Jump to ContentJump to Main Navigation
Islamic Banking and Financial CrisisReputation, Stability and Risks$
Users without a subscription are not able to see the full content.

Habib Ahmed, Mehmet Asutay, and Rodney Wilson

Print publication date: 2013

Print ISBN-13: 9780748647613

Published to Edinburgh Scholarship Online: May 2014

DOI: 10.3366/edinburgh/9780748647613.001.0001

Show Summary Details
Page of

PRINTED FROM EDINBURGH SCHOLARSHIP ONLINE (www.edinburgh.universitypressscholarship.com). (c) Copyright Edinburgh University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in ESO for personal use.date: 07 April 2020

Islamic Banks’ Financing Behaviour: A Pilot Study

Islamic Banks’ Financing Behaviour: A Pilot Study

Chapter:
(p.87) 5 Islamic Banks’ Financing Behaviour: A Pilot Study
Source:
Islamic Banking and Financial Crisis
Author(s):

Mohd Afandi Abu Bakar

Radiah Abdul Kader

Roza Hazli Zakaria

Publisher:
Edinburgh University Press
DOI:10.3366/edinburgh/9780748647613.003.0005

This chapter examines the cyclical behaviour of financing activities by Islamic banks as well as the cyclicality behaviour of fixed-rate financing. More specifically, it investigates the impact of aggregate economic activity fluctuations on Islamic bank lending. Analysis of panel data for the period 1998–2008 for twenty-four Islamic banks shows that strong GDP growth accelerates financing growth, a trend that is also observed in conventional banks. Financing is positively correlated with bank reserves, capital and loan loss provision, but weakly related to money supply. The chapter suggests that financing may be less pro-cyclical if Islamic banks would rely more on profit and risk sharing.

Keywords:   financing, Islamic banks, cyclicality, fixed-rate financing, bank lending, GDP, bank reserves, capital, loan loss provision, money supply

Edinburgh Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.