Financial Resilience: A comparative Study of Islamic and Conventional Banking Systems

Objective – The purpose of this paper is to elucidate the financial resilience perspective in banks, with an aim to distinguish empirically between Islamic and Conventional Commercial Banks with respect to short term and long term financial resilience. Methodology/Technique – Panel data analysis of the banks by calculating diagnostics and ratios. Findings – Islamic banks are less resilient with respect to liquidity in the short term, but significantly more resilient in long term than Conventional commercial banks. Novelty – This research paper is an original work of the authors and is unique with respect to the resilience dimension applied to segregate the Islamic banks from Conventional commercial banks. Type of Paper: Empirical