Exploring The Impacts and Aftershocks of Covid-19 on Islamic Banking and Conventional Banking in Pakistan
Keywords:
COVID-19, Islamic Banking, Islamic economics, Open innovations, Social finance, Post COVID-19Abstract
This paper examines main points of contention connected with the lead of money related strategy in nations with Islamic banks. It portrays the large-scale monetary foundation and money related arrangement systems in which Islamic banks ordinarily work and talks about the component of financial transmission in economies where Islamic and ordinary banks exist together. Most economies with Islamic banks likewise have regular banks, and this requires a complete way to deal with financial strategy. Simultaneously, a double money related strategy approach ought to be thought of in the event that the Islamic section of the monetary framework isn't generally so evolved as the traditional one. The record looks to reveal insight into possible overflows among customary and Islamic monetary frameworks and gives explicit suggestions on the best way to shape Islamic money related approach tasks and work with the exchange of assets through the Islamic monetary framework.
https://doi.org/10.5281/zenodo.10286855
References
Hellewell, J.; Abbott, S.; Gimma, A.; Bosse, N.I.; Jarvis, C.I.; Russell, T.W.; Munday, J.D.; Kucharski, A.J.; Edmunds, W.J.; Sun, F.; et al. Feasibility of controlling COVID-19 outbreaks by isolation of cases and contacts. Lancet Glob. Health 2020, 8, e488–e496. [CrossRef]
Xu, S.; Li, Y. Beware of the second wave of COVID-19. Lancet 2020, 395, 1321–1322. [CrossRef]
Dureab, F.; Al-Awlaqi, S.; Jahn, A. COVID-19 in Yemen: Preparedness measures in a fragile state. Lancet Public Health 2020, 5, e311. [CrossRef]
Sachs, J.D.; Horton, R.; Bagenal, J.; Ben Amor, Y.; Karadag Caman, O.; Lafortune, G. The Lancet COVID-19 Commission. Lancet
2020, 396, 454–455. [CrossRef]
Raza Rabbani, M.; Asad Mohd, A.M.; Rahiman, H.U.; Atif, M.; Zulfikar, Z.; Naseem, Y. The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System. J. Open Innov. Technol. Mark. Complex. 2021, 7,
85. [CrossRef]
Hassan, M.K.; Rabbani, M.R.; Abdullah, Y. Socioeconomic Impact of COVID-19 in MENA region and the Role of Islamic Finance.
Int. J. Islam. Econ. Financ. 2021, 4, 51–78.
Hassan, M.K.; Rabbani, M.R.; Ali, M.A. Challenges for the Islamic Finance and banking in post COVID era and the role of Fintech.
J. Econ. Coop. Dev. 2020, 43, 93–116.
Mooney, C.W., Jr. Fintech and secured transactions systems of the future. Law Contemp. Probl. 2018, 81, 1–20.
Hassan, M.K. The Global Financial Crisis and Islamic Finance. SSRN Electron. J. 2011, 53, 551–564. [CrossRef]
Hassan, M.K.; Sanchez, B.; Yu, J.S. Financial development and economic growth: New evidence from panel data. Q. Rev. Econ. Financ. 2011, 51, 88–104. [CrossRef]
Ibrahim, M.H.; Shahid Ebrahim, M. Islamic Banking and Finance: Beyond Comparison and Investment Opportunities. Pac. Basin Financ. J. 2018, 52, 1–4. [CrossRef]
Hassan, M.K.; Shaikh, S.A.; Kayhan, S. Introduction to Islamic Banking and Finance; World Scientific: Singapore, 2020.
Ahmed, H.; Asutay, M.; Wilson, R. Reflecting on Islamic banking and financial crisis: Risks, reputation and stability. In Islamic Banking and Financial Crisis: Reputation, Stability and Risks; Edinburgh University Press: Edinburgh, UK; Durham University: Durham, UK, 2013; pp. 1–20.
Montanaro, E. Islamic banking: A challenge for the Basel Capital Accord. In Islamic Banking and Finance in the European Union: A Challenge; Edward Elgar Publishing Ltd.: Cheltenham, UK; University of Siena: Siena, Italy, 2010; pp. 112–127.
Atif, M.; Hassan, M.K.; Rabbani, M.R.; Khan, S. 6 Islamic FinTech. In COVID-19 and Islamic Social Finance: 91; Routledge: London, UK, 2021.
Rabbani, M.R.; Khan, S.; Hassan, M.K.; Ali, M. 7 Artificial intelligence and Natural language processing (NLP) based FinTech model of Zakat for poverty alleviation and sustainable development for Muslims in India. In ICOVID-19 and Islamic Social Finance: 104; Routledge: London, UK, 2021.
