scholarly journals Profitability Determinants of Kuwait Banking Industry: Comparative Analysis between Islamic and Conventional Banks

2018 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Muhamad Abduh ◽  
Mohamed Saeed Issa
Keyword(s):  
Financial Crisis ◽  
Credit Risk ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Islamic Banking ◽  
Macroeconomic Conditions ◽  
External Variables ◽  
Conventional Banks ◽  
The Global Financial Crisis ◽  
The Impact

<p><em>This study is aimed at evaluating the impact bank specific and macroeconomic variables including the global financial crisis upon the performance of Islamic and conventional banks in Kuwait. The data are collected from nine banks operated in Kuwait over the period of 2005 to 2012 with four of them are Islamic banks and five are conventional banks. The ROA and ROE are used to measure profitability while the size, credit risk, bank diversification, efficiency, capital strength, and liquidity were used to measure bank specific variables. There are also three external variables that would be used to measure macroeconomic condition i.e. GDP growth, inflation, and financial crisis. The findings from pooled OLS have shown that credit risk, liquidity and efficiency significantly affecting profitability for both Islamic and conventional banks. For macroeconomic conditions, GDP is positively significantly affecting profitability of Islamic banking sector, while inflation is negatively affecting the profitability of conventional banking sector. The result also evidence that Islamic banking sector is more stable than the conventional banking sector in terms of their performance during and after the crisis period.</em></p>

scholarly journals Global Financial Crisis of Islamic and Conventional Banking in Middle East – A Case Study in Turkey

2017 ◽  
Vol 9 (8) ◽  
pp. 239
Author(s):  
Ayman Abdal-Majeed Ahmad Al-Smadi ◽  
Mahmoud Khalid Almsafir ◽  
Muzamri Bin Mukthar
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Secondary Data ◽  
Islamic Banking ◽  
The Social ◽  
The Global Financial Crisis ◽  
The Impact

The financial tools all over the world become extremely decisive in these days. The main goal of this paper is to measure then to discuss the impact of performance of conventional and Islamic banking in Turkey during the financial crisis. some variables such as profitability, liquidity, operational efficiency and business growth are used as a measuring factor to determine the performance for both financial models. The period of study is taken during the financial crisis in 1997 and during the global financial crisis in 2007. The comparison in this study is made between the performances of Islamic banking  and conventional banking in Turkey.Some secondary data had examines in this study which was drown from the annual report from one of Turkey bank since 2002 until 2013. SPSS (Statistical Package for the Social Sciences) “18.0” has been used to compare between Islamic finance model and other model. The findings of this paper shows that Islamic financial system is performing superior than conventional financial system for the period of this study. Hence, it can be concluded that the system of Islamic banking is able to sustain and compete with the conventional banking system especially during any financial crisis.

scholarly journals FINANCIAL PERFORMANCE OF ISLAMIC BANKING AFTER THE GLOBAL FINANCIAL CRISIS: A COMPARISON BETWEEN ISLAMIC COMMERCIAL BANKS AND ISLAMIC BUSINESS UNIT BANKS IN INDONESIA

2017 ◽  
Vol 4 (1) ◽  
pp. 149
Author(s):  
Laili Rahmi
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Risk Ratio ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Islamic Banking ◽  
Business Unit ◽  
Significant Difference ◽  
The Global Financial Crisis ◽  
The Impact

<p>The global financial crisis has affected some industries or non-industries around the world. It has also impacted to Islamic banking in Indonesia, especially after 2007-2008. It has been recorded the Islamic banking industry in Indonesia shows a speedy recovery from the impact of the global financial crisis. Thus, this study aims to evaluate and examine the differences of Islamic banking’s financial performance after the global financial crisis in Indonesia. The financial performances in this study are profitability ratio (Return on Asset (ROA) and Return on Equity (ROE)), liquidity ratio (Financing to Deposit Ratio (FDR) and Current Asset Ratio (CAR)) and solvency risk ratio (Equity Multiplier (EM) and Debt to Equity Ratio (DER)). The samples in this study are the six Islamic banks from Islamic Commercial Banks (Bank Usaha Sharia (BUS)) and Islamic Business Unit Banks (Unit Usaha Sharia (UUS)) in Indonesia. Based on the results shows by the descriptive statistic, UUS is more effective in using their assets to generate income compared to BUS, but BUS is greater to manage their financing and more liquid than UUS whose has higher risk than BUS during 2009-2013. Independent sample t-test shows that there is significant difference in terms of profitability, liquidity and solvency risk ratio between BUS and UUS Indonesia during 2009-2013</p>

scholarly journals The Impact of the Global Financial Crisis on China's Banking Sector

2017 ◽  
Vol 35 (1) ◽  
pp. 5-30
Author(s):  
Michiel Haasbroek ◽  
Jörn-Carsten Gottwald
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Financial Sector ◽  
Chinese Economy ◽  
Initial Reaction ◽  
Top Down ◽  
Bottom Up ◽  
The Global Financial Crisis ◽  
The Impact

