Degree
Master of Science in Islamic Banking & Finance
Department
Department of Finance
Faculty/ School
Faculty of Business Administration (FBA)
Date of Submission
Fall 2021
Supervisor
Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Department of Finance, Institute of Business Administration (IBA), Karachi
Co-Supervisor
Dr. Muhammad Ayub, Director Research, FMS, Riphah International University, Islamabad
Abstract
Stress testing in the financial sector quantifies the impact of any extreme economic shock which might impact the viability and going concern of financial institutions or the financial system. Stress testing exercises are conducted to identify macroeconomic factors that determine the performance of the financial sector. This research is an empirical study on the macroeconomic stress determinants of the Islamic banking industry’s financial indicators. The objective of this research is to establish macro financial linkages in the Islamic banking industry of Pakistan and understand the Islamic banking stress factors and their resulting performance implications. Econometric analysis is also carried out to examine how macroeconomic conditions affect financing, deposits and overall assets in the Islamic banking industry. A sample of all full-fledged Islamic banks and conventional banks having standalone Islamic banking branches in Pakistan have been studied for the period of 2010-2020. This research not only fills the gap of such an empirical study but also tends to promote the stability of the Islamic financial system.
Document Type
Restricted Access
Recommended Citation
Jawed, H. (2021). Stress testing for Islamic banks: stress determinants in the Islamic banking industry of Pakistan (Unpublished graduate thesis). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/etd-ms-ibf/11
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