INCEIF Knowledge Repository (INCEIF University)
Not a member yet
1768 research outputs found
Sort by
Lending structure and bank insolvency risk: a comparative study between Islamic and conventional banks
No full textThis study investigates the impact of lending structure on the insolvency risk exposure. A comparative analysis between the insolvency risk behavior between the Islamic and conventional banks is made. Our findings show that real estate lending is positively related to the conventional banks’ risk, but inversely related to the Islamic banks’ risk exposure. Thus, the policy makers as well as the banks should react accordingly in the decision making process
Recent and ongoing advances in econometric methodology for applied research
No full textConventional regression techniques and non-cointegrated VARs. The following were the major alternative approaches to modeling up until, say, 1990: 1.1 Large scale macro models that typically involve: i. distinguishing exogenous and endogenous variables; ii. imposing restrictions of short run dynamics to achieve identification; iii. estimation usually by OLS or IV and are used for simulations. Examples are Fed Reserve Bank Model, Reserve Bank of Australia Model, Chris Murphy Model of Australian economy, London Business School Model, Fair Model of the US economy. 1.2 Nonintegrated VAR Models: Unrestricted, Bayesian and Structural VAR forms: i. Unrestricted VAR is frequently used in short run forecasting and hypothesis testing for Granger causality but it has limited use in policy simulations; ii. Bayesian VAR by definition predetermine structure through prior ordering of variables, ranking from most endogenous to exogenous by design it is researcher fixed
Microfinance in Nigeria and the prospects of introducing an Islamic version in the light of selected Muslim countries’ experience
No full textToday widespread poverty is one of the major problems of mankind and its alleviation one of her major agendas. In recent years microfinance has emerged as an important instrument to relieve poverty in the developing countries. Today there are more than 7000 micro lending institutions providing loans to more than 25 million poor individuals across the world, their vast majority being the women. However these institutions face some serious challenges, especially in less developed countries where the proportion of people in poverty is high. The existing microfinance in Nigeria serves less than 1 million people out of 40 million being the potential number that need the service. Also, the aggregate micro credit facilities in Nigeria, account for about 0.2 percent of the GDP and is less than one percent of total credit in the economy. Addressing this situation inadequately would further accentuate the problem and slow down growth and development of the country. We find that the microfinance institutions charge interest rate as high as up to 100% for lending and pay as low as 5% on savings. This aggravates the existing inequalities in the distribution of wealth and income in Nigeria. Finally, Nigeria being a country with a Muslims majority, represents a potential for Islamic microfinance especially that most Muslims reject the conventional interest based micro financing, which is not tailored in line with their faith. This might cause failure of government project to combat poverty in the country through micro financing. Under the circumstance Islamic micro financing has potential to serve the country better. The paper has relied on the sources of Shari`ah law, secondary data from journals, periodicals, conference proceedings, text book , internet search and other sources of published data to support the argument
New issues in Islamic finance and economics: progress and challenges
No full textThis book provides a review of the main issues and challenges facing Islamic finance. The application of Islamic finance is currently limited to banking. This book starts with an overview of the factors and motives behind the development of Islamic finance. A critical review of issues facing the industry is provided followed by a detailed analysis of areas where further attention is required. The book offers some original thinking on issues pertaining to governance, institutions, public finance and economic development within an Islamic financial system
A rolling regression analysis of international transmission of inflation in Malaysia
No full textThe paper assesses the transmission of foreign inflationary disturbances for Malaysia. Using quarterly data from 1971 to 2003, we form a four-variable vector error correction model (VECM) consisting of domestic prices, US prices, Ringgit exchange rate and relative interest rate. Apart from the full-sample analysis, recursive and rolling regressions are adopted to examine potential changes in inflation transmission from the US to Malaysia. As a basis for inferences, we rely on the speed of adjustments estimates as well as the significance of lagged first-differenced terms of the VECM. The results unequivocally suggest significant spillover of US inflationary disturbances to Malaysia in the short run regardless of the estimation periods. However, the speed of adjustment estimates for domestic prices tend to decline or turn insignificant when recent observations are added. Our findings demonstrate that inflation transmission across nations ought not to be cast in the light of exchange rate regimes alone. Indeed, the degree of capital mobility may have played a more dominant role
Towards institutional mutawallis for the management of waqf properties
No full textThis paper examines the management of waqf properties in Malaysia. Waqf comes under states’ jurisdiction and state laws are applicable to the creation, management and development of waqf properties. The institution of the Islamic Religious Council (Majlis Agama Islam) in the various states deal with the issues related to waqf including its management and act as the sole trustee (mutawalli) of all the waqf properties in the states. This paper argues that waqf as an institution is not as productive and beneficial as it was during the Islamic history. It contends that the practice of appointing government institutions as a mutawalli has not contributed to the productivity and efficient management of the waqf properties. The paper argues that in order to make waqf contribute to the socio-economic development of the Muslim communities it is essential that some changes be brought to the management of the waqf properties. The paper concludes that non-governmental institutions should be allowed to act as a trustee (mutawalli/nazir) and to manage the waqf properties for the benefit of the beneficiarie
Leadership for success
No full textLeaders are needed everywhere. They are at all levels, have different roles at different places and times, always portray their potentials at the right time. They do not have the same style all the time and may or may not be successful
Corporate governance practices and firms performance: the Malaysian case
No full textThis paper examines the relationship between corporate governance practices and company performance. In this study, a Mann-Whitney U test was performed to compare the performance between 5 Malaysian companies that practice good corporate governance and 5 Malaysian companies that did not practice good corporate governance. A study by Standard & Poor's in 2004 was the main source to identify companies practicing good corporate governance and vice versa. Financial ratios namely return on assets, return on equity, earnings per share and profit margin were used as a measure of company performance. It is found that there is no difference in performance between companies that practice good corporate governance and companies that do not practice good corporate governance. High ownership concentration in Malaysia coupled with the usage of accounting performance in this study may be able to provide explanation for the insignificant finding
Do stock prices play a significant role in formulating monetary policy? A case study
No full textThe theory of money demand has been explained using different models. Economic theory says that a basic money demand function depends on variables that reflect the level of transactions in the economy such as real income or real wealth, and opportunity cost variables such as the rate of interest or the rate of inflation. This setting does not take into account investment decision by investors, which are reflected in the stock price movements. The money demand function is one of the key models monetary policy makers’ use, as certain measures of money are reliably linked to objectives of policy. These may include intermediate targets such as long-run economic growth (represented by percentage change in real GDP) and steady inflation
Audit committee and auditor independence: the bankers’ perception
No full textThis paper examines the perception of bankers on contribution of audit committees towards external auditor independence in public listed companies. All Malaysian public listed companies are required to establish an audit committee as a measure to improve on the internal control mechanism that can help improve the corporate governance practices of firms. Postal questionnaires and interview surveys were used to solicit the perception and views of loan officers. The majority of the respondents believe that auditor independence is preserved with the presence of an actively functioning audit committee. This implies favourably on the corporate governanc