Have Islamic Banks Been More Resistant than Conventional Banks to the 2007-2008 Financial Crisis?

Mahmoud Sami Nabi from the Polytechnic School of Tunis participated in the ERF 17th Annual Conference, where he presented a paper on the resilience of Islamic banks to the financial crisis. According to the findings of his research, before the financial crisis, IBs were more profitable than CBs. Then, in 2007-2008, only the large IBs remained more profitable than the large CBs. However, IBs became less profitable in 2009 when the crisis’s pass-through to the real economy had sufficiently increased. Moreover, we show that CBs were more resistant to the crisis than IBs. Hence, IBs illustrated a degree of resilience and stability during the first (financial) wave of the crisis.

For Mr. Nasi, presenting at the ERF Conference gave him the opportunity to receive important comments and feedback that will be very valuable in refining the finding of his research.

Download the paper “Have Islamic Banks Been More Resistant than Conventional Banks to the 2007-2008 Financial Crisis?” from the ERF website.

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