L'impact des attributs du conseil d'administration sur le risque de crédit: étude comparative entre banques conventionnelles européennes et banques islamiques

Abstract

The financial crisis in 2008 highlighted the importance of financial systems soundness in the context of a systemic risk event. This crisis has also highlighted the differences between Islamic banking systems and conventional banking systems in terms of stability and performance. Although the impact of corporate governance mechanisms and board attributes have been analyzed to describe the failures of conventional banks, few studies evaluate and compare the influence of these same mechanisms and attributes on their Islamic counterparts. This study was therefore undertaken to evaluate the impact of the board's attributes on the credit risk of European conventional banks and a selection of Islamic banks around the world. Thus, we will examine the impact of the board attributes of each banking system on the management of their credit risks. Despite the growing attention toward Islamic finance, most empirical studies try either to explain and describe the differences in approach between the corporate governance modes of both banks or simply to compare the financial performances of these banks. Therefore, in this final paper, we will try to detect the impact of banking corporate governance mechanisms through the board of directors’ attributes on credit risk from samples composed of 32 European conventional banks and 32 Islamic Banks.