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Reform of capital adequacy regulation in the world Islamic banking market
https://doi.org/10.32609/0042-8736-2024-8-89-110
Abstract
In 2023, one of the main standards for regulating Islamic banks in the world celebrated its 10th anniversary. It is difficult to find works in the academic literature discussing the reaction from the said regulation. We fill this gap and answer the research question of how the market responded to the introduction of the standard in the world. Having essentially the data of a quasi-experiment, we divide the sample into conventional (control group) and Islamic (pilot group) banks and estimate the effect of the intervention using the difference-in-differences method. Islamic banks have been known in the world practice as banks with a larger capital reserve than conventional ones. Interestingly, despite this fact, according to the results of the study, investors reacted positively to the additional capital correction.
Keywords
Basel III,
partnership financing,
Islamic banking,
banking supervision,
capital adequacy ratio,
difference-in-differences method
JEL: G21, G28, P43, P51
About the Authors
H. I. Penikas
Bank of Russia
Russian Federation
Russian Federation
Henry I. Penikas.
Moscow
V. Y. Stefanenko
Independent researcher
Russian Federation
Russian Federation
Valeriya Y. Stefanenko.
Moscow
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Penikas H.I., Stefanenko V.Y. Reform of capital adequacy regulation in the world Islamic banking market. Voprosy Ekonomiki. 2024;(8):89-110. (In Russ.) https://doi.org/10.32609/0042-8736-2024-8-89-110
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