European Parliament Library

Islamic Banks and Financial Stability :, An Empirical Analysis, Martin Cihak, Heiko Hesse

The relative financial strength of Islamic banks is assessed empirically based on evidence covering individual Islamic and commercial banks in 18 banking systems with a substantial presence of Islamic banking. We find that (i) small Islamic banks tend to be financially stronger than small commercial banks; (ii) large commercial banks tend to be financially stronger than large Islamic banks; and (iii) small Islamic banks tend to be financially stronger than large Islamic banks, which may reflect challenges of credit risk management in large Islamic banks. We also find that the market share of Islamic banks does not have a significant impact on the financial strength of other banks
Table Of Contents
Contents; I. Introduction; II. Specifics of Islamic Banking from a Prudential Perspective; III. Methodology and Data; A. Measuring Bank Stability; B. Regression Analysis; C. Data; Tables; 1. Overview of the Input Data; IV. Results; A. Pairwise Comparisons; 2. Summary Statistics of the Sample, 1993-2004; 3. Sensitivity of the Z-Score Comparison, 1993-2004; Figures; 1. Comparison of Average Z-scores; B. Regression Analysis; 4. Regression Results: Ordinary Least Squares, 1993-2004; 5. Regression Results: Robust Estimation, 1993-2004; V. Conclusions and Topics for Further Research; Appendixes
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (31 p.)
Specific Material Designation
Form Of Item

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