...Journal of Islamic Banking and Finance Vol. 2, No. 1; March 2014 23 Islamic Banking Scenario of Bangladesh Salahuddin Yousuf1 Md. Ariful Islam2 Md. Rayhan Islam1 Abstract With an aim to explore the current Islamic banking scenario of Bangladesh, this study examines the key concepts of Islamic banking and its history in the world and in Bangladesh as well. This secondary data based research meets its objectives of reviewing relevant concepts, history and current performance of the Islamic banks of Bangladesh through both qualitative and quantitative approaches. From the establishment of first Islamic bank in 1983, this country has currently eight Islamic banks. Except one individual bank (ICBIBL), most of the Islamic banks show remarkable growth in their profitability in the last decade. One reason behind this consistent negative figure in profitability of this bank is the frequent change of ownership. But overall significant contribution of the Islamic banks in the banking industry is visible from the research. This paper provides up-to-date scenario of the Islamic banking in Bangladesh. Keywords: Islamic Banking, Riba, Performance, Banking Industry JEL-classification: E44 G10 G21 1. Introduction Islamic banking and finance is a creation of modern age. Capitalism argues, capital- one of the key factors of production, deserves fixed return whereas the entrepreneurs have to bear all the risks. The conflict of opinions with the Islamic values starts from this very...
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...Journal of International Money and Finance xxx (2014) 1e24 Contents lists available at ScienceDirect Journal of International Money and Finance journal homepage: www.elsevier.com/locate/jimf Living with the trilemma constraint: Relative trilemma policy divergence, crises, and output losses for developing countries Joshua Aizenman a, 1, Hiro Ito b, * a b University of Southern California and the NBER, University Park, Los Angeles, CA 90089-0043, USA Department of Economics, Portland State University, 1721 SW Broadway, Portland, OR 97201, USA a b s t r a c t JEL classification: F31 F36 F41 O24 Keywords: Impossible trinity International reserves Financial liberalization Financial crisis Exchange rate regime This paper investigates the potential impacts of the degree of divergence in open macroeconomic policies in the context of the trilemma hypothesis. Using an index that measures the relative policy divergence among the three trilemma policy choices, namely monetary independence, exchange rate stability, and financial openness, we find that emerging market countries have adopted trilemma policy combinations with the least degree of relative policy divergence in the last 15 years. We find that a developing or emerging market country with a higher degree of relative policy divergence is more likely to experience a currency or debt crisis. However, a developing or emerging market country with a higher degree of relative policy divergence...
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...Proposal on Islamic Banking Table of Contents TOC \o 1-2 1) Research Title PAGEREF _Toc \h 3 2) Introduction to the Research Topic and Main Research Question PAGEREF _Toc1 \h 3 3) Literature Review Outline and Detailed Research Questions PAGEREF _Toc2 \h 5 3.1) Introduction PAGEREF _Toc3 \h 5 3.2) Background of Islamic Banking PAGEREF _Toc4 \h 5 3.3) Features of Islamic Banking PAGEREF _Toc5 \h 6 3.4) Determination of Whether Islamic Banking is a Matter of Semantics PAGEREF _Toc6 \h 8 3.5) Detailed Research Questions PAGEREF _Toc7 \h 10 4) Ethical Considerations PAGEREF _Toc8 \h 10 References PAGEREF _Toc9 \h 12 Bibliography PAGEREF _Toc10 \h 17 1) Research Title “Islamic Banking: A Matter of Semantics?” 2) Introduction to the Research Topic and Main Research Question Islamic banking is denoted as a banking system, which is mainly governed by the principles that have been formulated by the Islamic Shariah (Hasan, 2012). In general, the term Islamic banking is not only typically based on evading internet-based transactions that are strictly prohibited under the law of Shariah, but also discards any sort of unsocial or unethical practices (Ahmed, 2011). With this concern, it can be affirmed that Islamic banking is regarded as the procedure of transforming predictable money lending into transactions that are fundamentally based upon real as well as tangible services (El-Gamal, 2006). This banking system, if successfully...
