Title: The weight of Islamic banks in economic growth: empirical analysis through panel data on MENA and Malaysia region

Authors: Amine Nafla; Abdelkader Derbali

Addresses: Department of Finance, Higher Institute of Management of Sousse, Sousse University, Street Abdlaaziz il Behi, Bp 763, 4000 Sousse, Tunisia ' Community College in Madinah, Taibah University, Street Al Amir Naif Ben Abdelaziz, Medinah, Saudi Arabia; Higher Institute of Informatics and Management of Kairouan, Kairouan University, Street Khemaies Al Alouini, 3100 Kairouan, Tunisia

Abstract: To determine the relationship between Islamic finance, financial stability and economic growth, we use a sample composed of 28 investment banks in the MENA region and Malaysia, divided into two groups Islamic and conventional, for 13 years from 2003 to 2015 and divided into three sub-periods before, during and after the subprime crisis. We use the parametric approach through the panel data. The results show that before the financial crisis, only Islamic investment banks had a financial system in good condition. The situation of the other group of banks is neither good nor poor. There is a significant change that affects the whole sample, but in a different way in the crisis period. Indeed, Islamic investment banks illustrate a stable financial system that has overcome the crisis and contributed effectively to economic growth. This paper determines of the resistance of two groups of banks during the three periods.

Keywords: economic growth; Islamic finance; financial stability; panel data.

DOI: 10.1504/IJDSRM.2019.106909

International Journal of Decision Sciences, Risk and Management, 2019 Vol.8 No.4, pp.234 - 249

Received: 21 Mar 2019
Accepted: 27 Mar 2019

Published online: 22 Apr 2020 *

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