TY - JOUR
T1 - Does bank income diversification affect systemic risk
T2 - New evidence from dual banking systems
AU - Maghyereh, Aktham Issa
AU - Yamani, Ehab
N1 - Publisher Copyright:
© 2022
PY - 2022/6
Y1 - 2022/6
N2 - In this article, we examine the influence of income diversification on systemic risk, using quarterly data from 42 publicly traded banks operating across six Gulf Cooperation Council (GCC) countries over the period from January 2008 to December 2020. Our main finding is that diversification decreases systemic risk, and such effect is stronger in Islamic banks compared to their conventional counterparts. We also find that the COVID-19 pandemic equally affected Islamic and conventional banks. These findings are robust to various measures of diversification and systemic risk.
AB - In this article, we examine the influence of income diversification on systemic risk, using quarterly data from 42 publicly traded banks operating across six Gulf Cooperation Council (GCC) countries over the period from January 2008 to December 2020. Our main finding is that diversification decreases systemic risk, and such effect is stronger in Islamic banks compared to their conventional counterparts. We also find that the COVID-19 pandemic equally affected Islamic and conventional banks. These findings are robust to various measures of diversification and systemic risk.
UR - https://www.scopus.com/pages/publications/85127333305
UR - https://www.scopus.com/pages/publications/85127333305#tab=citedBy
U2 - 10.1016/j.frl.2022.102814
DO - 10.1016/j.frl.2022.102814
M3 - Article
AN - SCOPUS:85127333305
SN - 1544-6123
VL - 47
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 102814
ER -