Comparative Financial Performance Analysis of Conventional and Islamic Banks in Pakistan

2014 ◽  
Author(s):  
Ahmed Imran Imran Hunjra ◽  
Amber Bashir
Keyword(s):  
Performance Analysis ◽  
Financial Performance ◽  
Islamic Banks ◽  
Conventional And Islamic Banks

scholarly journals Comparative Financial Analysis of Conventional and Islamic Banks of Developing Countries

2020 ◽  
Vol 3 (4) ◽  
Author(s):  
Md. Abdul Halim* (Corresponding Author) ◽  
Md. Nazmul Islam (Corresponding Author) ◽  
Abdul Gaffar Khan
Keyword(s):  
Policy Implementation ◽  
Financial Performance ◽  
Commercial Banks ◽  
Financial Analysis ◽  
Islamic Banks ◽  
Good Position ◽  
Insurance Premiums ◽  
Efficiency And Effectiveness ◽  
The Cost ◽  
Conventional And Islamic Banks

This study investigated the financial performance of Bangladesh's State-Owned Commercial Banks, Islami Shariah Based Private commercial Banks and Conventional Private Commercial Banks over 12 years from 2006 to 2017. The objective of this study is to find out the financial performance of a bank based on CAMEL indicators. The finding of this study is that Islami Shariah Based Private commercial Banks and Conventional Private Commercial Banks has a good position than State-Owned Commercial Banks. Specific, Pubali Bank Limited, Standard Bank Limited, Prime Bank Limited, City Bank Limited and Al-Arafah Islami Bank Limited are in the best position in Bangladesh under this study. We also found that the performance of State-Owned Commercial Banks is not good. This study gives a policy implementation according to results. 1. State-Owned Commercial Banks should restructure the infrastructure. 2. It needs more emphasis on efficiency and effectiveness to control the cost and loan investment. 3. It will be required to pay more in insurance premiums. 4. It should be born in mine, for higher rating banks. We suggest to a higher number of rating banks that it’s hinders a bank's ability to expand by investing, consolidating, or adding more branches. We also suggest to all lower rating banks. The institutions with a poor rating will be required to pay more in insurance premiums.

Does the country’s religion affect the financial performance of conventional and Islamic banks? Comparative study in the international framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Achraf Haddad ◽  
Achraf Haddad
Keyword(s):  
Financial Performance ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Emerging Countries ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact ◽  
Conventional And Islamic Banks

Purpose The purpose of this study is to compare the impact of religion on the financial performance of conventional and Islamic banks in the framework of stakeholders’ theory. Design/methodology/approach Few studies have focused on studying the impact of religion on banking performance. Although religion represents an external governance mechanism for financial institutions, by using the generalized method of moments (GMM), this topic constitutes a research opportunity. The already modeled variables are collected from 76 countries located on 5 continents. The data were collected from DATASTREAM, banks’ annual reports, WIKIPEDIA and World Bank. It concerns 210 banks of each type during the period (2010–2020). Findings The author retained that religion negatively affects the financial performance of both conventional and Islamic banks. More specifically, results showed that religion affected the liquidity and solvency of two bank types. It also affected conventional banks’ profitability and efficiency of conventional banks. Research limitations/implications I summarized the theoretical contribution in the integration of a new original governance category to enhance its presence with impacts directly affecting the banks’ financial performance. Empirically, the study can be seen as a compass for all stakeholders to consider environmental, behavioral and doctrinal factors in studying the financial performance evolution and to become more competitive in the banking market. Originality/value Although conventional banks located in developed countries are different from those existing in emerging countries and Islamic banks located in developed countries are different from those existing in emerging countries, I carried out a diversified study in the global context. Referring to the comparative literature review between conventional and Islamic banks, the study was the first conditional research that compared the impacts of religion on the financial performance of conventional and Islamic banks.

scholarly journals Impact of Audit Committee Quality on the Financial Performance of Conventional and Islamic Banks

2021 ◽  
Vol 14 (4) ◽  
pp. 176
Author(s):  
Achraf Haddad ◽  
Anis El Ammari ◽  
Abdelfattah Bouri
Keyword(s):  
Financial Performance ◽  
Audit Committee ◽  
Evaluation Method ◽  
Positive Impact ◽  
Generalized Least Squares ◽  
Audit Committees ◽  
Subprime Crisis ◽  
Islamic Banks ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

