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Are the Determinants of Credit Facilities of Islamic Banks different from Conventional Commercial Banks? An Omani Perspective هل تختلف محددات التسهيلات الائتمانية في المصارف الإسلامية عنها في المصارف التّقليديّة؟ وُجهة نظر من عُمَان

Author

Listed:
  • Mawih Kareem Al Ani

    (Accounting Department, Dhofar University, Salalah, Sultanate of Oman)

  • Syed Ahsan Jamil

    (Finance and Economics Department, Dhofar University, Salalah, Sultanate of Oman)

  • Salma Ali Mashaani

    (Management Department, Dhofar University, Salalah, Sultanate of Oman.)

Abstract

This study aims to explore and understand whether the determinants of credit facilities are different in Islamic commercial banks as compared with conventional banks. Seven groups of determinants of granting credit facilities are tested in both types of Omani banks. The sample of the study comprises the credit managers of six conventional banks and six Islamic banks (including four Islamic windows) in Oman. The findings of this study have indicated that no significant differences exist between Islamic and conventional banks regarding client-related, political, economic, guarantees and warranties, financial position, and banking credits system related determinants. However, a significant difference exists regarding bank-related determinants. The result of the factor analysis has indicated that the clients’ guarantees and warranties, bank-related determinants, economic conditions of the country, and the banking credits system have a higher priority as determinants of credit facilities in Omani banks. هَدَفتْ هذه الدراسة إلى استكشاف وفهم ما إذا كانت مُحددات التسهيلات الائتمانية في المصارف التجارية الإسلامية تختلف عنها في نظيرتها التّقليديّة. تم اختبار سبع مجموعات من هذه المحددات في كلا النوعين من المصارف في سلطنة عُمَان. تكونت عينة الدراسة من مدراء الائتمان في ستة مصارف تجارية تقليديّة وستة مصارف تجارية إسلامية بها (أربع نوافذ إسلامية). أشارت نتائج الدراسة إلى عدم وجود فروق جوهرية بين المصارف الإسلامية والمصارف التّقليديّة فيما يتعلق بالمحددات المرتبطة بالعميل والمحددات السياسية، والمحددات الاقتصادية، والمحددات المتعلقة بالضمانات والوعود، والمحددات المتعلقة بالمركز المالي، والمحددات المتعلقة بنظام الائتمان المصرفي. وقد أظهرت النتائج وجود فروق جوهرية بين كلا النوعين من المصارف فيما يتعلق بالمحددات المرتبطة بالمصرف. أما نتائج التحليل العاملي فقد أظهرت أن محددات الضمانات والوعود، والمحددات المتعلقة بالمصرف، والمحددات الاقتصادية للبلد، وكذلك المحددات المتعلقة بالنظام المصرفي لها أولوية كبيرة في منح التسهيلات الائتمانية في المصارف العُمانية.

Suggested Citation

  • Mawih Kareem Al Ani & Syed Ahsan Jamil & Salma Ali Mashaani, 2021. "Are the Determinants of Credit Facilities of Islamic Banks different from Conventional Commercial Banks? An Omani Perspective هل تختلف محددات التسهيلات الائتمانية في المصارف الإسلامية عنها في المصارف ," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 34(1), pages 45-64, January.
    • Handle: RePEc:abd:kauiea:v:34:y:2021:i:1:no:3:p:45-64
    DOI: 10.4197/Islec.34-1.3
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    References listed on IDEAS

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    More about this item

    Keywords

    Islamic banks; Commercial banks; Credit facilities; Oman. المصارف الإسلامية، المصارف التجارية، التسهيلات الائتمانية، عُمان.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

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