Welcome to the Islamic Finance Resources blog, a grassroots initiative started by industry professionals and supported by practitioners from around the globe.

We constantly update this site and its overall content, and encourage you to use the various navigation tools available and welcome your feedback and comments.
A few of the resources that you can find in this site:
- Funds@Work: Network Analysis Among Sharia Scholars v 4.0
- ISRA: Islamic Finance Knowledge Repository
- IFSB-IRTI-IDB Islamic Finance and Global Stability Report
- Sukuk Reports: I, II, III, and IV
Much more available under 'Industry Reports' and 'Academic Papers' (right hand side menus)

Islamic Finance in the News

Islamic Markets on Twitter



20.4.11

Risk and Stability in Islamic Banking

Risk and Stability in Islamic Banking
Pejman Abedifar, Philip Molyneux, Amine Tarazi
April 2011

Abstract: "This paper investigates risk and stability features of Islamic banking using a simultaneous modeling framework and a sample of 456 banks from 22 countries between 2001 and 2008. We find no significant difference between Islamic and conventional banks in terms of insolvency risk. The results on credit risk suggest that Islamic banks write-off credits more frequently or/and have lower loan recoverability compared to conventional banks. We also observe that Islamic banks benefit less than conventional banks from the negative impact of asset size on both their credit and insolvency risks. Our results are robust to different samples, estimation procedures, risk variables and other modeling specifications."
Share/Bookmark

No comments:

Post a Comment