Financial Stability of Islamic Banks: A Review of the Literature

Akeem Kolawole Odeduntan; Abideen Adeyemi Adewale

doi:10.13135/2421-2172/848

Akeem Kolawole Odeduntan Ahmed Zakari and Co. (Chartered Accountants)
Abideen Adeyemi Adewale International Islamic University Malaysia, Gombak, Kuala Lumpur

DOI: https://doi.org/10.13135/2421-2172/848

Keywords: Global Financial Crisis, Financial Stability, Islamic Finance

Abstract

The recent global financial crisis that began in the US and spread sporadically to other parts of the world has been a sort of awakening that financial stability of financial institutions has to be on check from time to time. This scenario has called for a concerted effort that may possibly be geared towards introducing a framework or policy that tends to promote and sustain economic growth and stability. The present paper therefore reviews financial stability of banks by surveying the extant literature on the subject. It employs library method to gather information and further analyse it by way of comparative, inductive and deductive methods. The paper establishes that while some Islamic banks are relatively stable in terms of their financial activities, some banks are not.

Author Biographies

Akeem Kolawole Odeduntan, Ahmed Zakari and Co. (Chartered Accountants)

Islamic Finance Unit

Abideen Adeyemi Adewale, International Islamic University Malaysia, Gombak, Kuala Lumpur

Asst. Professor
Kulliyah of Economics and Management Science.

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