Islamic Banks and Financial Globalization: The Expected Outcomes and the Required Response (Viewpoint of the Top Management Staff at the Jordanian Islamic Banks) (Arabic)
Journal of Islamic Economics, Vol. 22, No. 2, 2009
Posted: 7 May 2010 Last revised: 27 Feb 2019
Date Written: 2009
Jordanian Islamic Banks (JIBs) are faced by an enormous challenge that is the financial Globalization and liberalization, where the financial openness nationally and internationally took various deep dimensions and effects that affected economic and financial systems worldwide.
This study aims at forming strategic response to assess the JIBs ability to take advantage of the opportunities that may be provided by financial globalization and limit its threats, through assessing the capability of Islamic banks to meet the requirements and challenges of financial globalization, in order to maximize and limit the expected opportunities and threats respectively.
The study concluded with some results such as: the financial globalization will have negative effects on Islamic banks’ autonomy and competitive position. It will also enhance the Islamic banks’ ability to create new investment and liquidity management instruments and methods, and develop the existing ones. In addition to increasing its ability to take advantage of the openness by expanding it’s operations into new markets.
The researcher provided some recommendations such as: the need to strengthen the cooperation ties between JIBs and other Islamic banks abroad, and reinforce the role of young employees in required strategic change leadership in addition to moving the responsibilities of (Shari’ah boards supervision) from the Islamic individual banks to the central banks to become (Central Shari’ah Supervision).
Note: downloadable document is in Arabic
Keywords: Islamic Banks, Globalization
JEL Classification: F15, F23, F33, F36, G21, O19
Suggested Citation: Suggested Citation