nep-isf New Economics Papers
on Islamic Finance
Issue of 2025–07–21
two papers chosen by
Ali Polat, Ankara Yıldırım Beyazıt Üniversitesi
  1. Islamic banks and the transmission of monetary policy: empirical evidence with moderating variables By Savon Zakaria
  2. Theoretical Impact of IFRS 9 on Banking Performance: A Literature Review and Conceptual Framework By Zineb Khaless
  1. By: Savon Zakaria (Faculté des sciences juridiques, économiques et sociale-Souissi, Université Mohamed V)
    Abstract: The rise of Islamic banks in different countries worldwide can potentially complicate the implementation of monetary policy and affect its effectiveness. The purpose of our work is to address the question of the nature of the response of Islamic banking financing to the interest rate of monetary policy. Beyond this question, we are also interested in the factors that can shape the response of Islamic banking financing to conventional monetary policy. For the period between 2013 and 2022, across a panel of 12 countries, the results of the GMM approach first revealed the absence of an Islamic banking financing channel. They also showed that conventional monetary policy loses its effect on Islamic banks in dual banking systems where these banks have systemic importance. The development of Islamic finance, in turn, contributes to shielding Islamic financing from the effects of monetary policy.
    Abstract: L'essor des banques islamiques dans différents pays du monde peut potentiellement compliquer la mise en oeuvre de la politique monétaire et affecter son efficacité.L'objet de notre travail est de répondre à la question de la nature de la réponse des financements bancaires islamiques au taux d'intérêt de la politique monétaire. Au-delà de cette question, on s'intéresse également aux facteurs qui peuvent façonner la réponse du financement bancaire islamique à la politique monétaire conventionnelle. Pour la période entre 2013 et 2022, sur un panel de 12 pays, les résultats de l'approche GMM ont révélé d'abord l'absence d'un canal de financement bancaire islamique. Ils ont montré également que la politique monétaire conventionnelle perd d'effet sur les banques islamiques dans les systèmes bancaires duales où celles-ci ont une importance systémique. Le développement de la finance islamique concourt, à son tour, dans la prémunition des financements islamiques des effets de la politique monétaire.
    Keywords: Islamic banks, Transmission, Panel, GMM, Banques islamiques, politique monétaire, transmission, panel, Monetary policy, Banques islamiques politique monétaire transmission panel GMM Islamic banks monetary policy transmission panel GMM, GMM Islamic banks, monetary policy
    Date: 2025–06–15
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05124702
  2. By: Zineb Khaless (FSJES Rabat)
    Abstract: This paper presents an in-depth theoretical analysis of the impact of International Financial Reporting Standard 9 (IFRS 9) on banking performance, focusing on its significant transition from the incurred loss model under IAS 39 to the forward-looking Expected Credit Loss (ECL) framework. IFRS 9 requires financial institutions to estimate potential credit losses at the time of loan origination, promoting a proactive approach to risk management and significantly enhancing financial stability and transparency. The study leverages insights from agency theory and financial transparency principles to explore IFRS 9's influence on critical banking performance indicators, including credit risk, profitability, and financial stability. The analysis delves into key variables such as Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD), elucidating their pivotal roles in shaping contemporary risk management strategies and overall banking outcomes. By examining the interconnected nature of these variables, the paper provides a nuanced understanding of the practical and theoretical implications of IFRS 9. Additionally, this research identifies notable gaps in the existing literature, particularly in the integration of macroeconomic factors and the development of holistic risk assessment models that incorporate IFRS 9's key components. To address these gaps, the study proposes robust theoretical frameworks and emphasizes the need for future empirical research to validate and refine these models. The paper also addresses the complexities and operational challenges faced by financial institutions in implementing IFRS 9, such as the increased volatility on loan loss allowances, model development intricacies, and regulatory capital requirements. It offers actionable insights for policymakers, regulators, and practitioners to navigate these challenges effectively. By offering a comprehensive foundation for understanding IFRS 9's broader implications, this research contributes to the ongoing discourse on financial stability and risk management in the banking sector, paving the way for more resilient and transparent financial systems.
    Keywords: IFRS 9 Expected Credit Loss (ECL) Banking Performance Financial Stability Credit Risk Management Probability of Default (PD) Loss Given Default (LGD) Exposure at Default (EAD). Paper type : Theoretical article JEL Classification : G21 M41 G28 IFRS 9 Pertes de Crédit Attendue (ECL) Performance Bancaire Stabilité Financière Gestion du Risque de Crédit Probabilité de Défaut (PD) Perte en Cas de Défaut (LGD) Exposition en Cas de Défaut (EAD). Type de papier : Article théorique Classification JEL : G21 M41 G28, IFRS 9, Expected Credit Loss (ECL), Banking Performance, Financial Stability, Credit Risk Management, Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD). Paper type : Theoretical article JEL Classification : G21, M41, G28 IFRS 9, Pertes de Crédit Attendue (ECL), Performance Bancaire, Stabilité Financière, Gestion du Risque de Crédit, Probabilité de Défaut (PD), Perte en Cas de Défaut (LGD), Exposition en Cas de Défaut (EAD). Type de papier : Article théorique Classification JEL : G21, G28
    Date: 2025–04–23
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05052796
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