Search results

The purpose of this study is to explore how changes in customer deposits influence the banking profits. The banking sector’s growth-promoting role is supported by its ability to perform the essential function of financial intermediation. However, Islamic banks go the extra mile by balancing the wealth of the rich and the poor and distributing risk more evenly. The effective operation of the services industry, including Islamic banks, depends on the active participation of their customers. Customers’ deposits in their accounts with Islamic banks are a crucial funding source. In actuality, two distinct sorts of demanding customers exist. Their expectations of the services provided by Islamic banks are different.

Panel quantile regression is applied using the collected data from Islamic banks’ audited financial statements for the time period from 2001 to 2021.

This study is expected to provide the breakdown of shares of current and saving deposits for Islamic banks, which supports managing liquidity risk. This breakdown will help the policymakers lay down a framework for managing the share of current and saving deposits in their favor.

The study aims to empirically evaluate whether changes in the current and saving account patronization have a role in the liquidity risk. And determine how banks need to manage their deposit structure to manage liquidity.

Previous studies have been nose-dive in providing country-level comparisons of different types of deposits in the context of liquidity risk management.

Macroeconomic policy shocks have consistently provoked debate across global economies, given their significant effect on economic growth, particularly by affecting markets and employment through changes in consumer behavior. Policymakers need proper abatement measures for both internal and external uncertainties.

The present study aims to analyze the impacts of internal and external policy uncertainty on consumption in 22 countries with their trading shares with each other from 2010q1 to 2021q4. In this regard, for external policy shocks the study constructed an index for each country based on their bilateral trade shares a weighted average of internal policy uncertainty.

By applying the panel ARDL, a U-shaped relationship between consumption and policy shocks is observed. Further, for the county wise assessment of internal and external policy uncertainty on domestic consumption is assessed and it has shown to be negative in most of countries. Gross effects are also revealed where internal policy shocks have more influence than external policy shocks as countries can diversify external risks from their trade portfolio. Other determinates of consumption like income and exchange rate have positive effects, while interest rate and inflation have negative influences.

The outcomes provide internal and external policy insights for consumption stabilization.

The ailing agriculture sector in Pakistan demands a supportive financial sector. The low adoption of Salam financing by Islamic banks does not match the potential demand. Empirical studies identified demand-led issues that led to a low proportion of Salam financing, but the exploration of supply-side constraints is overlooked.

This study has applied Interpretive Phenomenological Analyses on 20 interviews with the experts in the Islamic banking industry who play a role in decisions on Salam financing to the agriculture sector. The purpose of the study is to explore the determinants of low adoption of Salam financing by Islamic banks.

The experiences led to the major reasons for the low adoption of Salam financing categorized as intentions, attitudes and behavior control which corresponds to the theory of planned behavior.

This study is instrumental in exploring the supply-side constraints to Salam financing and helps find aligning theory to intervene via Islamic banking regulations.