Abstrak
The study investigatesthe impact of the 2008 global financial crisis on the banking sector within six Islamic countries by examining how Islamic banks fared compared to conventional banks.Two Islamic and two conventional banks were selected across six different Islamic countries and compared via eight different performance metrics. To eliminate bias, countries were selected from disparate political, geographical, and ideological backgrounds. The results were: i. Islamic banks in G20 countries performed better than conventional banks, while the opposite was true in non-G20 countries; ii. Islamic banks in constitutionally Islamic countries performed better than conventional banks; and iii. Islamic banks in authoritative regimes outperformed conventional banks, while the opposite was true for democratic countries. Results indicate that the conservative nature of Islamic banking was instrumental in protecting them from the downturn that the conventional banks experienced during the financial crisis.