The Effects of the Global Crisison Islamic and Conventional Banks: A Comparative Study
IMF Working Papers, September 1, 2010
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- The Effects of the Global Crisison Islamic and Conventional Banks: A Comparative Study
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Bibliographic details
- Authors: Jemma Dridi, Maher Hasan
- Published: September 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455205318.001
Summary and main findings
- Examines performance of Islamic banks (IBs) and conventional banks (CBs) during the recent global crisis by analyzing impact on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share.
- IBs were affected differently than CBs:
- Factors related to IBs‘ business model helped limit the adverse impact on profitability in 2008.
- Weaknesses in risk management practices in some IBs led to a larger decline in profitability in 2009 compared to CBs.
- IBs‘ credit and asset growth performed better than did that of CBs in 2008-09, contributing to financial and economic stability.
- External rating agencies‘ re-assessment of IBs‘ risk was generally more favorable.
Research scope and approach
- Comparative analysis focused on countries where Islamic and conventional banks have significant market share.
- Outcomes evaluated include profitability, credit growth, asset growth, and external ratings.
- Methodology references: mean test, regression analysis, and use of bank-level and market-share indicators (keywords listed in source).