IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-01455752.html
   My bibliography  Save this paper

Are Non-Conventional Banks More Resilient than Conventional Ones to Financial Crisis?

Author

Listed:
  • Amine Amar

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)

  • Ikrame Ben Slimane

    (ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers - ESSCA)

  • Makram Bellalah

    (CRIISEA - Centre de Recherche sur les Institutions, l'Industrie et les Systèmes Economiques d'Amiens - UPJV - Université de Picardie Jules Verne)

Abstract

This paper presents empirical evidence of the impact of the recent global financial crises on Islamic and conventional banks in three GCC countries. Our assumptions are discussed within the framework of Khan (1976), Khan and Mirakhor (2005) and Chapra (2008). A diagonal BEKK model is used to examine the impact of the global crisis on conditional beta of the selected banks. Results show that Islamic and conventional banks have been largely affected by the global crisis, except for few banks. They reveal also that small banks have been less affected than larger banks. These results are in line with the other studies which have found that Islamic banks are not more resilient than conventional ones.

Suggested Citation

  • Amine Amar & Ikrame Ben Slimane & Makram Bellalah, 2017. "Are Non-Conventional Banks More Resilient than Conventional Ones to Financial Crisis?," Working Papers hal-01455752, HAL.
  • Handle: RePEc:hal:wpaper:hal-01455752 Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01455752
    as

    Download full text from publisher

    File URL: https://hal.archives-ouvertes.fr/hal-01455752/document
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mahmood Yousefi & Sohrab Abizadeh & Ken McCormick, 1997. "Monetary stability and interest-free banking: the case of Iran," Applied Economics, Taylor & Francis Journals, vol. 29(7), pages 869-876.
    2. Tomáš Adam & Sona Benecká & Ivo Jánský, 2012. "Time-varying Betas of the Banking Sector," Working Papers IES 2012/23, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jul 2012.
    3. Yener Altunbas & Leonardo Gambacorta & David Marques-Ibanez, 2014. "Does Monetary Policy Affect Bank Risk?," International Journal of Central Banking, International Journal of Central Banking, vol. 10(1), pages 95-136, March.
    4. Eichengreen, Barry & Mody, Ashoka & Nedeljkovic, Milan & Sarno, Lucio, 2012. "How the Subprime Crisis went global: Evidence from bank credit default swap spreads," Journal of International Money and Finance, Elsevier, pages 1299-1318.
    5. Timur Kuran, 1995. "Islamic Economics and the Islamic Subeconomy," Journal of Economic Perspectives, American Economic Association, pages 155-173.
    6. Kyle Jurado & Sydney C. Ludvigson & Serena Ng, 2015. "Measuring Uncertainty," American Economic Review, American Economic Association, pages 1177-1216.
    7. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, pages 307-327.
    8. Jing Yang & Kostas Tsatsaronis, 2012. "Bank stock returns, leverage and the business cycle," BIS Quarterly Review, Bank for International Settlements.
    9. Jemma Dridi & Maher Hasan, 2010. "The Effects of the Global Crisison Islamic and Conventional Banks; A Comparative Study," IMF Working Papers 10/201, International Monetary Fund.
    10. Nejib Hachicha & Amine Ben Amar, 2015. "Does Islamic bank financing contribute to economic growth? The Malaysian case," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, vol. 8(3), pages 349-368, August.
    11. Feryel OUERGHI, 2014. "Are Islamic Banks More Resilient To Global Financial Crisis Than Conventional Banks?," Asian Economic and Financial Review, Asian Economic and Social Society, pages 941-955.
    12. Manganelli, Simone & Altunbas, Yener & Marqués-Ibáñez, David, 2011. "Bank risk during the financial crisis: do business models matter?," Working Paper Series 1394, European Central Bank.
    13. Helene Poirson Ward & Jochen M. Schmittmann, 2013. "Risk Exposures and Financial Spillovers in Tranquil and Crisis Times; Bank-Level Evidence," IMF Working Papers 13/142, International Monetary Fund.
    14. Kuran, T., 1995. "Islamic Economics and the Islamic Subeconomy," Papers 9505, Southern California - Department of Economics.
    15. Tomas Adam & Sona Benecka & Ivo Jansky, 2012. "Time-Varying Betas of Banking Sectors," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 62(6), pages 485-504, December.
    16. Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    GCC countries; Islamic Banks; BEKK model; Pays du CCG; Banques islamiques; Résilience; Modèle BEKK;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-01455752. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.