Journal Article

This study aims to examine the implementation of core banking systems (CBSs) in Islamic banking windows (IBWs) in Bangladesh, where conventional and Islamic banking coexist. It explores how IBWs balance operational efficiency with Shariah compliance when choosing between a standalone Islamic banking CBS (IB-CBS) and an Islamic banking module (IB-Module) within a conventional banking CBS (CB-CBS). The research analyses the technological, operational and governance aspects of CBS adoption. This study uses a qualitative research design that integrates survey responses from Islamic banking professionals with data on CBS adoption across IBWs in Bangladesh, further supported by semi-structured interviews with senior IBW executives. This triangulated approach enhances the credibility of the findings and ensures that operational realities are accurately captured. The thematic analysis focuses on Shariah compliance, operational efficiency, system integration and governance oversight. Despite practitioners� preference for IB-CBSs for Shariah compliance and flexibility in product development and innovation, most IBWs adopt IB-Modules due to institutional priorities, vendor dynamics and cost considerations. Middleware and application programming interface (API) driven integration is identified as potential solutions for reconciling efficiency with compliance in the implementation of IB-CBSs. The study�s limitations include a small sample size, reflecting limited access to senior IBW executives and its focus on Bangladesh, which may limit generalisability across different jurisdictions. Nonetheless, the triangulated methodology enhances validity and provides a foundation for future comparative research. To the best of the authors� knowledge, this study is the first to systematically examine the adoption of CBS in IBWs. By integrating practitioner insights, it identifies how CBS design influences both operational efficiency and Shariah compliance in dual-banking contexts, while also highlighting limitations in current systems. By focusing on the �engine room� of IBWs � the CBS � the study addresses a critical gap and advances the understanding of Islamic banking infrastructure, providing insights for regulators, practitioners and policymakers on strengthening compliance, efficiency and market credibility in Islamic banking.

The purpose of this study is to examine the impact of micro, small and medium enterprises (MSMEs) financing on the stability of Saudi Arabia�s dual banking system. This study uses the correlated random effects (CRE) model, which is selected based on the Mundlak test. The CRE model is more appropriate for small sample data sets. MSME financing data is sourced from the annual reports of Saudi Arabia�s three full-fledged Islamic banks (FIBs) and six hybrid conventional banks (HCBs) over the six-year study period from 2018 to 2023. The findings show that MSMEs financing has a statistically significant positive impact on the overall banks Ln Z-Score (stability) and a negative impact on nonperforming loans (credit risk) emphasizing the positive impact of MSMEs financing on the dual banking system stability. However, when the authors disaggregate and estimate separately for FIBs and HCBs, the authors find that micro and small-sized enterprises (MiSEs) financing positively impact the stability of FIBs, but only small-sized enterprises financing reduces their credit risk. For HCBs, however, only medium and microsized financing have statistically significant positive impact on their stability and a negative impact on their credit risk, respectively. These findings are economically significant and remain robust when the authors estimate for both on-and-off-balance sheet, and MiSEs and SMEs financing for overall banks. The findings offer some important policy insights for policymakers and regulators of developing countries with dual banking systems in general and Saudi Arabia in particular that MSMEs financing enhances the stability of dual banking system and reduces their credit risk. This favorable impact is more evident for FIBs. The fact that Saudi Arabia FIBs having larger portfolios of MSMEs financing relative to their conventional counterparts have impacted their stability favorably which implies that policies favoring MSMEs financing can enhance both the financial sector and the underlying real sector in which MSMEs operate by reducing income inequality, enhancing financial inclusion and fostering entrepreneurship, which will consequently lead to long-term financial stability and to sustainable economic growth and societal development. To the best of the authors� knowledge, this is the first study that empirically examines the impact of MSMEs financing on the stability and credit risk of a dual banking system. The study provides new evidence substantiating that bank MSMEs� financing can be a win-win proposition.

This study was undertaken to contribute further to the body of knowledge of shadow economy studies, by investigating how the scale of the shadow economy influences income inequality in the context of a developing country, with Malaysia serving as the case study. Utilizing annual data from 1980 to 2018, the analysis draws upon four distinct shadow economy estimations: (i) the Multiple Indicator-Multiple Cause (MIMIC) model-based figures presented by Medina and Schneider (2019); (ii) the estimates developed by Elgin, Kose, Ohnsorge, and Yu (2021), which include both (a) MIMIC-based and (b) Computable General Equilibrium (CGE) model approaches; and (iii) the Modified-Cash-Deposit-Ratio (MCDR) method estimates provided by Habibullah, Din, Yusof-Saari and Baharom (2016). Gini coefficient is employed as the measurement for income inequality. The empirical framework integrates real Gross Domestic Product (GDP), tax burden, and urbanization growth as control variables. To evaluate the nexus between the shadow economy and income inequality, the study employs three estimators namely: Ordinary Least Squares (OLS) with robust standard errors, Robust Least Squares (RLS) incorporating M-estimators, and Fully Modified OLS (FMOLS). The analysis conducted are quite robust and comprehensive taking into account both linear and nonlinear dynamics. The empirical evidence predominantly supports a nonlinear relationship, we could see the Kuznet effect, an inverted U-shaped pattern. Implication of the U-Shape is that income inequality initially increases with the expansion of the shadow economy but subsequently decreases once a specific threshold is exceeded. Furthermore, the macroeconomic controls indicate that greater levels of economic development mitigate inequality, whereas higher tax burdens and increased urbanization contribute to its intensification. The analysis also uncovers nonlinear effects in the relationships between inequality and both tax burden and urbanization.

