1,720,974 research outputs found
Bank Concentration, Financial Development, Economic Growth and Income Volatility
No full textThese are the data for my studies on the OIC countries focusing on Bank Concentration, Financial Development, Economic Growth and Income Volatility
The effect of bank concentration and financial development on economic growth and income volatility: evidence from the OIC countries
No full textAlthough the well-functioning financial structure is, in general, a key to long-term sustainable economic growth and overall stability, the debate on the relationship between financial development and economic growth remains non-fading. The theoretical literature provides startlingly different and sometimes conflicting views on the finance growth nexus. In addition to this non-fading debate on finance - growth nexus, the degree of banking competition attracted increasing attention in recent years. Banking consolidations, merger and acquisitions, fuelled by overall banking deregulations and the lowering of economic barriers led to structural changes within the banking and financial environment. This prompted concerns among some observers over the potential for monopoly power in local banking markets. In short, there are two major, but contradicting, views. On one side, there are those who support competitive banking structure as it promotes competitive market practices that lead to efficiency. On the other, there are also those who argue that banks with monopolistic power (bank concentration) may spur economic growth as they are more capable of information collection, screening and monitoring borrowers ..
Does Bank Concentration and Financial Development Contribute to Economic Growth? Evidence from OIC Countries
No full textThe global financial crisis and its implications for the Islamic financial industry
No full textPurpose – The purpose of this paper is to review the evolution of the global financial crisis, draw lessons from it, and analyse its effect(s) on the Islamic financial industry (IFI). Design/methodology/approach – Based on an extensive literature review, this paper aims to highlight, explain, and discuss the implications of the global financial crisis for IFI and suggest necessary steps for the future development of the industry. Findings – The findings show that although the crisis had limited impact on IFI the major flaws of the capitalist financial system are relevant to the development of IFI. Without learning and applying the lessons from the crisis, IFI runs a risk of committing the same mistakes. Finally, greater attention should be given to the fundamental principles of Islamic finance in order to ensure the future development of industry. Research limitation/implications – The effects of the global financial crisis are still being felt all over the world, and its implications on IFI have yet to be fully understood. Owing to unavailability of relevant data, an empirical study is needed to show the real effects of the crisis on IFI. Originality/value – The lessons drawn in this paper will raise awareness among both academicians and practitioners about the inherent weaknesses of current financial practices. Furthermore, the paper highlights the major areas that need to be improved for the future development and success of IFI.Capitalist systems, Debts, Finance, Interest, Islam
Asymmetric impact of microfinance on economic growth: Evidence from Bosnia and Herzegovina
No full textThis study explores the correlation between microfinance loans (MFL) and economic growth in Bosnia and Herzegovina (Bosnia). It utilizes the non-linear Autoregressive Distributed Lag (NARDL) method to examine cointegration and short-run dynamics by analyzing quarterly data spanning from 2010 to 2022. The findings underscore the link between MFL shocks and long-term economic growth. The study unveils the unique effects of both positive and negative MFL shocks on growth, suggesting a non-linear relationship between microfinance loans and economic growth in Bosnia. However, the study concludes that the impact of MFL on Bosnia's GDP is adverse. Short-term fluctuations in MFL show no substantial influence on Bosnian economic growth. The coefficient of the error correction model is both negative and significant indicating the stability of the long-term relationship. This implies a rapid correction, with 46.4 % of the previous quarter's imbalance rectified within the current quarter. While our results are based on a single country, they align with recent criticisms of microfinance practices. Furthermore, our study offers a novel approach as it represents the first examination of the asymmetric relationship between MFL and GDP in Bosnia, providing valuable policy recommendations
Reshaping the Islamic Finance Industry: Applying the Lessons Learned from the Global Financial Crisis
No full text2 Reshaping the Islamic Finance Industry: Applying the Lessons Learned from the Global Financial Crisis
No full textLimited purpose banking (LPB) and Islamic finance
No full textThis paper primarily aims to review and analyze a new model for Islamic finance based on Laurence J. Kotlikoff's idea of limited purpose banking (LPB). In addition, this paper aims to highlight, explain and discuss various aspects of LPB and how it suits the original aspirations of pioneer writers in Islamic finance. Based on an extensive literature review, this paper aims to highlight, explain and discuss the reform of the Islamic finance industry based on Kotlikoff's model of LPB. Based on a modified LPB model, Islamic financial institutions could be established to provide specific services with clear aims and objectives. These LPB Islamic financial institutions would operate in a similar way to LPB. As there is no perfect plan, the proposal of this paper is far from being perfect and is open to discussions and improvements. The paper will, hopefully, spark off quite a discussion on the topic; may result in a better understanding of the model; and provide some alternative solutions to the current structurally ill financial system. The paper provides some practical ideas for a better implementation of Shari'ah principles in financial intermediation of the Islamic financial system. Kotlikoff's LPB proposal for reforming the financial system is new and has been directed to the conventional financial system. This paper represents the first attempt to apply his proposal to the Islamic finance industry
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