The objective of this study is to examine the effect of ownership structure and competition on risk-taking behaviour of UAE banks during the period 1998–2010. The study covers 15 national banks, including eleven conventional banks and four are Islamic banks. The proportion of ownership by...

Islamic and cooperative banks such as credit unions are broadly similar in that they both share some risk with savers. However, risk sharing goes along with ownership control in cooperatives, whilst Islamic banks share risk with borrowers and downside risk with depositors. Islamic banking is...

We use a classic Merton credit risk framework to argue that Islamic Banking Institutions (IBIs) face less incentive to take on risks than Conventional Banking Institutions (CBI). IBIs have less incentive for risk shifting both in and outside of distress situations. We test and confirm this...

Total assets of Islamic banks in Indonesia contributed to a mere 1.6% of the total assets of banking system in 2006 and increased marginally to 1.8% by 2007. Despite the trivial market share, Indonesia's Central Bank has targeted that the Islamic banks should achieve a 5% market share by 2008....

The aim of this paper is to investigate the relationship between banks risk and Islamic financial products diversification for Islamic banks in Gulf Cooperation Councils' Countries. Based on a sample of Islamic banks in GCC countries observed for the period 2002-2008, our research makes evidence...

Islamic banks operate without involving interest, and therefore are believed to be less risky during financial crises than conventional banks. This advantage may not be significant if the government either partially or fully guarantees bank deposits. In the presence of deposit insurance the...

This paper investigates risk and stability features of Islamic banking using a sample of 553 banks from 24 countries between 1999 and 2009. Small Islamic banks that are leveraged or based in countries with predominantly Muslim populations have lower credit risk than conventional banks. In terms...

The present paper examined the correlation between risks and efficiency within Islamic banks in the MENA area. This paper used three stages of analyses. The first stage consisted of measuring the efficiency of those banks by employing the nonparametric technique, Data Envelopment Analysis (DEA)...

We use a classic Merton credit risk framework to argue that Islamic Banking Institutions (IBIs) face less incentive to take on risks than Conventional Banking Institutions (CBI). IBIs have less incentive for risk shifting both in and outside of distress situations. We test and confirm this...