The banking sector had long been left at the fringes of China's reform policies. Major initiatives of the 1990 and early 2000s helped to balance the need for modernization and internationalization with the objective of preserving political control. When the Global Financial Crisis (GFC) erupted in 2007, it hit the Chinese economy but predominantly in its export sector and much less in its financial sector. Yet when exports collapsed and factories closed in the winter of 2008/2009, the Chinese leadership implemented an ambitious stimulus program and used its leverage over the financial sector to re-start economic growth. These factors – GFC and domestic stimulus – created a series of intended and unintended outcomes. Financial reform in China entered a new stage signalling a profound change in China's banking sector. These changes follow two sometimes contradictive, sometimes mutually reinforcing reform dynamics of top-down policies and bottom-up innovation. In this article we follow an institutional approach and discuss the intensified participation of China's big banks in the Go Out strategy, followed by a shift in the pattern of lending. One factor in this change is the rise of shadow banking and particularly an explosive growth in internet-based financial services. Thus, while the initial reaction to the GFC re-emphasized direct, top-down state involvement in the banking sector, the outcomes of the GFC, China's policies and business innovations have facilitated profound bottom-up changes.

scholarly journals Studi Empiris Kekuatan Stabilitas Keuangan Perbankan Syariah di Indonesia

2019 ◽  
Vol 8 (2) ◽  
pp. 147
Author(s):  
Elok Heniwati
Keyword(s):  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Islamic Banking ◽  
Insolvency Risk ◽  
Conventional Banks ◽  
The Stability ◽  
The Global Financial Crisis

The study aims to examine the stability of Islamic banking in Indonesia after the global financial crisis. This study is significant, considering the rapidly growth of Islamic banking in Indonesia and uniqueness of its operating systems and products. By using secondary data from the annual reports of the banking sector listed on the Indonesia Stock Exchange (IDX) for the period from 2013 to 2016, regression analysis with the ZSCORE function (insolvency risk) as the dependent variable and a number of predictor variables (firm-specific, macroeconomic and governance) are used as tools for achieving research objectives. To check the robustness of the research findings, a model with different specifications has been used. The results indicate that profitability and firm size have a significant influence on the insolvency risk (ZSCORE) of banks and empirical factors that influence these risks differ between Islamic banks and conventional banks.

scholarly journals The Impact of the Global Financial Crisis on the Management of Banking Risks

Equilibrium ◽  
2010 ◽  
Vol 5 (2) ◽  
pp. 33-45
Author(s):  
Alina Manta ◽  
Roxana Nanu
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Absorption Capacity ◽  
External Financing ◽  
Financial Soundness ◽  
Global Liquidity ◽  
The Global Financial Crisis ◽  
External Sector ◽  
The Impact

The international macroeconomic and financial environment has undergone major negative changes since the global financial crisis. The magnitude and intensity of the economic and financial crisis have been underestimated by authorities worldwide. The uncertainties surrounding future developments remain high. In Romania, the main challenges posed by the external sector refer to the worsening perception of risks, including contagion effects from the adverse regional developments, the contraction of external markets, the less readily available external financing and the replacement of global liquidity risk by solvency risk. In spite of this, the banking sector continued to report positive financial soundness indicators, displaying and noticeable financial results. Stress testing analyses indicate a solid absorption capacity of moderate shocks. On the other hand, we proposed ourselves to quantify the degree of correlation between the European and Romanian banking systems through the solvency indicator using the trend analysis.

scholarly journals The impact of the global financial crisis on the value relevance of earnings in the Polish banking sector

2017 ◽  
pp. 87-99
Author(s):  
Piotr Bolibok
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Value Relevance ◽  
The Global Financial Crisis ◽  
The Impact

Celem artykułu jest weryfikacja empiryczna wpływu globalnego kryzysu finansowego na znaczenie wyników finansowych dla wartości rynkowej podmiotów w polskim sektorze bankowym. Badaniem objęto wszystkie banki z siedzibą w Polsce notowane na Giełdzie Papierów Wartościowych w Warszawie w latach 2000–2015. Ramy metodyczne opracowania bazowały na modelu Ohlsona z wykorzystaniem analizy wielorakiej regresji liniowej. Uzyskane wyniki są spójne z rezultatami poprzednich badań w literaturze międzynarodowej i wskazują na spadek znaczenia wyników finansowych dla wartości rynkowej w następstwie kryzysu. Ten negatywny wpływ był najbardziej widoczny i istotny statystycznie w okresie następującym bezpośrednio po rozpoczęciu kryzysu (lata 2008–2012) oraz dla jednostkowych wyników finansowych, podczas gdy dla danych skonsolidowanych rezultaty nie były jednoznaczne. Powyższa rozbieżność sugeruje, że spadek znaczenia dla wartości rynkowej można w przeważającej mierze przypisać samej działalności bankowej, co przypuszczalnie odzwierciedlało silne wahania odpisów aktualizujących wartość należności kredytowych. Z kolei bardziej zdywersyfikowana struktura skonsolidowanych wyników finansowych najwyraźniej ograniczyła spadek ich znaczenia dla wartości rynkowej w oczach inwestorów.

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