IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v28y2024i3-4p417-436.html
   My bibliography  Save this article

Towards sustainable bank bailouts

Author

Listed:
  • Sara AlBalooshi
  • Sara Alfaihani
  • Rabab Ebrahim

Abstract

This paper investigates the viability of using Islamic financing products in government bailout schemes. Empirically, we examine the association between bank sustainability and the different Islamic financing products, equity-based and debt-based. We use a multilevel model and an unbalanced panel hand-collected banking data of GCC banks over the period 2006-2016. The findings show that the Islamic equity-based financing products (profit-loss-sharing and Islamic futures-like products) significantly promote bank sustainability, while the debt-like products (Sukuk and Fixed-income) will lead to more fragile banks. These findings will be of interest to central banks and policy makers while considering bailout options for banks. The bailout funds should be regulated and directed toward Islamic equity-based financing products to maintain sustainability of the rescue funds, banking system and the general economy.

Suggested Citation

  • Sara AlBalooshi & Sara Alfaihani & Rabab Ebrahim, 2024. "Towards sustainable bank bailouts," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 28(3/4), pages 417-436.
    • Handle: RePEc:ids:ijecbr:v:28:y:2024:i:3/4:p:417-436
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=141496
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:28:y:2024:i:3/4:p:417-436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.