TY - JOUR
T1 - Cooperative and islamic banks
T2 - What can they learn from each other?
AU - Al-Muharrami, Saeed
AU - Hardy, Daniel C.
N1 - Publisher Copyright:
Copyright © 2014 by Emerald Group Publishing Limited.
PY - 2014
Y1 - 2014
N2 - Islamic and cooperative banks - including credit unions - are broadly similar in that they both share risk with savers. However, risk sharing goes along with ownership control in cooperatives, whilst Islamic banks share risk with borrowers also, and full downside risk with depositors. Islamic banking is consistent with mutual ownership, which may ease some of the governance and efficiency concerns implied by Shari'ah constraints. Greater risk sharing among cooperative bank stakeholders, along the lines of products offered by Islamic banks, may strengthen cooperatives' financial resilience.
AB - Islamic and cooperative banks - including credit unions - are broadly similar in that they both share risk with savers. However, risk sharing goes along with ownership control in cooperatives, whilst Islamic banks share risk with borrowers also, and full downside risk with depositors. Islamic banking is consistent with mutual ownership, which may ease some of the governance and efficiency concerns implied by Shari'ah constraints. Greater risk sharing among cooperative bank stakeholders, along the lines of products offered by Islamic banks, may strengthen cooperatives' financial resilience.
KW - Cooperative banks
KW - Credit unions
KW - Islamic banks
KW - Profit and loss sharing
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U2 - 10.1108/S0885-333920140000015011
DO - 10.1108/S0885-333920140000015011
M3 - Article
AN - SCOPUS:84912105068
VL - 15
SP - 73
EP - 94
JO - Advances in the Economic Analysis of Participatory and Labor-Managed Firms
JF - Advances in the Economic Analysis of Participatory and Labor-Managed Firms
SN - 0885-3339
ER -