Islamic financial stability factors : an econometric evidence
Fadoua Joudar, Zouheir Msatfa, Olaya Metwalli, Maha Mouabid and Brahim Dinar
This study empirically examines the internal and external factors of Islamic banks' financial stability during the time frame from 2006 to 2017 in the Middle Eastern and North African (MENA) region. The stability of Islamic banks was determined by the Z-score, which is one of the most well-known financial stability indicators. Using multiple regression analysis, it is shown that capital adequacy ratio and liquidity positively impact the Z-score of Islamic banks, whilst size, governance and level of concentration have a negative impact. This study recommends raising the capital and the liquidity level of Islamic banks as it helps to promote the financial stability of Islamic banks.
Year of publication: |
2023
|
---|---|
Authors: | Joudar, Fadoua ; Msatfa, Zouheir ; Metwalli, Olaya ; Mouabid, Maha ; Dinar, Brahim |
Published in: |
Economies : open access journal. - Basel : MDPI, ISSN 2227-7099, ZDB-ID 2704214-5. - Vol. 11.2023, 3, Art.-No. 79, p. 1-13
|
Subject: | financial stability | Islamic banking | MENA region | Zscore | Islamisches Finanzsystem | Islamic finance | MENA-Staaten | MENA countries | Islamische Staaten | Islamic countries | Islam |
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