As of December 2025, Bangladesh has issued six government sukuk and two corporate sukuk. All of these, except for the second corporate sukuk, have integrated a sustainability agenda for the use of proceeds. This paper aims to analyse the evidence on how these sukuk incorporate sustainability agendas; and to assess their impact on the sukuk issuance process and post-issuance reporting practices. A descriptive research design, utilising both primary and secondary sources, was employed. Existing literature was reviewed to identify the drivers and challenges influencing the issuance of sustainability-based instruments globally. Additionally, the prospectuses and information memorandums for sukuk issued in Bangladesh were examined to identify sustainability-related disclosures. The regulations governing both government and corporate sukuk were also reviewed. Semi-structured interviews were conducted to validate the findings from the secondary data and to gain deeper insights into experiences related to incorporating sustainability agendas in sukuk. The research finds that, although regulatory bodies have introduced initiatives to promote sustainability, additional steps are necessary. Additionally, third-party verification and impact reporting for sustainability-based issuances are inadequate. Although issuers generally demonstrate awareness of sustainability issues, there is a significant lack of investor demand, primarily due to insufficient awareness and incentives. To the best of the researchers� knowledge, this is the first study to systematically examine how sustainability is operationalised in sukuk issuance in Bangladesh, addressing a significant research gap, as the existing literature predominantly focuses on theoretical frameworks and empirical analyses of causal impacts. This study examines sukuk in Bangladesh�s nascent market, which has seen only a few issuances. This may constrain the generalisability of the findings to more mature markets. The limited disclosure practices also restrict the ability to assess the causal impacts of the findings. The research findings provide valuable insights into the challenges an emerging market such as Bangladesh faces when incorporating a sustainability agenda in sukuk. These insights will aid in developing effective sustainability policies for Bangladesh and similar markets, standard setters, and multilateral organisations.

This study maps halal development heterogeneity across seven Muslim-minority emerging regions and develops a strategy logic for cross-regional coordination based on institutional complementarities. The study adopts a mixed-method design. A bibliometric review of 60 Scopus-indexed studies (Jan 2019�Jan 2025) identifies 4 development paradigms via keyword co-occurrence and citation patterns (institution-driven, market-integrated, institution-exporting and peripheral-experimental). These paradigm signals are then integrated into an analytic network process (ANP) with a benefits, opportunities, costs and risks (BOCR) model to derive composite priorities, locate regions on a strategic quadrant map and sequence cooperation pathways. The findings reveal pronounced regional heterogeneity in halal economic development. The Association of Southeast Asian Nations (ASEAN) and South America occupy high B-O positions with relatively manageable C-R constraints, while East Asia and North America exhibit higher C-R frictions despite strong market capabilities. Oceania displays export-oriented potential but is hindered by certification fragmentation; Middle East and North Africa (MENA) and West Africa require institutional capacity building. The results further indicate role-based complementarities, e.g. South America�s agribusiness supply, ASEAN�s certification leadership, East Asia�s branding/technology capacity and Europe�s sustainability standards, supporting phased coordination from short-term trust and mutual recognition to longer-term institutional integration. This study faces limitations related to bibliometric data and ANP-BOCR modelling. Mapping keywordsto BOCR dimensions involvesinterpretive judgement despite expert validation, and the absence of formal inter-rater reliability statistics may constrain replicability. The analysis is limited to a defined time window (2019�2025) and a single database (Scopus), potentially restricting coverage. Transforming keyword structures into regional priorities may introduce classification bias. Findings should therefore be interpreted as indicative coordination patterns rather than deterministic rankings, with future research extending datasets and comparative validation. The study advances a structured hybrid approach that integrates bibliometric paradigms with ANP-BOCR modelling to generate strategic coordination logics. By shifting from regional ranking to roledifferentiated complementarity and sequencing, it extends new regionalism debates in Muslim-minority emerging markets and offers actionable guidance for multi-actor halal governance.

We examine the default risk spillover for two groups of global energy firms, including top energy firms from seven different sectors as well as energy firms scoring highest in terms of environment disclosure. We first perform a bibliometric review to uncover the trends in existing literature related to our research objectives. We then utilize novel, daily frequency data of 'distance to default' measure to perform two important co-movement techniques namely wavelet and TVP-VAR. The sample period is from 29 June 2009 to 30 June 2021. Our wavelet results reveal that both the groups exhibit spillover of default risk. However, there is higher interdependence of default risk in environment conscious energy firms during normal as well as crisis periods. The TVP-VAR results portray the interaction across both groups of firms and show heightened connectedness between the sampled firms for the sample period. We also identify net transmitters and receivers of shocks. The results carry important implications for investors and policymakers.