Islamic banks and political risk: International evidence

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

    Research output: Contribution to journalArticlepeer-review

    31 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

    Keywords

    • Asset volatility
    • Hedging
    • Islamic banks
    • Political risk

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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