Empirical Study of Islamic Banks Versus Conventional Banks of GCC

Merchant, Imtiaz .P.
October 2012
Global Journal of Management & Business Research;2012, Vol. 12 Issue 20, p33
Academic Journal
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.


Related Articles

  • Islamic Banking Sector Outlook.  // Turkey Commercial Banking Report;2010 3rd Quarter, p23 

    The article offers an outlook for the Islamic banking sector specifically the finance infrastructure in the Gulf Cooperation Council (GCC) countries including the housing market in Saudi Arabia and retail banking in Indonesia, Egypt and Turkey. It elaborates the implication of the recovery of...

  • Efficiency of Islamic Banks: A Comparative Analysis of MENA and Asian Countries. Abdul Rahman, Abdul Rahim; Rosman, Romzie // Journal of Economic Cooperation & Development;2013, Vol. 34 Issue 1, p63 

    It is crucial for Islamic banks to be efficient in order to withstand competitive pressures and financial crises. This study empirically examines and compares the efficiency of selected Islamic banks in Middle Eastern and North African (MENA) countries (including Gulf Cooperation Countries) and...

  • GCC Islamic banking assets continue healthy expansion.  // MiddleEast Insurance Review;May2013, p21 

    The article presents the forecasts of the Global Islamic Banking Center of Ernst & Young that details the 14% year on year (y-o-y) growth of the Islamic banking assets of the Gulf Cooperation Council (GCC) in December 2012.

  • Banking.  // MEED: Middle East Economic Digest;9/19/2014, Vol. 58 Issue 38, p27 

    The article reports on "Middle East Economic Digest" magazine's 2014 ranking of the Gulf Cooperating Council's largest Islamic banks by assets, the increase in the amount of money managed along sharia lines by banks, and the failure of the finance industry in the region to live up to its potential.

  • Sukuk's global footprint. MCNAMARA, PAUL // Islamic Business & Finance;2015, Issue 93, p38 

    The article describes how Gulf Cooperation Council and Malaysia continue to remain the main centers for Sukuk in spite of it spreading internationally. It reports on the active efforts of some governments and central banks, mainly the Central Bank of Bahrain in the Middle East to develop an...

  • Legal matters. Khan, Sheikh Bilal; Hasan, Sheikh Badrul // Islamic Business & Finance;Sep2012, Issue 74, p12 

    The article discusses the legal and regulatory considerations for the implementation of the Takaful and ReTakaful operations in the Gulf Cooperation Council (GCC) countries. There are no single set of laws and regulations applicable to Takaful and ReTakaful in the GCC region and therefore...

  • Islamic Banking Sector Outlook.  // Saudi Arabia Commercial Banking Report;2011 2nd Quarter, Issue 2, p32 

    The article presents an outlook for the performance of the Islamic banking industry for 2011. It expects a steady recovery and a strong demand for sukuk or Islamic bond as growth conditions in the Middle East and South East Asia continue to improve. It cites the significance of the introduction...

  • Career opportunities. Aqeeq, Muhammad Arsalan // Islamic Business & Finance;Apr/May2013, Issue 78, p41 

    In this article, the author focuses on the skills required and employment opportunities in Pakistan and the Gulf Cooperation Council for prospective employees and young graduates. He mentions that candidates must be good at conventional banking practices as well as Islamic banking and states...

  • Islamic Banking: Three Opportunities Amid A Shaky Recovery.  // Emerging Markets Monitor;5/17/2010, Vol. 16 Issue 7, p19 

    The article presents the three opportunities facing investors in Islamic banking. It expects investment banks in Gulf Cooperation Council (GCC) countries to tap into infrastructure spending. It offers an outlook on the retail banks in regions where there is a large Muslim population. The trend...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics