In this paper, we explore whether economic uncertainty differently affects the default risk of Islamic and conventional … uncertainty increases the default risk of conventional banks but does not affect Islamic banks’ default risk. To understand why … banks’ default risk is not significantly affected by uncertainty in all types of countries, but such a difference with …

. We use the World Uncertainty Index (WUI) proposed by Ahir et al. (2018) and Geopolitical Risk Index (GPR) introduced by …, the highest impact is observed on corporate loans. Meanwhile, geopolitical risk dampens consumer and mortgage loans but …