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Stability of Islamic and Conventional banks, an empirical comparative analysis

Islam, Muhammad Umar and Kozokov, Shakhboz (2009)
Department of Business Administration
Abstract
The aim of this study is to investigate empirically the comparative stability of Islamic and Conventional banks for years 2005-08 to find out which one of them is more stable. We have taken accounting data from 8 countries for 66 banks out of which 26 Islamic and 40 Conventional ones. We performed our quantitative analysis by employing two dependent stability (risk) proxies, four bank level and three country level control variables through panel and cross-sectional regression.Based upon regression results of determinants ,we conclude that there are no statistically significant differences between Islamic and conventional banks’ stability during the period 2005-08. The stability difference between Islamic and conventional banks is also not... (More)
The aim of this study is to investigate empirically the comparative stability of Islamic and Conventional banks for years 2005-08 to find out which one of them is more stable. We have taken accounting data from 8 countries for 66 banks out of which 26 Islamic and 40 Conventional ones. We performed our quantitative analysis by employing two dependent stability (risk) proxies, four bank level and three country level control variables through panel and cross-sectional regression.Based upon regression results of determinants ,we conclude that there are no statistically significant differences between Islamic and conventional banks’ stability during the period 2005-08. The stability difference between Islamic and conventional banks is also not evident in financial crisis proxy year (2008). (Less)
Please use this url to cite or link to this publication:
author
Islam, Muhammad Umar and Kozokov, Shakhboz
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Islamic Banking, Conventional Banking, Z-Score, Non Performing Loans/Assets, Ordinary Least Square (OLS), Panel Regression, Management of enterprises, Företagsledning, management
language
Swedish
id
2171827
date added to LUP
2009-06-03 00:00:00
date last changed
2012-04-02 17:52:50
@misc{2171827,
  abstract     = {The aim of this study is to investigate empirically the comparative stability of Islamic and Conventional banks for years 2005-08 to find out which one of them is more stable. We have taken accounting data from 8 countries for 66 banks out of which 26 Islamic and 40 Conventional ones. We performed our quantitative analysis by employing two dependent stability (risk) proxies, four bank level and three country level control variables through panel and cross-sectional regression.Based upon regression results of determinants ,we conclude that there are no statistically significant differences between Islamic and conventional banks’ stability during the period 2005-08. The stability difference between Islamic and conventional banks is also not evident in financial crisis proxy year (2008).},
  author       = {Islam, Muhammad Umar and Kozokov, Shakhboz},
  keyword      = {Islamic Banking,Conventional Banking,Z-Score,Non Performing Loans/Assets,Ordinary Least Square (OLS),Panel Regression,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Stability of Islamic and Conventional banks, an empirical comparative analysis},
  year         = {2009},
}