Competition, regulation, and systemic risk in dual banking systems
<p>This study investigates the impact of competition and banking regulation on the systemic risk of Islamic Banks (IBs) and Conventional Banks (CBs). Utilizing a random effects panel model with robust errors and an unbalanced panel data set encompassing 80 IBs and 204 CBs from 17 emerging mark...
محفوظ في:
| المؤلف الرئيسي: | |
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| مؤلفون آخرون: | , |
| منشور في: |
2024
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| الموضوعات: | |
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إضافة وسم
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| _version_ | 1864513516033015808 |
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| author | Indria Ernaningsih (17871056) |
| author2 | Houcem Smaoui (17871059) Ines Ben Salah (18560509) |
| author2_role | author author |
| author_facet | Indria Ernaningsih (17871056) Houcem Smaoui (17871059) Ines Ben Salah (18560509) |
| author_role | author |
| dc.creator.none.fl_str_mv | Indria Ernaningsih (17871056) Houcem Smaoui (17871059) Ines Ben Salah (18560509) |
| dc.date.none.fl_str_mv | 2024-06-01T00:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1016/j.iref.2024.03.078 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Competition_regulation_and_systemic_risk_in_dual_banking_systems/25826929 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Commerce, management, tourism and services Banking, finance and investment Bank competition Systemic risk Islamic banking Bank regulation |
| dc.title.none.fl_str_mv | Competition, regulation, and systemic risk in dual banking systems |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p>This study investigates the impact of competition and banking regulation on the systemic risk of Islamic Banks (IBs) and Conventional Banks (CBs). Utilizing a random effects panel model with robust errors and an unbalanced panel data set encompassing 80 IBs and 204 CBs from 17 emerging market countries spanning 2000 to 2019, we show that the lack of competition increases systemic risk exposure, which may stem from the interconnection channels and the individual bank risk contributions. Interestingly, this effect is not significantly different between IBs and CBs. Our results also reveal a non-linear relationship between competition and systemic risk. Specifically, greater competition leads to increased systemic stability, but beyond a certain threshold, higher competition exacerbates banks' systemic risk. Additionally, we find that larger banks are more vulnerable to systemic risk, and the lack of competition worsens this vulnerability. We also show that banks with greater market power after the GFC are more exposed to systemic risk.</p><h2>Other Information</h2> <p> Published in: International Review of Economics & Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.iref.2024.03.078" target="_blank">https://dx.doi.org/10.1016/j.iref.2024.03.078</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_ea68941f8888696f0d37cc99e339ad9d |
| identifier_str_mv | 10.1016/j.iref.2024.03.078 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/25826929 |
| publishDate | 2024 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Competition, regulation, and systemic risk in dual banking systemsIndria Ernaningsih (17871056)Houcem Smaoui (17871059)Ines Ben Salah (18560509)Commerce, management, tourism and servicesBanking, finance and investmentBank competitionSystemic riskIslamic bankingBank regulation<p>This study investigates the impact of competition and banking regulation on the systemic risk of Islamic Banks (IBs) and Conventional Banks (CBs). Utilizing a random effects panel model with robust errors and an unbalanced panel data set encompassing 80 IBs and 204 CBs from 17 emerging market countries spanning 2000 to 2019, we show that the lack of competition increases systemic risk exposure, which may stem from the interconnection channels and the individual bank risk contributions. Interestingly, this effect is not significantly different between IBs and CBs. Our results also reveal a non-linear relationship between competition and systemic risk. Specifically, greater competition leads to increased systemic stability, but beyond a certain threshold, higher competition exacerbates banks' systemic risk. Additionally, we find that larger banks are more vulnerable to systemic risk, and the lack of competition worsens this vulnerability. We also show that banks with greater market power after the GFC are more exposed to systemic risk.</p><h2>Other Information</h2> <p> Published in: International Review of Economics & Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.iref.2024.03.078" target="_blank">https://dx.doi.org/10.1016/j.iref.2024.03.078</a></p>2024-06-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.iref.2024.03.078https://figshare.com/articles/journal_contribution/Competition_regulation_and_systemic_risk_in_dual_banking_systems/25826929CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/258269292024-06-01T00:00:00Z |
| spellingShingle | Competition, regulation, and systemic risk in dual banking systems Indria Ernaningsih (17871056) Commerce, management, tourism and services Banking, finance and investment Bank competition Systemic risk Islamic banking Bank regulation |
| status_str | publishedVersion |
| title | Competition, regulation, and systemic risk in dual banking systems |
| title_full | Competition, regulation, and systemic risk in dual banking systems |
| title_fullStr | Competition, regulation, and systemic risk in dual banking systems |
| title_full_unstemmed | Competition, regulation, and systemic risk in dual banking systems |
| title_short | Competition, regulation, and systemic risk in dual banking systems |
| title_sort | Competition, regulation, and systemic risk in dual banking systems |
| topic | Commerce, management, tourism and services Banking, finance and investment Bank competition Systemic risk Islamic banking Bank regulation |