Investigation of the expected loss of sharia credit instruments in global Islamic banks

The purpose of this paper is to investigate the expected outcomes, both of positive and negative returns occurred by shariá credit instruments in global Islamic banks. The annual panel data from 2005 to 2012 is collected from 40 Islamic banks from 12 countries and value at risk (VaR) technique is...

Full description

Bibliographic Details
Main Authors:	Shahari, Farihana, Zakaria, Roza Hazli, Rahman, Md. Saifur
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Limited 2015
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/52570/ http://irep.iium.edu.my/52570/ http://irep.iium.edu.my/52570/ http://irep.iium.edu.my/52570/7/52570.pdf http://irep.iium.edu.my/52570/8/52570-Investigation%20of%20the%20expected%20loss%20of%20sharia%20credit%20instruments%20in%20global%20Islamic%20banks%20_SCOPUS.pdf

id	iium-52570
recordtype	eprints
spelling	iium-525702016-11-10T00:51:56Z http://irep.iium.edu.my/52570/ Investigation of the expected loss of sharia credit instruments in global Islamic banks Shahari, Farihana Zakaria, Roza Hazli Rahman, Md. Saifur HG1501 Banking The purpose of this paper is to investigate the expected outcomes, both of positive and negative returns occurred by shariá credit instruments in global Islamic banks. The annual panel data from 2005 to 2012 is collected from 40 Islamic banks from 12 countries and value at risk (VaR) technique is employed in the investigation process. The findings of this study indicate several outcomes: first, majority of Islamic banks use debt-based financing (DBF) and avoid asset-based financing (ABF) due to the lack of secured rate of fixed returns and collateral. Second, the ABF financing shows the positive returns. Third, interestingly, DBF financing faces higher credit risk compared to ABF even DBF secures its financing through tight policy implementation. Finally, this paper comes up with policy recommendations for the further reduction of credit risks and improvement of bankers’ confidence level in implementing the ABF financing policy. Emerald Group Publishing Limited 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/52570/7/52570.pdf application/pdf en http://irep.iium.edu.my/52570/8/52570-Investigation%20of%20the%20expected%20loss%20of%20sharia%20credit%20instruments%20in%20global%20Islamic%20banks%20_SCOPUS.pdf Shahari, Farihana and Zakaria, Roza Hazli and Rahman, Md. Saifur (2015) Investigation of the expected loss of sharia credit instruments in global Islamic banks. International Journal of Managerial Finance, 11 (4). pp. 503-512. ISSN 1743-9132 http://www.emeraldinsight.com/doi/abs/10.1108/IJMF-12-2014-0196 10.1108/IJMF-12-2014-0196
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Shahari, Farihana Zakaria, Roza Hazli Rahman, Md. Saifur Investigation of the expected loss of sharia credit instruments in global Islamic banks
description	The purpose of this paper is to investigate the expected outcomes, both of positive and negative returns occurred by shariá credit instruments in global Islamic banks. The annual panel data from 2005 to 2012 is collected from 40 Islamic banks from 12 countries and value at risk (VaR) technique is employed in the investigation process. The findings of this study indicate several outcomes: first, majority of Islamic banks use debt-based financing (DBF) and avoid asset-based financing (ABF) due to the lack of secured rate of fixed returns and collateral. Second, the ABF financing shows the positive returns. Third, interestingly, DBF financing faces higher credit risk compared to ABF even DBF secures its financing through tight policy implementation. Finally, this paper comes up with policy recommendations for the further reduction of credit risks and improvement of bankers’ confidence level in implementing the ABF financing policy.
format	Article
author	Shahari, Farihana Zakaria, Roza Hazli Rahman, Md. Saifur
author_facet	Shahari, Farihana Zakaria, Roza Hazli Rahman, Md. Saifur
author_sort	Shahari, Farihana
title	Investigation of the expected loss of sharia credit instruments in global Islamic banks
title_short	Investigation of the expected loss of sharia credit instruments in global Islamic banks
title_full	Investigation of the expected loss of sharia credit instruments in global Islamic banks
title_fullStr	Investigation of the expected loss of sharia credit instruments in global Islamic banks
title_full_unstemmed	Investigation of the expected loss of sharia credit instruments in global Islamic banks
title_sort	investigation of the expected loss of sharia credit instruments in global islamic banks
publisher	Emerald Group Publishing Limited
publishDate	2015
url	http://irep.iium.edu.my/52570/ http://irep.iium.edu.my/52570/ http://irep.iium.edu.my/52570/ http://irep.iium.edu.my/52570/7/52570.pdf http://irep.iium.edu.my/52570/8/52570-Investigation%20of%20the%20expected%20loss%20of%20sharia%20credit%20instruments%20in%20global%20Islamic%20banks%20_SCOPUS.pdf
first_indexed	2023-09-18T21:14:27Z
last_indexed	2023-09-18T21:14:27Z
_version_	1777411468904366080

Investigation of the expected loss of sharia credit instruments in global Islamic banks

Similar Items