Risk and performance of Islamic and conventional banks under COVID-19 pandemic: Evidence from MENA region

Q4 Business, Management and Accounting Arab Gulf Journal of Scientific Research Pub Date : 2024-01-11 DOI:10.1108/agjsr-03-2023-0098
Ameni Ghenimi, H. Chaibi, Mohamed Ali Omri
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Abstract

PurposeThe aim of this study is to conduct a comparative analysis between Islamic and conventional banks in terms of whether Islamic banks was more or less resilient/risky than conventional counterparts to the pandemic shock. It also examines the role of capital in improving the performance and stability within the two banking systems.Design/methodology/approachThis study uses 82 banks from MENA (Middle East and North Africa) region for periods across 2011–2020, and employs a dynamic panel data approach to examine the resilience within both banking systems during the Covid-19 pandemic.FindingsThe results show that the Covid-19 pandemic has a negative impact on conventional banks' stability. However, Islamic banks performed better and were less risky than conventional ones. Banks with high-quality capital are more effective at controlling their risks and improving their performance during the pandemic.Practical implicationsThe results offer important financial observations and policy implications to many stakeholders engaging with banks. Actually, the findings of this study facilitate to the stakeholders and bankers to have an alluded picture about determinants of risk and performance. The results can be used by bankers’ policy decision-makers to improve and enhance their consideration for risk management, taking into consideration the type of banking systems.Originality/valueCompared to the various studies on the stability of Islamic and conventional banks, researchers have not sufficiently addressed the effect of the Covid-19 pandemic on risk and performance. Moreover, none of these studies has examined if Islamic banks was more or less resilient/risky than conventional counterparts to the pandemic shock. This leads the authors to identify the similarities and differences between two types of banks in the MENA region in a pandemic shock context.
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COVID-19 大流行下伊斯兰银行和传统银行的风险与绩效:中东和北非地区的证据
本研究的目的是对伊斯兰银行和传统银行进行比较分析,探讨伊斯兰银行在大流行病冲击面前的复原力/风险比传统银行高还是低。本研究以中东和北非地区 2011-2020 年间的 82 家银行为研究对象,采用动态面板数据方法,考察了这两种银行体系在 Covid-19 大流行期间的抗灾能力。研究结果表明,Covid-19 大流行对传统银行的稳定性产生了负面影响。然而,伊斯兰银行比传统银行表现更好,风险更低。拥有高质量资本的银行在大流行病期间能更有效地控制风险并提高业绩。事实上,这项研究的结果有助于利益相关者和银行家了解风险和业绩的决定因素。银行家的政策决策者可以利用这些结果,在考虑到银行系统类型的情况下,改进和加强他们对风险管理的考虑。 原创性/价值与有关伊斯兰银行和传统银行稳定性的各种研究相比,研究人员还没有充分探讨 Covid-19 大流行病对风险和绩效的影响。此外,这些研究都没有探讨伊斯兰银行对大流行病冲击的抵御能力/风险能力是强于还是弱于传统银行。这促使作者找出中东和北非地区两类银行在大流行病冲击背景下的异同。
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Arab Gulf Journal of Scientific Research
Arab Gulf Journal of Scientific Research 综合性期刊-综合性期刊
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>12 weeks
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