CAMELS rating system in the context of Pakistan banking industry, it is observed that CAMELS is an internal rating system and its results are not available to the general public but to the regulators and the directors of the banks, so we implement its ratios to avail the result of the sample banks. Results of international credit rating agencies such as S&P, Moody’s and Fitch should also be compare for similarities with CAMELS or any of the supervisory rating systems implemented in different countries. It would be productive research to study adoptability of CAMELS rating system in the context of Islamic banking system.
    • Item
      Efficiency of Participation and Conventional Banks: Evidence from Turkey
      (2019-12-01) Çelik, Şaban; Öncü, Erdem; Izmir Katip Çelebi University, İzmir, Turkey; University of Mediterranean Karpasia, Lefkoşa, North Republic of Cyprus; Turkey; Cyprus
      Measuring efficiency is a critical stage for decision making processes. Although previous studies show many aspects of Islamic banks that outperform conventional banks, this research investigates the most current evidence from banking sector. The purpose of the present study is to measure the efficiency of participation banks and conventional banks in Turkey. Data Envelopment Analysis (DEA) is used as a tool to measure the efficiency of sample data for the period from 2015 to 2018 on the annual basis. Results indicated that participation banks show better performance than those of conventional banks in terms of efficiency.
    • Item
      Murabaha as an Islamic Financial Instrument for Agriculture
      (2019-06-01) Puspitasari, Novi; Hidayat, Sutan Emir; Kusmawati, Farida; Faculty of Economics and Business, University of Jember; Directorate of Islamic Financial Education and Research, National Islamic Finance Committee, Indonesia; Faculty of Economics and Business, University of Jember; Indonesia; Indonesia
      This study aims to explore the application of Murabaha contracts in agricultural sector. The study was conducted at Islamic microfinance institution namely Islamic Financial Services Cooperative (IFSC) Al-Hikmah located in Paleran Village, Umbulsari District, Jember Regency, Indonesia. This paper employs qualitative research with a case study approach. The method used for the informant’s determination is snowball method. This paper found four important points: Firstly, there are three models of the application of Murabaha, namely goods-based Murabaha; cash-based Murabaha; and business capital-based Murabaha. Goods-based Murabaha is in accordance with sharia compliance, but the cash-based Murabaha is still not suitable because the Murabaha contract is not equipped with wakalah contract. Secondly, there are two risks namely goods expiring on goods-based Murabaha concept and the risk of late payment due to failed crops on cash-based Murabaha. Thirdly, the provided amount of funding is only 30% of the estimated agricultural output. Fourthly, Al-Hikmah requests collateral for Murabaha financing.
    • Item
      Blockchain and Smart Contracts: A Risk Management Tool for Islamic Finance
      (2019-06-01) Antova, Ilinka; Tayachi, Tahar; MBA, Independent Researcher and Analyst, Bulgaria; Director of MIFM, Effat university, Sudia Arabia; Bulgaria; Bulgaria
      Islamic finance ecosystem could leverage from blockchain technology in order to improve business processes and streamline operations. The characteristics and conditions of blockchain are in alignment with the principles of Islamic Law as it creates the possibility of coordinating institutions’ transactional activities within a strong mechanism of trust and transparency. Blockchain technology allows businesses to build decentralized models and opens new horizons for them to conduct transactions and make agreements. And one of the technologies that is proposing an alternative to the traditional model is smart contract. Smart contracts are closer to Islamic contracts with an undiluted focus on avoidance of any kind of uncertainty regarding settlement of the contracts. One would witness a sharp reduction in the element of gharar with contracting between unknown parties that meet on the internet, when Islamic contracts take the form of self-executing digital or smart contracts, with “electronically coded” terms of executions. The contractual terms will execute only if the pre-configured conditions are met. This will automate the entire contractual process for Islamic institutions. The Islamic contracts will now be easy to verify, immutable and secure, mitigating gharar in the form of operational risks arising from settlement, as well counterparty risks. The adoption of Smart contracts by the Islamic finance industry is the most natural thing to do, not just to gain a strong foothold in this technological revolution, but also to be able to fully comply with the Shari’ah in a transparent way. The Shari’ah laws can form the conditions of a smart contract. Honesty, transparency and trustworthiness are qualities that should make a financial transaction in the Islamic finance industry, and smart contracts are inherently all of these. In the era of faster globalization, risk management is of essential importance for banks. As credit risk being the most significant risk in Islamic Finance Institutions’ (IFIs), we stressed our attention in this paper on it and as per our opinion we believe that the new ledger technology will add value for IFIs in terms of reducing it. Blockchain and particular Smart contracts would help reducing credit losses; provide more transparent and accurate credit ratings for capital allocation, which could lead to minimization of the required capital allocation for credit loss, as well better and cheaper administration and facilitation of collaterals. All the above will improve IFI’s profitability and shareholders value. Not only the Islamic banks will abide fully with Shari’ah rules, but they could gain more international customers seen as the more reliable choice. The purpose of the study consists of analyzing the role of blockchain and smart contracts as a tool for risk management. We used AlInma bank as a case study to show the impact of using new FINTECH in Islamic finance. The main findings of the paper show that using blockchain and smart contracts as a tool of risk management reduces costs for IFIs considerably. The paper is organized as follows: section one will present the introduction and literature review. Section two describes Blockchain technology and Smart contracts and finally we focus on how risk management could benefit from these technologies in Islamic financing. The rest of the sections will present and discuss the use of blockchain in risk management.
