Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries
This paper examines three interlinked issues: First, what is the current state of profit sharing in Islamic banking, that is, is the division of profit between the banks and the depositors satisfactory? Second, can the profit sharing in a two-tier mudaraba contract give the same rate of return to d...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2010
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| Online Access: | https://repo.uum.edu.my/id/eprint/25058/1/IJBF%207%201%202010%2019%2034.pdf |
| _version_ | 1825805214603542528 |
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| author | Moosa, Imad |
| author_facet | Moosa, Imad |
| author_sort | Moosa, Imad |
| collection | UUM |
| description | This paper examines three interlinked issues: First, what is the current state of profit sharing in Islamic banking, that is, is the division of profit between the banks and the depositors satisfactory? Second, can the profit sharing in a
two-tier mudaraba contract give the same rate of return to depositors as the bank receives from the investment of their deposits in business? Finally, can the central bank use in some ways the profit sharing ratio along with the rate of interest as an instrument for credit control in a dual banking system? The answer to the first two questions is in the negative.To the third, a tentative response
is yes.The paper also suggests a policy tool the central banks can presumably use for controlling credit, more so in view of the recurring financial crises like the one emanating from the US that the world is facing today. The tool may in addition help improve the link between the banks and depositors by adopting an iniquitous distribution of profits. |
| first_indexed | 2024-07-04T06:28:38Z |
| format | Article |
| id | uum-25058 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:28:38Z |
| publishDate | 2010 |
| publisher | Universiti Utara Malaysia |
| record_format | eprints |
| spelling | uum-250582018-10-25T02:23:32Z https://repo.uum.edu.my/id/eprint/25058/ Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries Moosa, Imad HG Finance This paper examines three interlinked issues: First, what is the current state of profit sharing in Islamic banking, that is, is the division of profit between the banks and the depositors satisfactory? Second, can the profit sharing in a two-tier mudaraba contract give the same rate of return to depositors as the bank receives from the investment of their deposits in business? Finally, can the central bank use in some ways the profit sharing ratio along with the rate of interest as an instrument for credit control in a dual banking system? The answer to the first two questions is in the negative.To the third, a tentative response is yes.The paper also suggests a policy tool the central banks can presumably use for controlling credit, more so in view of the recurring financial crises like the one emanating from the US that the world is facing today. The tool may in addition help improve the link between the banks and depositors by adopting an iniquitous distribution of profits. Universiti Utara Malaysia 2010 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25058/1/IJBF%207%201%202010%2019%2034.pdf Moosa, Imad (2010) Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries. The International Journal of Banking and Finance, 7 (1). pp. 19-34. ISSN 1617-722 http://ijbf.uum.edu.my/index.php/previous-issues/139-the-international-journal-of-banking-and-finance-ijbf-vol-7-no-1-feb-march-2010 |
| spellingShingle | HG Finance Moosa, Imad Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries |
| title | Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries |
| title_full | Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries |
| title_fullStr | Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries |
| title_full_unstemmed | Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries |
| title_short | Stock Market Contagion in the Early Stages of the Global Financial Crisis: The Experience of the GCC Countries |
| title_sort | stock market contagion in the early stages of the global financial crisis the experience of the gcc countries |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/25058/1/IJBF%207%201%202010%2019%2034.pdf |
| work_keys_str_mv | AT moosaimad stockmarketcontagionintheearlystagesoftheglobalfinancialcrisistheexperienceofthegcccountries |