The contribution of the Islamic and Social banks to the concept of sustainable development

Authors

  • karim mohamed aboul-dahab National Telecom Regulatory Authority NTRA

DOI:

https://doi.org/10.13135/2421-2172/7178

Keywords:

Sustainable Development Goals, SDGs, Islamic banking, Islamic finance, Social banking, Corporate Social Responsibility, Charity bank

Abstract

Islamic banking is a financial structure based on Islamic law (Sharia law) and driven by Islamic economics. The Islamic financial system, which offers alternative funding sources, is supported by four major pillars: the Islamic banking system, the Islamic money market, Islamic insurance, or takaful, and the Islamic capital market. On the other hand, social banks are founded on using financial services to “create a positive impact on the society and the environment; respectively, customers see Islamic banks, depositors, and the broader community as having a social as well as an economic role. In this respect, the main pillars of the United Nations Sustainable Development Goals (SDGs) include ending poverty and promoting sustainable development. This paper will investigate the similarities between Islamic and social banks. Furthermore, this research will highlight the contribution of the two banks toward achieving the UN Sustainable Development Goals (SDGs).

References

Adeleye, B. N. (2020). Unbundling interest rate and bank credit nexus on income inequality: Structural break analysis from Nigeria. Journal of Financial Regulation and Compliance, 29(1), 63–78. https://doi.org/10.1108/jfrc-04-2020-0035

Aracil, E. (2019). Corporate Social Responsibility of Islamic and conventional banks. International Journal of Emerging Markets, 14(4), 582–600. https://doi.org/10.1108/ijoem-12-2017-0533

Antoniazzi, S. (2022). Islamic Banks and the European Banking Union: An Overview of Critical Issues and Perspectives. European Journal of Islamic Finance, 9(1), 37-55. https://doi.org/10.13135/2421-2172/64243

Bosheim, & Aspevik, S. (2013). Social banks and impact measurement: The cases of Charity Bank and Triodos Bank (thesis). BI Norwegian Business School, Klæbuveien.

Benedikter, R. (2010). Social Banking and Social Finance, 1–128. https://doi.org/10.1007/978-1-4419-7774-8_1

Carrera, L. (2022). Corporate Social Responsibility. A strategy for social and territorial sustainability. International Journal of Corporate Social Responsibility, 7(1). https://doi.org/10.1186/s40991-022-00074-0

Carè, R. (2018). Looking Back, Looking Forward. In: Sustainable Banking. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-319-73389-0_7.

Cornée, S., P. Kalmi, and A. Szafarz (2016). Selectivity and transparency in social banking: Evidence from Europe. Journal of Economic Issues, 50(2): 494-502.

Cornée, S., Kalmi, P., & Szafarz, A. (2022). The business model of Social Banks. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4006579 .

DeSilver, D. (2022, June 15). In the U.S. and around the world, inflation is high and getting higher. Pew Research Center. https://www.pewresearch.org/short-reads/2022/06/15/in-the-u-s-and-around-the-world-inflation-is-high-and-getting-higher/

DOURTMES, S. ANDRIKOPOULOS , A. (2021). THE IMPACT OF SOCIAL BANKING ON ECONOMIC DEVELOPMENT. Journal of Economics and Business, XXIV, 103–123.

Gani, I. M., & Bahari, Z. (2021). Islamic banking’s contribution to the Malaysian Real Economy. ISRA International Journal of Islamic Finance, 13(1), 6–25. https://doi.org/10.1108/ijif-01-2019-0004

Global inflation tracker Q4 2022: Inflation forecast to... Euromonitor. (2022, December 14). https://www.euromonitor.com/article/global-inflation-tracker-q4-2022-inflation-forecast-to-stabilise-in-2023-although-key-risks-remain

Hamidi, L. and Worthington, A.C. (2021), "How social is Islamic banking?", Society and Business Review, Vol. 16 No. 1, pp. 51-70. https://doi.org/10.1108/SBR-03-2020-0036

Hamidi, M. Luthfi & Worthington, Andrew. (2017). Islamic banking plus social banking equals Islamic social banking: An equation in the making.

Hassan, M. K., & Aliyu, S. (2018). A contemporary survey of Islamic banking literature. Journal of Financial Stability, 34, 12–43. https://doi.org/10.1016/j.jfs.2017.11.006

Inflation increases poverty unevenly, widening gaps across the EU. EU Science Hub. (2022). https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/inflation-increases-poverty-unevenly-widening-gaps-across-eu-2022-12-06_en.

