Login
E-Mail Address:

Password:


 
CHARITY AND SPONSOR ADS
LiveZilla Live Help

Shopping Cart
0 items
 

Islamic Banking-Literature Review The proposed study will investigate the performance of Islamic banks in the Arab Gulf countries (Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates) and the Middle East

Islamic Banking-Literature Review The proposed study will investigate the performance of Islamic banks in the Arab Gulf countries (Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates) and the Middle East
Click to enlarge
Price: $49.99
Availability: In Stock
Model: A
Average Rating: 5 out of 5 Stars!

Islamic Banking-Literature Review The proposed study will investigate the performance of Islamic banks in the Arab Gulf countries (Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates) and the Middle East. It will do so in the light of the current economic crisis. It will therefore compare the performance of Islamic banks within the above mentioned regions. Rationale Islamic banks are those that operate under Shariah Law. In theory, this places four restrictions on banking: * No interest can be charged (riba). * No trade in businesses unacceptable to Islam (e.g., businesses trading in pork or alcohol) * Full reserve banking * No gambling or trading in risk (bayu al-gharar) In practice, Islamic banks may not follow these restrictions fully. It is doubtful, for instance, whether any bank practises full reserve banking, and some Islamic banks have been criticised for charging riba. Nonetheless, Islamic banks have a very different structure to that of western commercial banks. Moreover, the current banking crisis was arguably caused by activities unacceptable to Islamic banking, especially trading in risk. Accordingly, one might expect Islamic banks to have performed relatively well during the current economic crisis. Against this, it might be that they performed less well. They did not have access to certain activities to protect themselves (e.g., hedging operations that involved trading in risk), so might have fared worse. It is also possible that the restrictions placed on Islamic banks make them less profitable. Measures The proposed study will compare the profitability of Islamic banks - it will also compare the bank’s using liquidity. Profitability will be measured by Return on Assets (ROA), and liquidity will be determined as the ratio of Total Assets (TA) to Total Liabilities (TL) Note that the measures will not include Return on Equity (ROE) because Islamic finance does not use “shares” in the same way as commercial banks. Similarly, it will not use Quick Ratio (QR) as a measure of liquidity because the QR uses, in effect, shareholdings. Size of bank will also have to be taken into consideration. This will be determined by each bank’s TA. Data Banks studied will Islamic banks in the Arab Gulf and the Middle East selected randomly, using the random number generator in Excel; in total, there should be about 75. Data will be taken from Bankscope or similar database. Data will be all those available for each bank for each year from 1995 to 2009. For each bank, as indicated, they will comprise the bank’s TA, TL, and ROA. Analyses First analysis The first analysis will comprise multiple regression. If data are nonlinear, they will be logarithmically transformed. A dummy variable will be added for category of bank. Multiple regression may then be conducted to see if there is interaction between banks and changes in profitability. The predictor variables will be year (1995–2009) and TA, and the outcome variable will be profitability. Second analysis The second analysis will be the same as the first, except that it will investigate liquidity. Write-up The write-up will be structured as follows: Abstract * Introduction o Islamic banking * History * Modern Islamic banking o Causes of the current financial crisis o Hypotheses * Methodology Method * Results * Discussion Limitations of study Future developments Further studies * References NOTE: This question is NOT our property; we are only suggesting solution of this question.

Write Review
Your Name:


Your Review: Note: HTML is not translated!

Rating: Bad            Good

Enter the code in the box below:

There are no additional images for this product.