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The Effect of the Subprime Crisis on the Financing of Entrepreneurial Activities by Islamic Banks

Author

Listed:
  • Aida Kammoun Abdelmoula

    (Higher Institute of Business Administration, University of Sfax, Tunisia)

  • Asma Abidi

    (Higher Institute of Management, University of Tunis, Tunisia)

Abstract

The subprime financial crisis and the subsequent economic recession had encouraged economists world-wide to consider alternative financial solutions. Attention has been focused on Islamic banking and finance as an alternative model. The purpose of this research paper is to assess empirically the effect of the subprime crisis on the financing of entrepreneurial activities by Islamic banks using a sample of 10 Islamic banks during the period from 2004 to 2009. The empirical results show that Islamic banks have found in the crisis an opportunity to justify their practices to gain market share and to introduce themselves to the aid of entrepreneurial activities.

Suggested Citation

  • Aida Kammoun Abdelmoula & Asma Abidi, 2013. "The Effect of the Subprime Crisis on the Financing of Entrepreneurial Activities by Islamic Banks," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 77-90, November.
    • Handle: RePEc:bap:journl:130405
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islamic banks; Subprime crisis; Entrepreneurial financing;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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