02168cas a2200277 a 4500 AALejournalIMF017764 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484309216 1018-5941 BD-DhAAL BD-DhAAL Bitar, Mohammad. Basel Compliance and Financial Stability : Evidence from Islamic Banks / Mohammad Bitar, Sami Ben Naceur, Rym Ayadi, Thomas Walker. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper provides robust evidence that compliance with Basel Core Principles (BCPs) has a strong positive effect on the Z-score of conventional banks, albeit less pronounced on the Zscore of Islamic banks. Using a sample of banks operating in 19 developing countries, the results appear to be driven by capital ratios, a component of Z-score for the two types of banks. Even though smaller on Islamic banks, individual chapters of BCPs also suggest a positive effect on the stability of conventional banks. The findings support the effective role of BCP standards in improving bank stability, whose important implications led to the Islamic Financial Services Board (IFSB) publication of new recommendations in 2015 to bring BCP standards in line with the Core Principles for Islamic Finance Regulation (CPIFRs) standards. Our findings suggest that because Islamic banks are benchmarked closely to BCPs, the implementation of CPFIRs should also positively affect their stability. Mode of access: Internet Ayadi, Rym. Ben Naceur, Sami. Walker, Thomas. IMF Working Papers; Working Paper ; No. 2017/161 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/161/001.2017.issue-161-en.xml IMF e-Library