BETWEEN TWO CRISES: DO ISLAMIC BANKS SUFFER?
Files
Date
2022-09
Journal Title
Journal ISSN
Volume Title
Type
Article
Publisher
Universitat de Barcelona
Series Info
Journal of Islamic Monetary Economics and Finance,;Vol. 8, No.2 (2022), pp. 251 - 274 p-ISSN: 2460-6146, e-ISSN: 2460-6618
Scientific Journal Rankings
Abstract
This study compares the effects of the Global Financial crisis and COVID-19 pandemic
on the Islamic banking sector in the Gulf Cooperation Council (GCC). Using a sample
of 32 Islamic banks observed over the period 2006 to 2020, the paper reveals that the
two events have different effects on the Islamic banking sector. Overall, Islamic banks
are not as profitable and resilient in the COVID-19 pandemic as in the global financial
crisis. However, Islamic banks in GCC countries has gained experience and become
more efficient and stable over time. The policy implication of this study supports
digitalization and the increased prominence of financial technology (Fintech). In
addition, monetary authorities in the GCC have to introduce innovative products to
help the Islamic banking sector to be more resilient to such crises.
Description
Keywords
Islamic Banks,, Covid-19 Pandemic,, Global Financial Crisis,, GCC. JEL classification: