Empirical Study of Islamic Banks versus Conventional Banks of GCC

Dr. Imtiaz .P. Merchant

Empirical Study of Islamic Banks versus Conventional Banks of GCC

Dr. Imtiaz .P. Merchant * §

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§ University of Wollongong in Dubai.

Empirical Study of Islamic Banks versus Conventional Banks of GCC

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Abstract

Numerous precious researches that have been conducted at professional and academia level have established Islamic banking to be superior and a viable manner of banking in terms of profitability and stability. The objective of the study would be to analyze the performance of Islamic banks and conventional banks during the crisis and after the crisis. The study will further focus on finding the steps that have been taken by the banks so as to reduce the effects of crisis. The study will be examined by comparing the performance of Islamic and conventional banks based in the Gulf Cooperation Council (GCC) during the period of 2008 -2011 by deploying the CAMEL testing factors. A sample of 17 Islamic banks and 10 conventional banks were selected to study the objective. Using the 2 tailed t test, our study found out that after crisis Islamic bank increased their LLR, while conventional banks increased their LLR and EQTA. During the four year period of 2008 -2011, Islamic banks possessed adequate capital structure but have recorded lower ROAE and poor management efficiency. Asset quality and liquidity for both the modes of banking system have not recorded any significant difference.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Imtiaz .P. Merchant. . "Empirical Study of Islamic Banks versus Conventional Banks of GCC". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 12 (GJMBR Volume 12 Issue B20).

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GJMBR Volume 12 Issue B20

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

after crisis CAMEL Conventional banks financial crisis Islamic banks

Classification

GJMBR-B Classification JEL Code: G21

Submission ReceivedDecember 6, 2011
Peer Review Double Blind
Handling Editor
Accepted December 31, 2011
Published January 15, 2012

Version of record

v1.2

Language

English

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Article Matrices

Total Score: 126

Country: United Arab Emirates

Subject: Global Journal of Management and Business Research - B: Economic & Commerce

Authors: Dr. Imtiaz .P. Merchant (PhD/Dr. count: 1)

View Count (all-time): 383

Total Views (Real + Logic): 5253

Total Downloads (simulated): 290

Publish Date: 2012 01, Sun

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Total Views: 5.3K

Total Downloads: 290

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