NARGES HAJIGHORBANI - Department of Accounting, Faculty of Administrative sciences and Economics, Al MahdiMehr Isfahan Institute of Higher Education, Isfahan, Iran

This article investigates whether the institutional characteristics distinguishing Islamic banks from their conventional types lead to distinctive capital and income management behavior through loan loss reserves. In our sample countries, the two banking sectors operate under different regulatory frameworks: conventional banks currently use an "incurred" loan loss model until ۲۰۱۸, while Islamic banks must use an "incurred" loan loss model. They adopt "expectation". Our results provide significant evidence of capital and income management practices through loan loss reserves in conventional banks. This finding is more significant for large and unprofitable banks. In contrast, Islamic banks are reluctant to use loan loss reserves, regardless of the bank's size, revenue status, or loan loss model structure. This difference can be attributed to Islamic banking's limited business model, strict supervision, and ethical orientation.

International Financial Reporting Standards (IFRS); Regulatory Capital Management; Revenue Management; Expected Loan Losses, Incurred Loan Losses.