Islamic banks and political risk: International evidence

Mohamed Belkhir, Jocelyn Grira, M. Kabir Hassan, Issouf Soumaré

Research output: Contribution to journalArticlepeer-review

21 Citations (Scopus)

Abstract

We investigate the relation between political risk and the volatility of Islamic and conventional banks’ assets. Using an international sample of 34,452 and 1245 bank-year observations of conventional and Islamic banks respectively over the period 1999–2013, we show that conventional banks are more exposed to political risk compared to Islamic banks. Our results are robust to the use of different country-specific factors, sub-sample analysis, alternative measures of asset quality and bank profitability.

Original languageEnglish
Pages (from-to)39-55
Number of pages17
JournalQuarterly Review of Economics and Finance
Volume74
DOIs
Publication statusPublished - Nov 2019
Externally publishedYes

Keywords

  • Asset volatility
  • Hedging
  • Islamic banks
  • Political risk

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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