Islamic Banks versus Commercial Banks and Performance: The Context of Saudi Arabia?

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Abstract

Making a comparative analysis between conven-tional and Islamic banks, this paper examines which bank characteristics and macroeconomic environment affect the bank performance in Saudi Arabia. We estimate a linear panel date model using Prais-Winsten technique for 12 Saudi conventional and Islamic banks over the period 2005-2011. The findings suggest that low cost, high capital adequacy and low inflation rate improve the levels of Saudi conventional bank performance. However, high performance in Saudi Islamic banks requires better asset quality, higher capital adequacy, lower cost, higher bank weigh and higher number of branches.

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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

Khalid Hamad Alturki. 2014. "Islamic Banks versus Commercial Banks and Performance: The Context of Saudi Arabia?". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 14 (GJMBR Volume 14 Issue D1).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Classification
GJMBR-D Classification JEL Code: E58
G21
Version of record

v1.2

Issue date
March 25, 2014

Language
English
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Islamic Banks versus Commercial Banks and Performance: The Context of Saudi Arabia?

Khalid Alturki
Khalid Alturki Qassim University
Khalid Alturki
Khalid Alturki