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|Title: ||Islamic banking regulation and supervision: a case study of Jordan|
|Authors: ||Abdel Al, Qasem|
|Issue Date: ||2004|
|Publisher: ||© Qasem Abdel Al|
|Abstract: ||Regulation and supervision of banks has acquired a great interest over the last two
decades in order to control banks' risks after many shocks affected banks' soundness.
On an international level, the standards of Banking Supervision Committee of Basel have
become the international standards for all banks in developed and developing countries.
Basel standards were designed basically for conventional banks. Nevertheless, as Islamic
banks are based on profit-loss-sharing (PLS) arrangements, some of these standards are
not applicable to Islamic banks. The objective of this study is to investigate the
foundations for regulation and supervision of Islamic banks. To achieve this objective,
the study has adopted two methodologies. The first methodology is based on longitudinal
data for banks in Jordan for the period 1990-2000. This methodology covers the
effectiveness of capital regulation that aims to control banks' risk; also, credit risk,
liquidity ratio, and loan-loss- provisions are tested. Regression of OLS, fixed and random
effect were used. The second methodology is based on a questionnaire approach.
Questionnaires are designed to answer seven questions relating to the general objectives
of regulation and supervision of Islamic banks, the objectives of deposit protection,
licensing conditions, credit risk, liquidity risk, factors determining the capital adequacy
ratios and the information disclosures. Data is gathered from the Central Bank of Jordan,
Islamic banks, conventional banks and external auditors in Jordan. Descriptive and
variance analyses are used to analyze this data.
It is declared that the characteristics of the PLS and their risks are different from
those of conventional banks, therefore, Islamic banks are in need of special capital
adequacy ratios, internal control systems, risk and liquidity management policies, and
information disclosure standards appropriate for their characteristics.|
|Description: ||A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.|
|Appears in Collections:||PhD Theses (Economics)|
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