Conventional versus Islamic banking: measuring their effects on the economy

Magyar Agrár- és Élettudományi Egyetem

Gazdaság- és Regionális Tudományok Doktori Iskola

Sági Judit

gazdálkodás- és szervezéstudományok

Various areas of the Islamic financial sector have been studied by many scholars, including Islamic investment finance, financial stability, business models, challenges and future prospects, and the finance-growth relationship. However, having discussed the conceptual and operational differences and enormous growth of Islamic finance, there is reasonable room to revisit the Islamic finance- economic growth nexus from a different perspective. Notably, prior to the adoption of Islamic banking, all countries had only relied on the conventional banking system. However, at the end of the nineteenth century, a dual banking structure was established where Islamic and conventional banks operated alongside. There is room for research about the Islamic finance-growth nexus in several ways. Firstly, the functioning of the Islamic financial sector in the presence of a dual banking system can explored. Secondly, considering that Islamic banks operate on two major financing types, the impact of each type can bediscussed in the context of the finance-growth nexus. Third, the existing literature shows a conspicuous lack of research that empirically estimates the differential impact of the adoption of Islamic banking models on financial and economic growth.

1 fő

Budapesti Gazdasági Egyetem

2025-12-04

angol