scholarly journals A Technical Recitation on Efficiency of Islamic and Traditional Banking System in Kingdom of Bahrain

2019 ◽  
Vol 8 (10) ◽  
pp. 4424-4431
Keyword(s):  
Banking System ◽  
Vital Role ◽  
Return On Assets ◽  
Return On Equity ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Conventional Banks ◽  
The One ◽  
Financial Transactions ◽  
Revenue Efficiency

Banking industry plays a vital role in the for economic development of a country. This research aims at identifying which banking regime proves to be more efficient and its significance using Financial Ratio Analysis (FRA), composed of cost efficiency, revenue efficiency and profit efficiency ratios along with the One-way ANOVA test. The traditional banking system governs the financial sector by dealing with the majority of financial transactions of a country and the existence of Islamic and conventional banks has contributed for the development of the economy. The present study focuses on the comparative analysis of financial performance of Islamic and traditional banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community, efficiency and productivity of both streams of banks. The findings indicate that the traditional banking system is superior in terms of cost, revenue and profit efficiencies, furthermore, the results of the multiple regression analysis on the banks’ return on assets and return on equity imply that the efficiency of Islamic banks have more influence on their profitability compared to their traditional counterparts. Inflation had minimal effect on the efficiency of both banking system.

scholarly journals PERBANDINGAN TINGKAT PROFITABILITAS DAN LIKUIDITAS DARI ASSET-LIABILITIES MANAGEMENT PADA BANK SYARIAH DAN BANK KONVENSIONAL

2016 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Rindang Nuri Isnaini Nugrohowati
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Liability Management ◽  
Capital Adequacy Ratio ◽  
Conventional Banks ◽  
Important Position

Abstract The banking sector has a very important position for the economic systemof a country. The banking system, which is part of the financial system willaffect the course of the economic system as a whole. If the banking system isweak then the system will also be weak economy. Banking is an intermediaryinstitution is the institution that channel funds from surplus funds (surplusunits) to the sectors that lack of funds (defi cit units). With the banking economic actors in need of funds can be met so that the economy can continue to run. In this study will specifi cally analyze the comparison of the level of profi tability of the asset-liability management in Islamic banks and conventional banks are seen from the return on assets and return on equity rises. It also will be studied comparative level of liquidity in Islamic banks and conventional banks are seen from the loan to deposit ratio and Capital Adequacy Ratio. By Hyphothesis is as follows : Ha1: there are differences in the level of profitability of the asset-liabilitymanagement in Islamic banks and conventional banks are seen from the return on assets and return on equity Ha2: there are differences in the level of liquidity in Islamic banks andconventional banks are seen from the loan to deposit ratio and Capital Adequacy Ratio Data analysis has been done obtained the following conclusions, based onmeans testing compare with test Independent-Samples t-test showed that the level of tability seen from ROA and ROE between Islamic Bank and Bank Konvensiona show any signifi cant difference. This is demonstrated by tests of signifi cance 0.02 0.05 for FDR, while for the signifi cance test CAR of 0.38> 0.05. Keyword: Profi tabilitas, Likuiditas, Asset Liabilities Management, Bank Syariah

scholarly journals KINERJA KEUANGAN BANK SYARIAH DI ASEAN

2019 ◽  
Vol 5 (12) ◽  
pp. 1020
Author(s):  
Yessy Listiyanti ◽  
Atina Shofawati
Keyword(s):  
Comparative Research ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Return On Equity ◽  
Financial Ratio ◽  
Parametric Test ◽  
Brunei Darussalam ◽  
Capital Adequacy Ratio ◽  
The One ◽  
One Way Anova

The aims of this research is to determine differences in financial performancebetween Bank Islam Malaysia Berhad, Bank Syariah Mandiri, and Bank Islam Brunei Darussalam span from the period of 2011 to 2016. This study is a type of comparative research. Financial ratios used in this study are Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Return on Assets (ROA), Return on Equity (ROE), and Capital Adequacy Ratio (CAR). The statistical model used to test the hypothesis is the one-way ANOVA parametric test. The results showed that there were significant differences in all financial ratio indicators between the performance of Bank Islam Malaysia Berhad, Bank Syariah Mandiri, and Bank Islam Brunei Darussalam except ROA

scholarly journals Financial performance of conventional and Islamic banks in Bahrain: a comparative study

