Capital adequacy implications on Islamic and non-Islamic bank's behavior: Does market power matter?

Salma Louati · Ilhèm Gargouri · Younés Boujelbène

57 citations0/0 files storedBorsa Istanbul Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Islamic Finance and Banking Studies Banking stability, regulation, efficiency Islamic Studies and History

Abstract

After each crisis, reforms are carried out to prevent a new episode of financial crises. In this context, our objective in this study is to examine and simultaneously compare the behavior of Islamic and conventional banks in relation to the ratio of the capital adequacy in different competitive circumstances. We used data from 12 MENA and South East Asian countries characterized by the coexistence of Islamic and conventional banks. We concluded that the funding ratio has a significant impact on the behavior of 70 conventional banks and 47 Islamic banks. However, competitive conditions have no significant effect on the relationship between the weighted assets ratio and Islamic bank behavior, which means that this type of banks is applying theoretical models based on the prohibition of the interest.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 57 citations exist upstream.

References

1995The Effect of Credit Market Competition on Lending Relationships 2000Liberalization, Moral Hazard in Banking, and Prudential Regulation: Are Capital Requirements Enough?2013Islamic vs. conventional banks: Business models, efficiency and stability 2000A Theory of Bank Capital 2008Bank Competition and Financial Stability 2008Islamic Banks and Financial Stability 2004Competition and Financial Stability 1988Risk in Banking and Capital Regulation

Cited by

2022Bank regulation, ownership and risk taking behavior in the MENA region: policy implications for banks in emerging economies 2021Competition, capital growth and risk-taking in emerging markets: Policy implications for banking sector stability during COVID-19 pandemic 2021Capital regulation, competition and risk-taking: Policy implications for banking sector stability in the MENA region 2022Bank performance before and during the COVID-19 crisis: Does efficiency play a role?2019Equity Financing at Islamic Banks: Do Competition and Bank Fundamentals Matter?

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.