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

Khalid Hamad Alturki

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

Khalid Hamad Alturki * §

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Qassim University

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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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

financial accounting islamic versus conventional banks prais-winsten method saudi bank perfor-mance

Classification

GJMBR-D Classification JEL Code: E58

G21

Submission ReceivedDecember 12, 2013
Peer Review Double Blind
Handling Editor
Accepted January 5, 2014
Published January 15, 2014

Version of record

v1.2

Issue date

March 25, 2014

Language

English

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Article Matrices

Total Score: 168

Country: Saudi Arabia

Subject: Global Journal of Management and Business Research

Authors: Khalid Hamad Alturki (PhD/Dr. count: 0)

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Publish Date: 2014 01, Wed

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Total Downloads: 132

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