Financial stability of Islamic banks: a review of the literature
The recent global financial crisis that began in the US and spread sporadically to other parts of the world has been a sort of awakening that financial stability of financial institutions should be on check from time to time. This scenario has called for a concerted effort that may possibly be...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
European Research Centre for Islamic Finance, University of Turin, Italy
2015
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| Online Access: | http://irep.iium.edu.my/46511/ http://irep.iium.edu.my/46511/ http://irep.iium.edu.my/46511/1/EJIF_Paper.pdf |
| Summary: | The recent global financial crisis that began
in the US and spread sporadically to other parts of
the world has been a sort of awakening that financial
stability of financial institutions should be on check
from time to time. This scenario has called for a
concerted effort that may possibly be geared towards
introducing a framework or policy that tends to
promote and sustain economic growth and stability.
The present paper therefore reviews financial
stability of banks by surveying the extant literature
on the subject. It employs library method to gather
information and further analyze it by way of
comparative, inductive and deductive methods. The
paper establishes that while some Islamic banks are
relatively stable in terms of their financial activities,
some banks are not. |
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