Template-Type: ReDIF-Article 1.0
Author-Name: Mansur Muhammed
Author-Email: mansur.muhammed@uiii.ac.id
Author-Name: Abubakar Jamilu Baita
Author-Email: abubakarbaita@gmail.com
Author-Name: Tufail Hussain
Author-Email: tufail.hussain@uiii.ac.id
Title: Institutional quality and Islamic financial development
Abstract: The Islamic financial system has become an important source of financing for many Muslim and non-Muslim countries. Therefore, this paper examines the role of institutions in facilitating the development of Islamic financial institutions. The study covers the period 2013-2021 for a panel of 11 leading economies in Islamic finance and employs fixed effects with the Driscoll and Kraay (1998) estimator. The results show a positive impact of effective governance on the development of Islamic finance. However, regulatory quality has a significant negative impact on the development of Islamic finance. Thus, we argue for the improvement of critical institutions that include political, legal, governmental, and regulatory aspects.
Keywords: sukuk, Islamic banks’ assets, Islamic financial development, institutional quality, fixed effects, Driscoll-Kraay estimator
Journal: Modern Finance
Pages: 69-83
Volume: 2
Issue: 1
Year: 2024
Subtitle : 
File-URL: https://mf-journal.com/article/view/98
File-Format: text/xml
Handle: RePEc:bdy:modfin:v:2:y:2024:i:1:p:69-83:id:98