GRM 2010 GRM 2011

Abstract Details

 
AUTHOR NAME
 
Family Name:
Chazi
 
First Name:
Abdelaziz
 
ABSTRACT OF PAPER
 
Title of Paper:
A Financial Crisis Buffer: the Case of Islamic Banking
 
Paper Proposal Text :
Islamic finance, which is based on religious and ethical premises that seek more social justice and equality in the marketplace, is one of the fastest growing segments of the finance industry. The proponents of the Islamic banking system propose that this newly rediscovered way of banking is inherently stronger, more efficient than conventional banking, and is shock resistant. The recent financial crisis, which Islamic and conventional banks had to confront, offers a unique opportunity to test these assertions. We find that Islamic banks have been growing faster than their conventional counterparts prior to the financial crisis. We also provide evidence that this growth is sustainable given Islamic banks’ internally generated funds even in times of economic downturns. Additionally, we find that Islamic banks outperform their conventional counterparts both before and during the crisis.
 
 
 

WITH THE GENEROUS SUPPORT OF