EconPapers    
Economics at your fingertips  
 

Bank credit in uncertain times: Islamic vs. conventional banks

Mehmet Bilgin (), Gamze Danisman (), Ender Demir () and Amine Tarazi
Additional contact information
Gamze Danisman: Faculty of Management, Kadir Has University, Istanbul, Turkey

Working Papers from HAL

Abstract: This paper explores whether the impact of economic uncertainty on credit growth differs for Islamic vs. conventional banks. Using a sample of 416 banks (58 Islamic and 358 conventional) in 12 countries, the findings indicate that an increase in economic uncertainty significantly decreases the credit growth of conventional banks but does not have any significant impact on Islamic banks' credit growth. Our results are robust to alternative specifications and addressing endogeneity concerns using GMM estimators. We further observe that our findings are stronger for the following countries: (1) countries with explicit deposit insurance protection system for Islamic banks, (2) lower foreign dominance, and (3) countries with a higher share of deposits and assets in Islamic banks.

Keywords: Conventional Banks; Economic Uncertainty; Islamic Banks; Credit (search for similar items in EconPapers)
Date: 2020-02-12
New Economics Papers: this item is included in nep-fdg and nep-isf
Note: View the original document on HAL open archive server: https://hal-unilim.archives-ouvertes.fr/hal-02475502
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://hal-unilim.archives-ouvertes.fr/hal-02475502/document (application/pdf)

Related works:
Working Paper: Bank credit in uncertain times: Islamic vs. conventional banks (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-02475502

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2021-01-16
Handle: RePEc:hal:wpaper:hal-02475502