Mohammad, K.S.; Mustafa, Y. An Artificial Intelligence and NLP based Islamic FinTech Model Combining Zakat and Qardh-Al- Hasan for Countering the Adverse Impact of COVID 19 on SMEs and Individuals. Int. J. Econ. Bus. Adm. 2020, 8, 351–364.
Dharani, M.; Hassan, M.K.; Paltrinieri, A. Faith-based norms and portfolio performance: Evidence from India. Glob. Financ. J. 2019, 41, 79–89. [CrossRef]
Azmat, S.; Hassan, M.K.; Ghaffar, H.; Azad, A.S.M.S. State contingent banking and asset price bubbles: The case of Islamic banking industry. Glob. Financ. J. 2020, 100531. [CrossRef]
Breidbach, C.F.; Keating, B.W.; Lim, C. Fintech: Research directions to explore the digital transformation of financial service systems. J. Serv. Theory Pract. 2019, 30, 79–102. [CrossRef]
Cheng, M.; Qu, Y. Does bank FinTech reduce credit risk? Evidence from China. Pac. Basin Financ. J. 2020, 63, 101398. [CrossRef]
Abou-Youssef, M.M.H.; Kortam, W.; Abou-Aish, E.; El-Bassiouny, N. Effects of religiosity on consumer attitudes toward Islamic banking in Egypt. Int. J. Bank Mark. 2015, 33, 786–807. [CrossRef]
Chong, B.S.; Liu, M.H. Islamic banking: Interest-free or interest-based? Pac. Basin Finance. J. 2009, 17, 125–144. [CrossRef]
Iqbal, M. Towards making ‘Islamic’ banking Islamic. In Risk and Regulation of Islamic Banking; Edward Elgar Publishing Ltd.: Cheltenham, UK; Islamic Economics Institute, King Abdul Aziz University: Jeddah, Saudi Arabia, 2014; pp. 71–104.
Nawaz, S.S.; Hilmy, H.M.A.; Gunapalan, S. Islamic banking customers’ intention to use mobile banking services: A Sri Lankan study. J. Adv. Res. Dyn. Control Syst. 2020, 12, 1610–1626.
Khan, S.; Rabbani, M.R. Chatbot as Islamic Finance Expert (CaIFE): When finance meets Artificial Intelligence. In Proceedings of the 2020 International Conference on Computational Linguistics and Natural Language Processing (CLNLP 2020), Seoul, Korea, 17–19 July 2020; pp. 1–5.
Yussof, S.A.; Al-Harthy, A. Cryptocurrency as an Alternative Currency in Malaysia: Issues and Challenges. Islam Civilis. Renew.
2018, 9, 48–65. [CrossRef]
Salma Al Azizah, U.; Choirin, M. Financial Innovation on Zakat Distribution and Economic Growth. In Proceedings of the 2nd International Conference of Zakat (ICONZ) Proceeding, DKI Jakarta, Indonesia, 14 February 2019.
Alam, N.; Gupta, L.; Zameni, A. Fintech and Islamic Finance: Digitalization, Development and Disruption; Springer International Pub-
lishing: Berlin/Heidelberg, Germany; Henley Business School, University of Reading Malaysia: Iskandar Puteri, Malaysia, 2019.
Nastiti, N.D.; Kasri, R.A. The role of banking regulation in the development of Islamic banking financing in Indonesia. Int. J. Islam. Middle East. Financ. Manag. 2019, 12, 643–662. [CrossRef]
Kammoun, S.; Loukil, S.; Loukil, Y.B.R. The impact of fintech on economic performance and financial stability in mena zone. In Impact of Financial Technology (FinTech) on Islamic Finance and Financial Stability; IGI Global; IHEC, CODECI, University of Sfax: Sfax, Tunisia, 2019; pp. 253–275.
Abdullah, E.M.E.; Rahman, A.A.; Rahim, R.A. Adoption of financial technology (Fintech) in mutual fund/unit trust investment among Malaysians: Unified Theory of Acceptance and Use of Technology (UTAUT). Int. J. Eng. Technol. 2018, 7, 110–118. [CrossRef]
Baber, H. FinTech, Crowdfunding and Customer Retention in Islamic Banks. Vision 2020, 24, 260–268. [CrossRef]
Khan, S.; Rabbani, M.R. Artificial Intelligence and NLP based Chatbot as Islamic Banking and Finance Expert. In Proceedings of the 2020 International Conference on Computational Linguistics and Natural Language Processing (CLNLP 2020), Seoul, Korea, 17–19 July 2020; pp. 20–22.
