Abstract
The current paper assesses the stability of conventional and Islamic banks in Pakistan. For this, study incorporated DCCGARCH
methodology to estimate dynamic conditional correlation for sample of 1 Islamic and 8 conventional banks from March 31, 2006
to December 31, 2017. The results of empirical findings showed that conditional correlation has found to be increased for crisis
periods between Islamic and conventional banks suggesting that effect of financial contagion is prevailing between both Islamic as
well as conventional banks in Pakistan for study period. It has been observed that financial contagion is an important element for
transmitting shocks between sample banks
Rabia Asif, Waheed Akhter, Sabahat Nisar. (2020) An Estimation of the Presence of Contagion in Islamic and Conventional Banks of Pakistan Using DCCGARCH Model, Paradigms , Vol 14, Issue 1.
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