. Our results show that Islamic bank branches are less prone to deposit withdrawals during financial panics, both … unconditionally and after controlling for bank characteristics. The Islamic branches of banks that have both Islamic and conventional … that Islamic bank branches grant more loans during financial panics and that their lending decisions are less sensitive to …

rationale for “constructive ambiguity”. Key results are that if contagion (moral hazard) is the main concern, the Central Bank … contagion alone. The CB’s optimal policy may be non-monotonic in bank size …

-specific reserve requirement is a fraction of the debt to be deposited in a non-interest bearing account at the central bank. At … maturity, the central bank returns the reserves. There exist some specific combinations of date- and maturity-specific reserve … requirements that reduce the vulnerability to bank runs. In such setup, lenders may still want to provide new short-term lending to …

) insurance schemes, and the distortions introduced by central bank lending of last resort (LOLR), the authors favor decentralized …