Kamdzhalov, M. (2022). Evaluation of some key features of Islamic finance in non-Islamic economies: Bulgarian perspective. European Journal of Islamic Finance, 9(2), 9–17. https://doi.org/10.13135/2421-2172/6504

Kamla, R., & G. Rammal, H. (2013). Social reporting by Islamic banks: Does social justice matter? Accounting, Auditing & Accountability Journal, 26(6), 911–945. https://doi.org/10.1108/aaaj-03-2013-1268

Krause, K., & Battenfeld, D. (2017). Coming out of the niche? Social Banking in Germany: An empirical analysis of consumer characteristics and market size. Journal of Business Ethics, 155(3), 889–911. https://doi.org/10.1007/s10551-017-3491-9

Lahrech, N., Lahrech, A., & Boulaksil, Y. (2014). Transparency and performance in Islamic banking. International Journal of Islamic and Middle Eastern Finance and Management, 7(1), 61–88. https://doi.org/10.1108/imefm-06-2012-0047

Maghfuriyah, A., Azam, S. M., & Shukri, S. (2019). Market structure and Islamic banking performance in Indonesia: An error correction model. Management Science Letters, 1407–1418. https://doi.org/10.5267/j.msl.2019.5.010

Maali, B., Casson, P., & Napier, C. (2006). Social reporting by Islamic Banks. Abacus, 42(2), 266–289. https://doi.org/10.1111/j.1467-6281.2006.00200.x

Mitić, P., Rakić, S. (2017). Social Finance and Social Banking: A path towards a more sustainable future. The International Institute for Development Studies.

Mdingi, K., & Ho, S.-Y. (2021). Literature review on income inequality and economic growth. MethodsX, 8, 101402. https://doi.org/10.1016/j.mex.2021.101402

Mohd Nor, S. (2016). Islamic Social Bank: An adaptation of Islamic Banking? Jurnal Pengurusan, 46, 43–52. https://doi.org/10.17576/pengurusan-2016-46-05

Mohamad, N. M., Masron, T. A., Wijayanti, R., & Jamil, M. M. (2020). Islamic banking and income inequality: The role of corporate social responsibility. Jurnal Ekonomi Malaysia, 54(2). https://doi.org/10.17576/jem-2020-5402-7

MUSTAFİ, R. (2021). Challenges in naming the discipline: Are there any other alternatives to "Islamic economics"? International Journal of Islamic Economics and Finance Studies. https://doi.org/10.54427/ijisef.1016100

Nasir, N. S. M., & Abu Seman, J. (2022). Islamic Banking, Accounting and Finance International Conference. In The 10th Islamic Banking, Accounting And Finance International Conference 2022 (pp. 509–519). Fakulti Ekonomi dan Muamalat, Universiti Sains Islam .

Novokmet, A. K., & Rogošić, A. (2016). Bank sustainability reporting within the GRI-G4 framework . Stowarzyszenie Księgowych w Polsce. , 88(144), 109–123. https://doi.org/10.5604/16414381.1212006 University Science, 1989.

OECD (2020), "How Islamic finance contributes to achieving the Sustainable Development Goals", OECD Development Policy Papers, No. 30, OECD Publishing, Paris, https://doi.org/10.1787/ac1480ca-en.

Relaño, F. (2011). Maximizing social return in the banking sector. Corporate Governance: The International Journal of Business in Society, 11(3), 274–284. https://doi.org/10.1108/14720701111138698

Sadiq, R., & Mushtaq, A. (2015). The Role of Islamic Finance in Sustainable Development. Journal of Islamic Thought and Civilization, 5(1), 46–65.

San-Jose, Leire and Retolaza, José Luis and Gutierrez-Goiria, Jorge, Ethical Banks: An Alternative in the Financial Crisis (June 9, 2009). Available at SSRN: https://ssrn.com/abstract=1416757 or http://dx.doi.org/10.2139/ssrn.1416757

Setiawan, I. (2016a). Role of islamic banking and conventional against poverty with the dual banking system. MIMBAR, Jurnal Sosial Dan Pembangunan, 32(2), 353. https://doi.org/10.29313/mimbar.v32i2.1916

Szegedi, K., Khan, Y., & Lentner, C. (2020). Corporate Social Responsibility and financial performance: Evidence from Pakistani listed banks. Prime Archives in Sustainability. https://doi.org/10.37247/pas.1.2020.18

Tok, E.; Yesuf, A.J. Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact. Sustainability 2022, 14, 916. https:// doi.org/10.3390/su14020916

Zucchelli, D. (2022). Recent trend of deposits in Islamic banks. European Journal of Islamic Finance, 9(1), 56–64. https://doi.org/DOI: 10.13135/2421-2172/6260

Downloads

Published

2023-08-01

How to Cite

aboul-dahab, karim mohamed. (2023). The contribution of the Islamic and Social banks to the concept of sustainable development . European Journal of Islamic Finance, 10(2), 13–25. https://doi.org/10.13135/2421-2172/7178

Issue

Vol. 10 No. 2 (2023)

Section

Peer-reviewed Articles

License

Authors keep the copyrights for their work and give the journal the work's first publication copyright, which is at the same time licensed under a Creative Commons License – Attribution, which in turn allows other parties to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Similar Articles

<< < 10 11 12 13 14 15 

You may also start an advanced similarity search for this article.