nep-isf New Economics Papers
on Islamic Finance
Issue of 2020‒06‒08
five papers chosen by

  1. Moral incentives in credit card debt repayment: evidence from a field experiment By Bursztyn, Leonardo; Fiorin, Stefano; Gottlieb, Daniel; Kanz, Martin
  2. The determinants of islamic mudharabah interbank investment rate: Malaysia as a case study By Aziz, Nur Aziah; Masih, Mansur
  3. Islamic vs Conventional Canadian stock markets : what difference ? By NEIFAR, MALIKA
  4. Finance Between Islamic Ethics, Conventional Reality and Economic Growth in the MENA Region By Abderraouf Mtiraoui; Feriel Gabsi
  5. The Specificities of Relations between the State, Religious Communities and Civil Society in France By Edith Archambault

  1. By: Bursztyn, Leonardo; Fiorin, Stefano; Gottlieb, Daniel; Kanz, Martin
    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.
    Keywords: credit cards; household finance; religion; moral suasion
    JEL: D14 G20 G21 Z10 Z12
    Date: 2019–08
  2. By: Aziz, Nur Aziah; Masih, Mansur
    Abstract: This paper is intended to identify the determinants of Islamic Interbank Money Market (IIMM) rate in Malaysia with a specific focus on Mudharabah Interbank Investment (MII) transactions. The nature of Mudharabah outlined is that profit for this contract is based on Profit Sharing Ratio (PSR) pre-agreed between two contracting parties which are capital provider and enterpreneur. Basically, it should be based on real business case. On the other hand, IIMM is operated within the framework of financial transactions and governed by Bank Negara Malaysia (BNM). The main issue here is the justification of whether MII rate of return is moving in line with the movement of real economy rather than moving in parallel with any policized or quoted rate.Time series standard methodology will be applied in testing the relationships and causality between the factors affecting the determination of MII rate. Factors include real economy represented by Gross Domestic Product (GDP) and Consumer Price Index (CPI) while Overnight Policy Rate (OPR) and conventional interbank money market rate representing the policized and quoted rate. Another independant variable that may affect MII rate is the volumes of MII transaction. This study evidences the long-run relationship between the MII rate and various economic units, financial and economic variables. Findings suggest that MII rate are not influenced by the financial variables but mostly influenced by the economic variables which is in contrast with the nature of banking industries. It is strongly viewed that MII rate will move depending on the movement of the conventional money market rate which is also benchmarking against the overnight policy rate (OPR) but it is proven otherwise.
    Keywords: Mudharabah interbank investment, overnight policy rate, VECM, VDC, Malaysia
    JEL: C22 C58 E44 G21
    Date: 2018–07–20
    Abstract: This study empirically assesses the relationship between inflation and stock return in conventional and Islamic Canadian stock markets. The study has covered monthly data for the period 2004:M08−2018 :M4 of canadian economy. We propose a multivariate X-MGARCH or X- MGARCH-X volatility model to assess the dependence of Conventional and Islamic canadian stock market returns on inflation (expected and/or unexpected inflation) and volatility dynamic interdependence of returns (first and second moments). We also examine the constant and dynamic of conditional correlation in both stock market. The main result supports the hypotheses of constant conditional correlation (CCC) and Fisher hypothesis for Islamic canadian stock market. While the Conventional stock market is an efficient one. The volatility spillover is examined estimating an X-DVECH model. The dynamic conditional correlation (DCC) provides evidence of cross border relationship within stocks. We do find also evidence of negative (positive) significant effect of inflation on Islamic (conventional) stock market return volatility.
    Keywords: Conventional /Islamic Canadian stock return, Conditional Correlations (CC), Dynamic CC (DCC) and Constant CC models (CCC), Fisher hypothesis, MGARCH -DVECH model, X-MGARCH and X-MGARCH-X models.
    JEL: C22 G00 G11 G14
    Date: 2020–04–13
  4. By: Abderraouf Mtiraoui (Université de Sousse); Feriel Gabsi
    Date: 2018–07–28
  5. By: Edith Archambault (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)
    Abstract: After a brief history of French civil society and its relationship with the State and the Church, highlighting the main similarities and differences with other European countries, the landscape of French civil society and religious communities nowadays is sketched out, while their relationships with the State are presented according to their components. Finally, the chapter focuses on the most conflictual part of French civil society, namely education, which has been the sources of a recurrent "school war" between the Church and the State. The conclusion notes that France is now a welfare partnership country as its Continental neighbours, even if relationships with religious communities are less developed.
    Keywords: religious communities,civil society,State/Church separation,laity,Catholic schools
    Date: 2020–05

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