Risk governance and financial stability of Islamic banks: A systematic literature review

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Abstract

The objective of this study is to identify studies that have addressed the impact of risk governance on the financial stability of Islamic banks. This study applied the preferred reporting items for systematic reviews and meta-analyses (PRISMA) method to identify and collect all studies that have addressed the impact of risk governance on the financial stability of Islamic banks. We worked only on articles published between 2000 and 2022. We found a wealth of literature on risk governance and financial stability. Our results identified 80 articles out of a total of 301 considered relevant to our analysis. Our results show that risk governance and financial stability are analyzed separately by researchers, and most researchers have analyzed the impact of risk governance on the performance of conventional, and Islamic banks. Battaglia et al. (2014), Jallali and Zoghlami (2022), and Raouf and Ahmed (2022) are among the researchers who have analyzed the impact of risk governance on financial stability. This study is the first to carry out a systematic review of the literature on the impact of risk governance on the financial stability of Islamic banks. It could be useful for future academic studies and researchers in this field.

Keywords: Corporate Governance, Risk Governance, Financial Stability, Islamic Banks

Authors’ individual contribution: Conceptualization — B.M. and A.E.K.; Methodology — B.M. and A.E.K.; Writing — Original Draft — B.M. and A.E.K.; Writing — Review & Editing — B.M. and A.E.K.; Visualization — B.M. and A.E.K.; Supervision — A.E.K.; Project Administration — A.E.K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G21, G28, G30, G38

Received: 01.10.2023
Accepted: 22.05.2024
Published online: 28.05.2024

How to cite this paper: Marnouch, B., & El Khamlichi, A. (2024). Risk governance and financial stability of Islamic banks: A systematic literature review. Corporate & Business Strategy Review, 5(2), 218–234. https://doi.org/10.22495/cbsrv5i2art19