Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 73-94 |
| Number of pages | 22 |
| Journal | Advances in the Economic Analysis of Participatory and Labor-Managed Firms |
| Volume | 15 |
| DOIs | |
| Publication status | Published - 2014 |
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Keywords
- Cooperative banks
- Credit unions
- Islamic banks
- Profit and loss sharing
ASJC Scopus subject areas
- Industrial relations
- Economics, Econometrics and Finance (miscellaneous)
Cite this
Cooperative and islamic banks : What can they learn from each other? / Al-Muharrami, Saeed; Hardy, Daniel C.
In: Advances in the Economic Analysis of Participatory and Labor-Managed Firms, Vol. 15, 2014, p. 73-94.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Cooperative and islamic banks
T2 - What can they learn from each other?
AU - Al-Muharrami, Saeed
AU - Hardy, Daniel C.
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
UR - http://www.scopus.com/inward/record.url?scp=84912105068&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84912105068&partnerID=8YFLogxK
U2 - 10.1108/S0885-333920140000015011
DO - 10.1108/S0885-333920140000015011
M3 - Article
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 -