2019 ◽  
Vol 14 (4) ◽  
pp. 192-205 ◽  
Author(s):  
Sayel Ramadhan ◽  
Mohammad Selim ◽  
Ahmad Sahwan
Keyword(s):  
Comparative Study ◽  
Financial Performance ◽  
Islamic Banks ◽  
Return On Equity ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Risk Cost ◽  
Conventional Banks ◽  
Asset Size ◽  
The Relationship

The main purpose of this study is to identify the variables that influence the financial performance of both types of banks, Islamic and conventional, and compare their financial performance over the period of 2003–2016. Banks listed on the Bahrain Bourse as of December 31, 2016 were used in the study, with a total of seven banks, of which three are Islamic and four are conventional. To make an appropriate comparative study, financial ratio analysis is used. Multiple regression and paired sample t-test are used to analyze the data. Return on assets (ROA) and return on equity (ROE) are considered as the basis for measuring financial performance and are set as dependent variables. The analysis of the results shows that conventional banks perform better than Islamic banks in terms of profitability. The results also show that ROA is significantly related to risk, cost of intermediation and efficiency ratios, while ROE is highly influenced by risk ratios only. Moreover, it was found out that the relationship between asset size and the performance of banks is insignificant, while the relationship between the number of branches and both ROA and ROE is significant.

scholarly journals A Comparative Financial Ratio Analysis Between Conventional and Islamic Banks in GCC

2021 ◽  
Vol 11 (4) ◽  
pp. 12
Author(s):  
Arindam Banerjee
Keyword(s):  
Cash Flow ◽  
Banking System ◽  
Design Activity ◽  
Islamic Banks ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Financial Framework ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

Banking framework establishes the central mainstay of any economy. Banks functions as monetary conduits between sectors that have abundance reserves and those that are in deficiency. The historical backdrop of banking in the Gulf Cooperation Council (GCC) traces all the way back to 1918 with the foundation of the primary bank in Bahrain. The territorial financial evolution is attributable to oil abundance and loaning business that spotlights on building, land and client advances. Throughout the long term, the financial framework worldwide has advanced in its contributions to suit the changing customer requests. One of the essential determinants of this change came about because of the strict convictions of individuals bringing about the remarkable development of Islamic Banking System. The prevalence of these banks are in nations with critical Muslim populace like Iran, Pakistan and Sudan but not limited to them. Islamic banks work under Sharia standards of hazard sharing and premium preclusion as appeared differently in relation to customary banks that purchase cash-flow to pool assets and offer cash-flow to produce revenue pay or benefit. This paper applies banks' endogenic elements identified with their monetary record and pay explanation and utilizing an aggregate of 24 financial ratios relating to the banks’ performance and seeks to thoroughly analyze the same among customary and Islamic banks. This examination clarifies the design, activity and the board of traditional banks in the GCC combined with the working of Islamic banks. The paper likewise intends to decide the beneficial and proficient banks among the chosen sample. The study incorporates 20 institutions, similarly dispersed among Islamic and customary banks utilizing information between the time of 2014 - 2017. The example is comprehensively ordered dependent on benefit ratios, proficiency ratios, asset indicator ratios and risk ratios. Further sub categorization is done to show up at an aggregate of 24 ratios. An independent T-test is used to determine a substantial ratio between Islamic and conventional banks.

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

Risk disclosure and financial performance: the case of Islamic and conventional banks in the GCC

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayman E. Haddad ◽  
Hussain Alali
Keyword(s):  
Financial Performance ◽  
United Arab Emirates ◽  
Best Practice ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Return On Assets ◽  
Content Type ◽  
Return On Equity ◽  
Gcc Countries ◽  
Conventional Banks

