Black Gold’s Price Shock: Are Conventional and Interest Free “Islamic” Banks Equally Vulnerable?
$ 38.5
Description
The purpose of this study is to investigate the effects of oil price shocks on credit and insolvency risks for the banking industry within specific banking specializations (conventional, interest free “Islamic”, and conventional banks with Islamic windows), from 2000 through 2016, at both the aggregate and country levels in the Gulf Cooperation Council (GCC).
Design/methodology/approach We utilized fixed effects panel regressions to assess credit and solvency risks due to declining oil prices. Our final sample included unbalanced panel data for the banks operating in GCC including Conventional Banks, Islamic Banks and Conventional Banks offering Islamic products.