Islamic banking vs Conventional banking during the crises period: Evidence from GCC and MENA banking industries.

C. Zopounidis, C, Lemonakis, F. Voulgaris, S. Christakis, K. Vassakis

Abstract


The global economic crisis has caused many drastic changes in operation of the
global banking system. However, Islamic banking considered to be an emerging force
presenting stability and growth.
Purpose of this study are the measurement of stability and comparison of Islamic and
conventional banks in Gulf Cooperation Council’s (GCC) and the Middle East & North
Africa’s (MENA) countries. New evidence about determinants of performance and risk of
Islamic banks vs. conventional banks exists.
The research is based on financial data of 144 banks from 16 countries where Islamic and
conventional banking institutions operate, for the time period 2003 – 2012, which is divided
into two sub-periods: pre- crisis (2003-2007) and post- crisis (2008-2012) in order to
investigate the effect of the economic crisis on the stability of Islamic banking institutions.


Keywords


GCC countries, MENA region, Risk, Financial crisis, Islamic Banking, profitability, bank stability.

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References


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