BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIES
This research empirically assesses the contribution of Islamic finance to the financial stability of banks. The empirical analysis is based on the annual data related to 103 banks (51 Islamic banks and 52 conventional banks) operating in six countries of the Gulf Cooperation Council (GCC) region du...
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| Format: | Article |
| Language: | English |
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Nicolaus Copernicus University in Toruń
2022-02-01
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| Series: | Copernican Journal of Finance & Accounting |
| Subjects: | |
| Online Access: | https://apcz.umk.pl/CJFA/article/view/37581 |
| _version_ | 1797706608157917184 |
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| author | Rihab Ben Slimen Fethi Belhaj Manel Hadriche |
| author_facet | Rihab Ben Slimen Fethi Belhaj Manel Hadriche |
| author_sort | Rihab Ben Slimen |
| collection | DOAJ |
| description |
This research empirically assesses the contribution of Islamic finance to the financial stability of banks. The empirical analysis is based on the annual data related to 103 banks (51 Islamic banks and 52 conventional banks) operating in six countries of the Gulf Cooperation Council (GCC) region during the period 2006–2015. The LADR ratio was computed and used to measure banks stability in the short term, and the Z -score was used to assess long-term stability.
The results show that, overall, Islamic banks are financially more stable in the short-term but less stable in the long term than conventional banks. The comparative analysis of the financial stability determinants in the two systems shows that these determinants contribute differently to the short- and long-term financial stability of Islamic and conventional banks. This is due to the dissimilarities in the two operating principles.
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| first_indexed | 2024-03-12T05:53:49Z |
| format | Article |
| id | doaj.art-bc0282f03e8343c28d50e1dc615916b3 |
| institution | Directory Open Access Journal |
| issn | 2300-1240 2300-3065 |
| language | English |
| last_indexed | 2024-03-12T05:53:49Z |
| publishDate | 2022-02-01 |
| publisher | Nicolaus Copernicus University in Toruń |
| record_format | Article |
| series | Copernican Journal of Finance & Accounting |
| spelling | doaj.art-bc0282f03e8343c28d50e1dc615916b32023-09-03T04:53:03ZengNicolaus Copernicus University in ToruńCopernican Journal of Finance & Accounting2300-12402300-30652022-02-0110410.12775/CJFA.2021.019BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIESRihab Ben Slimen0Fethi Belhaj1Manel Hadriche2Manar University, TunisiaManouba University, TunisiaManar University, Tunisia This research empirically assesses the contribution of Islamic finance to the financial stability of banks. The empirical analysis is based on the annual data related to 103 banks (51 Islamic banks and 52 conventional banks) operating in six countries of the Gulf Cooperation Council (GCC) region during the period 2006–2015. The LADR ratio was computed and used to measure banks stability in the short term, and the Z -score was used to assess long-term stability. The results show that, overall, Islamic banks are financially more stable in the short-term but less stable in the long term than conventional banks. The comparative analysis of the financial stability determinants in the two systems shows that these determinants contribute differently to the short- and long-term financial stability of Islamic and conventional banks. This is due to the dissimilarities in the two operating principles. https://apcz.umk.pl/CJFA/article/view/37581Islamic financeIslamic banksconventional banksfinancial stabilityZ -scoreLADR ratio |
| spellingShingle | Rihab Ben Slimen Fethi Belhaj Manel Hadriche BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIES Copernican Journal of Finance & Accounting Islamic finance Islamic banks conventional banks financial stability Z -score LADR ratio |
| title | BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIES |
| title_full | BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIES |
| title_fullStr | BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIES |
| title_full_unstemmed | BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIES |
| title_short | BANKING SHORT- AND LONG-TERM STABILITY: A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN GCC COUNTRIES |
| title_sort | banking short and long term stability a comparative study between islamic and conventional banks in gcc countries |
| topic | Islamic finance Islamic banks conventional banks financial stability Z -score LADR ratio |
| url | https://apcz.umk.pl/CJFA/article/view/37581 |
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