RESILIENCE OF ISLAMIC BANKS DURING GLOBAL CRISES: EVIDENCE FROM COVID-19 AND GEOPOLITICAL DISRUPTIONS

Abstract

This study investigates the resilience of Islamic banks during global crises, including COVID-19 and geopolitical disruptions, in comparison with conventional banking systems. Islamic banking principles such as risk-sharing, asset-backed financing, and prohibition of speculative activities are believed to enhance financial stability. The study employs a quantitative approach using financial performance indicators and panel data analysis to assess resilience across different economic shocks. The findings are expected to show that Islamic banks demonstrate relatively higher stability and lower risk exposure during crises. However, structural and regulatory differences may influence performance across regions. The study contributes to the literature by providing empirical evidence on the resilience of Islamic banking and offers insights for policymakers to strengthen financial systems in line with sustainable development goals.