Liquidity and CDS premiums on European companies around the Subprime crisis

2012 ◽  
Vol 15 (3) ◽  
pp. 257-281 ◽  
Author(s):  
Clothilde Lesplingart ◽  
Christophe Majois ◽  
Mikael Petitjean
Keyword(s):  
Subprime Crisis

Is Islamic bank profitability driven by same forces as conventional banks?

2016 ◽  
Vol 9 (1) ◽  
pp. 46-66 ◽  
Author(s):  
Hajer Zarrouk ◽  
Khoutem Ben Jedidia ◽  
Mouna Moualhi
Keyword(s):  
Dynamic Panel Data ◽  
Islamic Banking ◽  
Subprime Crisis ◽  
Islamic Banks ◽  
Mena Region ◽  
Bank Profitability ◽  
Content Type ◽  
Large Sample ◽  
Islamic Bank ◽  
Conventional Banks

Purpose The purpose of this paper is to ascertain whether Islamic bank profitability is driven by same forces as those driving conventional banking in the Middle East and North Africa (MENA) region. Distinguished by its principles in conformity with sharia, Islamic banking is different from conventional banking, which is likely to affect profitability. Design/methodology/approach The paper builds on a dynamic panel data model to identify the banks’ specific determinants and the macroeconomic factors influencing the profitability of a large sample of 51 Islamic banks operating in the MENA region from 1994 to 2012. The system-generalized method of moment estimators are applied. Findings The findings reveal that profitability is positively affected by banks’ cost-effectiveness, asset quality and level of capitalization. The results also indicate that non-financing activities allow Islamic banks to earn higher profits. Islamic banks perform better in environments where the gross domestic product and investment are high. There is evidence of several elements of similarities between determinants of the profitability for Islamic and conventional banks. The inflation rate, however, is negatively associated with Islamic bank profitability. Practical Implications The authors conclude that profitability determinants did not differ significantly between Islamic and conventional banks. Many factors are deemed the same in explaining the profitability of conventional as well as Islamic banks. The findings reported in the current paper might be of interest for policy makers. It is recommended to better implement non-financing activities to improve Islamic bank profitability. Originality/value Unlike the previous empirical research, this empirical investigation assesses the issue whether Islamic banks profitability is influenced by same factors as conventional model. It enriches the literature in this regard by considering the specificities of Islamic banking to identify the determinants of profitability. Moreover, this study considers a large sample (51 Islamic banks) through a different selection of countries/banks than previous studies. In addition, the period of study considers the subprime crisis insofar it ranges from 1994 to 2012. Hence, this broader study allows the authors to draw more consistent conclusions.

Analysis of the volatility’s dependency structure during the subprime crisis

2013 ◽  
Vol 45 (36) ◽  
pp. 5031-5045 ◽  
Author(s):  
Bruno P. Arruda ◽  
Pedro L. Valls Pereira
Keyword(s):  
Subprime Crisis ◽  
Dependency Structure

scholarly journals The Contagion Effect of the Subprime Crisis in the Brazilian Stock Market

2014 ◽  
Vol 14 ◽  
pp. 191-200 ◽  
Author(s):  
Douglas Marcos Ferreira ◽  
Leonardo Bornacki de Mattos
Keyword(s):  
Stock Market ◽  
Subprime Crisis ◽  
Contagion Effect
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