Minhaj University OJS
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The Bank Capital Channel of Monetary Policy: Evidence from Countries with mixed Banking Systems
Full text linkBanks are a major instrument of monetary policy transmission. There is limited evidence on how growth in Islamic finance and banking has impacted monetary policy transmission with mixed banking systems. Moreover, the presence of the bank capital channel in Islamic banks has yet to be tested in literature. This paper is an empirical study carried out to test for the existence of bank capital monetary policy channel in mixed banking systems with Islamic and conventional commercial banks. It fills the gap by studying lending functions of both types of banks and their response to capital changes to uncover the existence of a capital channel of monetary policy transmission. Generalized method of moments (GMM) estimation is used on an unbalanced panel 12 years data of 25 countries from Asia, Middle East and Africa that have both Islamic and conventional banking to estimate a quadratic model. Empirical evidence shows that bank capital causes the nonlinearity in the lending function. The analysis validates that the forward-looking behavior of banks results in the cutting down of the amount of lending that the bank is doing when the capital falls to a certain level close to the regulatory requirements. The paper finds evidence that Islamic bank lending follows the same functional form as conventional banks; however, they differ from traditional commercial banking counterparts considerably in the degree of nonlinearity. The study contributes to banking literature by empirically testing the shape of the lending function of Islamic and conventional banks to test transmission of monetary policy in the two systems
The Impact of Using Islamic Microfinance Products on the Mauritanian' Healthcare: Evidence from Nouakchott
Full text linkMicrofinance is an effective tool to alleviate poverty, among which it improves consumption leading to better health care. Most Mauritanians live under severe poverty where no basic needs are fulfilled, including the absence of a proper healthcare system. This study investigates the role of using Islamic microfinance products in healthcare among the beneficiaries of the Islamic microfinance institution (PROCAPEC) in Nouakchott-Mauritania. The data is collected through a questionnaire distributed in a cross-sectional design. The respondents are 381 from the beneficiaries of the PROCAPEC-Nouakchott. The study also uses the structural equation modelling method (SEM) through AMOS 23 to test the hypothesis, and the SPSS 23 is utilised to analyse the descriptive statistics. The results show no statistically significant relationship between the usage of Islamic microfinance products and healthcare. It is highly recommended for policymakers and managers of microfinance to adopt strategies that boost Islamic microfinance products' usage to improve Mauritanians' well-being and awareness of health
A Comparative Behavioral Investigation into Trust and Reciprocity using the Trust
Full text linkThis paper discusses the importance of trust to economic transactions and risk-mitigation, andinvestigates the degree of compliance of individual behaviors to engender trust andreciprocity, through a behavioral approach, to understand the pervasiveness of such essentialeconomic ethic in everyday economic transactions.The methodology of this study assessesthe behavior of the subject pool (players representative of Muslims and non-Muslims)through a Trust Game that was designed to test how entrenched trust and reciprocity are inmodern societies. The game is an experiment in decision-making to measure trust ineconomic decisions and to demonstrate that trust is as fundamental to economic transactionsas self-interest. The concept of trust and reciprocity can be complex when taken into accountits relationship with risk that is not readily quantified, especially in a highly uncertainsituation. For this experiment, in terms of trust and reciprocity, both Muslims and non- Muslims performed well, although Muslims performed a little bit better than non-Muslims.There were no significant differences between the primed and unprimed subjects. Whileempirical studies have demonstrated the importance of trust and ethics in economicdevelopment, they do not demonstrate how deep religious understanding in human behaviorfor mutually beneficial decision-making. This paper attempts to address this concern so as touse religious values in productive economic behaviors, like mitigating risk in uncertaintythrough trust and reciprocity in risk-sharing. This paper provides an actual behavioralinvestigation into how people behave in real life as compared to what their religion prescribesto them
Impact of Economic Factors to Determine the Sukuk Market Development An Empirical Analysis
Full text linkThe present paper examined the causes of Economic Factors influencing the Development ofSukuk Structure.. The scope of our study covers the most Sukuk Issuers’ countries namely:UAE, Malaysia, Saudi Arabia, Kuwait, Qatar, Bahrain, Indonesia, Brunei, Pakistan andGambia. This study has analyzed the influence of: (1) Economic factors (2) Global financialCrisis (3) Financial System (4) Institutional Environment (5) Legal Origin (6) Religion andSociety Factors on the Development of the Sukuk Market. The study showed that Economicfactors such GDP per capita; trade openness, economic size and percentage of Muslims, havea positive influence on the growth of the Sukuk market. Financial crisis has a major negativeeffect on the development of the Sukuk market since the amount of Sukuk issued in thoseyears has declined significantly. Regulatory quality has a major effect on the development ofSukuk market. This implies that countries ranking higher in regulation quality have a largerSukuk market. This can be interpreted as reliability and efficiency of regulations
