Despite the significance of financial stability of banks, little is known for Islamic banks. Understanding how these institutions maintain the required stability helps in identifying the areas of improvements to support their resilience. Our paper examines whether the financial risks-credit, liquidity, capital, and operational-influence the Islamic banks differently for conventional banks. We collect data of 1,046 banks across 54 countries between 2009–2023. We find that Islamic banks are more sensitive to capital risk, while conventional banks show largely susceptible to credit and liquidity risk. The result for operational risks is mixed, suggesting no significant difference between Islamic and conventional banks.