The Impact of Consolidation on Islamic Financial Services Industry

Small asset size of Islamic financial institutions (IFIs) is often cited as an obstacle for further growth. Looking at the motivating factors behind consolidation wave in conventional financial markets, this paper argues that IFIs can also benefit from consolidation in several ways. Expanding the sc...

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Main Author:	Iqbal, Zamir
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Basic Areas of Law: General (Constitutional Law) K100
Online Access:	http://hdl.handle.net/10986/5869

id	okr-10986-5869
recordtype	oai_dc
spelling	okr-10986-58692021-04-23T14:02:23Z The Impact of Consolidation on Islamic Financial Services Industry Iqbal, Zamir Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Basic Areas of Law: General (Constitutional Law) K100 Small asset size of Islamic financial institutions (IFIs) is often cited as an obstacle for further growth. Looking at the motivating factors behind consolidation wave in conventional financial markets, this paper argues that IFIs can also benefit from consolidation in several ways. Expanding the scale of operations is not sufficient but it is essential that IFIs expand the scope of their products and services to meet the challenges of domestic and international markets. An increase in scale and scope through consolidation can provide IFIs necessary threshold to justify building a solid infrastructure for new services on both sides of the balance sheet. In addition to benefits of expanding scope, consolidation can bring benefits to IFIs through diversification and through enhanced management quality as well as efficiency gains from prudent risk taking, monitoring, and management. The paper concludes by discussing policy implication for policy-makers and the managers before embarking on the wave of consolidation. 2012-03-30T07:34:56Z 2012-03-30T07:34:56Z 2008 Journal Article Islamic Economic Studies 13191616 http://hdl.handle.net/10986/5869 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Basic Areas of Law: General (Constitutional Law) K100
spellingShingle	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Basic Areas of Law: General (Constitutional Law) K100 Iqbal, Zamir The Impact of Consolidation on Islamic Financial Services Industry
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Small asset size of Islamic financial institutions (IFIs) is often cited as an obstacle for further growth. Looking at the motivating factors behind consolidation wave in conventional financial markets, this paper argues that IFIs can also benefit from consolidation in several ways. Expanding the scale of operations is not sufficient but it is essential that IFIs expand the scope of their products and services to meet the challenges of domestic and international markets. An increase in scale and scope through consolidation can provide IFIs necessary threshold to justify building a solid infrastructure for new services on both sides of the balance sheet. In addition to benefits of expanding scope, consolidation can bring benefits to IFIs through diversification and through enhanced management quality as well as efficiency gains from prudent risk taking, monitoring, and management. The paper concludes by discussing policy implication for policy-makers and the managers before embarking on the wave of consolidation.
format	Journal Article
author	Iqbal, Zamir
author_facet	Iqbal, Zamir
author_sort	Iqbal, Zamir
title	The Impact of Consolidation on Islamic Financial Services Industry
title_short	The Impact of Consolidation on Islamic Financial Services Industry
title_full	The Impact of Consolidation on Islamic Financial Services Industry
title_fullStr	The Impact of Consolidation on Islamic Financial Services Industry
title_full_unstemmed	The Impact of Consolidation on Islamic Financial Services Industry
title_sort	impact of consolidation on islamic financial services industry
publishDate	2012
url	http://hdl.handle.net/10986/5869
_version_	1764396603449278464

The Impact of Consolidation on Islamic Financial Services Industry

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