Performance of Conventional and Islamic Banks

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Ahmad Alharbi
Ahmad Alharbi
1 Ministry of Economy and Planning

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This paper investigates the differences in mean cost, revenue, and profit efficiency of conventional and Islamic banks based on size and location by using three sets of samples over the 1992-2007period from 54 countries. The study uses financial ratio analysis. The results showed that Islamic banks in both samples are more cost efficient than the conventional banks. While, the results of revenue efficiency (ROAE) ratio reveal that conventional banks are more profitable. However, the results of profit efficiency were inclusive.

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.

Ahmad Alharbi. 2016. \u201cPerformance of Conventional and Islamic Banks\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 16 (GJMBR Volume 16 Issue C1): .

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Issue Cover
GJMBR Volume 16 Issue C1
Pg. 21- 39
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: G21
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v1.2

Issue date

February 9, 2016

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English

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This paper investigates the differences in mean cost, revenue, and profit efficiency of conventional and Islamic banks based on size and location by using three sets of samples over the 1992-2007period from 54 countries. The study uses financial ratio analysis. The results showed that Islamic banks in both samples are more cost efficient than the conventional banks. While, the results of revenue efficiency (ROAE) ratio reveal that conventional banks are more profitable. However, the results of profit efficiency were inclusive.

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Performance of Conventional and Islamic Banks

Ahmad Alharbi
Ahmad Alharbi Ministry of Economy and Planning

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