Browsing by Author "Abdulmajeed, Tajudeen Idera"

Now showing 1 - 2 of 2
  • Item
    CREDIT RISK IN ISLAMIC AND CONVENTIONAL BANKING SYSTEMS: EVIDENCE FROM NIGERIA
    (International Centre of Excellence for Rural Finance and Entrepreneurship (ICERFE), Ahmadu Bello University, Zaria, 2024) Jimoh, Abdulrazaq Taiye; Khaleel, Sa'adatu Ibrahim; Abdulmajeed, Tajudeen Idera; Orilonise, Mubarak Abiodun
    Islamic banking has been characterised by high credit risk exposure as receivables take higher portion of the bank assets which are only held till maturity as discounting is not allowed. The high level of exposure may affect their performance in relation to conventional banks However, there is dearth of research on the comparative analysis of credit risk exposure of Islamic and conventional banks in Nigeria. This study therefore investigated the level of credit risk of Islamic banks in comparison with that of conventional deposit money banks in Nigerian. Data were collected from annual reports of the selected banks and analysed via Wilcoxon Signed Ranks Test. The study found that Islamic banks had significantly lower loss provision ratio than conventional banks. Non-performing financing was also found to be significantly lower for Islamic banks the conventional banks. However, Islamic banks had higher but insignificant level of cost to loan asset. Based on these findings, the study concluded that Islamic banks have lower level of credit risk exposure than their conventional counterparts in Nigeria. The study thus recommended moderate provision for loss financing to reduce costs and enhance profitability.
  • Item
    Developing Shariah-Compliant Products for Islamic Banking Market in Nigeria: Can Bay’u Al-Inah (Buy-Back Sale) be Experimented?
    (Department of Accounting, Federal University Dutsin-Ma, 2024) Jimoh, Abdulrazaq Taiye; Khaleel, Sa'adatu Ibrahim; Abdulmajeed, Tajudeen Idera; Orilonise Mubarak Abiodun
    The uniqueness of Islamic banking system is in the shariah-compliant products designed to serve the market. Among the products, is the controversial bay’u al-‘inah whose acceptability remains a subject of debate among shariah experts. As Islamic banking market is still evolving in Nigeria, it becomes imperative to analyze the potentials of bay’u al-inah’s adoption. This study therefore examined bay’u al-inah product with the objective of establishing whether the product could be adopted to improve market share of Islamic banks. Data were collected with a structured questionnaire which was used to obtain data from customers of Jaiz bank and Lotus bank in Kwara State. Six Hundred (600) copies of questionnaire were administered to respondents. Ordered Logistic Regression was conducted for the data analysis. The study found that bay’u al-inah personal financing (Coeff =0.51, p<0.05), home financing (Coeff =0.82, p<0.05), and working capital financing (Coeff =0.16, p<0.05),) have positive and significant relationship with market share which was measured with number of customers’ accounts. It was concluded based on the findings that, bay’u al-inah has great potentials for attracting more customers to Islamic banks and boosting the market share of Islamic banks in Kwara State, Nigeria. the study recommends that, subject to the assessment and approval of shariah committee of experts, bay’u al-inah be adopted by Islamic banks in Kwara State and Nigeria as whole.