AN ANALYSIS OF THE LITERATURE ON ISLAMIC BANK RISK-TAKING

Date

2018-10-11

Journal Title

Journal ISSN

Volume Title

Publisher

Department of Banking & Finance, Nasarawa State University, Keffi

Abstract

This article reviews empirical literature on Islamic banks risk-taking behaviour and point out directions for future research. Extant studies on Islamic banking risk-taking have identified risk associated with the Islamic banking product. The paper discusses different scholar’s findings and highlight areas of concerns. Recent studies focus on risk-taking behaviour with emphasis on area of governance, ownership structures and performance. The paper discusses issues that are important to Islamic banking risk-taking behaviour and discover areas for future research.

Description

Keywords

Islamic Banking, Risk-Taking Behaviour, Global Financial Crisis.

Citation

Abdullah, D.V. (2010). Liquidity management in institutions offering Islamic financial services. In Second Islamic Financial Stability Forum (14). Jeddah. Abedifar, P., Ebrahim, S.M., Molyneux, P. & Tarazi, A. (2015). Islamic banking and finance: Recent empirical literature and directions for future research. Journal of Economic Surveys, 29(4), 637-670. Abedifar, P., Molyneux, P. & Tarazi, A. (2013). Risk in Islamic banking. Review of Finance, 17(6), 2035-2096. Acharya, V. & Naqvi, H. (2012). The seeds of a crisis: A theory of bank liquidity and risk taking over the business cycle. Journal of Financial Economics, 106(2), 349-366. Aebi, V., Sabato, G. & Schmid, M. (2012). Risk management, corporate governance and bank performance in the financial crisis. Journal of Banking and Finance, 36(12), 3213-3226. Ahmed, H. (2011). Product development in Islamic banks. Edinburgh University Press.

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