دورية أكاديمية
Cushion hypothesis and credit risk: Islamic versus conventional banks from the MENA region.
العنوان: | Cushion hypothesis and credit risk: Islamic versus conventional banks from the MENA region. |
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المؤلفون: | Abdeljawad I; Finance and Banking Department, An-Najah National University, Nablus, Palestine., Rashid M; Christ Church Business School, Canterbury Christ Church University, Canterbury, United Kingdom., Abu Alia M; Accounting Department, An-Najah National University, Nablus, Palestine., Qushtom R; Finance and Banking Department, An-Najah National University, Nablus, Palestine., Irshaid M; Department of Sharia and Islamic Banks, An-Najah National University, Nablus, Palestine., Sahyouni A; Higher Institute for Administrative Development, Damascus University, Damascus, Syria. |
المصدر: | PloS one [PLoS One] 2024 Jul 22; Vol. 19 (7), pp. e0306901. Date of Electronic Publication: 2024 Jul 22 (Print Publication: 2024). |
نوع المنشور: | Journal Article |
اللغة: | English |
بيانات الدورية: | Publisher: Public Library of Science Country of Publication: United States NLM ID: 101285081 Publication Model: eCollection Cited Medium: Internet ISSN: 1932-6203 (Electronic) Linking ISSN: 19326203 NLM ISO Abbreviation: PLoS One Subsets: MEDLINE |
أسماء مطبوعة: | Original Publication: San Francisco, CA : Public Library of Science |
مواضيع طبية MeSH: | Islam*, Humans ; Banking, Personal ; Financial Management ; Risk |
مستخلص: | Conventional banks are 'indirectly' allowed to take more risk under the shadow of sovereign guarantees. Banks commit moral hazards as any major banking crisis will be 'cushioned' by deposit insurance and bailed out using the taxpayer's money. This study offers an alternative explanation for the determinants of banks' credit risk, particularly those from the Islamic regions. Although conventional banks and Islamic banks may share state and social cushioning systems, Islamic banks are strictly prohibited by moral and religious principles from gambling with depositors' funds, even if there is a cushion available to bail them out. However, banks belonging to collective societies, such as those in the MENA area, may be inclined to take more risks due to the perception of having a larger safety net to protect them in the event of failure. We analyse these theoretical intersections by utilising a dataset consisting of 320 banks from 20 countries, covering the time span from 2006 to 2021. Our analysis employs a combination of Ordinary Least Squares (OLS), Fixed Effects (FE), and 2-step System-GMM methodologies. Our analysis reveals that Islamic banks are less exposed to credit risk compared to conventional banks. We contend that the stricter ethical and moral ground and multi-layer monitoring system amid protracted geopolitical and post-pandemic crises impacting Islamic countries contribute to the lower credit risk. We examine the consequences for credit and liquidity management in Islamic banks and the risk management strategies employed by Islamic banks, which can serve as a valuable reference for other banks. Competing Interests: The authors have declared that no competing interests exist. (Copyright: © 2024 Abdeljawad et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.) |
References: | J Consum Policy (Dordr). 2022;45(2):331-342. (PMID: 35153352) Heliyon. 2024 Jun 06;10(11):e32527. (PMID: 38961980) Organ Behav Hum Decis Process. 1998 Aug;75(2):170-86. (PMID: 9719662) |
تواريخ الأحداث: | Date Created: 20240722 Date Completed: 20240722 Latest Revision: 20240724 |
رمز التحديث: | 20240725 |
مُعرف محوري في PubMed: | PMC11262648 |
DOI: | 10.1371/journal.pone.0306901 |
PMID: | 39038005 |
قاعدة البيانات: | MEDLINE |
تدمد: | 1932-6203 |
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DOI: | 10.1371/journal.pone.0306901 |