Islamic vs. conventional banking: efficiency and stability. A critical review of the literature
Keywords:
Islamic banks, Classical banks, Efficiency, Stability.Abstract
This paper aims to make a critical synthesis of several articles to identify both the convergences and the divergences between researchers on the question of stability and efficiency of Islamic banks compared to conventional banks. Our work identifies the methodologies mobilized by researchers to compare Islamic and classical banks in terms of stability and efficiency. Although Sharia-compliant financial institutions hold only 1.5% of the assets of the international banking system, they are growing strongly. Articles on comparison have developed in recent decades. Articles on comparison have developed in recent decades. However, a limited number of literature reviews have been conducted in this area and none of them deals with the comparative stability and efficiency of Islamic and classical banks.
References
Abedifar, P., Molyneux, P. et Tarazi, A. (2013), Risk in Islamic Banking, Review of Finance, 17, 2035-2096.
Beck, T., Demirguç-Kunt, A., et Merrouche, O. (2013), Islamic vs. Conventional banking: business model, efficiency and stability, Journal of Banking and Finance, 37, 433:447.
Belans, A. N. et Hassiki, S. (2012), Efficiency in Islamic and conventional banks: A comparison analysis in the MENA region, Bankers, Markets and investors, 120. 36-49.
Belouafi, A. Bourakba, C. et Saci, K. (2015), Islamic finance and financial stability: A review of the literature, Financial stability and risk management in Islamic financial institution, Doha, Qatar: Bloomsbury Qatar Foundation, 21:42.
Boumediene, A. (2011). Basel III: Relevance for Islamic Banks. Online version available at http://papers.ssrn.com.
Bourkhis, K., Nabi, M. S., 2013, Islamic and conventional banks soundness during the 2007-2008 financial crisis, Review of financial Economics 22, 68:77.
Cihak, M. et Hesse, H. (2010), Islamic banks and financial stability: An empirical analysis, journal of financial services research, 38, 95:113.
Ebrahimnejad, A., Tavana, M., Lotfi, F. H., Shahverdi, R., et Yousef, M., 2014, A three-stage Data Envelopment Analysis model with application to banking industry, Measurement, 49, 308:319.
Johnes, J., Izzeldin, M. et Pappas, V. (2009), Efficiency in Islamic and conventional banks: A comparison based on financial ratios and data envelopment analysis, Working paper, Lancaster University Management School.
Khan, F. (2010), How Islamic is Islamic banking?, Journal of Economic Behavior and organization, 76, 805-820.
Rajhi, W. (2013), Islamic banks and financial stability : A comparative empirical analysis between MENA and South East Asian countries, Region and Development, 37, 150:177.
Rajhi, W. Ahmed Hassairi, S., 2012, Capital structure and Financial Risk in Non-Conventional Banking system, International journal of economics and finance, Vol. 4, 252:265
Mohlieldin, M., 2012, Realizing the potential of Islamic Finance, Washington D.C. World Bank.
Pesendofer, Johanna et Lehner, Othmar (2016), Islamic Banking and finance as an Ethical Alternative: a systematic literature Review, ACRN oxford of finance and risk Perspectives, 5.2, 42:64.
Sufian, F., 2006, The efficiency of non-Bank Financial Institution: Empirical Evidence from Malaysia, International Research Journal of Finance and Economics, 6, 49:65.
Srairi, S. (2008), a comparison of the profitability of Islamic and conventional banks: the case of GCC countries, Bankers, Markets and Investors, 98, 16:24.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
