International Journal of Islamic and Middle Eastern Finance and Management最新文献

{"title":"The possibility of establishing an endowment (Waqf) from the Islamic financial institutions’ provisioned funds in the United Arab Emirates","authors":"Sofien Bessais, Habeebullah Zakariyah, Azman Mohd Noor","doi":"10.1108/imefm-12-2023-0466","DOIUrl":"https://doi.org/10.1108/imefm-12-2023-0466","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Islamic financial institutions (IFIs) can gather provisioned funds from various sources, but they are prohibited from incorporating these funds into their profits or using them for personal gain as they are considered illegitimate income. Instead, IFIs are required to allocate these funds to charitable purposes. This study aims to examine the potential establishment of a <em>Waqf</em> (an Islamic alternative for endowment) using the provisioned funds of IFIs in the United Arab Emirates (UAE) by analyzing its <em>Shariah</em> perspective, utility and viability.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This research uses an information-gathering approach, gathering data from books, articles, journals and websites to illuminate the <em>Shariah</em> perspective of endowing provisioned funds. Additionally, it draws upon interviews with experts in <em>Waqf</em> and Islamic banking and finance to grasp the potential and viability of establishing a <em>Waqf</em> from provisioned funds in the UAE.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Establishing a <em>Waqf</em> using provisioned funds is permissible. Although <em>Waqf</em> is always advantageous, in the current situation, endowing Islamic financial institutions' provisioned funds will not adequately address societal needs in the UAE. This is because the majority of annual returns on UAE <em>Waqf</em> investments are low compared to the amount invested, and there is an urgency to disburse these funds to those in need. If these needs are identified and met using Zakat and other charitable funds, a <em>Waqf</em> can be created from provisioned funds and prove beneficial. However, the authors have suggested some proposals to establish a relevant <em>Waqf</em> from provisioned funds that satisfy the required conditions and address the societal needs of the UAE. They concluded that creating a <em>Waqf</em> school would be the best suggestion.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The scope of this study is limited to examining the use of IFIs' provisioned funds to establish a <em>Waqf</em> in the UAE. Furthermore, the findings and conclusions of this study may be applicable only to the UAE and may not be universally applicable to other countries.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Proposed initiatives to create a “Cash Waqf” fund and a “Waqf School” using provisioned funds are anticipated to bring about immediate positive changes for the underprivileged and the wider UAE community. Furthermore, the sustainable establishment of any <em>Waqf</em> could greatly benefit society by addressing all societal needs through Zakat and charitable contributions.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this is the first study to explore the potential and practicality of creating a <em>Waqf</em> using provisioned funds from IFIs in the UAE.</p","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"2 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142226196","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The effect of corporate governance on financial fragility in non-financial companies: a Minskyian approach","authors":"Ibrahim N. Khatatbeh, Hamdi W. Samman, Wasfi A. Al Salamat, Rasmi Meqbel","doi":"10.1108/imefm-11-2023-0453","DOIUrl":"https://doi.org/10.1108/imefm-11-2023-0453","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine the effect of corporate governance (CG) mechanisms on financial fragility in non-financial corporations, using Nishi’s operationalization of Minsky’s financial instability hypothesis. Specifically, the study investigates the influence of board size, board independence, CEO duality and audit quality on the financial fragility of non-financial companies (NFCs).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Using a panel logit regression model, the authors analyse annual data from (66) NFCs listed on the Amman Stock Exchange, spanning over the period 2015–2021. This methodology enables us to assess the relationships between the identified CG mechanisms and the categorical proxy of financial fragility.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings of this study reveal that a large share of NFCs fall within Minsky’s “Ponzi” classification, indicating elevated levels of financial vulnerability. Remarkably, the analysis demonstrates that larger board sizes and the CEO-Chairman duality exacerbate financial fragility within these firms. Conversely, the study results suggest that board independence and audit quality exhibit limited effects on financial fragility. In addition, profitability, firm size and financial leverage are identified as key predictors of financial fragility.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study adds to the current literature by using a financial fragility index grounded in Minsky’s financial instability hypothesis. The constructed index is then used to examine specific CG factors in relation to financial fragility, which offers new insights into the dynamics influencing the default exposure of NFCs. Furthermore, the study findings have direct implications for policymakers and stakeholders aiming to enhance CG practices and foster financial stability in the private sector.