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...International Research Journal of Finance and Economics ISSN 1450-2887 Issue 68 (2011) © EuroJournals Publishing, Inc. 2011 http://www.eurojournals.com/finance.htm Financial Performance Evaluation of Some Selected Jordanian Commercial Banks Ahmed Arif Almazari Department of Administrative Sciences- Finance Section, King Saud University E-mail: aalmazari@ksu.edu.sa; ahmadarif26@hotmail.com Abstract This study attempted basically to measure the financial performance of some selected Jordanian commercial banks for the period 2005-2009. It is evaluatory in nature, drawing sources of information from secondary data. The financial performance of banks is studied on the basis of financial variables and ratios. In this paper an attempt was made to analyze the financial performance of seven selected Jordanian commercial banks using simple regression in order to estimate the impact of independent variable represented by; the bank size, asset management, and operational efficiency on dependent variablefinancial performance represented by; return on assets and interest income size. It was found that banks with higher total deposits, credits, assets, and shareholders’ equity does not always mean that has better profitability performance. It was also found that there exists a positive correlation between financial performance and asset size, asset utilization and operational efficiency, which was also confirmed with regression analysis that financial performance is greatly influenced by these...
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...8th International Conference on Islamic Economics and Finance Prospects and Problems of Islamic Banking from Bank’s Perspective: A Study of Bangladesh Dr. Muhammad Z Mamun 1 This paper focuses on the prospect and growth potentials of Islamic banks in Bangladesh as perceived by Islamic and conventional bankers. The study noted that there is a high demand for interest-free banking services from a segment of people in Bangladesh who have a strong desire to abide by the rules and principals set by Shariah. Along with religious requirement, economic exigencies provide a new outlook to the role of banking in promoting investment/ productive activities, influencing distribution of income and adding stability to the economy. The Islamic banking sector is, however, criticized on several grounds by the Conventional bankers. The banks are believed not to apply the rules of Shariah completely. Islamic banks are said to include interest in their dealings to compete effectively with the Conventional banks. Moreover, conventional banks offering Islamic banking as a parallel service are thought to do so only to add to their profitability, by attracting people who value the Shariah based system by enjoying the advantages of the special treatments from the Central bank. According to the survey, suitable and supportive legal framework would facilitate better growth of this sector. Moreover, the lack of an inter-bank money market and sufficient supportive and link institutions in the sector, act...
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...www.ccsenet.org/ijbm International Journal of Business and Management Vol. 6, No. 7; July 2011 Financial Reform, Ownership and Performance in Banking Industry: The Case of Bangladesh S. M. Sohrab Uddin PhD Student, Graduate School of Asia Pacific Studies Ritsumeikan Asia Pacific University, Japan & Assistant Professor, Department of Finance and Banking, University of Chittagong, Bangladesh E-mail: smsohrabcu@yahoo.com Yasushi Suzuki Professor, Graduate School of Management Ritsumeikan Asia Pacific University, Japan E-mail: szkya@apu.ac.jp Received: December 17, 2010 Accepted: January 20, 2011 doi:10.5539/ijbm.v6n7p28 Abstract Bangladesh entered into the era of financial reform during the early 1980s. Most of the reforms initiated by the government have concentrated predominantly on the banking sector. Consequently, many changes relating to ownership, market concentration, regulatory measures and policies have taken place primarily to enhancing bank performance. In this regard, this study is undertaken to investigate the performance of commercial banks after the implementation of significant financial reform. Data Envelopment Analysis based frontier measures income and cost efficiency and traditional non-frontier measures non-performing loans and return on assets have been used for assessing bank performance. The findings indicate that income and cost efficiency of sample banks have increased by 37.84 percent and 15.28 percent respectively in 2008 compared to 2001...
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...International Journal of Recent Research in Social Sciences and Humanities (IJRRSSH) Vol. 1, Issue 1, pp: (29-39), Month: April - June 2014, Available at: www.paperpublications.org An Analysis of Indian Banking Industry with Special Reference to ICICI Bank Sana Samreen Abstract: The last decade has seen many positive developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favorably with banking sectors in the region on metrics like growth, profitability and non-performing assets (NPAs). However, improved regulations, innovation, growth and value creation in the sector remains limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. India’s banking industry needs to strengthen itself significantly In this paper, I have mainly focused on the overall analysis of the banking industry through framework like Porter’s five forces model. I have also concentrated upon the various developments being done in the industry along with recognizing the upcoming challenges as well as the opportunities to reap the profits even in troubled waters. Keywords: Indian banking industry, Porters five force model, market regulation. I. Introduction The Indian banking...
