Islamic Banks and Financial Stability An Empirical Analysis

The relative financial strength of Islamic banks is assessed empirically based on evidence covering individual Islamic and commercial banks in 18 banking systems with a substantial presence of Islamic banking. We find that (i) small Islamic banks tend to be financially stronger than small commercial...

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Bibliographic Details
Main Author: Cihak, Martin
Other Authors: Hesse, Heiko
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Islamic Banks and Financial Stability  |b An Empirical Analysis  |c Martin Cihak, Heiko Hesse 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2008 
300 |a 29 pages 
651 4 |a Iran, Islamic Republic of 
653 |a Depository Institutions 
653 |a Islamic banking 
653 |a Commercial banks 
653 |a Income 
653 |a Banks 
653 |a Finance 
653 |a Financial sector stability 
653 |a Banks and banking 
653 |a Islamic Banking and Finance 
653 |a Personal income 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Micro Finance Institutions 
653 |a Mortgages 
653 |a Islamic countries 
653 |a Personal Income, Wealth, and Their Distributions 
653 |a Other Economic Systems: Public Economics 
653 |a Banks and Banking 
653 |a Financial Economics 
653 |a Macroeconomics 
653 |a Financial services industry 
653 |a Banking 
653 |a Finance: General 
700 1 |a Hesse, Heiko 
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520 |a The relative financial strength of Islamic banks is assessed empirically based on evidence covering individual Islamic and commercial banks in 18 banking systems with a substantial presence of Islamic banking. We find that (i) small Islamic banks tend to be financially stronger than small commercial banks; (ii) large commercial banks tend to be financially stronger than large Islamic banks; and (iii) small Islamic banks tend to be financially stronger than large Islamic banks, which may reflect challenges of credit risk management in large Islamic banks. We also find that the market share of Islamic banks does not have a significant impact on the financial strength of other banks