A lot of previous research studied the relationship between audit committee quality and the financial performance of conventional banks before and during the subprime crisis, whereas some other investigations analyzed the same association in the framework of Islamic banks. However, no study has compared these two correlations either before, during, or after the subprime crisis. Several reasons explain the differences, such as the audit committee quality of each bank type, the evaluation method of the financial performance, the research peculiarities, the methodology, the data, and the interpretation. This research aims to compare the impacts of the audit committees’ quality on the financial performance of Islamic and conventional banks between 2010 and 2019. The financial performance measures and audit committees’ determinants of the conventional and Islamic banks concerned 112 banks of each type. The collected data covered four continents: America, Asia, Africa, and Europe. Impacts were compared by using the Generalized Least Squares analysis. The results showed that the audit committee reduced the profitability of two bank types. Moreover, it harmed the conventional banks’ efficiency but reported an unclear effect within Islamic banks. Even so, we noticed that the audit committee had a positive impact on the conventional banks’ liquidity, while the same effect was apparently ambiguous for the Islamic banks’ liquidity. For solvency, the audit committee positively influenced conventional banks while it affected that of Islamic banks.

scholarly journals Impacts of ownership structure on the financial performance of conventional and Islamic banks in the agency theory context

2020 ◽  
Vol 17 (3) ◽  
pp. 46-70 ◽  
Author(s):  
Achraf Haddad ◽  
Anis El Ammari ◽  
Abdelfettah Bouri
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Ownership Structure ◽  
Chief Executive ◽  
Islamic Banks ◽  
Differential Analysis ◽  
Two Samples ◽  
Conventional Banks ◽  
The Impact ◽  
Conventional And Islamic Banks

According to the literature review, the analysis results of the impact of ownership structure quality on financial performance within conventional and Islamic financial institutions are contradictory. In our study, we performed a fine differential analysis aimed at resolving this ambiguity. The financial performance and ownership structure variables of conventional and Islamic banks were collected from 16 countries located in three continents: Europe, Asia, and Africa. Two samples were collected that each of them is composed of 63 banks. By using the OLS method, these panel data were compared to the impact of ownership structure on the financial performance between both types of banks in the agency theory framework during the period 2010-2018, giving us 567 bank-year observations in each sub-sample. Results revealed that the ownership structure of conventional banks has had an explained ambiguous impact on its financial performance, whereas that of Islamic banks has a positive effect. Overall, the impacts of the Chief Executive Officer (CEO) shareholding and the board’s chairman shareholding are more significant on the financial performance of conventional banks than those of impacts related to Islamic banks.

scholarly journals Effect of board quality on the financial performance of conventional and Islamic banks in a stable financial context: Comparative study on the international evidence

2020 ◽  
Author(s):  
Achraf HADDAD ◽  
Anis EL AMMARI ◽  
Abdelfattah BOURI
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Positive Impact ◽  
Main Role ◽  
Islamic Banks ◽  
The Board Of Directors ◽  
Internal Mechanism ◽  
Conventional Banks ◽  
The Impact ◽  
Conventional And Islamic Banks

Abstract Returning to the literature of finance and banking governance, our article provides the first logical analysis that detailed the process of comparative analysis between the correlation of board determinants’ quality and the financial performance of conventional and Islamic banks. Previous research has always discussed the main role of the board as an internal mechanism of governance on the financial performance separately in each bank type. However, we have never encountered rewarding studies that compared these impacts. In our study, we distinguished between the impact of the board of directors on the financial performance in conventional and Islamic banks. Settings of the financial performance and board of directors of the conventional and Islamic banks are collected from 30 countries located in four continents: America, Europe, Asia, and Africa. Two equal samples were collected that each of them is composed of 112 banks. By using the GLS method, data were used to explore the impact of the board of directors on the financial performance between both types of banks over the period 2010-2018, giving us 1008 bank-year observations in each sub-sample. On the whole, empirical results have shown that in conventional banks the board of directors has negatively affected the financial performance, while the impact of the board on the financial performance of Islamic banks is ambiguous. Nevertheless, the degree of the positive impact on financial performance is more significant in Islamic banks.

Sign in / Sign up

Export Citation Format

Share Document