Working Papers

Dual Banking and Financial Contagion

No.

776

Date

September, 2013

Topic

G1. General Financial Markets

G2. Financial Institutions and Services

This paper builds a theoretical model based on Allen and Gale (2000) to analyze how an unexpected shock affecting the banking assets in one region can generate bankruptcy in a second region. I also analyze the effect of the presence of an Islamic bank in a third region on the vulnerability of conventional banks to financial contagion. It is shown that the Islamic bankโ€™s assets diversification strategy across the regions reduces the likelihood of financial contagion among conventional banks.  

ู…ู„ุฎุต

ุชุจู†ูŠ ู‡ุฐู‡ ุงู„ูˆุฑู‚ุฉ ู†ู…ูˆุฐุฌ ู†ุธุฑูŠ ูŠุนุชู…ุฏ ุนู„ู‰ ุฃู„ูŠู† ูˆุบูŠู„ (2000) ู„ุชุญู„ูŠู„ ูƒูŠู ูŠู…ูƒู† ู„ุตุฏู…ุฉ ุบูŠุฑ ู…ุชูˆู‚ุนุฉ ุงู† ุชุคุซุฑ ุนู„ู‰ ุงู„ุฃุตูˆู„ ุงู„ู…ุตุฑููŠุฉ ููŠ ู…ู†ุทู‚ุฉ ูˆุงุญุฏุฉ ูˆูƒูŠู ูŠู…ูƒู† ุฃู† ุชูˆู„ุฏ ุงู„ุฅูู„ุงุณ ููŠ ุงู„ู…ู†ุทู‚ุฉ ุงู„ุซุงู†ูŠุฉ. ูˆุฃูˆุฏ ุฃูŠุถุง ุชุญู„ูŠู„ ุฃุซุฑ ูˆุฌูˆุฏ ุจู†ูƒ ุฅุณู„ุงู…ูŠ ููŠ ู…ู†ุทู‚ุฉ ุซุงู„ุซุฉ ุนู„ู‰ ุถุนู ุงู„ุจู†ูˆูƒ ุงู„ุชู‚ู„ูŠุฏูŠุฉ ูˆุงู„ุนุฏูˆู‰ ุงู„ู…ุงู„ูŠุฉ. ูˆูŠุธู‡ุฑ ุฃู† ุงุณุชุฑุงุชูŠุฌูŠุฉ ุงู„ุชู†ูˆูŠุน ููŠ ู…ุฎุชู„ู ุงู„ู…ู†ุงุทู‚ ู„ุฃุตูˆู„ ุงู„ุจู†ูˆูƒ ุงู„ุฅุณู„ุงู…ูŠุฉ ูŠู‚ู„ู„ ู…ู† ุงุญุชู…ุงู„ุงุช ุงู„ุนุฏูˆู‰ ุงู„ู…ุงู„ูŠุฉ ุจูŠู† ุงู„ุจู†ูˆูƒ ุงู„ุชู‚ู„ูŠุฏูŠุฉ.
Dual Banking and Financial Contagion

Research Fellows

Mahmoud Sami Nabi

Professor of Economics, University of Carthage