Baldwin, K. ORCID: 0000-0003-0606-5553 and Alhalboni, M.,
2023.
A value-based measure of market power for the participatory deposits of Islamic banks.
Journal of International Financial Markets, Institutions and Money: 101809.
ISSN 1042-4431
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Abstract
Traditional earnings-based measures of market power cannot be applied to Islamic banks since depositors are investors and not creditors. We develop a new market power measure based on the capitalised value of a bank’s deposit funds’ management fees in which more powerful banks price deposits to create greater long-term value, whilst less powerful banks target short-term earnings or risk management goals. Applying panel VAR and two-step system GMM to international data from 1990-2022, we validate the measure by showing that deposit growth rates (Granger) cause market power and are the only significant determinant across all two-step system GMM model and sub-sample variants.
Item Type: | Journal article | ||||||
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Publication Title: | Journal of International Financial Markets, Institutions and Money | ||||||
Creators: | Baldwin, K. and Alhalboni, M. | ||||||
Publisher: | Elsevier | ||||||
Date: | 29 July 2023 | ||||||
ISSN: | 1042-4431 | ||||||
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Divisions: | Schools > Nottingham Business School | ||||||
Record created by: | Laura Ward | ||||||
Date Added: | 03 Aug 2023 08:23 | ||||||
Last Modified: | 29 Jul 2024 03:00 | ||||||
URI: | https://irep.ntu.ac.uk/id/eprint/49491 |
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