Islamic banking development and access to credit

Léon, Florian and Weill, Laurent,(2018), Islamic banking development and access to credit. , Pacific-Basin Finance Journal 52 (2018) 54–69, UNSPECIFIED

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The recent expansion of Islamic banks raises questions on its economic implications. The aim of this paper is to investigate the impact of Islamic banking development on access to credit. We combine data from a unique hand-collected database that covers Islamic banks with firm-level data covering developing and emerging countries over the period of 2006 to 2009. We find that Islamic banking development has overall no impact on credit constraints, while banking development and conventional banking development alleviate obstacles to financing. However Islamic banking development exerts a positive impact on access to credit when conventional banking development is low. Hence we support the view that Islamic banking does not overall alleviate obstacles to financing, but it can act as substitute to conventional banking.
Keywords : Islamic finance Access to credit Credit constraints, UNSPECIFIED
Journal or Publication Title: Pacific-Basin Finance Journal 52 (2018) 54–69
Volume: 52
Item Type: Article
Subjects: Ekonomi Islam
Depositing User: Nila Nurjanah
Date Deposited: 19 Dec 2019 07:49
Last Modified: 19 Dec 2019 07:49

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