Trade, financial openness and dual banking economies: Evidence from GCC Region

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE Journal of Multinational Financial Management Pub Date : 2021-12-01 DOI:10.1016/j.mulfin.2021.100693

Ashraf Khan , M. Kabir Hassan , Andrea Paltrinieri , Salman Bahoo

引用次数: 5

Abstract

The recent wave of liberalization in Gulf Cooperation Council (GCC) countries has opened up a debate on the role of Islamic finance in the financial development of an economy. Using a comprehensive dataset of 43 Islamic and 49 conventional banks for the period 2007–2015, in this paper, we investigate the impact of trade and financial openness on financial development in the GCC region. We find that trade and financial openness have a positive effect on the profitability of both banking systems, while the interaction term of openness is negative for the profitability of Islamic banks. Moreover, trade and financial openness affect Islamic banks differently than conventional banks. Notably, we unveil that trade and financial openness decrease the loan volume of Islamic banks but increase their stability.

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贸易、金融开放和双重银行经济:来自海湾合作委员会地区的证据

最近海湾合作委员会(GCC)国家的自由化浪潮引发了一场关于伊斯兰金融在经济金融发展中的作用的辩论。本文利用2007-2015年期间43家伊斯兰银行和49家传统银行的综合数据集，研究了贸易和金融开放对海湾合作委员会地区金融发展的影响。我们发现，贸易和金融开放对两国银行体系的盈利能力都有正向影响，而开放的交互项对伊斯兰银行的盈利能力则是负向的。此外，贸易和金融开放对伊斯兰银行的影响不同于传统银行。值得注意的是，我们发现贸易和金融开放减少了伊斯兰银行的贷款额，但增加了其稳定性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.

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