Hasan, R.; Hassan, M.K.; Aliyu, S. Fintech and Islamic Finance: Literature Review and Research Agenda. Int. J. Islam. Econ. Financ. 2020, 1, 75–94. [CrossRef]
Irum, S.; Rehana, K.; Imran, S.C. Fintech and Islamic Finance-challenges and Opportunities. Rev. Econ. Dev. Stud. 2019, 5, 581–590. [CrossRef]
Alam, N.; Gupta, L.; Shanmugam, B. Islamic Finance: A Practical Perspective; Palgrave Springer: London, UK, 2017.
Mohammadkhani, J.; Khalili, F. The effects of risk and return on islamic banking. Int. J. Econ. Perspect. 2017, 11, 411–425.
Döpke, J.; Tegtmeier, L. Global risk factors in the returns of listed private equity. Stud. Econ. Financ. 2018, 35, 340–360. [CrossRef]
Rabbani, M.R. COVID-19 and its impact on supply chain financing and the role of Islamic Fintech: Evidence from GCC countries.
Int. J. Agil. Syst. Manag. 2021, in press.
Hassan, M.K.; Rabbani, M.R.; Atif, M.; Shaikh, S. Shariah Indices and Implied Volatilities of S&P, Oil and Gold. Eurasian Econ. Rev. Spec. Issue 2021, in press.
Lawal, I.M.; Imam, U.B. Islamic Finance; A Tool For Realizing Sustainable Development Goals (SDG) In Nigeria. Int. J. Innov. Res. Adv. Stud. 2016, 3, 10–17.
Gundogdu, A.S. An Inquiry into Islamic Finance from the Perspective of Sustainable Development Goals. Eur. J. Sustain. Dev.
2018, 7, 381–390. [CrossRef]
Zhuang, Y.; Chang, X.; Lee, Y. Board composition and corporate social responsibility performance: Evidence from Chinese public firms. Sustainability 2018, 10, 2752. [CrossRef]
Karim, S.; Manab, N.A.; Ismail, R.B. Assessing the governance mechanisms, corporate social responsibility and per- formance: The moderating effect of board independence. Glob. Bus. Rev. 2020, 0972150920917773. Available online: https://www.researchgate.net/profile/Sitara-Karim/publication/340584081_Assessing_the_Governance_Mechanisms_ Corporate_Social_Responsibility_and_Performance_The_Moderating_Effect_of_Board_Independence/links/60867a83881fa1 14b42b4a1d/Assessing-the-Governance-Mechanisms-Corporate-Social-Responsibility-and-Performance-The-Moderating- Effect-of-Board-Independence.pdf (accessed on 11 March 2016). [CrossRef]
Karim, S.; Manab, N.A.; Ismail, R. The Interaction Effect of Independent Boards on Corporate Governance-Corporate Social Responsibility (CG-CSR) and Performance Nexus. Asian Acad. Manag. J. 2020, 25, 25. [CrossRef]
Sarea, A.; Bin-Nashwan, S.A. Guide to giving during the COVID-19 pandemic: The moderating role of religious belief on donor attitude. Int. J. Ethics Syst. 2020, 37, 90–104. [CrossRef]
Khan, S.; Hassan, M.K.; Rabbani, M.R. An Artificial Intelligence-based Islamic FinTech model on Qardh-Al-Hasan for COVID 19 affected SMEs. In Islamic Perspective for Sustainable Financial System; Istanbul University Press: Istanbul, Turkey, 2021.
Damak, M.; Roy, D.; Mensah, S. Islamic Finance 2020–2021: COVID-19 Offers an Opportunity for Transformative Developments; 2020. Available online: https://www.spglobal.com/ratings/en/research/articles/200615-islamic-finance-2020-2021-covid-19
-offers-an-opportunity-for-transformative-developments-11533355 (accessed on 11 March 2016).
Islamic Development Bank Group. The Covid-19 Crisis and Islamic Finance; 2020. Available online: https://www.isdb.org/ pub/reports/2020/the-covid-19-crisis-and-islamic-finance-response-of-the-islamic-development-bank-group (accessed on 11 March 2016).
Sherif, M. The impact of Coronavirus (COVID-19) outbreak on faith-based investments: An original analysis. J. Behav. Exp. Finance. 2020, 28, 100403. [CrossRef]
Hamidi, M.L.; Worthington, A.C. Islamic social banking: The way forward perbankan sosial Islam: Langkah kehadapan? J. Ekon. Malays. 2018, 52, 195–207.
