Search

This study draws on the parallelism between digitalization and the complexity of the Islamic banking industry (IBs) in a post-pandemic era. It examines the digital Butterfly Effect on the Islamic banking industry to promote tech-driven IBs through an empirical lens. The study constructs a Fintech adoption index (FADi). It uses a Bayesian vector Auto-Regressive model, causality tests and impulse response functions for yearly data from 2008 to 2022 to examine the possible magnified effect of adopting Fintech by the Islamic banking industry in Malaysia. Key findings suggest that embracing Fintech by the IBs enhances the profitability of the banks, which is measured by the return on asset and return on equity. In addition, the study reports a ripple effect of FADi on the broader spectrum of the Malaysian economy. This indicates that Fintech fosters economic growth, household consumption, financial and insurance services, and corporate taxes. On the other hand, Fintech adoption helps reduce the unemployment rate. The findings contribute to the literature by investigating the IB as a system within financial chaos theory and the possible Butterfly Effect triggered by Fintech adoption.

This paper investigates the safe haven potential of Islamic stocks within the context of the London stock market, alongside other prominent hedging assets, namely gold, Brent crude, and Bitcoin, using the M-DCC GARCH model. The study finds that Islamic finance no longer demonstrates robust safe haven characteristics but instead serves as a diversifier during periods of market stability. In contrast, gold exhibits notable hedging properties both prior to the COVID-19 pandemic and during market turmoil, outperforming all assets except Bitcoin

The aim of this paper is to investigate if Islamic finance can solve the funding problem of SMEs and facilitate access to finance for SMEs, and how can these last participate in job creation in Turkey in order to face the problem of unemployment. The paper adopts a Vector Autoregressive model (VAR) based on monthly data (2009-2017). The results revealed that Islamic finance is a golden opportunity and a sufficient alternative financial source for SMEs. In addition, as SMEs can reduce unemployment by contributing to the labor market. This study contributes to the existing literature by presenting a promising financing tool to the prospective borrowers of SMEs (farmers, underserved groups, and small entrepreneurs) which is Islamic financing. This alternative can be an effective tool for both muslim and non-muslim countries in regard that conventional finance is more expensive and SMEs are unable to pay high interest rates. It would also help in establishing low unemployment levels. This paper suggested that Islamic banks and Islamic financial institutions should converge more on the SMEs by providing funding to SMEs which would lead to boosting production and economic development.

This paper investigates the safe haven potential of Islamic stocks within the context of the London stock market, alongside other prominent hedging assets, namely gold, Brent crude, and Bitcoin, using the M-DCC GARCH model. The study finds that Islamic finance no longer demonstrates robust safe haven characteristics but instead serves as a diversifier during periods of market stability. In contrast, gold exhibits notable hedging properties both prior to the COVID-19 pandemic and during market turmoil, outperforming all assets except Bitcoin. [ABSTRACT FROM AUTHOR]

Copyright of Strategy & Development Review is the property of Strategy & Development Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)