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"1 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142202997","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Are Islamic banks really resilient to crises: new evidence from the COVID-19 pandemic","authors":"Abdelaziz Chazi, Ali Mirzaei, Zaher Zantout","doi":"10.1108/imefm-06-2024-0279","DOIUrl":"https://doi.org/10.1108/imefm-06-2024-0279","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Proponents of Islamic banking believe that this banking model is relatively superior in times of financial crises. This study aims to examine whether Islamic banks were more resilient to the coronavirus 2019 (COVID-19) pandemic than their conventional peers, especially in terms of two of the most important banking risks, capital and liquidity risks.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors use a regression model to examine whether Islamic banks were more resilient to the recent health crisis, as compared to their conventional counterparts. The results are robust to alternative crisis time periods, the use of different model specifications and the inclusion of different control variables.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Unlike during the 2007–2008 global financial crisis (GFC), Islamic banks have not performed relatively well during the more recent crisis caused by the COVID-19 pandemic. The results show that Islamic banks experienced an increase in both capital and liquidity risks. The results also indicate a decrease in bank profitability, improved solvency and asset quality and a decrease in operational risk.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes to the literature on banking business model and resilience to economic crises. Contrary to some expectations and to their performance during the GFC of 2007–2008, Islamic banks were found to be more vulnerable during the COVID-19 pandemic than conventional banks.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"13 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142202998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Factors affecting financial engineering and product development in Islamic Financial Institutions","authors":"Surayyo Shaamirova, Mehmet SARAÇ","doi":"10.1108/imefm-09-2023-0341","DOIUrl":"https://doi.org/10.1108/imefm-09-2023-0341","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to analyze Islamic financial institutions’ (IFIs) current financial engineering and product development procedures.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The paper is quantitative in nature and the survey questionnaire were collected from managers and IF experts working for Islamic Banks, Takaful and other IFIs in Turkey, Malaysia and UAE. Two-stage structural equation modeling was used to test the hypothesis.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings highlighted that the Shari’ah Supervisory Board, Strategy and Planning of IFIs, Legal and Regulatory framework, pricing of a new product and financial performance positively impact the new product development (NPD) process. At the same time, Islamic values have no significant positive impact.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>When generalizing the research results, data collection from the right departments was the main limitation of the current study. Future research may opt to collect data only from Product Development Departments.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The findings of this study will allow IFIs to reflect on their present methods, procedures and Shari’ah compliance framework for the NPD process.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Factors affecting the product development and financial engineering process are discussed in the literature. The findings of this study can be regarded as building blocks for future academic research on product development and financial engineering in Islamic finance.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"14 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142226199","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Heterogeneous stock market impact of Russia–Ukraine War for oil and gas companies","authors":"António Miguel Martins, Pedro Correia, Ricardo Gouveia","doi":"10.1108/imefm-03-2024-0131","DOIUrl":"https://doi.org/10.1108/imefm-03-2024-0131","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to examine the short-term market impact of the beginning of the military conflict between Russia and Ukraine (24 February 2022), the world’s largest oil and gas companies.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors examine the world’s 100 largest listed oil and gas companies at and around the beginning of the military conflict between Russia and Ukraine using an event study methodology.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The authors observe a positive and statistically significant stock price reaction at and around the military conflict. These results are consistent with the asset pricing perspective. Conversely, the stock market returns of Russian oil and gas companies, as well as those companies that were “forced” to divest in Russia due to corporate activism, exhibit a negative and statistically significant impact from the conflict. These reactions are reinforced or mitigated by company-specific characteristics such as size, profitability and institutional ownership. Finally, the findings indicate that companies engaged in oil and gas exploration and production report abnormally higher returns compared to firms in the other two subsectors of the industry.