Quarterly Studies in Banking Management and Islamic Banking

Abstract The banking system of any country has a very important role in the economic growth and development of that country. One of the influential elements in the performance of the banking system is the profitability of banks. one of the most important indicators of banks' profitability is the spread or profit margin which is obtained from the difference between the average interest income from the granted facilities and the average interest paid on deposits. Determining the factors affecting profit margins and studying the short-term and long-term relationships among them. can be used for appropriate policy-making in the banking system. In this study, using Autoregressive Distributed Lag (ARDL), the effect of variables such as inflation, the volume of banking deposits and public sector debt to the banking system on Iran's banking profit margin will be determined during 1984-2016. The results of the study show that among macroeconomic factors, the volume of banking deposits has a negative effect. The public sector debt to the banking system has a positive and meaningful effect on the banking margin. Also, the effect of inflation is neutral in the long run.

Abstract Competition is one of the issues that economists always refer to as a solution for economic growth and optimal use of economic resources. Increasing competition and efficiency in the banking market can increase the quality and variety of banking services as well as reduce transaction costs. This is an important reason for the need to measure banking risks by considering the competition between them. In this study, for banks listed on the stock exchange, the relationship between banking competition and various types of important banking risks has been investigated. The risks in question are default risk, assets, market, capital and liquidity, which are measured as a dependent variable of their relationship with the competition index (Herfindal). The results show that banking competition has a negative and significant relationship with asset risk and a positive and significant

Abstract In this research, the effect of banking factors on the financial performance of Islamic and conventional banking has been studied. In Comparison of Islamic and conventional banking, the effect of banking factors such as capital adequacy, asset quality, bank size, management quality, and profitability in the form of CAMEL Model have been investigated and their impact on each of the banking methods has been measured for 10 banks in 5 selected countries. Their profitability has been evaluated based on three models with dependent variables such as asset return rate, return on equity and profit margin and for bank stakeholders; the profitability of the banking system is determined by financial performance. From the analysis of regression models (panel data during 2010-2017), it is determined that Islamic banking in all three models is superior to the conventional banking in bank size indices and cost to income ratio. Also, conventional banking in the model with the rate of return on assets, capital adequacy ratios, loans to deposits and deferred loans to total loans as dependent variables is superior to Islamic banking. It is suggested that Islamic banks in loan payment consider accurate validation of applicants and more detailed justification plans; and develop and promote the Islamic Banking Indicators by launching the Risk Management Committee.

Abstract Today, banking system plays a very important role in growth and development of countries. From the very beginning of banks establishment, they have two main and traditional tasks, namely, the equipping and allocation of resources. These two important tasks are implemented so that they collect the people's deposits on one hand and put it in various forms of allocation, on the other hand. In performing these tasks, banks face different internal and external barriers that affect their responsibilities. One of the external factors affecting the banking system is the volatile environment of economy and macroeconomic uncertainty. The macroeconomic instability and uncertainty ultimately reflect into two main variables of each economy, namely, production and inflation. This research seeks to investigate the effect of uncertainty and instability of macroeconomic variables (production and inflation) on the resources and expenditures of Iran banking system using GARCH techniques and Error Correction Model (ECM).
The results of the research show that the effect of instability and uncertainty of production growth on the growth of resources of the banking system (resource mobilization) is negative and significant and on the allocation of resources (growth of credits) is positive and significant, resulting in increasing the banks' credit risk. Moreover, in this study, the significance of the negative effect of instability of inflation on resource absorption and its positive effect on allocation of resources are not accepted.

Abstract Risk is an inseparable part of financial transactions. During the course of time, a wide range of simple and complicated instruments like derivations for covering and management have been created. In sum, derivations are financial possessions or instruments whose value is derived from the fundamental assets, and are used in global financial markets for a variety of goals like hedging, and arbitrage.
In the recent decade, due to their importance and complexity, financial derivations have won the attention of financial researchers. Despite of their special role, importance, and leadership in current economy and banking industry, current financial derivations are not in accordance with Islamic rules perfectly. However, for the sake of accountability to the developing and modern needs of the market, some of the Islamic countries and financial institutions have made attempts to develop the internal logic of Islamic law, and make use of the dynamic Islamic jurisprudence and financial engineers' assistance to provide opportunities for designing and introducing instruments and Islamic products for hedging.
This article deals with philosophy and practical experiences of the instruments and new products of Islamic banking in Islamic financial derivations. Although the majority of schools of thought and Islamic jurists do not agree over the use of all these recent Islamic derived instruments and even in some cases there are serious disagreement and explicit oppositions. Nontheless, discussing and awareness of other countries' and Islamic institutes' experiences in the creation of new Islamic derived instruments and products can be beneficial to the process of contemplation and obtaining of the best possible experience.