Stability Of Islamic Versus Conventional Banks

Title:
Stability of Islamic versus conventional banks: Malaysian Case
Author:
Wahid, Muhamad Azhari
Dar, Humayon
 
Abstract
Purpose: This paper investigates the stability and its determinants involving Malaysian Islamic and conventional banks over the period of 2004 – 2013.
Design: The study employs the financial ratios and z-score index as indicators of bank stability. A series of parametric and non-parametric tests are used to compare the stability of Islamic and conventional banks. Then, we estimate pooled OLS regression controlling for Islamic banks dummy, crisis period dummy, bank specific, market structure, and macroeconomic factor to examine the determinants of bank stability.
Findings: The result reveals that Islamic banks are…show more content…
Keywords: Banking, Stability, Islam, Malaysia 1.0 Introduction
The recent 2007 – 2009 global financial crisis has led to series of failures of many conventional banks throughout the world. Furthermore, some empirical researches have evidenced the superiority of Islamic banks’ performance over its conventional counterparts during the crisis period (Hasan

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