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dc.contributor.authorKabir, Md. Nurul N.
dc.contributor.authorWorthington, Andrew C.
dc.contributor.editorNeupane, Suman
dc.contributor.editorRoca, Eduardo
dc.date.accessioned2020-01-16T08:02:12Z
dc.date.available2020-01-16T08:02:12Z
dc.date.issued2015
dc.identifier.issn1836-8123
dc.identifier.otherRePEc:gri:fpaper:finance:201513
dc.identifier.urihttp://hdl.handle.net/10072/390367
dc.description.abstractThe 'competition-stability/fragility' nexus is one of the more debated issues in the banking literature. While there is ample evidence on the relationship between competition and stability in different countries and regions, no prior study investigates the competition-stability/fragility nexus in the context of Islamic and conventional banks. We do this using data on banks drawn from 16 economies over the period 2000-2012. We measure the lack of competition using the Lerner index, stability using both accounting-based measures, such as the Z-score and the NPL ratio, and market-based measures, including Merton's distance to default. We employ PVAR and two-stage quantile regression to estimate the relationship. Our results lend support to the competition-fragility hypothesis in both Islamic and conventional banks. We also find the magnitude of the market power effect on stability is greater for conventional banks than Islamic banks. Lastly, banks in the median quantile of stability have a greater ability to reduce credit risk through gaining market power than banks in the lower and upper quantiles.
dc.format.extent65 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto65
dc.subject.keywordsG21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
dc.subject.keywordsG32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
dc.subject.keywordsG28 - Financial Institutions and Services: Government Policy and Regulation
dc.subject.keywordsCompetition
dc.subject.keywordsStability
dc.subject.keywordsLerner index
dc.subject.keywordsPanel VAR
dc.subject.keywordsZ-score
dc.subject.keywordsDistance-to-default
dc.title2015-13: The 'competition-stability/fragility' nexus: A comparative analysis of Islamic and conventional banks (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicFinance
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2015
gro.hasfulltextFull Text
gro.griffith.authorWorthington, Andrew C.


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