- Copyright Page
- List of Figures
- List of Tables
- List of Abbreviations
- List of Contributors
- Banking: A Decade on from the Global Financial Crisis
- The Roles of Banks in Financial Systems
- Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation
- Corporate Complexity and Systemic Risk: A Progress Report
- Corporate Governance and Culture in Banking
- Private Information and Risk Management in Banking
- Creation and Regulation of Bank Liquidity
- The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications
- Technological Change and Financial Innovation in Banking: Some Implications for FinTech
- Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions
- Islamic banking: A Review of the Empirical Literature and Future Research Directions
- Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success
- Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery
- Residential Mortgages
- Shadow Banking
- Modern Central Banking
- Lender of Last Resort: A New Role for the Old Instrument
- Bank Bailouts and Bail-Ins
- Bank Runs and Moral Hazard: A Review of Deposit Insurance
- Bank Capital Requirements after the Financial Crisis
- Market Discipline in Regulation: Pre and Post Crisis
- Competition in the Banking Sector
- Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions
- Systemic Risk in Banking after the Great Financial Crisis
- Hardy Perennials: Banking Crises Around the World
- Bank Failures, The Great Depression, and Other “Contagious” Events
- Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk
- Banking and Real Economic Activity: Foregone Conclusions and Open Challenges
- Banking in the United States
- Banking in Europe: Integration, Reform, and the Road to a Banking Union
- Banking in Japan: A Post-global Financial Crisis Perspective
- Banking in Africa
- Banking in China
- Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union
- Banking in Latin America: Developments and Prospects
- Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration
Abstract and Keywords
The last two decades have witnessed a tremendous global growth in Islamic finance and banking, mainly prompted by the global financial crisis. This growth has been accompanied by an increasing interest among researchers, policymakers, managers of financial institutions, and the public about the functionalities of the Islamic banking system and how it differs from conventional banking. Against this backdrop, we start this chapter with an overview and assessment of the practice of Islamic banking around the world. Then, we discuss its primary characteristics, including its underlying principles and common financial products. Next, we review the key findings in the empirical literature on the differences between Islamic and conventional banking at the micro and macro levels. We conclude with a discussion of avenues for future research.
Narjess Boubakri is the Bank of Sharjah Chair in Banking and Finance, Professor of Finance and Head of the Finance Department at the School of Business Administration of the American University of Sharjah. Her research interests include, among other things, privatization, corporate governance, political economy of reforms, institutional economics, and the impact of institutional infrastructure on corporations. Her papers have been published in the Journal of Finance, the Journal of Financial Economics, the Journal of International Business Studies, the Journal of Accounting Research, and the Journal of Financial and Quantitative Analysis, among others. She acts as Associate Editor for the Journal of Corporate Finance, as Editor in Chief for Finance Research Letters, co-editor for the Quarterly Review of Economics and Finance, and is on the editorial boards of Emerging Markets Review and the Journal of International Financial Markets Institutions and Money.
Ruiyuan Ryan Chen is an Assistant Professor of Finance at the West Virginia University. His current research focuses on state ownership, corporate governance, and corporate cash holdings. His research has been published in Emerging Markets Review, the Journal of Corporate Finance, and the Journal of Financial and Quantitative Analysis.
Omrane Guedhami is the C. Russell Hill Professor of Economics and Professor of International Finance at the Moore School of Business at the University of South Carolina. His current research focuses on corporate governance, privatization, corporate social responsibility, and formal and informal institutions and their effects on corporate policies and firm performance. His research has been published in the Journal of Financial Economics, the Journal of Accounting Research, the Journal of Accounting and Economics, the Journal of Financial and Quantitative Analysis, the Journal of International Business Studies, and Management Science, and the Review of Finance, among others. He is a member of the editorial boards of major journals, such as Contemporary Accounting Research and the Journal of International Business Studies, and is currently serving as a Section Editor at the Journal of Business Ethics and Associate Editor of the Journal of Corporate Finance and the Journal of Financial Stability.
Xinming Li is an Associate Professor of Finance at the School of Finance at Nankai University and a consultant at the World Bank Group. He is also the holder of the Emerging Scholars Award by the Federal Reserve and the Conference of State Bank Supervisors. His research areas include a variety of topics related to banking and financial institutions, corporate finance, and international finance.
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