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on Islamic Finance |
| By: | Mustapha Chaffai (University of Sfax); Amir Saadaoui (University of Sfax); Imam Mohammad (Ibn Saud Islamic University) |
| Abstract: | This study examines the herding behavior in Islamic banking sector of the Gulf Cooperation Council countries (GCC countries). We examine in this paper the impact of the conventional banking sector on the herding behavior on Islamic banking sector. As well, we study the nexus between herding behavior and Islamic moral finance and economy. Based on daily data ranging from January 5, 2015, to September 4, 2023, and by using the methodology of Chang et al. (2000), we conclude the evidence of herding behavior at lower tail of the distribution. When we consider the possibility of existence of asymmetries between downward and upward market periods, we conclude that there is evidence of herding in Islamic banking sector only at the lower tail of the distribution during down market period. The study also shows the interdependencies between Islamic and conventional banking sector, and that the dispersion in conventional banking returns influence the Islamic banking returns. Also, we find that Islamic banking sector herd around conventional banking sector during down market period at upper tail only. This may be due to the non-confidence of investors in Islamic sector to rely on their decisions to the conventional banking sector. Finally, based on the DCC-GARCH model, we find a dynamic condition correlation between cross sectional absolute deviation CSAD and Islamic Financial Indicator in the short and long term. |
| Date: | 2025–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1817 |
| By: | Wafa Khémiri (Manouba University) |
| Abstract: | This paper investigates the impact of liquidity creation on the efficiency of Islamic banks. More precisely, it examines the curvilinear relationship between liquidity creation and Islamic bank efficiency in Gulf Cooperation Council (GCC) countries. To do this, a sample of 34 Islamic banks is selected over the period 2012-23. Employing a system GMM technique to address issues of endogeneity, the outcomes reveal the existence of an inverted U-shaped nexus between liquidity creation and Islamic bank efficiency, signaling the risk of excess liquidity. Additionally, CSR disclosure, audit quality, the Shariah Supervisory Board, and institutional quality moderate this relationship. This study provides several important implications for bank managers and policymakers in effectively managing excess liquidity risk and optimizing the efficiency of Islamic banks. |
| Date: | 2025–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1793 |
| By: | International Monetary Fund |
| Abstract: | Economic growth slowed to 6.3 percent in 2024 (compared to 6.8 percent in 2023), reflecting a sluggish extractive sector and is projected to slow further to 4.2 percent in 2025 due to an expected contraction in the extractive sector and a slowdown in the non-extractive sector. Inflation is expected to remain contained. After widening in 2024, the current account is projected to narrow in 2025, mainly reflecting a lower trade deficit due to favorable terms of trade and reduced imports of capital goods and services following the completion of the first phase of the Greater Tortue Ahmeyim (GTA) project construction. Recent cuts in Official Development Assistance (ODA) have been partly offset for 2025 through reallocations from various donors, but the sustainability of these temporary measures remains uncertain. This extends downside risks into 2026, with potential fiscal implications. Persistent challenges, such as inadequate infrastructure, governance weaknesses, high vulnerability to external shocks, and limited economic diversification, continue to constrain Mauritania’s long-term economic development. Additionally, frequent and severe climate-related disasters create large adaptation needs. |
| Date: | 2026–02–05 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2026/027 |