Short-Term and Long-Term Effects of Sharia Supervision on Banks' Performance
Today, in Islamic societies, the importance of a sharia-based evaluation of banking is recognized more than ever. As a result, many Islamic countries have formed sharia supervision committees and compiled the necessary regulations to determine the duties, responsibilities, and functions of these com...
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Imam Sadiq University
2023-06-01
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| Series: | تحقیقات مالی اسلامی (پیوسته) |
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| Online Access: | https://ifr.isu.ac.ir/article_76679_6f7b6fe95f8feb7168b013c437882bbb.pdf |
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| author | Azam Ahmadyan |
| author_facet | Azam Ahmadyan |
| author_sort | Azam Ahmadyan |
| collection | DOAJ |
| description | Today, in Islamic societies, the importance of a sharia-based evaluation of banking is recognized more than ever. As a result, many Islamic countries have formed sharia supervision committees and compiled the necessary regulations to determine the duties, responsibilities, and functions of these committees. In Iran, also, in 2022, it was decided to set independent sharia supervisors in banks. What is important is the quantification of the short-term and long-term effects of this presence on the performance of the country's banks. In this article a dummy variable has been defined for sharia supervision, and the criteria of equipping and allocating resources, asset quality, and health rating are used to measure banks' performances. The ARDL model has been used to estimate short-term and long-term relationships. The article's most important findings indicate a negative and significant relationship between sharia supervision and resource allocation and banks' health rating in the short term, and a positive and significant long-term one. Also, sharia supervision does not affect the quality of assets in the short term, but it does have a positive and significant effect in the long term. Hence, in the long run, sharia supervision can reduce the ratio of non-performing loans to total loans. |
| format | Article |
| id | doaj-art-ba955db757094063b21efb250fcd860b |
| institution | Kabale University |
| issn | 2251-8290 2588-6584 |
| language | fas |
| publishDate | 2023-06-01 |
| publisher | Imam Sadiq University |
| record_format | Article |
| series | تحقیقات مالی اسلامی (پیوسته) |
| spelling | doaj-art-ba955db757094063b21efb250fcd860b2025-01-26T16:05:45ZfasImam Sadiq Universityتحقیقات مالی اسلامی (پیوسته)2251-82902588-65842023-06-0112ویژهنامه اول؛ اولین همایش ملی بانکداری اسلامی ایران13610.30497/ifr.2023.244172.177676679Short-Term and Long-Term Effects of Sharia Supervision on Banks' PerformanceAzam Ahmadyan0Assistant Professor, Department of Banking Studies, Monetary and Banking Research Institute, Central Bank, Tehran, IranToday, in Islamic societies, the importance of a sharia-based evaluation of banking is recognized more than ever. As a result, many Islamic countries have formed sharia supervision committees and compiled the necessary regulations to determine the duties, responsibilities, and functions of these committees. In Iran, also, in 2022, it was decided to set independent sharia supervisors in banks. What is important is the quantification of the short-term and long-term effects of this presence on the performance of the country's banks. In this article a dummy variable has been defined for sharia supervision, and the criteria of equipping and allocating resources, asset quality, and health rating are used to measure banks' performances. The ARDL model has been used to estimate short-term and long-term relationships. The article's most important findings indicate a negative and significant relationship between sharia supervision and resource allocation and banks' health rating in the short term, and a positive and significant long-term one. Also, sharia supervision does not affect the quality of assets in the short term, but it does have a positive and significant effect in the long term. Hence, in the long run, sharia supervision can reduce the ratio of non-performing loans to total loans.https://ifr.isu.ac.ir/article_76679_6f7b6fe95f8feb7168b013c437882bbb.pdfshariah supervisionardl modelcamelsasset quality |
| spellingShingle | Azam Ahmadyan Short-Term and Long-Term Effects of Sharia Supervision on Banks' Performance تحقیقات مالی اسلامی (پیوسته) shariah supervision ardl model camels asset quality |
| title | Short-Term and Long-Term Effects of Sharia Supervision on Banks' Performance |
| title_full | Short-Term and Long-Term Effects of Sharia Supervision on Banks' Performance |
| title_fullStr | Short-Term and Long-Term Effects of Sharia Supervision on Banks' Performance |
| title_full_unstemmed | Short-Term and Long-Term Effects of Sharia Supervision on Banks' Performance |
| title_short | Short-Term and Long-Term Effects of Sharia Supervision on Banks' Performance |
| title_sort | short term and long term effects of sharia supervision on banks performance |
| topic | shariah supervision ardl model camels asset quality |
| url | https://ifr.isu.ac.ir/article_76679_6f7b6fe95f8feb7168b013c437882bbb.pdf |
| work_keys_str_mv | AT azamahmadyan shorttermandlongtermeffectsofshariasupervisiononbanksperformance |