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The effect of the war on stock markets has been relatively little examined in the financial theory. This study intends to fill this gap in the literature.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"12 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142202999","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Explaining the role of integrated monetary banking system on transparency of interest-free institutions transactions: a case study at interest-free institutions of Iran","authors":"Mehrdad Leylabi, Sara Malekan, Mehdi Majidpour","doi":"10.1108/imefm-11-2022-0437","DOIUrl":"https://doi.org/10.1108/imefm-11-2022-0437","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The aim of this paper is to explain that what main characteristics financial technologies should have so that lead to improve the transparency of institutions and whether the integrated monetary banking system deployed in free-interest institutions has affected the transparency of these institutions in terms of those characteristics or not? In this study, the integrated monetary banking system will be studied subject to implementation of the Shafagh project.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Based on the literature review and the experts' opinions, the principles of the research questions were explained. Then, according to the dimensions of the research conceptual model, questions related to research questions were considered as the item for analysis in the modeling of structural equations. In the next step, 278 employees and managers of interest-free institutions were selected, by simple random sampling method, to answer the questionnaire. Data collected is analyzed by using structural equations method.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of the analysis indicates that the impact of the dimensions of strategic, technical, organizational and cultural factors – identified as the main characteristics of a financial system in this study – on the transparency of the transactions of the interest-free institutions is significant.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The results were obtained by focusing on the qualitative factors and also on the culture on free-interest institutions.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>By investigating the issues and factors that the developers, consultants and institutions’ managers need to address and also giving a conceptual model, this study assists managers and generally financial institutions in developing an integrated banking system in a way that will be more likely to improve transparency in those organizations.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study pioneers a comprehensive conceptual model, surpassing prior research that focused on isolated criteria. This novel approach enriches understanding of core banking systems' impact on financial transparency. This groundbreaking study uniquely focuses on free-interest institutions, traditionally presumed to be transparent but never before studied.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"12 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142203000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Oil market volatility and foreign ownership: the case of Saudi Arabia","authors":"Abdulrahman Alhassan, Lakshmi Kalyanaraman, Hanan Mohammed Alhussayen","doi":"10.1108/imefm-10-2023-0395","DOIUrl":"https://doi.org/10.1108/imefm-10-2023-0395","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to evaluate the resource curse hypothesis in an oil-dependent economy, Saudi Arabia, through examining the impact of oil price volatility on foreign ownership among Saudi listed firms.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The study analyzes a unique data set of firm-level data on foreign ownership for the period 2009–2015. A multivariate regression model was applied to analyze the relationships under study.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The analysis reveals a negative association between oil price volatility and foreign ownership in firms with high leverage and low stock volatility.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>Policymakers are encouraged to develop policies to control shocks in the supply and demand of oil and enforce economic diversification. Investors can better understand the dynamics of an oil-based economy stock market based on the investment behavior of foreign investors and their response to oil price shocks.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study adds to the literature by analyzing the relationship understudy in an oil-rich and oil-dependent emerging economy, where its critical economic parameters are influenced by oil price volatility and it has the largest and the most liquid stock exchange in the MENA region.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"37 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141934595","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of the CEO’s Islamic religiosity on tax aggressive behavior in family firms","authors":"Luai Abu-Rajab, Tensie Steijvers, Maarten Corten, Nadine Lybaert, Malek Alsharairi","doi":"10.1108/imefm-11-2023-0430","DOIUrl":"https://doi.org/10.1108/imefm-11-2023-0430","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The authors investigate the influence of CEOs’ Islamic religiosity on the level of tax aggressiveness within private family firms. In addition, this study aims to explore the moderating role of the CEO's ownership stake in the firm and the payment of Zakat.