Sukuk, banking system, and financial markets: Rivals or complements?

Houcem Smaoui, Karim Mimouni and Akram Temimi

Economics Letters, 2017, vol. 161, issue C, 62-65

Abstract: Using the system GMM estimation technique, we study the effects of the financial development on Sukuk markets using a panel dataset of 11 countries from 1995 to 2015. First, we find that Sukuk and bank financing are substitutes. Economies where banks play a key role in providing private credit issue less Sukuk. Second, the evidence shows that Sukuk are complements to bonds and stocks. More Sukuk are issued in market-oriented economies. Finally, we show that the 2008 global financial crisis has a positive effect on Sukuk markets development.

Keywords: Sukuk; Financial development; Crisis (search for similar items in EconPapers)
JEL-codes: C33 G10 G21 G29 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:161:y:2017:i:c:p:62-65

DOI: 10.1016/j.econlet.2017.09.014

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