Performance of islamic vs conventional banks in OIC countries: Resilience and recovery during Covid-19

This paper compares the performance of Islamic and conventional banks before and during Covid-19. It uses daily data for the years 2016-2022 of 12 Islamic and 21 conventional banks in six OIC countries: Pakistan, Bangladesh, Indonesia, Malaysia, United Arab Emirates, and Turkey. The paper employs the asymmetric GJR-GARCH and E-GARCH models to estimate volatility and Chow break point test to identify structural breaks. The maximum drawdown, compound annual return, and Calmar ratios methods quantify the reaction, resilience, and recovery of both types of banks. It is observed that prior to Covid-19, Islamic banks did well because they had lower drawdowns and better Calmar ratios compared to conventional banks. During Covid-19, conventional banks did better than their counterparts, took less time to recover and had better Calmar ratios. Copyright (c) 2022 Borsa.Istanbul Anonim Sirketi. Published by Elsevier B.V.

Performance of islamic vs conventional banks in OIC countries: Resilience and recovery during Covid-19

This paper compares the performance of Islamic and conventional banks before and during Covid-19. It uses daily data for the years 2016–2022 of 12 Islamic and 21 conventional banks in six OIC countries: Pakistan, Bangladesh, Indonesia, Malaysia, United Arab Emirates, and Turkey. The paper employs the asymmetric GJR-GARCH and E-GARCH models to estimate volatility and Chow break point test to identify structural breaks. The maximum drawdown, compound annual return, and Calmar ratios methods quantify the reaction, resilience, and recovery of both types of banks. It is observed that prior to Covid-19, Islamic banks did well because they had lower drawdowns and better Calmar ratios compared to conventional banks. During Covid-19, conventional banks did better than their counterparts, took less time to recover and had better Calmar ratios. © 2022 Borsa Ä°stanbul Anonim Åžirketi

Asymmetric spillover effects of Covid-19 on the performance of the Islamic finance industry: A wave analysis and forecasting

This paper investigates the spillover effects of the waves of Covid-19 that affected the performance of the Islamic financial sector index (KMI 30) concerning Pakistan's stock exchange. The daily data is used on confirmed registered cases of Covid-19 and the KMI 30 stock prices from February 2020 to June 2022. The data is distributed into five segments on the basis of Covid-19 waves. The asymmetric GJR-GARCH is used to capture the effect of Covid-19 during each wave and E-GARCH is used to see the positive and negative impacts of Covid-19 on KMI through spillover effects. The E-GARCH model also serves to forecast the conditional variance. The Chow structural break point and Bai and Perron tests identify the structural breaks in each wave. Results of structural break testing confirm the presence breaks in each wave. Meanwhile volatility modeling results indicate there is an asymmetric effect in the return series. The E-GARCH model results reveal that there is return and volatility spillover effect from Covid-19 to KMI 30 in each wave. In future the conditional volatility remains less than the expected volatility as predicted by the forecasting statistics. We respond to policy calls by sharing our novel research in not only combating, but also assisting the required urgency of planning for future of Covid-19 outbreaks. © 2022

Green Energy Consumption and Inclusive Growth: A Comprehensive Analysis of Multi-Country Study

Whenever there is a question of environmental quality and inclusive economic growth, green and renewable energy consumption leads the debate. This paper explores the relationship between green energy consumption and inclusive economic growth. It employs GMM panel data modelling frameworks for understanding the "green energy vis-a-vis -growth paradox". It uses post-COVID-19 data for eighty-three countries between 2010 and 2020. These countries are divided into high-, middle- and low-income as per the World Bank's classifications. The selected composite variables are consisting of GDP growth, poverty, income equality and employment measures. The study reports that green energy positively contributes to inclusive growth despite its lower contribution to overall energy usage in low-income countries. It observes that socio-digital inclusion and green energy together impact positively on inclusive growth in all income groups (low, middle and high). This means citizens of the selected countries are aware of the pros and cons of green energy that helps countries to mitigate the negative impacts of countries' transition to clean energy usage in terms of job losses, higher costs of clean energy and uncertainty to energy supply. Furthermore, results also reveal that green energy is significant contributor towards achieving inclusive growth, however it his highly significant in high income countries compared to other groups, showing its higher use in it. This comprehensive study is the first of its kind providing comparative analysis of 83 countries which explores and compares the interesting impacts of green energy consumption on inclusive growth in global data from the designated income groups.