Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact
<p dir="ltr">Value-based banks strive to build a self-sustaining banking model with inclusive and transparent governance that is sustainable and resilient to external disturbances. Initiatives for value-based intermediation in Islamic finance started in Malaysia. The growth in VBIBs...
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2022
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| _version_ | 1864513562360152064 |
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| author | Evren Tok (14779270) |
| author2 | Abdurahman Jemal Yesuf (16937055) |
| author2_role | author |
| author_facet | Evren Tok (14779270) Abdurahman Jemal Yesuf (16937055) |
| author_role | author |
| dc.creator.none.fl_str_mv | Evren Tok (14779270) Abdurahman Jemal Yesuf (16937055) |
| dc.date.none.fl_str_mv | 2022-01-14T00:00:00Z |
| dc.identifier.none.fl_str_mv | 10.3390/su14020916 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Embedding_Value-Based_Principles_in_the_Culture_of_Islamic_Banks_to_Enhance_Their_Sustainability_Resilience_and_Social_Impact/24087777 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Banking, finance and investment Philosophy and religious studies Applied ethics History and philosophy of specific fields banking resilience Islamic finance value-based banking sustainability socio-economic shariah-compliant CPP |
| dc.title.none.fl_str_mv | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p dir="ltr">Value-based banks strive to build a self-sustaining banking model with inclusive and transparent governance that is sustainable and resilient to external disturbances. Initiatives for value-based intermediation in Islamic finance started in Malaysia. The growth in VBIBs is accompanied by claims about its relative resilience to crisis and efficiency compared to VBBs and conventional banks. However, little empirical evidence is available to support such claims. This study aims to analyze the resilience and efficiency of VBIBs compared to the VBBs and GSIBs. It highlights the role of value-based strategy in developing a sound and resilient Islamic banking system to overcome future crises and further strengthen the impacts of Islamic banks. The study used quantitative and content analysis research methods, with data collected from the annual reports of 10 VBIBs from 2017 to 2020. The empirical results show that VBIBs have better risk-adjusted capital levels and asset quality, enabling them to be more resilient during crises. They provide more satisfactory returns compared to the VBBs and GSIBs. However, VBBs have a better asset structure and growth rate, which contributes to the real economy. The overall findings suggest that adopting value-based strategies in Islamic banking improve banks’ sustainability, resilience, and social impacts by concentrating resources on value-based activities that provide economic resiliency and enhance inclusive and sustainable economic growth. The study fills gaps in the current Islamic finance literature concerning empirical studies on value-based Islamic banking. It also helps practitioners to understand the relative efficiency, resilience, and social impact of VBIBs.</p><h2>Other Information</h2><p dir="ltr">Published in: Sustainability<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/su14020916" target="_blank">https://dx.doi.org/10.3390/su14020916</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_4709bf7caae83ad0a73c42816b27bf0f |
| identifier_str_mv | 10.3390/su14020916 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/24087777 |
| publishDate | 2022 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social ImpactEvren Tok (14779270)Abdurahman Jemal Yesuf (16937055)Banking, finance and investmentPhilosophy and religious studiesApplied ethicsHistory and philosophy of specific fieldsbanking resilienceIslamic financevalue-based bankingsustainabilitysocio-economicshariah-compliantCPP<p dir="ltr">Value-based banks strive to build a self-sustaining banking model with inclusive and transparent governance that is sustainable and resilient to external disturbances. Initiatives for value-based intermediation in Islamic finance started in Malaysia. The growth in VBIBs is accompanied by claims about its relative resilience to crisis and efficiency compared to VBBs and conventional banks. However, little empirical evidence is available to support such claims. This study aims to analyze the resilience and efficiency of VBIBs compared to the VBBs and GSIBs. It highlights the role of value-based strategy in developing a sound and resilient Islamic banking system to overcome future crises and further strengthen the impacts of Islamic banks. The study used quantitative and content analysis research methods, with data collected from the annual reports of 10 VBIBs from 2017 to 2020. The empirical results show that VBIBs have better risk-adjusted capital levels and asset quality, enabling them to be more resilient during crises. They provide more satisfactory returns compared to the VBBs and GSIBs. However, VBBs have a better asset structure and growth rate, which contributes to the real economy. The overall findings suggest that adopting value-based strategies in Islamic banking improve banks’ sustainability, resilience, and social impacts by concentrating resources on value-based activities that provide economic resiliency and enhance inclusive and sustainable economic growth. The study fills gaps in the current Islamic finance literature concerning empirical studies on value-based Islamic banking. It also helps practitioners to understand the relative efficiency, resilience, and social impact of VBIBs.</p><h2>Other Information</h2><p dir="ltr">Published in: Sustainability<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/su14020916" target="_blank">https://dx.doi.org/10.3390/su14020916</a></p>2022-01-14T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.3390/su14020916https://figshare.com/articles/journal_contribution/Embedding_Value-Based_Principles_in_the_Culture_of_Islamic_Banks_to_Enhance_Their_Sustainability_Resilience_and_Social_Impact/24087777CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/240877772022-01-14T00:00:00Z |
| spellingShingle | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact Evren Tok (14779270) Banking, finance and investment Philosophy and religious studies Applied ethics History and philosophy of specific fields banking resilience Islamic finance value-based banking sustainability socio-economic shariah-compliant CPP |
| status_str | publishedVersion |
| title | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact |
| title_full | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact |
| title_fullStr | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact |
| title_full_unstemmed | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact |
| title_short | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact |
| title_sort | Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact |
| topic | Banking, finance and investment Philosophy and religious studies Applied ethics History and philosophy of specific fields banking resilience Islamic finance value-based banking sustainability socio-economic shariah-compliant CPP |