TY - JOUR
T1 - Reprint of Economic turmoil and Islamic banking
T2 - evidence from the Gulf Cooperation Council
AU - Alqahtani, Faisal
AU - Mayes, David G.
AU - Brown, Kym
N1 - Publisher Copyright:
© 2016
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2017/4
Y1 - 2017/4
N2 - Using a panel of 101 banks across six Gulf Cooperation Council (GCC) economies, we investigate with the bank performance model CAMEL, whether Islamic banks outperformed conventional banks in the time of economic shocks over the period 1998–2012. We find that while Islamic banks performed better in terms of capitalisation, profitability and liquidity in the early stages of the global financial crisis (GFC), they performed worse in later stages with the real economic downturn, particularly in the areas of capitalisation, profitability and efficiency. Thus while the GCC Islamic banks may have avoided the consequences of more volatile financial instruments, they were not immune in the face of a major economic shock.
AB - Using a panel of 101 banks across six Gulf Cooperation Council (GCC) economies, we investigate with the bank performance model CAMEL, whether Islamic banks outperformed conventional banks in the time of economic shocks over the period 1998–2012. We find that while Islamic banks performed better in terms of capitalisation, profitability and liquidity in the early stages of the global financial crisis (GFC), they performed worse in later stages with the real economic downturn, particularly in the areas of capitalisation, profitability and efficiency. Thus while the GCC Islamic banks may have avoided the consequences of more volatile financial instruments, they were not immune in the face of a major economic shock.
KW - Global financial crisis
KW - Gulf Cooperation Council (GCC)
KW - Islamic banking
KW - Operating performance
UR - http://www.scopus.com/inward/record.url?scp=85071699945&partnerID=8YFLogxK
U2 - 10.1016/j.pacfin.2016.06.013
DO - 10.1016/j.pacfin.2016.06.013
M3 - Article
AN - SCOPUS:85071699945
SN - 0927-538X
VL - 42
SP - 113
EP - 125
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
ER -