Purpose – This paper aims to investigate the relationship between capital risk and efficiency of Islamic and conventional banks operating in Bangladesh. In this pursuit, the research attempts to answer these questions: do inefficient banks assume more risk? Is there any major difference...

Purpose: This paper aims to propose two benchmarks “Shari’ah-compliant” benchmark and “Shari’ah-based” “raf’ al-haraj” (the removal of hardship) benchmark. The former benchmark can be applied to ensure that a transaction brings “profits on sales” and not “profits on...

Purpose This paper argues how Islamic altruism and reciprocity can enhance or drain the supply of Islamic equity finance. The paper also analyzes the feasibility of Islamic equity finance through the lens of new institutional economics (NIE) and transaction cost economics (TCE)....

Purpose Commercial banks are the catalysts for meeting the financing needs of small and medium enterprises (SMEs). However, not all commercial banks are equally attractive to SMEs because of differences in banking services’ key attributes. Moreover, customers’ preferences vary between...