Does the Use of Sukuk (Islamic Bonds) Impact Islamic Banks Performances? A Case Study of Relative Performance during 2007-2009

Middle Eastern Finance and Economics, No. 12, 2011

12 Pages Posted: 8 Aug 2011

See all articles by Ali Said

Ali Said

Bellevue University - College of Business

Date Written: August 8, 2011

Abstract

This study investigates whether the use of Sukuk (Islamic bonds) by Islamic Banks have impacted the performance of these banks during a financial crisis for period of 2007-2009. Data in this study was collected over the period of 2007-2009, with the study focusing on fourteen Islamic banks that used Sukuk part of their operations. In the first stage of the study, financial ratios would measure the strength of the bank, liquidity, deployment, overall efficiency, and profitability ratio though the uses of equity/asset, liquidity, deployment, cost/income, and profitability ratios during a financial crisis. While the second stage regression analysis would be used to measure the sensitivity of using of the Sukuk in these banks to their performances during a financial crisis. The result of the study has suggested Islamic banks have decreased in strength, deployment, efficiency, and profitability during 2008 compared to 2007 and increased the uses of Sukuk in their operation in 2009.

Keywords: Sukuk, Islamic bonds, Islamic Banks, Performance, Regression, Financial Crisis

JEL Classification: G20, G21, G24

Suggested Citation

Said, Ali, Does the Use of Sukuk (Islamic Bonds) Impact Islamic Banks Performances? A Case Study of Relative Performance during 2007-2009 (August 8, 2011). Middle Eastern Finance and Economics, No. 12, 2011, Available at SSRN: https://ssrn.com/abstract=1906641

Ali Said (Contact Author)

Bellevue University - College of Business ( email )

United States
2813893044 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
1,370
Abstract Views
5,345
Rank
26,674
PlumX Metrics