Behavior and performance of banks in the face of information asymmetry

Abstract

Islamic banks are attracting more and more interest from professionals and academics, first of all, by their resistance to the subprime crisis and then by their participative financial intermediation which shows significant results. This follows from its founding principle, which is sharing.

The specific financial intermediation of Islamic banks is subject to information asymmetry, which is crucial for their survival on the market.

Our contribution is to discover the behavior of Islamic banks in the face of information asymmetry, by exploiting the theoretical corpus in order to analyze their performance and the causal link existing with asymmetric information. To verify this, the need to use evaluation methods and econometric modeling, via the Excel and Stata computer tool, is necessary to highlight our results.

Keywords : Islamic bank; participative financial intermediation; asymmetric information.

JEL classification : G20, G21, G32.

Paper type: Theoretical article.