Extant literature documents the role of effective governance in mitigating bank risk-taking and limiting managerial opportunism. The banking industry forms a necessary pillar for global economic and financial stability, given their intermediation and financing roles, which are constantly under heightened regulatory and market scrutiny. The complexity and diversity of banking financial instruments and transactions leads to substantial information asymmetries. Moreover, there is a lack of conclusive evidence on the role of bank type (i.e., Islamic versus conventional banks) on corporate...

Relatively little is known so far about financial stability and long-term resilience within the global banking sector. The complexity and diversity of banking financial instruments and transactions leads to substantial information asymmetries, and promotes several agency conflicts. Moreover, there is a lack of conclusive evidence on the role of bank type on global banking stability, and the implications of the COVID-pandemic on alternative banking systems. The Islamic bank business model differs fundamentally from conventional banks regarding corporate governance, asset-liability structure,...