Comparisons of Financial Performance of Islamic Banks and Conventional Banks in Bangladesh

Abstract

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The Effect of Covid-19 Pandemic on the Performance of Islamic Bank in Indonesia

“…Therefore the Covid-19 pandemic has not affected banks in managing their financing risk. Uddin et al(2017) revealed that under any circumstances, banks will maintain the NPF under the provisions, including banks that are restructuring in the form of mergers and acquisitions (Sufian & Abd. Majid, 2007).…”

“…ROE is the ability to generate profits with own capital (Bikker, 2010), so it is logical if there is a difference before and during a pandemic, this is because there are some Islamic banks that have very little own capital resulting in high ROE. In conventional banking and Islamic banks, there are often significant differences in the profitability of ROE and NOM (Mughal et al, 2015 andUddin et al, 2017). ROE before the pandemic averaged 7.51% and decreased during the pandemic to an average of 6.51%.…”

Are Foreign Bank Subsidiaries More Profit Efficient Than Domestic Ones? - An Analysis on Earning Approach of Private Sector Banks, Bangladesh

“…Return on Asset (ROA) is also an indicator of operational efficiency, in simple words, ROA conveys information on the amount of income generated from each unit of an asset on an average. Return on Equity (ROE), on the other hand, is a dimension that contributes in understanding the working of the management of the organization with respect to the earnings or income generated from the owner's equity (Uddin, et al 2017). ROE can be defined to assess the returns on the equity holders in order to evaluate the growth of their investments (Petersen and Schoeman, 2008).…”

Effect of board quality on the financial performance of conventional and Islamic banks: international comparative study after the Subprime crisis

“…Several incentive reasons motivated us to carry out this comparative study. Because of the FP instability of two banks' types before (Srairi, 2010;Ariss, 2010;Loghod, 2011), during (Rosman et al, 2014;Tlemsani and Suwaidi, 2016;Bahrini, 2017) and after (Shamsu Uddin et al, 2017;Mukhibad and Khafid, 2018;Ledhem and Mekidiche, 2020) the Subprime crisis with varying degrees, the economic agents want to know the financial priority or fragility of a type compared to another. Also, during this period many criticisms are granted to the BQ because of the serious limits it has shown as a mechanism normally responsible for developing control procedures to manage the various risk situations to which the bank could be exposed.…”

“…Also, during this period many criticisms are granted to the BQ because of the serious limits it has shown as a mechanism normally responsible for developing control procedures to manage the various risk situations to which the bank could be exposed. However, most of the studies that have compared the conventional banks (CBs) and Islamic banks' (IBs) FP have either generated mixed and inconclusive results (Samad, 1999;Ariss, 2010;Loghod, 2011;Jaffar and Manarvi, 2011;Masruki et al, 2011;Siraj and Pillai, 2012;Ansari and Rehman, 2012;Srairi, 2013;Kakakhel et al, 2013;Elsiefy, 2013;Saeed et al, 2013;Onakoya and Onakoya, 2013;Aziz et al, 2016;Majeed and Zanib, 2016;Mukhibad and Khafid, 2018), either they have favored one type over the other (Haron, 1996;Iqbal, 2001;Rosly and Bakar, 2003;Hassan, 2006;Mokhtar et al, 2008;Bader et al, 2008;Srairi, 2010;Usman and Khan, 2012;Rahim et al, 2013;Beck et al, 2013;Rosman et al, 2014;Tlemsani and Suwaidi, 2016;Bahrini, 2017;Ledhem and Mekidiche, 2020), or they have stated that there are no differences between CBs and IBs (Widagdo and Ika, 2008;Shamsu Uddin et al, 2017), depending on the study's context and conditions (Rahim et al, 2013). Moreover, one of the reasons of the sudden CBs and/or IBs' bankruptcy and the unexpected appearance of financial crises, especially the Subprime crisis, is the weaknesses in the governance quality despite the risk study, especially in the banks' BQ.…”