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The resilience of Islamic banks and conventional banks in the global financial crisis

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  • Mirjalili, Seyed Hossein

Abstract

Islamic banks had demonstrated significant resilience during the global financial crisis, because of relying on real economic activities, avoiding toxic financial derivatives, and keeping higher liquid assets. However, they were vulnerable afterward in economic crisis. Canadian banks as an example of the most successful conventional banks during both the global financial and economic crisis, also had demonstrated significant resilience, because of institutional setting, prudential regulator, high capital asset ratio, leverage cap, and conservative mortgage market. Islamic banks can learn from this experience and make a reform on liquidity management, corporate governance and consider the experience of resilience conventional banks.

Suggested Citation

  • Mirjalili, Seyed Hossein, 2016. "The resilience of Islamic banks and conventional banks in the global financial crisis," EconStor Conference Papers 226181, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esconf:226181
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    File URL: https://www.econstor.eu/bitstream/10419/226181/1/Resilience-Banks.pdf
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    References listed on IDEAS

    as
    1. Moazzam Farooq & Sajjad Zaheer, 2015. "Are Islamic Banks More Resilient during Financial Panics?," IMF Working Papers 2015/041, International Monetary Fund.
    2. Syed Ali, Salman, 2015. "Islamic Banking in the MENA Region," Working Papers 1433-1, The Islamic Research and Teaching Institute (IRTI).
    3. Moazzam Farooq & Sajjad Zaheer, 2015. "Are Islamic Banks More Resilient During Financial Panics?," Pacific Economic Review, Wiley Blackwell, vol. 20(1), pages 101-124, February.
    4. Renee Courtois Haltom, 2013. "Why Was Canada Exempt from the Financial Crisis?," Econ Focus, Federal Reserve Bank of Richmond, issue 4Q, pages 22-25.
    5. Rocco Huang & Mr. Lev Ratnovski, 2009. "Why Are Canadian Banks More Resilient?," IMF Working Papers 2009/152, International Monetary Fund.
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