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What is Bank Soundness in 2007-2008 Crisis about?

This document summarizes a research paper that empirically analyzes the effect of the 2007-2008 financial crisis on the soundness of Islamic banks and conventional banks. It finds that, contrary to expectations, there was no significant difference in how the crisis affected the soundness of Islamic banks versus conventional banks. This suggests that Islamic banks have diverged from their theoretical business model, which was assumed to protect soundness during a crisis by separating investment and deposit f

Author

Wana Mali

Language

EN