Abstract
The succession of crises imposed the need to establish the «Governance best practice ». This article tries to illustrate empirically the contribution of the mechanisms of the governance to ensure the stability of Islamic Financial Institutions. Using Zscore as a stability and solidity of IFI, our study focus on one sample of 30 Islamic banks taking place in 16 countries in North Africa and the Middle East shows that the size and the independence of the Board, the competence of the audit committee and the remuneration constitute the mechanisms helping to insure the stability of Islamic Financial Institutions. The duality seems to affect negatively the stability of the Islamic banks.
Highlights
Using Zscore as a stability and solidity of IFI, our study focus on one sample of 30 Islamic banks taking place in 16 countries in North Africa and the Middle East shows that the size and the independence of the Board, the competence of the audit committee and the remuneration constitute the mechanisms helping to insure the stability of Islamic Financial Institutions
Due to the instability of the financial environment in these recent years, the Islamic finance is perceived as a real phenomenon that can solve this problem of instability using the adopting of the practices of good governance
Specialists and researchers in this field have questioned the reasons for which the model of Islamic industry establish the solution to ensure the stability of Islamic banks and that it can be a real alternative to the conventional system
Summary
Due to the instability of the financial environment in these recent years, the Islamic finance is perceived as a real phenomenon that can solve this problem of instability using the adopting of the practices of good governance. Faced to this critical situation, the Islamic finance could record its strong presence by a remarkable resistance against the crisis that began in 2007. The flap which in our case has remained unexplored even ignored the one related to the specificities of corporate governance and their input in the financial stability of Islamic banks The financial products, the risk management ... the flap which in our case has remained unexplored even ignored the one related to the specificities of corporate governance and their input in the financial stability of Islamic banks
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