Document Type
Article
Abstract
This paper empirically assesses the relation between bank performance and capital regulation for Islamic banks from 13 countries and evaluates whether the relation varies with bank size, capital, and liquidity. We find small Islamic banks to be less stable and less profitable; they also cut lending growth as capital regulation becomes more stringent. The stability and lending growth of big Islamic banks are, however, directly related to capital regulation. Further, capital regulation adversely affects the profitability of Islamic banks with low liquidity and high capital holdings. While capital regulation is needed, it should not be adopted in a blanket manner for all Islamic banks.
Recommended Citation
Ibrahim, Mansor
(2019)
"CAPITAL REGULATION AND ISLAMIC BANKING PERFORMANCE: A PANEL EVIDENCE,"
Bulletin of Monetary Economics and Banking: Vol. 22:
No.
1, Article 6.
DOI: https://doi.org/10.21098/bemp.v22i1.1029
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol22/iss1/6
First Page
47
Last Page
68
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Malaysia
Affiliation
INCEIF
