nep-isf New Economics Papers
on Islamic Finance
Issue of 2021‒01‒04
three papers chosen by
Mohamed Mohamed Tolba Said

  1. Is Islamic Banking More Procyclical? Cross-Country Evidence By Alexandra ZINS; Laurent WEILL
  2. Islamic Republic of Afghanistan; Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Afghanistan By International Monetary Fund
  3. Islamic Republic of Mauritania; Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania By International Monetary Fund

  1. By: Alexandra ZINS (LaRGE Research Center, Université de Strasbourg); Laurent WEILL (LaRGE Research Center, Université de Strasbourg)
    Abstract: This paper investigates cyclicality of Islamic banking relative to conventional banking. We examine whether loan growth and profitability have a different sensitivity to economic growth for Islamic banks and for conventional banks. We use panel data from 525 banks covering 16 countries with dual banking systems spanning the period from 2008 to 2018. We find no difference in lending cyclicality: Islamic banks and conventional banks have both a procyclical lending behavior. Profitability is procyclical for Islamic banks but not for conventional banks. Our findings support the view that Islamic banking presence does not contribute to strengthen economic stability.
    Keywords: Islamic banking, loan growth, financial stability, bank profitability, business cycles, procyclicality.
    JEL: G21
    Date: 2020
  2. By: International Monetary Fund
    Abstract: This paper discusses Islamic Republic of Afghanistan’s Request for Disbursement Under the Rapid Credit Facility. The disbursement will help meet the urgent fiscal and balance of payments needs stemming from the coronavirus disease 2019 pandemic, catalyze donor support, and shore up confidence. The pandemic is inflicting heavy damage on Afghanistan’s economy, which is expected to contract sharply in 2020, imperiling the livelihood of a significant segment of the population. The authorities are taking emergency measures to contain the pandemic and its immediate social and economic impact. Substantial donor financing is urgently needed to help Afghanistan cover these fiscal and external financing needs which could increase further if the pandemic and its economic impact intensify. Beyond the immediate response, the authorities are committed to safeguarding macroeconomic stability and promoting inclusive growth. The central bank continues to focus on price stability. The IMF stands ready to assist Afghanistan as it battles the pandemic and to support its economic reforms going forward.
    Keywords: Public debt;Currencies;Credit;Debt sustainability analysis;Budget planning and preparation;ISCR,CR,emergency financing request,financing,spending,pandemic
    Date: 2020–05–01
  3. By: International Monetary Fund
    Abstract: This paper focuses on the Islamic Republic of Mauritania’s Request for Disbursement Under the Rapid Credit Facility. The economic and social impact of the pandemic is rapidly unfolding, with a contraction of output expected in 2020. The authorities have responded swiftly with measures to contain the pandemic and alleviate its fallout. Going forward, prioritizing health spending and targeted support to the most vulnerable households and sectors in the economy remains critical. The authorities are committed to full transparency and reporting of resources deployed for the emergency response, to audit crisis-mitigation spending once the crisis abates, and to publish the results. At the same time, they remain committed to the economic reform program supported by the ongoing ECF arrangement with the IMF. The program aims at using the fiscal space to increase priority spending on education, health and social protection and infrastructure, while mobilizing domestic revenues and maintaining prudent borrowing policies to preserve debt sustainability.
    Keywords: Public debt;External debt;Credit;Fiscal stance;COVID-19 ;ISCR,CR,financing,center
    Date: 2020–04–29

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