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Stress Test of Islamic Banks: a Model Example

Author

Listed:
  • Magomet Yandiev

    (Department of Economics, Lomonosov Moscow State University)

Abstract

A stress test of a nominal Islamic bank demonstrated that the liabilities structure which ensures the maximal bank resilience to shocks is the one featuring prevalence of debt financing. On the other hand, the assets structure which ensures the maximal bank resilience to shocks is either the structure featuring prevalence of debt financing or the structure where all the asset items have approximately equal shares.

Suggested Citation

  • Magomet Yandiev, 2016. "Stress Test of Islamic Banks: a Model Example," Working Papers 0025, Moscow State University, Faculty of Economics.
    • Handle: RePEc:upa:wpaper:0025
    as

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    File URL: https://www.econ.msu.ru/sys/raw.php?o=28349&p=attachment
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    References listed on IDEAS

    as
    1. Asli Demirguk-Kunt & Thorsten Beck & Ouarda Merrouche, 2013. "Islamic Banking versus Conventional Banking: Business model, Efficiency, and Stability," Post-Print hal-01638080, HAL.
    2. Beck, Thorsten & Demirgüç-Kunt, Asli & Merrouche, Ouarda, 2013. "Islamic vs. conventional banking: Business model, efficiency and stability," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 433-447.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islam; bank; stress; test;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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