    • Item
      Implementation of Enterprise Risk Management Practices in Organizations: An Empirical Analysis of Takaful Industry Financial Performance
      (2019-06-01) Omar, Masood; Javaria, Kiran; School of Accountancy and Finance, University of Lahore Islamabad, Pakistan; Lecturer, School of Accountancy and Finance, University of Lahore Islamabad, Pakistan; Pakistan; Pakistan
      the E&Y global report on Takaful industry, it has been observed consecutively that an ineffective Enterprise Risk Management (ERM) is among the top five business risks of the Takaful Industry. The present study has been conducted with an aim to find the impact of Enterprise Risk Management (ERM) Implementation on the Financial Performance of the world Takaful Industry. In this regard, ERM implementation level has been measured through the availability of Chief Risk Officer (CRO), Establishment of a Risk Management Committee in the firm, the Board Independence level within firm, the hiring of an auditor from big four auditors firm, firm size, percentage of institutional ownership in the shareholding structure, the operational diversification of a firm (national or international) and the percentage change in the revenues of the firm. There are two control variables in the study that are age and Gross Domestic Product (GDP). On the other side the financial performance is measured in terms of accounting performance and market performance. For this purpose two financial performance indicators Return on Assets (ROA), Return on Equity (ROE) have been used. A sample of 30 Takaful Firms from 10 countries has been taken for a period of 4 years (2012-2015). The study is quantitative in nature and secondary data has been used for this purpose. Hypotheses are being tested one by one through correlation and regression analysis by using Stata and Eviews. The results of the study indicate that majority of the hypothesis are accepted and shows a positive impact of ERM Implementation on the Financial Performance of the Takaful Industry.
    • Item
      Performance of Islamic Banks and Economies of Selected Muslim Countries
      (2019-06-01) Yatoo, Nissar Ahmad; Didi, Nuha Mohamed; Faculty at Islamic Online University,; Employee at Maldives Islamic Bank, Maldives; Gambia; Maldives
      This study is a strict attempt to determine the relationship between economic growth and performance of Islamic banks in few selected Muslim countries from 2014 to 2016. The macroeconomic components that were taken into consideration as indicators to economic growth were gross domestic product -GDP, foreign direct investment- FDI, inflation and unemployment in three selected countries; Malaysia, Indonesia and Maldives. Three banks from these three countries were taken into account as representatives for Islamic banks. Comprehensive income and net cash inflows have been considered as measures of performance of each bank. The empirical results show that performance of Islamic banks vary in linear relationship with indicators of economic growth in selected countries. Of the macroeconomic components that were empirically analysed against growth of Islamic banks, FDI net inflows displayed the strongest positive linear relationship with banks’ performances followed by GDP. It is thus concluded, that the performance of Islamic banks have connection, but to varying extents with different indicators of economic growth in their respective countries of operations.
    • Item
      Estimating Systemic Risk and Interconnectedness of Islamic Banks: Evidence from Indonesia
      (University of Bahrain, 2018-12-01) Nuryazidi, Mohammad; Bank Indonesia, Jl. M.H. Thamrin No.2 Jakarta Indonesia; Indonesia
      This research is designed to provide an analysis of the systemic risk of Islamic banks in Indonesia. As primary consideration in the systemic risk is the interconnectedness of financial institutions, this research proposes a novel method to measure the interconnectedness between the stability of Islamic banks by developing an econometric model for the indicator of individual banks’ soundness. In order to measure of systemic risk, this research develops a Vector Auto Regression (VAR) econometric model for the z-scores of Islamic banks in order to analyse the interconnectedness between stability Islamic banks in the data sample and determine the systematically important bank in the Islamic banking industry afterwards. Based on the VAR model results, the stability of Bank Syariah Mandiri, as the biggest Islamic bank and the second Islamic bank in Indonesia, in the previous month consistently influences three other Islamic banks in addition to its own stability. Furthermore, considering the VAR model is a novel method in measure a systemic risk, this finding also prove that the VAR model is a robust method as its finding also confirmed by additional information such as total asset and the trajectory of the development of the Islamic banks in Indonesia.
    • Item
      Islamic Banking and the Perspectives of Savings Mobilization in Tunisia
      (University of Bahrain, 2018-12-01) Jedidia, Khoutem Ben; Boubakri, Fatma; Higher Institute of Accounting and Business Administration, Univ Manouba & Unit research on Islamic Economics and Finance, Univ Zitouna Tunisia; College of Business, King Khalid University (KSA), High School of Commercial and Economic Sciences, Univ Tunis; Tunisia
      This paper analyzed the prospects of Islamic banking perspectives in savings mobilization in order to finance the development process in Tunisia. Besides the examination of the savings reality in Tunisia, this study investigated and compared Tunisians’ perceptions of savings in Islamic banks and conventional ones through a qualitative approach. The opinion poll of a sample of Tunisian adults proved that the potential of Islamic banking to mobilize savings is mediated by both the degree of Islamic banking saving awareness and contextual factors. Thus, Islamic banks can influence Tunisian savings by expanding knowledge of Islamic banking regardless of social demographic differences. Other obstacles to the adoption of Islamic savings products include the distrust and the questioning of the loyalty of Islamic banks as well as the limited number of Islamic banks and Islamic bank branches. Consequently, it is recommended to elaborate appropriate marketing strategies and highlight the specificities of Islamic savings products compared to conventional ones which in return would enable Islamic banking savings products to raise more funds for investment purposes.