Title: Credit risk and bank opacity: a comparative study of conventional and Islamic banks

Authors: Ines Khammassi; Kamel Naoui

Addresses: High School of Business Studies in Tunis, University of Manouba, Tunisia ' High School of Business Studies in Tunis, University of Manouba, Tunisia

Abstract: In this paper, we examine the impact of banking opacity along other bank-specific and macroeconomic factors on credit risk using a regression analysis. We estimate our panel data model using the fixed and random effects method for 72 conventional and Islamic listed banks in the MENA region over the 2005-2015 period. We found that banking opacity has a direct positive effect on the credit risk of conventional banks. On the other hand, banking opacity has no significant impact on the credit risk of Islamic banks.

Keywords: banking opacity; credit risk; conventional banks; Islamic banks; panel data.

DOI: 10.1504/AJFA.2019.104192

American Journal of Finance and Accounting, 2019 Vol.6 No.1, pp.56 - 76

Received: 16 Feb 2019
Accepted: 18 Jul 2019

Published online: 20 Dec 2019 *

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