A Socio-Technical System Perspective on Sustainable Organizational Effectiveness A PRISMA Systematic Review
Full text linkBackground. In fast paced era of 21st century, attaining and maintaining organizational effectiveness is achallenging task for the leaders and strategists. This systematic review intended to assess the modes ofachieving effectiveness, from the existing literature across various disciplines and backgrounds.Methods. Relevant literature was identified from EBSCO, Web of Science, Scopus and ScienceDirect fromtheir start to June 2019. Studies were selected on the basis of their relevance to organizational effectivenessand its determinants, especially in relation to sustainability in contemporary age. A sociotechnical systemperspective was opted while reviewing and discussing the effectiveness studies.Results. We identified 614 studies, of which 59 studies (12 countries) were used for the study. The studyfound various antecedents, predictors, barriers and outcomes of a sustainable organizational effectiveness.The study highlighted sociotechnical perspective introducing the social and technical subsystems in anorganization, keeping in view the needs of industrial revolution 4.0. It was suggested that a synergy betweensocial and technical subsystem may result in sustainable organizational effectiveness, effectiveness incontext of higher education institutions.Conclusions. A synergy between social and technical subsystems leads to sustainable organizationa
The effect of Islamic Banking and Macroeconomic Variables on Economic Growth: A comparative study of Pakistan
Full text linkThe investigation of influence of macroeconomic variables on economic growth remained hotissue for decades. And nowadays increasing importance of Islamic banking and financeindustry in Pakistan and its tremendous role in global financial sector has also called for anexamining of contribution of Islamic finance in economic growth of Pakistan. This study alsocompared result of both variables in order to show whether Islamic banking showing greatprogress or not. So, in order to investigate impact of Islamic finance and macroeconomicvariables on economic growth this study used quarterly data from 2009-16 and applies boundtesting cointegration technique made within in “Autoregressive distributed lag model”. Theresult shows that both variables have an influence on economic growth in short run as well asin long run. By comparison of both variables it is shown that Islamic banking possess greatpotential of growth. So, government may need to refine its legal and regulatory framework inorder to increase its impact on economy up to many fold
Islamic Social Finance and Sustainable Finance to Minimize Post Harvesting Food Losses in Indonesia
Full text linkThe entire globe is experiencing unprecedented time and is trying to live in this era of digitization and declining globalization, which is being exacerbated by a small virus known as COVID 19. Indonesia is no different. To handle the pandemic, ensuring good health through enhancing food security is vital. The post-harvesting food losses because of lack of storage capacity is an issue for the country. In essence, mini cold storage powered by renewable energy can resolve the issue. Sustainable financing, in combination with Islamic Social Financing, can benefit the fishermen and agriculture farmers by facilitating to them the cold storage system. Using a qualitative research technique, this paper attempts to present two finance models for facilitating the cold chain in the existing post-harvest food supply chain to reduce losses. The implementation of the models can assist the rural population in overcoming poverty, hunger, and malnutrition issues. Not only will this endeavor guarantee good health and well-being, but it will also strengthen collaborative business practices while ensuring inexpensive clean energy use. Moreover, rural people will get the strength to overcome the current crisis and reduce uncertainty while attaining several sustainable development goals
Challenges to Economic Stability amid Global Epidemic of Covid-19: Apposite Policy Recommendations for Economic Revival in Pakistan
Full text linkAkin to Spanish flue of the twentieth century, the Coronavirus disease 2019 (COVID-19) pandemic is an unprecedented global emergency of the 21st century, handing down a significant effect on lives. Coronavirus promptly multiplied all around the globe and folded world economies in a short span of fewer than 90 days. It's ahead of the imagination of one and all to welcome the year 2020 with such a dangerous infection that will drag the world to a shocking end a worldwide lockdown. This massive vulnerability complimented some basic measures by the state in public and private sectors regards to strategy plan, contextualisation, and execution in the viewpoint of an unmatched worldwide pandemic. This article widens upon the expansion situation of a pandemic in Pakistan with severe fighting measures by the Governments during initiation of pandemic, lockdown, and delicate lockdown circumstances. Multi-dimensional financial difficulties that arose out of extended shut-down are thought. This surprising situation encroaches upon legislatures to detail arrangements and changes for the prosperity and thriving of the country as a re-established common agreement between the residents and the state. Some pertinent strategy proposals are gone ahead for financial restoration with returning to wellbeing area, sacred turns of events, financial lift through monetary and money related approaches, exchange related systems, Islamic money, social security of weak sections and modern arrangement amid social removing. This study will specify information structure for future specialists to battle and standard pandemics for the prosperity of provincial and global nations