Assessing the Effect of Change in Oil Prices, Macroeconomics on the Banking Sector Stability in Oil-Producing Countries

Autor: Ahmed Rufai Mohammad, Mohamad Helmi Bin Hidthiir, Alias Bin Mat Nor
Jazyk: angličtina
Rok vydání: 2019
Předmět:
Zdroj: Academic Journal of Economic Studies, Vol 5, Iss 4, Pp 88-93 (2019)
ISSN: 2457-5836
2393-4913
Popis: The paper investigates the effect of oil price change and other cyclical factors on the stability difference of conventional and Islamic banks. The study espouses to two separate stability measurement in order to differentiate the effect of change in oil price on bank stability. The results of the paper provide evidence that oil price change affects the stability of conventional banks better when measured with accounting approach, while the change of oil price affects the banking stability when measured with market-based stability measures. Moreover, the result reveals a positive relationship between banking stability of Islamic banks and GDP coexists with a negative relationship on the conventional banks. It reveals that banking stability is affected by inflation negatively. The findings of this paper have significant policy implication for banking stability in Middle East and other oil-producing emerging countries.
Databáze: OpenAIRE