nep-isf New Economics Papers
on Islamic Finance
Issue of 2020‒09‒28
two papers chosen by

  1. What drives the profit rates of islamic banks ? Malaysia’s case By Fairuz, Sharifah; Masih, Mansur
  2. Higher Education performance of Muslim Countries Islamic Economics as an Illustrative Case By Hasan, Zubair

  1. By: Fairuz, Sharifah; Masih, Mansur
    Abstract: Repeated financial crises helped the growth of Islamic banks as an alternative asset for investment. Similar to conventional banks, Islamic banks also depend on depositors’ money as their source of funds. The profit rate of Islamic banks is expected to influence the amount of funds deposited for investment. This paper wants to investigate what drives the profit rates of Islamic banks. The standard time series techniques are used for the analysis. Malaysia is used as a case study. The findings tend to indicate that the profit rates are driven by the investment deposits of Islamic banks followed by the deposits of the conventional banks and their interest rates. The outcome of the results would be particularly of great interest to the regulators and Islamic bank CEOs to make decisions on whether to still depend on conventional rates and deposits in order to survive.
    Keywords: Islamic bank investment deposits, conventional bank deposits, interest rates, profit rates, Malaysia
    JEL: C22 C58 E44 G21
    Date: 2018–11–30
  2. By: Hasan, Zubair
    Abstract: The purpose of this paper is (i) to state the objectives of higher education commensurate with Islamic requirements; (ii) to examine the current state of higher education performance in Muslim majority countries with a view to indentifying the main issues it faces using Islamic economics as illustration and (iii) to present in outline a program for improvement. The constraints of time and resources do not permit us to present an all covering discussion on the subject. Instead of dealing with specifics, we shall focus on directional and attitudinal issues of substance. We are aware of the limitations of the exercise but find it rewarding.
    Keywords: Objectives of education; Islamic economics and Issues in higher learning; remedial action.
    JEL: I23 I25
    Date: 2019–06

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