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Private credit in dual banking countries: does bank ownership type matter?

Noordin, Nazrul Hazizi and Mohid Rasid, Mohamed Eskandar Shah and Ibrahim, Mansor H. (2022) Private credit in dual banking countries: does bank ownership type matter? Thunderbird International Business Review. pp. 1-22. E-ISSN 1520-6874 (In Press)

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Abstract

This study investigates how the effects of government and foreign bank ownership on private credit vary in the cases of Islamic and conventional banks using data extended from Claessens and van Horen (2014) of 29 dual banking countries from 1995 to 2017. In support of the political view of financial development, we find that the presence of state-owned Islamic banks seem to be slightly less harmful to private credit flows than their conventional peers, particularly in the period after the global financial crisis. We also document evidence showing that countries with a larger foreign Islamic bank presence tend to have deeper credit markets post-crisis. However, such advantages may often be outweighed by the costs associated with increased penetration by foreign conventional banks.

Item Type: Article (Journal)
Uncontrolled Keywords: Private credit; foreign banks; state-owned banks; Islamic banking.
Subjects: H Social Sciences > HG Finance > HG1501 Banking
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Nazrul Hazizi Noordin
Date Deposited: 20 Jul 2022 10:18
Last Modified: 20 Jul 2022 14:18
URI: http://irep.iium.edu.my/id/eprint/98850

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