Financial Stability of Islamic and Conventional Banks in Saudi Arabia: a Time Series Analysis
Islamic banks are characterised by the compliance to Islamic laws and practices, the main ones being the prohibition of interest and loans trading. Remarkably, during the 2008-2009 financial crisis, when a large number of conventional banks have announced bankruptcy, no single Islamic bank failure has been reported. However, there is no clear consensus in the literature on question of whether Islamic banks are more or less stable than conventional banks. We study a sample of Saudi banks over a period centred on the 2008 financial crisis. The main conclusions are: (i) the variables typically used in financial stability studies may be non-stationary, a feature ignored in the literature, and, (ii), individual heterogeneity may matter more than the conventional or islamic nature of the banks.
|Date of creation:||Jan 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Viale Regina Elena, 295 - palazzina G, 00161 Roma|
Phone: 06-4925 5302
Fax: 06-4925 5349
Web page: http://www.dss.uniroma1.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kangni Kpodar & Patrick Imam, 2010.
"Islamic Banking: How Has it Diffused?,"
- Enders, Walter & Siklos, Pierre L, 2001.
"Cointegration and Threshold Adjustment,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 19(2), pages 166-76, April.
- Tom Doan, . "RATS programs to replicate Enders-Siklos(2001) JBES paper on threshold cointegration," Statistical Software Components RTZ00053, Boston College Department of Economics.
- Tom Doan, . "ENDERSIKLOS: RATS procedure to perform Enders-Siklos test for cointegration with threshold effect," Statistical Software Components RTS00064, Boston College Department of Economics.
- Ariss, Rima Turk, 2010. "Competitive conditions in Islamic and conventional banking: A global perspective," Review of Financial Economics, Elsevier, vol. 19(3), pages 101-108, August.
- Josep Lluís Carrion-i-Silvestre & Andreu Sansó, 2005.
"Testing the Null of Cointegration with Structural Breaks,"
DEA Working Papers
10, Universitat de les Illes Balears, Departament d'Economía Aplicada.
- Josep Lluís Carrion-i-Silvestre & Andreu Sansó, 2006. "Testing the Null of Cointegration with Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(5), pages 623-646, October.
- Martin Cihak & Heiko Hesse, 2008.
"Islamic Banks and Financial Stability; An Empirical Analysis,"
IMF Working Papers
08/16, International Monetary Fund.
- Martin Čihák & Heiko Hesse, 2010. "Islamic Banks and Financial Stability: An Empirical Analysis," Journal of Financial Services Research, Springer;Western Finance Association, vol. 38(2), pages 95-113, December.
- Stefano Fachin, 2007.
"Long-run trends in internal migrations in italy: a study in panel cointegration with dependent units,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 22(2), pages 401-428.
- Stefano Fachin, 2005. "Long-Run Trends in Internal Migrations in Italy: a Study in Panel Cointegration with Dependent Units," Econometrics 0507002, EconWPA.
- Martin CIHAK, 2007. "Systemic Loss: A Measure of Financial Stability (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(1-2), pages 5-26, March.
- Martin Cihak & Simon Wolfe & Klaus Schaeck, 2006. "Are More Competitive Banking Systems More Stable?," IMF Working Papers 06/143, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:sas:wpaper:20131. 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: (Stefano Fachin)
If references are entirely missing, you can add them using this form.