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...Journal of Banking & Finance 29 (2005) 1751–1767 www.elsevier.com/locate/jbf International evidence on ethical mutual fund performance and investment style Rob Bauer b a,c , Kees Koedijk b,* ´ , Roger Otten c a ABP Investments, Schiphol, The Netherlands Faculteit Bedrijfskunde, Erasmus University Rotterdam and CEPR, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands c Maastricht University, Maastricht, The Netherlands Received 23 September 2003; accepted 28 June 2004 Available online 23 September 2004 Abstract Using an international database containing 103 German, UK and US ethical mutual funds we review and extend previous research on ethical mutual fund performance. By applying a Carhart multi-factor model [Carhart, Journal of Finance 57 (1997) 57] we overcome the benchmark problem most prior ethical studies suffered from. After controlling for investment style, we find no evidence of significant differences in risk-adjusted returns between ethical and conventional funds for the 1990–2001 period. Our results also suggest that ethical mutual funds underwent a catching up phase, before delivering financial returns similar to those of conventional mutual funds. Finally, our performance estimates are robust to the inclusion of ethical indexes, which, surprisingly, are not incrementally capable of explaining ethical mutual fund return variation. Ó 2004 Elsevier B.V. All rights reserved. JEL classification: G12; G20; G23 Keywords: Mutual...
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...------------------------------------------------- | ------------------------------------------------- Email(s): | ------------------------------------------------- Zeeshan.khan687@gmail.com | ------------------------------------------------- | Objective: | Self-motivated individual with strong problem solving skills, seeking for a position that allow me to utilize my skills so that the outcome can be used for the benefit of the organization. I believe given a chance I would become an asset to any organization immediately. | Academic Education Sr. | Certification / Degree | Institution / University | Specialization | Passing Year | 1 | Ms Management Science (Leading to PhD) | University of the Central Punjab | Finance | (Dissertation in Progress) | 2 | B.Com (Hons.) | University of the Punjab | Finance | 2009 | 3 | Intermediate | Crescent College | Pre-Engineering | 2005 | 4 | Matriculation | Crescent Model Higher Secondary School | Science | 2003 | Work Experience Organization : | Youth Career Management | Organization Type : | Youth Development and Promotion | Designation : |...
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...the same region. The findings of the study show that there is a significant difference between the two sectors in 2007 and 2009 and there are no significant differences in 2008, which indicates the effect of the crisis on both sectors. IBs outperform TBs in 2007 and TBs outperform IBs in 2009. This result indicates the spread of the crisis to the real economy where IBs usually operate. INTRODUCTION Forty years ago Islamic Finance was virtually an unknown system; interestingly it has expanded to become a distinctive and fast growing segment of the International Financials markets. With a growth rate that ranges from 15% to 20% (EL- Qoroshy 2005). Islamic Finance in general and Islamic banking in specific become main players in the financial world. According to the IMF survey (2010) the total capital managed under Islamic Finance systems was estimated to be $820 billion at the end of 2008. More than 200 Islamic Banks operate in over than 70 countries concentrated in the MENA region and many western countries (Hassan & lewis, 2007). Obviously, the Islamic Banking sector attracts more attention during the financial crisis started in 2008. This attention is justified by the minor effect of the crisis on the financial institutions that comply to Islamic sharia’a (laws) (Chapra, 2008). In...
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...the contribution of such institutions to the financial stability, designing monetary policies and devising a proper risk management applicable to these institutions. This article analyzes and investigates the impact of interest rate shock upon the deposits and loans held by the conventional and Islamic banks with particular reference to the period between December 2005 and July 2009 based on Vector Error Correction (VEC) methodology. It is theoretically expected that the Islamic banks, relying on interest-free banking, shall not be affected by the interest rates; however, in concurrence with the previous studies, the article finds that the Islamic banks in Turkey are visibly influenced by interest rates. JEL classification: G21; E52 Keywords: Interest-free banking, monetary policy I. Introduction Islamic banks1 are defined as financial institutions that rely on the principle of Profit and Loss Sharing (PLS) with the entrepreneurial partners in their relevant banking activities (Nienhaus, 1983, p. 31). From a unique perspective, these institutions may be properly identified as alternatives to modern conventional banks (Van Schaik, 2001, p. 46). Islamic banks basically operate in reliance on PLS paradigm. The term Islamic PLS refers to a relationship between the borrower, lender and intermediary built upon financial trust and partnership (Yudistira, 2003, p....
