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Islamic finance and financial stability : a review of the literature
Other Title(s)
التمويل الإسلامي و الاستقرار المالي : مراجعة الأدبيات
Joint Authors
Bu Raqbah, Shawqi Ashur
Sasi, Karimah
Belouafi, Ahmad Mahdi al-Sharif
Source
Journal of King Abdulaziz University : Islamic Economics
Issue
Vol. 28, Issue 2 (30 Jul. 2015), pp.3-44, 42 p.
Publisher
King Abdulaziz University Scientific Publishing Center
Publication Date
2015-07-30
Country of Publication
Saudi Arabia
No. of Pages
42
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
Abstract AR
This paper provides a critical review of the Islamic Economics (IEs) and Finance (IF) literature that have examined the stability of the Islamic Financial System (IFS) and its institutions vis-à-vis the conventional interest-based system.
The paper analyzes forty studies over the last thirty-year period (1983 – 2013).
Two sub-periods: pre-and post-subprime financial crisis are compared.
The pre-crisis period focuses on theoretical investigations while the post-crisis focuses on empirical research.
The results show that the crisis seems to have triggered more attention to the stability of IF.
Seventy five percent of the reviewed literature has been carried out in the post-crisis era; about five studies have been produced per year during the last five years (2008-2013) in contrast to less than one study per year in its antecedent period.
In addition, Z-score indicator has come out as the most commonly used proxy for measuring the stability of Islamic financial intermediaries.
The results also show that there is a significant divergence between the theory and practice of IF.
Theoretical studies claim the ‘superiority’ of the IFS based primarily on equity and participatory modes of financing, while empirical studies are not yet conclusive
American Psychological Association (APA)
Belouafi, Ahmad Mahdi al-Sharif& Bu Raqbah, Shawqi Ashur& Sasi, Karimah. 2015. Islamic finance and financial stability : a review of the literature. Journal of King Abdulaziz University : Islamic Economics،Vol. 28, no. 2, pp.3-44.
https://search.emarefa.net/detail/BIM-631713
Modern Language Association (MLA)
Belouafi, Ahmad Mahdi al-Sharif…[et al.]. Islamic finance and financial stability : a review of the literature. Journal of King Abdulaziz University : Islamic Economics Vol. 28, no. 2 (2015), pp.3-44.
https://search.emarefa.net/detail/BIM-631713
American Medical Association (AMA)
Belouafi, Ahmad Mahdi al-Sharif& Bu Raqbah, Shawqi Ashur& Sasi, Karimah. Islamic finance and financial stability : a review of the literature. Journal of King Abdulaziz University : Islamic Economics. 2015. Vol. 28, no. 2, pp.3-44.
https://search.emarefa.net/detail/BIM-631713
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 33-43
Record ID
BIM-631713