Impact of non-intermediation activities of banks on economic growth and volatility: An evidence from oic

Mohsin Ali; Mansor H. Ibrahim; Mohamed Eskandar Shah

doi:10.1142/S0217590820420023

Impact of non-intermediation activities of banks on economic growth and volatility: An evidence from oic

Mohsin Ali
, Mansor H. Ibrahim
, Mohamed Eskandar Shah

Research output: Contribution to journal › Article › peer-review

37 Citations (Scopus)

Abstract

This paper investigates the impact of non-intermediation activities of banks on economic growth and volatility of OIC. For the purpose, we utilize LSDVC estimation approach using the sample of Organization of Islamic Countries (OIC) member countries for the period of 2001-2013. We find non-intermediation income to be insignificant for both economic growth and volatility of OIC member countries in general though it reduces volatility of Gulf Cooperation Council (GCC) economies. Intermediation activities are found to be insignificantly related with the growth of OIC member countries, but on the other hand, they are found to reduce volatility in OIC member countries. Our results are robust across different specifications and estimators.

Original language	English
Pages (from-to)	333-348
Number of pages	16
Journal	Singapore Economic Review
Volume	67
Issue number	1
DOIs	https://doi.org/10.1142/S0217590820420023
Publication status	Published - 1 Mar 2022
Externally published	Yes

Keywords

Non-interest/financing income (non-intermediation income)
OIC member countries
economic growth
economic volatility

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10.1142/S0217590820420023

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title = "Impact of non-intermediation activities of banks on economic growth and volatility: An evidence from oic",

abstract = "This paper investigates the impact of non-intermediation activities of banks on economic growth and volatility of OIC. For the purpose, we utilize LSDVC estimation approach using the sample of Organization of Islamic Countries (OIC) member countries for the period of 2001-2013. We find non-intermediation income to be insignificant for both economic growth and volatility of OIC member countries in general though it reduces volatility of Gulf Cooperation Council (GCC) economies. Intermediation activities are found to be insignificantly related with the growth of OIC member countries, but on the other hand, they are found to reduce volatility in OIC member countries. Our results are robust across different specifications and estimators.",

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T2 - An evidence from oic

AU - Ali, Mohsin

AU - Ibrahim, Mansor H.

AU - Shah, Mohamed Eskandar

PY - 2022/3/1

Y1 - 2022/3/1

N2 - This paper investigates the impact of non-intermediation activities of banks on economic growth and volatility of OIC. For the purpose, we utilize LSDVC estimation approach using the sample of Organization of Islamic Countries (OIC) member countries for the period of 2001-2013. We find non-intermediation income to be insignificant for both economic growth and volatility of OIC member countries in general though it reduces volatility of Gulf Cooperation Council (GCC) economies. Intermediation activities are found to be insignificantly related with the growth of OIC member countries, but on the other hand, they are found to reduce volatility in OIC member countries. Our results are robust across different specifications and estimators.

AB - This paper investigates the impact of non-intermediation activities of banks on economic growth and volatility of OIC. For the purpose, we utilize LSDVC estimation approach using the sample of Organization of Islamic Countries (OIC) member countries for the period of 2001-2013. We find non-intermediation income to be insignificant for both economic growth and volatility of OIC member countries in general though it reduces volatility of Gulf Cooperation Council (GCC) economies. Intermediation activities are found to be insignificantly related with the growth of OIC member countries, but on the other hand, they are found to reduce volatility in OIC member countries. Our results are robust across different specifications and estimators.

KW - Non-interest/financing income (non-intermediation income)

KW - OIC member countries

KW - economic growth

KW - economic volatility

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DO - 10.1142/S0217590820420023

M3 - Article

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SN - 0217-5908

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EP - 348

JO - Singapore Economic Review

JF - Singapore Economic Review

IS - 1

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Impact of non-intermediation activities of banks on economic growth and volatility: An evidence from oic

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Keywords

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