Islamic Banks and Financial Stability: An Empirical Analysis
IMF Working Papers, January 1, 2008
Source details
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- Islamic Banks and Financial Stability: An Empirical Analysis
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Bibliographic details
- Authors: Martin Cihak, Heiko Hesse
- Published: January 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451868784.001
Summary findings
- 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.
- Key empirical findings:
- Small Islamic banks tend to be financially stronger than small commercial banks.
- Large commercial banks tend to be financially stronger than large Islamic banks.
- Small Islamic banks tend to be financially stronger than large Islamic banks, which may reflect challenges of credit risk management in large Islamic banks.
- The market share of Islamic banks does not have a significant impact on the financial strength of other banks.
Study scope and content
- Coverage: individual Islamic and commercial banks in 18 banking systems with a substantial presence of Islamic banking.
- Pages: 29
- Series: Working Paper No. 2008/016
- Volume: 2008
- Issue: 016
Authorship and publication
- By Martin Cihak, Heiko Hesse
- Date: January 1, 2008
- DOI: https://doi.org/10.5089/9781451868784.001
- ISBN: 9781451868784
- ISSN: 1018-5941
- Stock No: WPIEA2008016
Research and usage notes
- Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Source: IMF Working Papers, "Islamic Banks and Financial Stability: An Empirical Analysis", Martin Cihak and Heiko Hesse, January 1, 2008.