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors gathered data through surveys completed by 199 CEOs of Jordanian Islamic family firms. These survey results, along with financial statements, were used for multiple ordinary least squares regression analyses.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of this study reveal a negative relation between the extent of Islamic religiosity of the CEO and the level of tax aggressive behavior. Furthermore, the results suggest that an increase in the CEO’s ownership stake strengthens the negative association between the CEO’s religiosity and the extent of tax aggressive behavior. Finally, the CEO’s involvement in Zakat payments is shown to mitigate the negative association between the CEO’s religiosity and the extent of tax aggressive behavior.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>In contrast to prior research that examines the relationship between religiosity and tax aggressiveness within the context of other religions, particularly Christianity, in listed firms, and primarily considers the religiosity of the overall firm environment, the study centers on the CEO’s religiosity in private Islamic family firms. The Islamic context further enables us to investigate whether the fulfillment of Zakat diminishes the moral obligation experienced by religious CEOs to fulfill their tax responsibilities.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"14 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141934597","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Interconnectedness between Islamic and conventional banks: a multilayer network view","authors":"Federica Miglietta, Matteo Foglia, Gang-Jin Wang","doi":"10.1108/imefm-04-2024-0209","DOIUrl":"https://doi.org/10.1108/imefm-04-2024-0209","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine information (stock return, volatility and extreme risk) spillovers and interconnectedness within dual-banking systems.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Using multilayer information spillover networks, this paper conduct a deep analysis of contagion dynamics among 24 Islamic and 46 conventional banks from 2006 to 2022.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings show the network’s rapid response to financial shocks. Through cross-sector analysis, this paper identify information spillovers between and within Islamic and conventional banking systems. Furthermore, this research illustrates distinct roles played by Islamic and conventional banks within the multilayer network structure, contingent upon the nature of the financial shock.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Understanding the differential roles of Islamic and conventional banks in information transmission can aid policymakers and financial institutions in devising more effective risk management strategies, thereby enhancing financial stability within dual-banking systems.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes to the literature by emphasizing the necessity of examining contagion mechanisms beyond traditional single-layer network structures, shedding light on the shadow dynamics of information transmission in dual-banking systems.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"21 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141934766","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of Basel III regulations on solvency and credit risk-taking behavior of Islamic banks","authors":"Khadija Ichrak Addou, Zakaria Boulanouar, Zaheer Anwer, Afaf Bensghir, Shamsher Mohamad Ramadilli Mohammad","doi":"10.1108/imefm-05-2024-0248","DOIUrl":"https://doi.org/10.1108/imefm-05-2024-0248","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine the simultaneous effect of variations in the Capital Adequacy Ratio and Credit Risk of Islamic banks of the Gulf Cooperation Council under the influence of the Basel III regulations using an innovative approach.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This approach highlights the critical importance of the Basel III reform in preserving the stability of the regional and international financial sector in the Gulf Cooperation Council and globally by examining the complex dynamics between Capital Adequacy Ratio and Credit Risk and their interaction under regulatory constraints. The annual reports and financial performance of 26 Islamic banks were analyzed over the period 2013–2021.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings highlight the critical importance of the Basel III reform in preserving the stability of the regional and international financial sector in the Gulf Cooperation Council and globally by examining the complex dynamics between Capital Adequacy Ratio and Credit Risk and their interaction under regulatory constraints. The annual reports and financial performance of 26 Islamic banks were analyzed over the period 2013–2021.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The insights from findings help define effective strategies to manage and mitigate Credit Risk while strengthening solvency under Basel III prudential supervision. Policymakers, regulatory authorities and banking institutions can optimize the management of Credit Risk and create a robust and stable financial environment for Islamic banks.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"26 1","pages":""},"PeriodicalIF":3.0,"publicationDate":"2024-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141934596","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}