Browsing by Author "Basalma, Ebrahim Omar"

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    Leverage, capital adequacy, and financial stability in the fintech industry : evidence from Indonesia
    (Modern Finance Institute in cooperation with Poznan University of Economics and Business, 2024-07-14) Baita, Abubakar Jamilu; Diah Bardiah; Suhail; Basalma, Ebrahim Omar
    The paper examined the influence of leverage and capital adequacy on fintech's financial stability in Indonesia. We utilize both quantitative and qualitative methods. The findings showed that leverage significantly constrained the financial stability of the fintech industry in the short run. Contrarily, capital adequacy has no significant effect on financial stability. Specifically, the qualitative results indicated that a high liability-to-asset ratio depressed the financial stability of the fintech industry. However, the influence of the asset-to-equity ratio on financial stability depends on asset quality, liquidity, and riskiness. Furthermore, the respondents noted the insufficiency of capital requirements in the fintech industry. Thus, fintech firms should focus on asset quality, while regulators should tighten capital regulation.
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    The SDG-Islamic banking nexus : insights from the OIC top economies
    (Universitas Islam Negeri Ar-Raniry, 2024-05-29) Basalma, Ebrahim Omar
    Islamic Banking and Finance (IBF) has emerged as a promising alternative to conventional finance, with its principles aligned with the United Nations' Sustainable Development Goals (SDGs). This study investigates the relationship between the performance of IBF in five major Organization of Islamic Cooperation (OIC) countries - Saudi Arabia, Turkey, Indonesia, Malaysia, and the United Arab Emirates - and key SDG indicators: return on assets, regulatory capital to assets, regulatory Tier 1 capital to risk-weighted assets, and broad money to total reserves ratio. Employing panel data analysis, the research reveals that three out of the four SDG indicators significantly impact the total assets of Islamic banks, while the regulatory capital-to-assets indicator shows no significant relationship. These findings underscore the complex interplay between profitability, risk management, liquidity, and asset growth in the IBF sector. The study contributes to the growing body of literature on the role of IBF in promoting sustainable development. The results have important implications for regulators, policymakers, and Islamic banking institutions, highlighting the need for a balanced approach that reconciles financial performance with social and environmental objectives. By aligning IBF with the SDGs, this research paves the way for a more sustainable and inclusive financial system that can drive economic growth, social welfare, and environmental sustainability in the Muslim world and beyond.