Risk in Islamic banking and corporate governance

Title: Risk in Islamic banking and corporate governance
Creator: Safiullah, Md; Shamsuddin, Abul
Relation: Pacific-Basin Finance Journal Vol. 47, Issue February 2018, p. 129-149
Publisher Link: http://dx.doi.org/10.1016/j.pacfin.2017.12.008
Publisher: Elsevier
Resource Type: journal article
Date: 2018
Description: We examine the differences in risk between Islamic and conventional banks with specific attention to the role of Shariah supervisory board (SSB) composition on risk in Islamic banks. Using a sample of banks from 28 countries, we find that Islamic banks have a higher liquidity risk, lower credit risk, lower insolvency risk, but encounter similar operational risk in comparison with conventional banks. Operational and insolvency risks in Islamic banks decline with an increase in SSB size and SSB members' academic qualifications, but increase with an increase in the number of reputed Shariah scholars on the SSB. The SSB attributes do not have significant influence on liquidity and credit risks. The findings are robust to alternative risk measures, and the use of a system GMM estimator.
Subject: Islamic banking; Shariah supervisory board; ownership concentration; risk
Identifier: http://hdl.handle.net/1959.13/1469793
Identifier: uon:48309
Identifier: ISSN:0927-538X
Language: eng
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