Artikel
Inflation targeting and bank risk: The interacting effect of institutional quality
This paper investigates whether institutional quality determines the effect of inflation targeting (IT) on the banking risk of Islamic versus conventional banks, using an unbalanced panel data over the period 2007-2016. However, the use of the generalized method of moments (GMM) and two measures of institutional quality, namely the Corruption Perception Index and the Government Effectiveness Index, show that the institutional quality failures strengthens the negative impact of IT on conventional banking risk. For the Islamic banking business model, results suggest that corruption impair the good functioning of the price stability channel of financial stability. While IT have different impact on Islamic and conventional banking stability, the operation of these two types of banks in the same corrupt environment reduces the positive effects expected from such a monetary policy.
- Language
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Englisch
- Bibliographic citation
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Journal: Cogent Business & Management ; ISSN: 2331-1975 ; Volume: 7 ; Year: 2020 ; Issue: 1 ; Pages: 1-15 ; Abingdon: Taylor & Francis
- Classification
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Management
- Subject
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Islamic banks
financial stability
quality of institutions
- Event
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Geistige Schöpfung
- (who)
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Louati, Salma
Boujelbene, Younes
- Event
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Veröffentlichung
- (who)
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Taylor & Francis
- (where)
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Abingdon
- (when)
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2020
- DOI
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doi:10.1080/23311975.2020.1847889
- Handle
- Last update
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09.04.2024, 3:43 PM CEST
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Louati, Salma
- Boujelbene, Younes
- Taylor & Francis
Time of origin
- 2020
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