Purpose

This study aims to analyze the factors that influenced the stability of Islamic banks in Asia.

Design/methodology/approach

The panel data consisted of 16 Asian countries operating Islamic banks from 2010 to 2019. The data were analyzed through dynamic panel regression using Arellano–Bond generalized method of moments (GMM).

Findings

This study provides novel insights into the factors influencing the stability of Islamic banks in Asia. The findings suggest that past financial stability, liquidity risk, loan risk, inflation, gross domestic product, government effectiveness, rule of law and control of corruption are all significant contributors to Islamic bank stability. Notably, political stability, voice and accountability and regulatory quality did not show a significant association.

Research limitations/implications

The current study’s focus was solely on Islamic bank stability in Asian countries, which leaves room for further exploration. Future research could benefit from expanding the scope to encompass all nations with active Islamic banking institutions. In addition, incorporating a broader range of macroeconomic variables, such as exchange rates, interest rates, profit-sharing equivalents and investment rates, could provide deeper insights into the factors influencing Islamic bank stability across diverse contexts.

Practical implications

This study has significant practical implications for policymakers, bank managers and regulatory authorities seeking to enhance the stability of Islamic banks in Asia. By implementing robust risk management frameworks, adopting prudent regulatory policies, and actively fostering economic growth, policymakers can create an environment conducive to the sustained development and prosperity of Islamic banking institutions. Notably, promoting good governance practices and instituting effective crisis prevention measures can further bolster the resilience of the Islamic banking sector, enabling it to play a more dynamic role in contributing to the overall development and welfare of Asian societies.

Social implications

The findings of this study carry significant social implications, highlighting the need for governments in Asian countries to prioritize public policies that promote good governance and ethical practices within the banking industry. Such policies, coupled with efforts to attract foreign investments and foster a stable and transparent banking sector, have the potential to generate far-reaching positive effects on society. Through economic growth stimulated by a robust Islamic banking sector, Asian countries can create new employment opportunities, improve living standards and ultimately enhance the overall well-being of their citizens.

Originality/value

This study contributes to the ongoing discourse on Islamic banking stability by offering novel insights and expanding the empirical knowledge base in this field. The dual application of robust regression methodologies – namely, GMM dynamic panel data models – presents a unique analytical framework for investigating the complex interplay between diverse variables and Islamic bank stability. This methodological choice fosters deeper understanding of the dynamic relationships at play, advancing our understanding of how specific factors influence the sector's resilience and performance. In addition, the study uses rigorous empirical techniques and engages with the extant literature to provide fresh perspectives and nuanced interpretations of the findings, further solidifying its contribution to the field's originality and richness.

中文翻译：

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亚洲伊斯兰银行稳定性的决定因素

目的

本研究旨在分析影响亚洲伊斯兰银行稳定性的因素。

设计/方法论/途径

面板数据由 2010 年至 2019 年运营伊斯兰银行的 16 个亚洲国家组成。数据采用阿雷拉诺-债券广义矩法 (GMM) 通过动态面板回归进行分析。

发现

这项研究为影响亚洲伊斯兰银行稳定性的因素提供了新颖的见解。研究结果表明，过去的金融稳定、流动性风险、贷款风险、通货膨胀、国内生产总值、政府效率、法治和腐败控制都是伊斯兰银行稳定的重要因素。值得注意的是，政治稳定性、话语权和问责制与监管质量并没有显示出显着的关联。

研究局限性/影响

目前的研究重点仅在于亚洲国家伊斯兰银行的稳定性，这为进一步探索留下了空间。未来的研究可能会受益于扩大范围以涵盖所有拥有活跃伊斯兰银行机构的国家。此外，纳入更广泛的宏观经济变量，例如汇率、利率、利润分享等值和投资率，可以更深入地了解影响不同背景下伊斯兰银行稳定性的因素。

实际影响

这项研究对于寻求增强亚洲伊斯兰银行稳定性的政策制定者、银行管理者和监管机构具有重大的实际意义。通过实施稳健的风险管理框架、采取审慎的监管政策、积极促进经济增长，政策制定者可以创造有利于伊斯兰银行机构持续发展和繁荣的环境。值得注意的是，促进良好治理实践和制定有效的危机预防措施可以进一步增强伊斯兰银行业的复原力，使其能够在为亚洲社会的整体发展和福祉做出贡献方面发挥更有活力的作用。

社会影响

这项研究的结果具有重大的社会影响，强调亚洲国家政府需要优先考虑促进银行业良好治理和道德实践的公共政策。这些政策，加上吸引外国投资和培育稳定、透明的银行业的努力，有可能对社会产生深远的积极影响。通过强劲的伊斯兰银行业刺激经济增长，亚洲国家可以创造新的就业机会，提高生活水平，并最终提高其公民的整体福祉。

原创性/价值

这项研究通过提供新颖的见解并扩展该领域的经验知识库，为有关伊斯兰银行稳定性的持续讨论做出了贡献。稳健回归方法的双重应用——即 GMM 动态面板数据模型——为研究不同变量与伊斯兰银行稳定性之间复杂的相互作用提供了一个独特的分析框架。这种方法选择有助于更深入地理解正在发挥作用的动态关系，增进我们对特定因素如何影响该行业的弹性和绩效的理解。此外，该研究采用严格的实证技术，并结合现有文献，为研究结果提供新鲜的视角和细致入微的解释，进一步巩固其对该领域的原创性和丰富性的贡献。