Mirzet Šeho, Md. Mahmudul Haque, Mohammad Ashraful Ferdous Chowdhury
Abstract We investigate whether diversification stabilizes bank lending cyclicality on a sample of 25 conventional and 18 Islamic banks from Malaysia spanning 2008 to 2021. Our findings reveal that both bank types are nonlinearly procyclical during economic expansions, with Islamic banks also exhibi...