Financial stability of Islamic Banks A study of a sample of Islamic Banks during the period 2007-2017

Abstract

Financial stability is one of the most important goals that various financial systems seek to achieve, as its exposure to any type of crisis may lead to a loss of confidence in the system as a whole, as demonstrated by many financial crises that the world witnessed at the end of the last century and the beginning of the new millennium. The best example is the financial crisis that occurred in 2008, which had a major impact on various financial and banking institutions. However, most readings on this crisis and its effects focused on Islamic banks, which were more stable throughout the crisis period, and they attributed this to their working principle based on financial transaction controls in the Islamic economy. The research aims to study the stability of 20 Islamic banks in 7 countries during the period 2007-2017, using the z-score model