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Islamic and Conventional Banking Systems in the Middle East and Northern Africa region (2012-2021)

Chamilothoris, Layla Erietta LU (2022) EKHS21 20221
Department of Economic History
Abstract
The health of the financial system has vital influence on the economic growth and development of a country.
Banking systems are a key component of the financial systems and therefore, the economic importance of banks should
never be underestimated. However, it is not just the financial performance of these banks that determines their success in
the economic arena but also, their resilience levels. This study looks at Islamic banks and conventional banks in the Middle
East and Northern Africa region to better understand (1) how and if these systems differ regarding financial performance
and resilience and (2) what some of the key determinants are (both internal and external) of financial performance and
resilience in the region.... (More)
The health of the financial system has vital influence on the economic growth and development of a country.
Banking systems are a key component of the financial systems and therefore, the economic importance of banks should
never be underestimated. However, it is not just the financial performance of these banks that determines their success in
the economic arena but also, their resilience levels. This study looks at Islamic banks and conventional banks in the Middle
East and Northern Africa region to better understand (1) how and if these systems differ regarding financial performance
and resilience and (2) what some of the key determinants are (both internal and external) of financial performance and
resilience in the region. This study looks at 67 banks over the time 2012-2021. Several quantitative techniques including, a
Manova test, logistic regressions, pooled OLS regressions and random effects models are used to differentiate between the
two banking systems as well as to understand what factors determine financial performance and resilience overall. The
study finds that there is no differentiation between Islamic and Conventional banks both in terms of performance and
resilience. However, there are other internal and external factors that do have a statistically significant impact in determining
both financial performance and resilience, respectively. Furthermore, this study finds that resilience is a key determinant of
financial performance however, the causal relationship does not work the same way when reversed. (Less)
Please use this url to cite or link to this publication:
author
Chamilothoris, Layla Erietta LU
supervisor
organization
alternative title
Internal and external determinants of financial performance and financial resilience in the MENA region
course
EKHS21 20221
year
type
H1 - Master's Degree (One Year)
subject
keywords
Finance, Islamic finance, Islamic banks, conventional banks, resilience, financial performance, banking, Middle East, and Northern Africa
language
English
id
9093208
date added to LUP
2022-08-02 10:30:53
date last changed
2022-08-02 10:30:53
@misc{9093208,
  abstract     = {{The health of the financial system has vital influence on the economic growth and development of a country. 
Banking systems are a key component of the financial systems and therefore, the economic importance of banks should 
never be underestimated. However, it is not just the financial performance of these banks that determines their success in 
the economic arena but also, their resilience levels. This study looks at Islamic banks and conventional banks in the Middle 
East and Northern Africa region to better understand (1) how and if these systems differ regarding financial performance 
and resilience and (2) what some of the key determinants are (both internal and external) of financial performance and 
resilience in the region. This study looks at 67 banks over the time 2012-2021. Several quantitative techniques including, a 
Manova test, logistic regressions, pooled OLS regressions and random effects models are used to differentiate between the 
two banking systems as well as to understand what factors determine financial performance and resilience overall. The 
study finds that there is no differentiation between Islamic and Conventional banks both in terms of performance and 
resilience. However, there are other internal and external factors that do have a statistically significant impact in determining 
both financial performance and resilience, respectively. Furthermore, this study finds that resilience is a key determinant of 
financial performance however, the causal relationship does not work the same way when reversed.}},
  author       = {{Chamilothoris, Layla Erietta}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Islamic and Conventional Banking Systems in the Middle East and Northern Africa region (2012-2021)}},
  year         = {{2022}},
}