Performance and Risk Analysis of the Islamic Banks:The Case of Bahrain Islamic Bank

Turen, Seref

doi:10.4197/islec.7-1.1

Cited by 35 publications

(19 citation statements)

References 2 publications

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“…Financial ratios analysis approach is applied by many of researchers to evaluate, measure and analyse the financial performance and efficiency of financial units, for example; Ali, Akhtar, & Ahmed (2011);Awan (2009);Bashir (2003); Beck, Kunt and Merrouche (2010); Haron (2004);Iqbal (2001); Jaskiran and Kunnath (2011);Olson and Zoubi (2007); Rosly and Bakar (2003); Sabi (1996) ;Sadaqat, Ali and Farhan (2011);Saiful and Bakar (2003); Saifullah (2010); Samad and Hasan (1999);Samad (2004) ;Shar, Shah and Jamali (2010) and Turen (1996). This research model is most optimal to accomplish the objectives of the current research work.…”

Section: Review Of Literaturementioning

confidence: 99%

Gauging Profitability and Liquidity of Islamic Banks: Evidence from Malaysia and Pakistan

Khan¹,

Ali²,

Khan³

2015

ijafr

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This study aims at evaluating and comparatively analyzing the financial performance of all full-fledged Islamic banks operating in Pakistan and five Islamic banks from Malaysia conveniently chosen, subject to profitability and liquidity. Data has been compiled from annual reports for 2006-11. Famous ratios analysis model has been applied with descriptive and inferential statistics to analyze the results. Empirical results revealed that Malaysian Islamic banks are more profitable, liquid and well ahead to Pakistani Islamic banks in profit margin, profit to expense, earnings per share, cash ratio and loan to deposit ratio. However no significant difference is observed in return on asset, return on equity, current ratio, cash & portfolio investment to deposit and loan to asset ratio, although Malaysian Islamic banks are superior in maintaining healthy investment portfolio and high cash ratio while Pakistani Islamic banks have maintained high loan to deposits.

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Section: Review Of Literaturementioning

confidence: 99%

Gauging Profitability and Liquidity of Islamic Banks: Evidence from Malaysia and Pakistan

Khan¹,

Ali²,

Khan³

2015

ijafr

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“…The overall risk of an Islamic bank will be determined by the net effect of these three factors. (Turen, 1996) It is noted that the key aspect of financial management is risk management and the goal of financial management is to maximize the value of a bank (Greuning & Iqbal, 2008, p. 64). Therefore deductively the bottom line to evaluating all these risk is either to maximize profitability or minimize any loss to the shareholders and/or depositors.…”

Section: Concept Of Risk: What It Is What It Ought To Be?mentioning

confidence: 99%

Shadow of Conventional Financial Industry on Islamic Banking: The Case against Market Competition and Concept of Risk in Islamic Financial Industry

Javaid¹

2014

JISR-MSSE

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The purpose of this study is to explore why Islamic financial institutions are seen following the footsteps of conventional financial system in terms of product formulations, while ignoring equity-based investments and contributing in distributive justice in the economy. The study focuses on two factors (1) how competition with conventional banks in the same market, for the same customers and investors eventually forces Islamic banks to deliver the same output like conventional banks; and (2) the concept of risk, how it is evaluated and mitigated in Islamic banks and how this concept sets a tone and direction of Islamic banks. The nature of study is conceptual and uses the "maqasid-ul-shariah" framework as a criterion to evaluate the outcome of the two stated factors. This comparison clearly highlights the incoherence between the outcomes of the stated factors with the ideals of Islamic economics. The study also suggests various policy recommendations which may bring the necessary changes in the long run or at least start a thought process among the key stakeholders. Future studies would be required to work out a more comprehensive and concrete strategy. The nature of problem explored in this study has not been explored in any study as yet. Therefore, this study contributes in highlighting two key issues, previously unexplored, hindering the movement of Islamic financial institutions toward their ideological goals.

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“…In principle, the practice of interest is prohibited and noninterest expenses are much more limited. Other studies have concluded that the stability of IBs stems from the fact that inflation, rate of return, and other economic factors fluctuate(Karim and Ali, 1989;Turen, 1996;Cihak and Hesse, 2010). In this sense, Ramadan (2011) studied the impact of bankspecific economic variables and macroeconomic variables on the profitability of Jordanian IBs between 2000 and 2010.…”

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confidence: 99%

Effect of board quality on the financial performance of conventional and Islamic banks: Comparative study on the international evidence

Haddad¹,

Ammari²,

Bouri³

2020

Preprint

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This article provides the first logical analysis that detailed the process of comparative analysis between the correlation of board determinants’ quality and the financial performance of conventional and Islamic banks. However, in previous research, we have never encountered rewarding studies that compared these impacts. In our study, we distinguished between the impact of the board of directors on the financial performance in conventional and Islamic banks. Settings of the financial performance and board of directors of the conventional and Islamic banks are collected from 30 countries located in four continents: America, Europe, Asia, and Africa. Two equal samples were collected that each of them is composed of 112 banks. By using the cylindrical panel method, data were used to explore the impact of the board of directors on the financial performance between both types of banks over the period 2010-2018, giving us 1008 bank-year observations in each sub-sample. On the whole, empirical results have shown that in conventional banks the board of directors has negatively affected the financial performance, while the impact of the board on the financial performance of Islamic banks is ambiguous. Nevertheless, the degree of the positive impact on financial performance is more significant in Islamic banks.

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Performance and Risk Analysis of the Islamic Banks:The Case of Bahrain Islamic Bank

Cited by 35 publications

References 2 publications

Gauging Profitability and Liquidity of Islamic Banks: Evidence from Malaysia and Pakistan

Gauging Profitability and Liquidity of Islamic Banks: Evidence from Malaysia and Pakistan

Shadow of Conventional Financial Industry on Islamic Banking: The Case against Market Competition and Concept of Risk in Islamic Financial Industry

Effect of board quality on the financial performance of conventional and Islamic banks: Comparative study on the international evidence

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