Since the recent financial crisis, the procyclical leverage of banks has been highlighted, as it is an important mechanism in propagating financial shocks to the real economy. Procyclical leverage has been identified in investment banks due to the active balance sheet management based on the...

This paper explores whether the impact of economic uncertainty on credit growth differs for Islamic vs. conventional banks. Using a sample of 416 banks (58 Islamic and 358 conventional) in 12 countries, the findings indicate that an increase in economic uncertainty significantly decreases the...

Recent studies indicate that lending portfoliocomposition in Islamic banks is concentrated towardsdebt-based lending portfolio; however, the ideal lending portfoliocomposition in Islamic banks should be an equity-based lending portfolio. This article explores the effects of the internal...