Impact of Investment Deposits & Risk Taking On Capital Decisions in Islamic Banks of Islamic Financial Services Board Member Countries

International Journal of Economics and Empirical Research. 2016, 4(9), 510-520.

11 Pages Posted: 23 Aug 2018

See all articles by Syed Zeeshan Alam

Syed Zeeshan Alam

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Ahmed Imran Hunjra

University of Waikato; Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Sanaullah Aman

CDA Training Academy

Arslan Bashir

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Zill-e Huma

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Muhammad Omer Usman Lodhi

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Date Written: 2016

Abstract

Purpose: This study analyzes the impact of investment deposits and risk taking on capital decisions in Islamic Banks of selected Islamic Financial Services Board (IFSB) countries (Pakistan, UAE, Qatar, and Malaysia). Five Islamic banks of each country were selected as a sample for the period of 2010 to 2014. Methodology: The panel data was used. Fixed/random effect was selected on the bases of Hausman test. Findings: The results of current study show the significant impact of investment deposits (Profit Sharing Investment Account) and risk on capital decision (Capital Adequacy Ratio). Recommendations: This study recommends improvement in the implementation of profit and loss sharing to curb unnecessary risk taking for making effective capital decisions in Islamic Banks.

Keywords: Investment Deposits, Capital Decision, Islamic Banks

Suggested Citation

Alam, Syed Zeeshan and Hunjra, Ahmed Imran and Aman, Sanaullah and Bashir, Arslan and Huma, Zill-e and Lodhi, Muhammad Omer Usman, Impact of Investment Deposits & Risk Taking On Capital Decisions in Islamic Banks of Islamic Financial Services Board Member Countries (2016). International Journal of Economics and Empirical Research. 2016, 4(9), 510-520.. Available at SSRN: https://ssrn.com/abstract=3229747

Syed Zeeshan Alam

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Muree Road Rawalpindi
Rawalpindi, Punjab 44000
Pakistan

Ahmed Imran Hunjra (Contact Author)

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan
00923457162527 (Phone)

Sanaullah Aman

CDA Training Academy

Islamabad
Pakistan

Arslan Bashir

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Muree Road Rawalpindi
Rawalpindi, Punjab 44000
Pakistan

Zill-e Huma

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Muree Road Rawalpindi
Rawalpindi, Punjab 44000
Pakistan

Muhammad Omer Usman Lodhi

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Muree Road Rawalpindi
Rawalpindi, Punjab 44000
Pakistan

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