Continuation
The fact that Islamic banks share:
o
profits;
o
or losses
with their investment account holders.
It may make them more susceptible to deposit withdrawals than
conventional banks.
(Khan
and Ahmed, 2001)
It may happen at least in cases of bank distress when Islamic
bank depositors would lose some money while conventional bank depositors would
not.
It would happen due to:
o
bank reserves
o
and partial deposit insurance.
From the research
paper of European Central Bank
(Authors:
F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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