Comparative analysis between islamic banking andconventional

The standard deviation is larger for Islamic banks. More services and features. We plan to measure performance in terms of capital adequacy, asset quality, management, earnings and liquidity. The main focus of this comparative study is to evaluate and measure the difference in financial performance of the two dissimilar banking firms operating in different countries.

The payment of zakat is in addition to any conventional tax imposed if the government is non-Islamic. Sharif Hossainhas been an amazing experience and I thank sir wholeheartedly, not only for his tremendous academic support, but also for giving me so many wonderful opportunities.

Lending money and getting it back with compounding interest is the fundamental function of the conventional banks.

Fayed analyzed the performance of Islamic and conventional banks of Egypt. Iqbal [20] used data for the period. It contains reports on the monetary, the RWCR is the operating capital base divided by the banking, liquidity, capital market and macroeconomic total risk-weighted assets.

Again in the credit risk performance of both of conventional and Islamic banks are almost same.


There is no existence of interest in Islamic banking. The study suggests ways to Islamic banks mainly turn to the creation of equity through profit-loss-sharing PLS financial transactions.

It takes into account issues of gharar, haram, Zakat. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here.

Any weakness on this front can jeopardize its very existence. In essence, social consideration remains a major target in Islamic banking whereas social injustices are common in Conventional Banking.

In this study, four ratios are used to evaluate the respectively, are similar in nature, where a bank provides Islamic banks and commercial banks, which are the risk- funds for the future delivery of a product at a pre- weighted capital ratio RWCRthe core capital ratio determined price on a certain date.

Findings suggest that in case of profitability there is no significant difference between these two. More specifically, we seek to answer 3 Prohibiting speculative behavior based on uncertainty the questions of whether Islamic banks have less risk Gharar than conventional banks and Islamic finance can replace 4 Prohibiting investments that violate the rules of or complement the conventional banking system as an Shariah, or investments in businesses related to alcohol, attempt to prevent or reduce a banking crisis.

Customer loyalty of Islamic banks has been considered relatively low In the s banking industry achieved significant expansion with the entrance of private banks.

As the financial crisis has been sold must be real building, property, or any other affecting the whole world, an unconventional banking physical infrastructure and the debt cannot be sold or practice, Islamic finance, is introduced to reduce financial transferred to someone else.

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However, offering standardized Islamic finance products with because of some problems in the conventional banking prudent regulations and supervisory arrangements. Finally, the NPLR of between these two means is statistically significant with Islamic banks is lower than that of conventional the t-ratio of 2.

As mentioned earlier, developments. Consequently, results from empirical analysis indicate that there is difference in profitability determinants.

A Comparative Study of Islamic and Conventional Banking in Bangladesh: Camel Analysis

Integration of Islamic and Conventional two systems operate in the same country. Islamic scholars meet communally to arrive at decisions and issue a fatwa opinion and these become part of Islamic jurisprudence.

To evaluate empirically performance of the banks, different financial ratios are going to be employed which are based on CAMEL framework.

The difference between the Islamic conventional banking systems

These banks were chosen from exactly the same countries from where Islamic banks were chosen. In other the existing financial system.

The bank which is operated under rules of Islamic Shariah is known as Islamic banking. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. For this study, a sample of twelve Islamic banks was chosen.

Lone et al, () explored the level of customer satisfaction between Islamic and conventional bank customers through comparative study in Saudi Arabia.

economic growth and those studies have only made a comparative analysis between Conventional and Islamic banks and are limited to observe and compare bank performance (Johnes, Izzeldin, & Pappas, ; Onakoya &.

Comparative Analysis between Islamic Banking and Conventional Banking Firms in terms of Profitability, Alimshan Faizulayev Submitted to the Institute of Graduate Studies and Research In Partial Fulfilment of the Requirements for the Degree of Master of Science in Banking and Finance Eastern Mediterranean University May Responsibility Disclosure: A Comparative Study Between Islamic Banks and Conventional Banks in Bangladesh.

International Business and Management, 10(1), PERFORMANCE OF ISLAMIC BANKING IN MALAYSIA: A COMPARATIVE STUDY By performance of Islamic banking in Malaysia, makes comparative performance analysis among Malaysian local and foreign Islamic banks.

This will be done through analyzing the performance; using comparison in financial ratios between the. in Saudi Arabia in comparison to the conventional banking. For this purpose, a comparative analysis between conventional and Islamic banks is undertaken by this study.

Highlights of Saudi Banking System Progress of Islamic banking in the world is exceptional. As.

Comparative analysis between islamic banking andconventional
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