Related Experiment Video
Updated: Aug 31, 2025
13:19
Enhanced Oil Recovery using a Combination of Biosurfactants
Published on: June 3, 2022
5.3K
Does issuing islamic bonds through banks increase banking efficiency?
1Department of Economics, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, Saudi Arabia.
Heliyon
|August 22, 2022
Summary
Issuing sukuk (Islamic bonds) enhances bank efficiency in GCC countries by improving financial leverage and liquidity. Higher input prices also boost efficiency, while increased output may reduce total costs.
Area of Science:
- Finance
- Economics
- Islamic Finance
Background:
- The global Islamic finance industry has seen significant growth.
- Sukuk issuance is a key instrument in Islamic finance.
- Understanding the impact of sukuk on bank efficiency is crucial for financial stability.
Purpose of the Study:
- To investigate the effect of sukuk issuance on the operational efficiency of banks in GCC countries.
- To analyze the relationship between sukuk, financial leverage, liquidity, and bank efficiency.
- To explore the impact of input prices and output levels on bank costs and efficiency.
Main Methods:
- Stochastic frontier analysis (SFA) with a translog cost function.
- Empirical analysis of 13 Islamic and conventional banks (with Islamic windows) in Saudi Arabia, UAE, and Qatar.
- Utilized quarterly data from Q3 2009 to Q2 2019.
Main Results:
- Sukuk issuance positively impacts bank efficiency by increasing financial leverage and liquidity.
- Higher input prices correlate with increased funds, leading to enhanced bank efficiency.
- Increased bank output leads to higher total costs, but economies of scale may emerge at higher output levels.
Conclusions:
- Sukuk issuance is a beneficial strategy for improving bank efficiency in the GCC region.
- Bank efficiency is influenced by a combination of financial instruments, input costs, and output scale.
- Further research into economies of scale in Islamic banking is warranted.
Related Concept Videos
01:20IR Spectrum Peak Intensity: Dipole Moment
797
The dipole moment of a bond is the product of the partial charge on either atom and the distance between them. Dipole moments influence the efficiency of IR absorption and the peak intensity. When a bond with a dipole moment is placed in an electric field, the direction of the field determines if the bond is compressed or stretched. Electromagnetic radiation consists of an electric field component that rapidly reverses direction. It follows that polar bonds are alternately stretched and...
797
00:55IR Spectrum Peak Intensity: Amount of IR-Active Bonds
697
When infrared radiation is passed through a molecule, absorption occurs if the molecule's vibration leads to a substantial change in its bond dipole moment. Transitions between vibrational energy levels, typically corresponding to infrared frequencies (4000–400 cm−1), allow absorption if the vibration significantly alters the dipole moment, making the molecule infrared active. The molecular bonds have different stretching and bending vibrations, resulting in various peaks with...
697
01:01Production Efficiency
17.0K
Net production efficiency (NPE) is the efficiency at which organisms assimilate energy into biomass for the next trophic level. Due to low metabolic rates and less energy spent on thermoregulatory processes, the NPE of ectotherms (cold-blooded animals) is 10 times higher than endotherms (warm-blooded animals).
17.0K
01:22Dose-Response Relationship: Potency and Efficacy
4.8K
The potency of a drug is the measure of its ability to produce a biological response and can be compared by looking at the half-maximum effective concentration or EC50 values of different drugs. A lower EC50 value indicates higher potency of the drug. In the dose–response curve of two antihypertensive drugs, candesartan and irbesartan, a significant difference is observed in their EC50 values. A lower EC50 value for candesartan indicates that it is more potent than irbesartan, as it...
4.8K
01:12Bonding and Strength of Aggregate
250
The bond between aggregate particles and the cement matrix is significantly influenced by the shape and surface texture of the aggregates. High-strength concretes benefit from a rougher texture, which leads to stronger bonding due to greater adhesion. Angular aggregates with larger surface areas also enhance this bond. The bonding quality, however, is complex to assess as no universally accepted test exists. Good bonding is indicated when a crushed concrete specimen shows some aggregate...
250
01:19Turnover Number and Catalytic Efficiency
10.4K
The turnover number of an enzyme is the maximum number of substrate molecules it can transform per unit time. Turnover numbers for most enzymes range from 1 to 1000 molecules per second. Catalase has the known highest turnover number, capable of converting up to 2.8×106 molecules of hydrogen peroxide into water and oxygen per second. Lysozyme has the lowest known turnover number of half a molecule per second.
Chymotrypsin is a pancreatic enzyme that breaks down proteins during digestion....
Chymotrypsin is a pancreatic enzyme that breaks down proteins during digestion....
10.4K