What enables Islamic banks to contribute in global financial reintermediation?

Naqvi, Bushra and Rizvi, S.K.A. and Uqaili, Hina Ahmed and Chaudhry, S.M.,(2018), What enables Islamic banks to contribute in global financial reintermediation? , Pacific-Basin Finance Journal 52 (2018) 5–25, UNSPECIFIED

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Conventional banks which once were competing with non-banking financial institutions and capital markets today face the new challenge of being reintermediated by Islamic banks. Earlier academic research has been debating over disintermediation and reintermediation of conventional banks, but consistently failed to address reintermediation through Islamic banks as a possibility. This study, however, fills the void by addressing the novel possibility of reintermediation “within” the banking sector and is the first attempt to analyze and compare Islamic and conventional banks from the perspective of reintermediated financial markets. After identifying the reintermediation trends led by Islamic banks we investigate several bank specific financial and non-financial characteristics that might have enabled Islamic banks to emerge as an important player in reintermediated financial markets. By keeping our focus on slightly modified version of CAMELS framework where ‘S’ represents “Service Quality” we find that along with better capitalization (C) and improved liquidity (L), better service quality (S) is another distinguished feature of Islamic banks that might be linked with their high degree of intermediation. 1. Introduction
Keywords : Islamic banks Intermediation Reintermediation Camels Service quality, UNSPECIFIED
Journal or Publication Title: Pacific-Basin Finance Journal 52 (2018) 5–25
Volume: 52
Item Type: Article
Subjects: Ekonomi Islam
Depositing User: Nila Nurjanah
Date Deposited: 17 Dec 2019 04:00
Last Modified: 17 Dec 2019 04:00
URI: https://repofeb.undip.ac.id/id/eprint/302

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