engleski

Microeconomic Model: GMM Model Conventional Banks Versus Islamic Banks Performance

Aim of this study was to evaluate performance of conventional banks compared to Islamic banks in terms of their pro!tability and risk features in order to determine if Islamic banking could be an alternative to the traditional banking system and provide stability in times of crisis. A progression of bank speci!c and country speci!c indicators were joined to clarify the stability of both conventional and Islamic banking systems. Four regressions for each banking system were prepared using dynamic panel data (DPD) econometrics generalized method of moments system (GMM). Two data series samples were used balanced and unbalanced dataset for Islamic banks and conventional banks. Dataset was collected from Fitch Connect by Fitch Solutions and Databank Orbis Bank Focus, Bureau van Dijk Electronic Publishing, Moody’s analytics company.

GMM model ; Alternative financial system ; Islamic finance ; Financial stability

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