Centro de Documentação da PJ
Analítico de Periódico
CD 324
Do Islamic banks gain from corruption and money laundering (ML)? [Recurso eletrónico] / Kinza Aish ..[et al.]
Journal of Money Laundering Control, Vol. 25, n. 4 (2022), p. 909-929
BRANQUEAMENTO DE CAPITAIS, CORRUPÇÃO, INSTITUIÇÃO BANCÁRIA, SISTEMA FINANCEIRO, ESTUDO DE CASOS, PAQUISTÃO, MALÁSIA
Purpose – This paper aims to examine the impact of corruption and money laundering (ML) on the profitability and stability of Islamic banks. Design/methodology/approach – This study used the data of 53 conventional and 19 Islamic banks of Pakistan and Malaysia to have comparative insights. The empirical methods include the fixed effect and random effect regression and generalized methods of moment for robust results. Findings – The results indicate that Islamic banks gain from corruption and ML. Corruption and ML affect bank profitability and stability positively in a less corrupt environment, i.e. Malaysia; however, corruption hurts Islamic banks’ performance, and ML favours Islamic banking profitability and stability in a more corrupt environment, i.e. Pakistan. Originality/value – The present study pioneers the debate on corruption and ML related to Islamic banking profitability and stability. This study provides important insights to regulators and Shariah advisors to build a real model of Islamic banking.
