Journal Article

A proposal designed for calibrating the liquidity coverage ratio for Islamic banks

Dolgun, Muhammed Habib; Mirakhor, Abbas; Ng, Adam Boon Ka (2019)

This paper aims to critically investigate the liquidity risk management of Islamic banks and develop an alternative regulatory framework appropriate for liquidity management of these banks. The specific risk profile of an Islamic bank requires developing a new and more efficient regulatory framework,...

Journal Article

Does competition make banks riskier in dual banking system

Alam, Nafis; Abdul Hamid, Baharom; Dyi, Ting Tan (2018)

This paper investigates competition and risk-taking behaviour of Islamic banks taking a sample of 59 Islamic banks and 149 conventional banks from 10 highly developed Islamic banking countries between 2006 and 2016. The level of competitiveness between the two types of banks is determined using Lerner...

Journal Article

Cross-country evidence of Islamic portfolio diversification: are there opportunities in Saudi Arabia?

Ali, Md Hakim; Uddin, Md Akther; Chowdhury, Mohammad Ashraful Ferdous; Mohammed Masih, Abul Mansur (2018)

On the backdrop of growing importance of Shariah compliant equity markets, the purpose of this paper is to study cross-country portfolio diversification benefits for investors with major trading partners of Saudi Arabia, namely, USA, China, Japan, Germany and India, who have already invested or tend...

Journal Article

Empirical evidence of risk shifting in bonds and debt-based sukuk: the case of Malaysian corporations

Hamzah, Siti Raihana; Bacha, Obiyathulla Ismath; Mirakhor, Abbas; Abdul Kader Malim, Nurhafiza (2018)

The purpose of this paper is to examine the extent of risk shifting behavior in bonds and sukuk. The examination is significant, as economists and scholars identify risk shifting as the primary cause of the global financial crisis. Yet, the dangers of this debt-financing feature are largely ignored -...