Islamic banks differ significantly in that they typically mobilise funds in the form of Profit Sharing Investments Accounts that are remunerated on the basis of sharing the actual returns on assets financed by the investment funds, with the Investment Account Holders. In theory, the profits are...

The aim of this research is to analyze consequences of the consideration of ethical principles in the financial decisions process of banks. More specifically we study how the consideration of Shariah principles could affect the capital structure of Islamic Banks. We first apply concepts and...

The aim of this research is to determine empirically differences between Islamic and conventional banks with particular focus on their financial characteristics such as leverage and profitability. Our sample is made of Islamic and conventional banks, resulting in a panel of 545 observations with...

Our objective consists to study a specific risk called the displaced commercial risk (DCR) that results from the management of PSIA funds.This risk is peculiar to Islamic banks and is considered as a new risk in the banking risk literature. Our aim is to identify and assess the DCR. We develop...

The main challenge by the study of systemic risk is the measurement of contagion that enables the impact of external movement in one market on other markets. One of the main tools that has been proposed for this purpose is the risk measure ∆CoVaR of Adrian and Brunnermeier (2011). This study...

Long memory is a stylized fact found in most financial return series. In this paper, we seek to examine the impact of the presence of long memory on the dependence structure. First, we fit the multivariate dependence structure using R-vine copulas for pairs of raw and filtered returns. Second,...