nep-isf New Economics Papers
on Islamic Finance
Issue of 2022‒06‒27
eight papers chosen by

  2. IADI Core Principles for Effective Islamic Deposit Insurance Systems By International Association of Deposit Insurers
  3. Terror against the Taliban: Islamic State shows new strength in Afghanistan By Steinberg, Guido; Albrecht, Aljoscha
  5. Temporal networks in the analysis of financial contagion By Franch, Fabio; Nocciola, Luca; Vouldis, Angelos
  6. Social Externalities of Bank Enforcement Actions: The Case of Minority Lending By Byeongchan An; Robert M. Bushman; Anya V. Kleymenova; Rimmy E. Tomy
  7. The Real Effects of Banking the Poor: Evidence from Brazil By Julia Fonseca; Adrien Matray
  8. Understanding Financial Inclusion in Mongolia from a Micro Perspective: Is There a Gender Gap? By Enerelt Murakami

  1. By: khasanah, uswatun
    Abstract: koperasi syariahh adalah jenis koperasi yang mensejahterakan ekonomi para anggotanya sesuai norma dan moral Islam dan berguna untuk menciptakan persaudaraan dan keadilan yang sesuai dengan prinsip-prinsip Islam. Kata kunci: Koperasi syariah, Sharia cooperative is a type of cooperative that provides economic prosperity for its members according to Islamic norms and morals and is useful for creating brotherhood and justice in accordance with Islamic principles.
    Date: 2022–04–22
  2. By: International Association of Deposit Insurers
    Keywords: deposit insurance, bank resolution
    JEL: G21 G33
    Date: 2021–07
  3. By: Steinberg, Guido; Albrecht, Aljoscha
    Abstract: Since the United States withdrew from Afghanistan in August 2021 and the Taliban took power in the country, the local branch of Islamic State (IS) - the so-called Khorasan Province - has carried out dozens of attacks on Taliban 'security forces' and civilians, resulting in hundreds of deaths. Many attacks have been in the old IS stronghold of Nangarhar in eastern Afghanistan and in the capital, Kabul, but the jihadists have also been active in Kandahar, Kunduz and Kunar. The latest terrorist acts demonstrate the enormous challenge that IS poses for the Taliban. Owing to a lack of funds, personnel and structures, the latter is unable to exercise effective control over all Afghan territory and significantly weaken IS. In fact, there is a danger that these shortfalls will allow IS to expand its terrorist activities beyond Afghanistan. While the neighbouring states of Pakistan, Iran, Uzbekistan and Tajikistan are particularly at risk, Europe, too, could become a target.
    Date: 2022
  4. By: Ar, Hijriani
    Abstract: Perkembangan perbankan syariah merupakan lahirnya lembaga keuangan syariah yang telah mendapat momentum sejak 1970-an, secara umum mengambil dua pola. Pertama, mendirikan bank syariah berdampingan dengan bank konvensional (dual banking system) seperti di Mesir, Malaysia, Arab Saudi, Yordania, Kuwait, Bahrain, Bangladesh, dan bahkan Indonesia. Kedua, merestrukturisasi sistem perbankan secara keseluruhan sesuai dengan syariat Islam (full fledged Islamic financial system), seperti di Sudan, Iran, dan Pakistan. Peranan regulasi menjadi titik kritis terpenting dari kedua pola tersebut. Seluruh inisiasi awal perbankan syariah dimulai dengan dukungan regulasi yang memadai. Pemasaran tidak terlepas dari unsur kompetinsi atau persaingan. Bisnis apapun tidak ada yang dengan leluasa santai menikmati penjualan dan keuntungan. Paling tidak bukan untuk waktu yang panjang bagaimanapun juga akan ada persaingan yang turut menikmatinya. Terkadang ada juga persaingan yang tidak sehat, persaingan yang tidak mengenal pandang bulu atau belah kasihan. Persaingan tidak akan mengenal apakah modal si pesaing itu dari hasil pinjaman atau berasal dari warisan. Sebab itu, masalah persaingan persaingan jadi faktor penting dalam pemasaran.
    Date: 2022–05–26
  5. By: Franch, Fabio; Nocciola, Luca; Vouldis, Angelos
    Abstract: This paper studies the dynamics of contagion across the banking, insurance and shadow banking sectors of 16 advanced economies in the period 2006-2018. We construct Granger causality-in-risk networks and introduce higher-order aggregate networks and temporal node centralities in an economic setting to capture non-Markovian network features. Our approach uncovers the dynamics of financial contagion as it is transmitted across segments of the financial system and jurisdictions. Temporal centralities identify countries in distress as the nodes through which contagion propagates. Moreover, the banking system emerge as the primary source and transmitter of stress while banks and shadow banks are highly interconnected. The insurance sector is found to contribute less to stress transmission in all periods, except during the global financial crisis. Our approach, as opposed to one that uses memoryless measures of network centrality, is able to identify more clearly the nodes that are critical for the transmission of financial contagion. JEL Classification: C02, C22, G01, G2
    Keywords: financial networks, GARCH, Granger causality-in-tail, non-Markovian, systemic risk
    Date: 2022–06
  6. By: Byeongchan An; Robert M. Bushman; Anya V. Kleymenova; Rimmy E. Tomy
    Abstract: This paper studies the role banking supervision plays in improving access to credit for minorities by investigating how enforcement decisions and orders (EDOs) affect the bank borrower base. We find that, after an EDO's termination, banks significantly increase residential mortgage lending to minorities, even when the enforcement order is not issued for violations of fair lending laws. Our findings suggest that improvements in banks' internal credit assessment and compliance due to the enforcement process are associated with the expansion in lending to minority borrowers. Our findings highlight the indirect social benefits of bank enforcement and supervision.
    Keywords: Banking; Competition; Disclosure; Discrimination; Enforcement actions; Mortgage lending
    JEL: G21 G28 G38
    Date: 2022–06–02
  7. By: Julia Fonseca; Adrien Matray
    Abstract: We study how financial development affects economic development and wage inequality. We use a large expansion of government-owned banks into Brazilian cities with low bank branch coverage and combine it with data on the universe of employees from 2000-2014. We find that higher financial development fosters firm growth, higher labor demand, and higher average wages, especially for cities initially in banking deserts. However, these gains are not shared equally. Instead, they increase with workers’ productivity, implying a substantial increase in wage inequality. The changes to inequality are concentrated in cities where the initial supply of skilled workers is low, indicating that talent scarcity can drive how financial development affects inequality. Our results are inconsistent with alternative explanations such as differential exposure to Brazil's economic boom, an overall increase in government lending, and other government or social welfare programs. These results motivate embedding skill heterogeneity into macro-finance development models in order to capture these distributional consequences.
    JEL: G2 H8 J2 J3 O1 O43
    Date: 2022–05
  8. By: Enerelt Murakami
    Abstract: This paper investigates the determinants of financial inclusion in Mongolia – a country where persistent “reverse” gender gap in financial inclusion exists. When applying multivariate logistic models to nationally representative data, results show that women, and those who are more educated and older are more likely to be financially included. Women are four percentage points more likely than men to have access to formal finances; men are more likely to report barriers to finance and use informal finances. The Blinder-Oaxaca decomposition technique is employed to analyze the “reverse” gender disparity in financial inclusion. The results demonstrate that the disparity is largely due to coefficient effects that reflect behavioral or unobserved differences towards financial inclusion between men and women.
    Keywords: Financial inclusion, Gender, Mongolia
    Date: 2022–04

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