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on Islamic Finance |
| By: | Simplice Asongu (Yaoundé/Cameroon); Jacinta Nwachukwu (Preston,United Kingdom) |
| Abstract: | The overarching question tackled in this paper is: to what degree has financial development contributed to providing opportunities of human development for those on low-incomes and by what information technology mechanisms? We systematically review about 180 recently published papers to provide recent information technology advances in finance for inclusive development. Retained financial innovations are structured along three themes. They are: (i) the rural-urban divide, (ii) women empowerment and (iii) human capital in terms of skills and training. The financial instruments are articulated with case studies, innovations and investment strategies with particular emphasis, inter alia on: informal finance, microfinance, mobile banking, crowdfunding, microinsurance, Islamic finance, remittances, Payment for Environmental Services (PES) and the Diaspora Investment in Agriculture (DIA) initiative. |
| Keywords: | Finance; Inclusive Growth; Economic Development |
| JEL: | G20 I10 I20 I30 O10 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:18/040&r=isf |
| By: | Leonardo Bursztyn (University of Chicago and NBER); Stefano Fiorin (University of California, San Diego); Daniel Gottlieb (Washington University in St. Louis); Martin Kanz (World Bank and CEPR) |
| Abstract: | We study the role of morality in debt repayment, using an experiment with the credit card customers of a large Islamic bank in Indonesia. In our main treatment, clients receive a text message stating that “non-repayment of debts by someone who is able to repay is an injustice." This moral appeal decreases delinquency by 4.4 percentage points from a baseline of 66 percent, and reduces default among customers with the highest ex-ante credit risk. Additional treatments help benchmark the effects against direct financial incentives, and rule out competing explanations, such as reminder effects, priming religion, and provision of new information. |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:hku:wpaper:201855&r=isf |
| By: | Muhammad Omer (State Bank of Pakistan) |
| Abstract: | This study investigates the comparative pass-through of policy rate to the retail prices, spillover of prices between Islamic and conventional banking systems, and the impact of excess liquidity on these pass-throughs using data from interbank market of Pakistan. The results suggest that the monetary policy shock affect retail prices of Islamic banks similar to conventional banks, confirming the findings of earlier studies. Moreover, there is a strong spillover between the prices of two systems; Islamic banks are following (leading) the conventional banks in pricing the lending (deposit) products. Islamic bank have acquired advantage in the deposit pricing by taping the religious depositors, which also has promoted financial inclusion in the economy. Our results suggest that the presence of excess liquidity have no effect on pass-through of policy rate in the Islamic system, which is contrary to the prevalent notion. However, excess liquidity significantly affects the spillovers of prices between the systems. These results support the hypothesis that the Islamic banks are investing in government securities indirectly via conventional banks. |
| Keywords: | Excess Liquidity, Islamic Banks, Monetary Policy Pass-through, VECM, Mediation |
| JEL: | C43 E31 F41 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:sbp:wpaper:100&r=isf |