Figure 3.
The two panels are labelled a gross loans and b net loans. Each panel compares conventional banks and Islamic banks. The horizontal axis is labelled loan diversification. The vertical axis is labelled delta credit to loan diversification. In panel a, gross loans, the conventional bank line slopes downward as loan diversification increases and the surrounding band widens. The Islamic bank line remains relatively flat with a small downward tendency. Text indicates insignificant regions and a significant range from 0.47 to 0.64. In panel b, net loans, the conventional bank line slopes upward as loan diversification increases, and a significant range appears from 0.65 to 0.73. The Islamic bank line shows a slight downward tendency with a significant range from 0.41 to 0.62.Average marginal effects of Loan Diversification on ΔCredit at different Loan Diversification levels with 90% confidence intervals (based on regressions (1) and (5) from Table 5)
Source: Authors’ own work