Performance comparison of Islamic and commercial banks in Malaysia

Azizud-din, Azimah; Hussin, Siti Aida Sheikh; Zahid, Zalina

doi:10.1063/1.4966070

Cited by 1 publication

(1 citation statement)

References 2 publications

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“…This result is consistent with other studies done by (Samad and Hassan (2000) , Akhter et al (2011), Samad (2004 ) but it is not consistent with other studies that show Islamic banks are more profitable than conventional banks like (Zahid, Z., Hussin, S. and Azizuddin (2016), Mohammed, R. and Kamaruddin, B., (2013) (2000), Ansari and Khalil-ur-Rehman (2011)). …”

Section: Differences Between Islamic and Conventional Banks In The Uaesupporting

confidence: 73%

Financial Performance Comparison of Islamic and conventional banks in the United Arab Emirates (UAE)

Tabash

2017

Int. conf. adv. bus. manag. law

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This paper examines the financial performance of Islamic and commercial banks in the United Arab Emirates (UAE). The paper gives an empirical insights and comparisons between the performance of Islamic and conventional banking sectors. The sample of the study consists of 5 fully-fledged Islamic banks and 14 conventional banks working in the UAE under the period 2011-2014. The study uses descriptive analysis, correlation, independent sample t test and multiple regression analysis to assess the performance and to compare between both types of banks. The Return on Assets (ROA) is used as proxy for profitability for both types of banks while bank size (log A), liquidity, capital adequacy, financial risk and operating efficiency as proxies for financial performance for both types of banks. The results showed that there is no significant difference between Islamic banks and conventional banks in terms of profitability (ROA) while there is a significant difference between Islamic and conventional banks in terms of liquidity, operation efficiency, capital adequacy, and financial risk. Further, the results indicated that the Islamic banks have higher operating efficiency, bank size and more liquidity than their counterparts of UAE. However, conventional banks are found to have better capital adequacy ratio than Islamic banks. In terms of financial risk, Islamic banks are found to have higher five times than conventional banks which may reflect challenges in the area of risk management in Islamic banks.

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Section: Differences Between Islamic and Conventional Banks In The Uaesupporting

confidence: 73%

Financial Performance Comparison of Islamic and conventional banks in the United Arab Emirates (UAE)

Tabash

2017

Int. conf. adv. bus. manag. law

View full text Add to dashboard Cite

show abstract

Performance comparison of Islamic and commercial banks in Malaysia

Cited by 1 publication

References 2 publications

Financial Performance Comparison of Islamic and conventional banks in the United Arab Emirates (UAE)

Financial Performance Comparison of Islamic and conventional banks in the United Arab Emirates (UAE)

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