Akoum, I.; Haron, A. Islamic banking: Towards a model of corporate governance. J. Glob. Bus. Adv. 2011, 4, 317–335. [CrossRef]
Porzio, C.; Starita, M.G. Islamic banking contracts and the risk profile of Islamic banks. In Islamic Finance in Europe: Towards a Plural Financial System; Edward Elgar Publishing: Cheltenham, UK; Parthenope University of Napoli: Napoli, Italy, 2013; pp. 79–95.
Venardos, A.M. Current Issues in Islamic Banking and Finance; World Scientific Publishing: London, UK, 2010.
Khorshid, A. Islamic Insurance: A Modern Approach to Islamic Banking; Routledge Curzon Taylor & Francis Group: Abingdon, UK, 2004.
Ariff, M. Islamic Banking. Asian-Pac. Econ. Lit. 1988, 2, 48–64. [CrossRef]
Lewis, M.K. Principles of Islamic corporate governance. In Handbook on Islam and Economic Life; Edward Elgar Publishing Ltd.: Cheltenham, UK; University of South Australia Business School: Adelaide, SA, Australia, 2014; pp. 243–267.
Louhichi, A.; Boujelbene, Y. Bank capital, lending and financing behaviour of dual banking systems. J. Multinatl. Financ. Manag.
2017, 41, 61–79. [CrossRef]
Louhichi, A.; Louati, S.; Boujelbene, Y. Market-power, stability and risk-taking: An analysis surrounding the riba-free banking.
Rev. Account. Financ. 2019, 18, 2–24. [CrossRef]
DinarStandard. State of the Global Islamic Economy Report 2020/21; 2020. Available online: https://www.icricinternational.org/ state-of-the-global-islamic-economy-2020-21-report-is-published/ (accessed on 11 March 2016).
Noor, M.A.N.M.; Ahmad, N.H.B. The Determinants of Islamic Banks’ Efficiency Changes: Empirical Evidence from the World Banking Sectors. Glob. Bus. Rev. 2012, 13, 179–200. [CrossRef]
Mkadmi, J.E.; Halioui, K. Impact of Islamic and conventional corporate governance mechanisms on financial performance of Islamic Banks: Evidence from Malaysia. In Ethical and Social Perspectives on Global Business Interaction in Emerging Markets; IGI Global; University of Gafsa: Gafsa, Tunisia, 2016; pp. 186–203.
Hanim Tafri, F.; Abdul Rahman, R.; Omar, N. Empirical evidence on the risk management tools practised in Islamic and conventional banks. Qual. Res. Financ. Mark. 2011, 3, 86–104. [CrossRef]
Ozdincer, B.; Yuce, A. Stakeholder Returns of Islamic Banks Versus Conventional Banks. Emerg. Mark. Financ. Trade 2018, 54,
3330–3350. [CrossRef]
Azrak, T.; Saiti, B.; Kutan, A.; Engku Ali, E.R.A. Does information disclosure reduce stock price volatility? A comparison of Islamic and conventional banks in Gulf countries. Int. J. Emerg. Mark. 2020. [CrossRef]
Belkhir, M.; Grira, J.; Hassan, M.K.; Soumaré, I. Islamic banks and political risk: International evidence. Q. Rev. Econ. Financ.
2019, 74, 39–55. [CrossRef]
Merdad, H.; Hassan, M.K. Islamic Mutual Funds’ Performance in Saudi Arabia. In Contemporary Islamic Finance: Innovations, Applications, and Best Practices; 2013. Available online: https://onlinelibrary.wiley.com/doi/book/10.1002/9781118653814# page=300 (accessed on 11 March 2016).
Alam, M.; Rabbani, M.R.; Tausif, M.R.; Abey, J. Banks’ Performance and Economic Growth in India: A Panel Cointegration Analysis. Economies 2021, 9, 38. [CrossRef]
Alhomaidi, A.; Hassan, M.K.; Zirek, D.; Alhassan, A. Does an Islamic label cause stock price comovements and commonality in liquidity? Appl. Econ. 2018, 50, 1–14. [CrossRef]
Wakil, N.A.B.A.; Saleh, M. The Role of Islamic Finance Institution To Enhance Halal Industry: Issues and Challenges. In Pro- ceedings of the First International Conference On Islamic Development Studies 2019, ICIDS 2019, Bandar Lampung, Indonesia, 10 September 2019.
Ahmad, S.; Rahim Abdul Rahman, A. The efficiency of Islamic and conventional commercial banks in Malaysia. Int. J. Islam. Middle East. Financ. Manag. 2012, 5, 241–263. [CrossRef]
Eprianti, N.; Zia Firdaus, N.; Himayasari, N.D. Effectiveness financing through peer to peer financial technology at smmb (small and medium micro business) in Indonesia. Hamdard Islam. 2020, 43, 850–860.
