This paper delves into the relationship between the issu-ance of Central Bank Digital Currencies (CBDC) and the likelihoodof banking panic. The issuance of CBDC acts as a disturbing shockthat incentivizes depositors to withdraw all/part of their depositsfrom the commercial banks, to swap it for...

This paper builds a theoretical model based on Allen and Gale (2000) to analyse how unexpected shock affecting the banking assets in one region can generate bankruptcy in a second region. I also analyse the effect of the presence in a third region of an Islamic bank on the vulnerability of...

The recent global financial crisis has induced a series of failure of many conventional banks and led to an increased interest in the Islamic banking business model. This paper attempts to answer empirically the following question: What was the effect of the 2007–2008 financial crisis on the...