Islamic Banking Performance in the Middle East A Case Study
From HodHood
Contents
Top 20 FREQUENT WORDS
islamic 225 banks 113 jordan 106 banking 76 investment 70 finance 58 arab 53 international 51 credit 47 ratio 46 assets 42 performance 42 deposits 37 facilities 36 equity 32 financial 28 increased 27 net 25 important 19 activities 17 compared 17 development 17
DOCUMENT KEY POINTS
- zeitun university of wollongong university of western sydney this working paper was originally published as saleh as and zeitun r islamic banking performance in the middle east a case study of jordan working paper department of economics university of wollongong
- faculty of commerce faculty of commerce economics working papers university of wollongong year io io io io islamic banking performance in the middle east a case study of jordan a
- html islamic banking performance in the middle east a case study of jordan ali salman saleh and rami zeitun wp october
- university of wollongong economics working paper series http www dot uow
- the aim of this paper is to examine and analyse the jordanian experience with islamic banking and in particular the experience for the first and second islamic bank in the country jordan islamic bank for finance and investment jibfi and islamic international arab bank iiab in order to evaluate the islamic banks performance in the county
- islamic banking performance in the middle east a case study of jordan ali salman saleh and rami zeitun school of economics and information systems university of wollongong phone fax e mail ali uow
- however with the continual growth of islamic banking in the arab and middle east world the concept has also engaged jordan because it has open society experience and active banking and finance sector number of reforms has initiated to the banking sector during s to strengthen the sector
- the islamic banking in jordan started around two decades ago with the foundation of its first islamic bank that is jordan islamic bank for finance investment in since then the islamic banks in the country have grown in number and size with the establishment of more branches and more islamic banks such as islamic international arab bank and the establishment of other islamic institutions such as jordan islamic insurance islamic investment house and jordan finance house
- however recently the numbers of banks operating in jordan rose to twenty four banks at the end of of whom fourteen are commercial eight foreign banks and two islamic banks central bank of jordan
- in terms of total assets the jordan national bank the cairo amman bank the jordan kuwait bank and the petra bank were the most important local institutions
- on the other hand islamic banks have also other objectives besides making or maximizing profits their aim is to achieve economic and social welfare and to ensure that there is no exploitation of the customers
- the decrease during the years and could be as a result of competition between the two islamic banks while the deceasing during could be as a result of gulf war one
- figure total assets in islamic banks in jordan jordan islamic bnak for finance and investment islamic international arab bank source amman stock exchange figure shows that the total assets in the islamic bank for finance and investment is more than the total assets in the islamic international arab bank in about
- the bank performance measure roa is decreased in both banks in and increased in both banks in and but roa is still higher in islamic international arab bank than in islamic bank for finance and banking
- it reflects as well the structure of the bank loans and deposit and to what degree the bank is able to face the emergency of the demand deposit
- another ratio is calculated the provision for credit facilities interest in suspense credit facilities ratio is very high in jordan islamic bank for finance and investment compared with the same ratio in islamic international arab bank
- both ratios net credit facilities to total assets and net credit facilities to total deposits for the jordan islamic bank for finance and investment are decreased in in comparison with and
- the decrease in this ratio could be as a result of a higher increase in the deposits compared with low increase in credit
- the liquidity position of the bank as well as strategies and adjustment of policies are an important aspect that affect the bank position and ability to expand and issued loan and expand in investment activities
- figure yearly islamic bank credit for jordan islamic bank for finance and investment source central bank of jordan current assets total assets ratio reflects the structure of assets as a measure of liquidity
- islamic banks in jordan have a great potential to grow positively in the coming years as they are focusing on many strategies to attract more customers from muslim as well as non muslim through enhancing their market activities to increase the awareness of the banking services strengthening the relationship with the customers
- hence the islamic banks in jordan are trying to adopt all the necessary needs and other means to achieve their goals by increasing their customer base increasing the awareness of the islamic banking products adopting all the new financial and investment tools adopting it to provide the best for its customers training for its employees and all other means which are important for the bank s development and performance
- abolition of tax barriers liberalisation of commodity and services etc increased cash surpluses with limited finance and investment opportunities iiab public awareness and acceptance lack of institutions which conduct research and development to in this area lack of skilled and professional people and local competition from large numbers of commercial banks that are operating in the country
- the review of the issue of challenges which are facing islamic banks in jordan suggest that these banks are facing many challenges among them the conflicting situation in the region the economic slowdown which has plagued the country for the past few years globalisation increased cash surpluses with limited finance and investment opportunities public awareness and acceptance lack of institutions which conduct research and development to in this area lack of skilled and professional people and local competition from large numbers of commercial banks that are operating in the country
- more importantly jordan should collaborate with other countries which are leading in this concept such as dubai bahrain malaysia and among others in order to exchange ideas knowledge and work on issues such as application of universal banking crisis management developing an islamic financial market especially for medium and long term products as well as developing the securitisation process shariah harmonization products standardization and application of shariah compliant products in order to eliminate confusion and develop a more comprehensive islamic banking system
- islamic versus traditional banking in arab region premises and promises paper presented to the international seminar on the prospects of arab economic cooperation alexandria egypt
Please note, This is an auto generated summary based on sentances position in the document and other factors
DOCUMENT WORD ANALYSIS
Main Category
- AlHuda Material\islamic banking
KeyWords
islamic banks banking financial finance investment conventional institutions funds risk financing deposits assets services management international countries equity profit products
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DOCUMENT REFERENCES
Number of Pages
22
Published Date
2010-05-29 12:22:03
