Ibrahim, Mansor H. and Rizvi, Syed Aun R.,(2018), Bank lending, deposits and risk-taking in times of crisis: A panel analysis of Islamic and conventional banks. , Emerging Markets Review, UNSPECIFIED
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Abstract
In this study, we conduct a panel analysis of Islamic and conventional banks to ascertain
whether Islamic banks are able to sustain financing supply and whether its growth is higher
than conventional bank lending growth in times of stress. For concreteness, we also assess
whether the sustained financing supply of Islamic banks is justified by a concomitant increase
in Islamic deposit growth and is not linked to excessive risk taking. Utilizing a panel sample of
25 Islamic banks and 114 conventional banks from 10 dual-banking countries, we observe
sustained financing supply by Islamic banks but significant reduction in the lending growth
by conventional banks during the crisis period. The results further suggest that the financing
growth of Islamic banks is higher than the lending growth of conventional banks during the
crisis period. However, we find no clear evidence that the deposit growth of Islamic banks behaves differently during the period. Finally, there is no indication to suggest that Islamic banks
exhibit excessive risk taking in times of stress. Our results contribute to the evidence
supporting the contributive role of the Islamic banking system to financial and economic
stability.
Keywords : | Dual-banking system, Credit growth, Deposit growth, Credit risk Crisis, UNSPECIFIED |
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Journal or Publication Title: | Emerging Markets Review |
Volume: | 35 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Manajemen Ekonomi Islam |
Depositing User: | Endhar Priyo Utomo |
Date Deposited: | 30 Dec 2019 08:02 |
Last Modified: | 30 Dec 2019 08:02 |
URI: | https://repofeb.undip.ac.id/id/eprint/1214 |