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...Global Journal of Management and Business Research Finance Volume 13 Issue 9 Version 1.0 Year 2013 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Performance Evaluation of Prime Bank Limited in Terms of Capital Adequacy By Md. Abdullah Al Mamun Pabna University of Science and Technology, Bangladesh Abstract - The study aims at evaluating performance of prime bank. Data of the bank is analyzed using capital adequacy ratio, debt equity ratio and advance to asset ratio for the period 2008 to 2012. The study finds, though high debt equity ratio bank maintains capital above regulatory requirement. This will help the researcher and bank to further improvement in capital adequacy to meet regulatory requirement and enhance bank performance. Keywords : capital, capital adequacy ratio, performance. GJMBR-C Classification : JEL Code: G21 PerformanceEvaluationofPrimeBank LimitedinTermsofCapitalAdequacy Strictly as per the compliance and regulations of: © 2013. Md. Abdullah Al Mamun. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. Performance Evaluation of Prime Bank Limited in Terms of Capital Adequacy Md. Abdullah...
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... Faculty of Banking and Finance / FTU fandzung@ftu.edu.vn This module is supported by Weblearn – students are advised to access the site on a regular basis, at least once a week FS3032 Capital Markets |Teaching Location |A1101 | |Teaching Semester |1 | |Module Level |H | |Home Academic Department |LMBS | |Module Leader |Dr Phan Tran Trung Dzung | |Module Web Site |FS3032C | |Teaching Mode |Day | |Module Title |Capital Markets | |Timeslot | | |Credit Rating For Module |15 | Module Summary CODE: FS3032C TITLE: Capital Markets: Investment & Portfolio Management BRIEF DESCRIPTION: The world of finance has changed tremendously in the last few decades. Domestic financial markets are integrating more and more and businesses are becoming global. As the core component of the world of finance, capital markets...
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...Course Name: Economics of Financial Institutions Course Code: ECON 3031 ID#: 620031134 Name: Ronel Richardson Date: July 5, 2013 Introduction In the eyes of the general public the stock market can seem a lot like gambling. Choosing the right time to invest plays a vital role in whether you realize tremendous returns on your investment or simply a loss. The fact that the stock market plays an important role in the health of the economy it leads us to ask the following questions: how the stock market is influenced? Are business performance and stock market performance correlated? The first modern stock market, today called the New York Stock Exchange (NYSE) was established in 1792 in New York City. The purpose of the stock market is to give the opportunity to companies to open themselves up to public investment in order to raise capital. The stock market is composed of a primary market and a secondary market. The primary market is where a company sells shares for the first time or issues new ones. In the secondary market, investors trade securities or assets with other investors, the cash proceeds from transactions go to the investors instead of the company. At this point companies do not have direct control over their stock’s price. There are several areas of influences that affect the stock’s price, which are the wider environment, the supply and demand driven by investors’ confidence, government monetary policy, the Gross Domestic Product (GDP), the unemployment and...
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...The effect of the board of directors’ characteristics on corporate social responsibility disclosure by Islamic banks: evidence from Gulf Cooperation Council countries Abdullah Awadh Bukair and Azhar Abdul Rahman Abstract Corporate social activities have become major subjects because of their effects on the quality life of citizens, in particular, and on the society at large. Therefore, today, there is an increase awareness of social responsibility due to the challenges meeting the financial institutions (particularly, Islamic banking) around the world. This paper examines the influence of the board of directors’ characteristics, consisting of board size, board composition, and the separation roles of CEO and chairman, on corporate social responsibility (CSR) disclosure in 53 annual reports of Islamic banks of Gulf Cooperation Council (GCC) countries after controlling of bank size, financial performance and relevant public. Based on the framework of legitimacy theory, the findings show that CSR disclosure has a negative and insignificant relationship with board composition. On contrast, the study found insignificantly and positive association between CSR disclosure and other characteristics of board of directors (board size and the separation roles of CEO and chairman). With regards control variables, the study indicates that bank size and financial performance have a positive and significant influence on CSR disclosure, while relevant public has no effect. Therefore, the results...
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