Purpose This study aims to explore the extent of risk disclosure (RD) among conventional banks (CBs) and Islamic banks (IBs) listed on stock markets in the Gulf cooperation council (GCC). It also examines the influence of RD on the banks’ financial performance as measured by return on assets (ROA) and return on equity (ROE). Design/methodology/approach This study uses content analysis to examine RD in the annual reports of 16 CBs and 14 IBs in the GCC for a sample of 240 firm-year observations over the period 2007 to 2014. Findings The study shows no significant differences between the RD reported in the annual reports of CBs and that of IBs. On average, a CB reported 234 sentences while an IB disclosed 244 sentences of RD in its annual report. The authors also find that both types of banks had an upward trend over the periods. While the means of RD reported by CBs have significantly improved over the period, the RD reported by IBs has not. Similar results are also found when the authors compared the RD pre- and post-financial crisis period. Finally, the authors find that there is a significant association between RD and both models of financial performance (ROA and ROE) for IBs, after controlling other variables. However, RD has a significant association with only ROE for CBs. Research limitations/implications The bank selection was restricted to publicly traded banks in the GCC. Other financial institutions and different types of industries were not considered. Further research could determine whether the results obtained in this study could be generalized to different industries in the GCC and or in other countries. Practical implications This study provides evidence on the significant association between RD and the financial performance of CBs and IBs in GCC countries. This study could be helpful to regulatory authorities in encouraging banks to adopt the best practice of RD and thus promote banks’ transparency. Originality/value This is the first known study to examine the RD practices of both types of banks and their association with banks’ financial performance in five-GCC countries (Kuwait, Qatar, Saudi Arabia, United Arab Emirates and Bahrain), based on a longitudinal analysis of year-end annual reports, covering eight years period from 2007 to 2014.

scholarly journals Analisis Rasio Likuiditas, Solvabilitas, Aktivitas Dan Profitabilitas Untuk Menilai Kinerja Keuangan PT Martina Berto Tbk Periode 2014-2018

2020 ◽  
Vol 2 (1) ◽  
pp. 45-58
Author(s):  
Linda Mariana ◽  
Heru Satria Rukmana
Keyword(s):  
Secondary Data ◽  
Financial Ratios ◽  
Fixed Asset ◽  
Return On Equity ◽  
Financial Ratio ◽  
Average Return ◽  
Financial Ratio Analysis ◽  
Equity Ratio ◽  
Quantitative Descriptive ◽  
Turn Over

This study aims to assess the financial performance of PT Martina Berto Tbk in 2014 to 2018 which is reviewed from financial ratios. Financial ratios used are liquidity, solvency, activity and profitability. This study is quantitative descriptive research. Data collection techniques are performed using documentation methods in the form of secondary data and library assessments. Data analysis techniques are used using financial ratio analysis in the form of a comparison of the company's financial ratio performance with the industry average. The results of this study show that the liquidity ratio consisting of current ratio in 2014 was above the industry average and in 2015-2018 was below the industry average, the quick ratio in 2014-2016 was above the industry average and in 2017-2018 was below the industry average, the cash ratio in 2014 was above the industry average and in 2015-2018 was below the industry average. The solvency ratio consisting of debt to asset ratio in 2014 was below the industry average and in 2015-2018 was above the industry average, the debt to equity ratio in 2014 was below the industry average and in 2015-2018 was above the industry average. The ratio of activities consisting of receivable turn over in 2014-2018 is below the industry average, inventory turn over in 2014-2017 was above the industry average and in 2018 was below the industry average, fixed asset turn over in 2014-2018 was below the industry average, fixed asset turn over in 2014-2018 was above the industry average , the total asset turn over in 2014-2018 was below the industry average. The profitability ratio consisting of return on assets in 2014-2018 is below the industry average, return on equity in 2014-2018 is below the industry average and net profit margin in 2014-2018 is below the industry average

scholarly journals THE EFFECTS OF FINANCIAL RATIO, LOCAL SIZE AND LOCAL STATUS ON FINANCIAL DISTRESS

2019 ◽  
Vol 3 (01) ◽  
pp. 38
Author(s):  
Novica Indriaty ◽  
Doddy Setiawan ◽  
Yuwita Ariessa Pravasanti
Keyword(s):  
Logistic Regression ◽  
Local Government ◽  
Financial Distress ◽  
Local Governments ◽  
Sampling Method ◽  
Return On Assets ◽  
Return On Equity ◽  
Financial Ratio ◽  
The Status ◽  
Equity Ratio

This study is aimed to examine the effects of financial ratio empirically, local size and local status on financial distress. The status of financial distress is the condition of the inability of the local government to repay the loan principal and the loan interest. The population of this study include local governments in Indonesia that publish Report on Local Government Finances in 2008-2014. Samples were selected based on purposive sampling method and obtained 641 as research observation. With logistic regression, this study found that financial ratio included current ratio (CR), debt to equity ratio (D/E), operating revenues to total revenues ratio (OR/TR), return on assets ratio (ROA), return on equity ratio (ROE), and macro-economic variables were local size and local status have a significant effect on financial distress. Keywords : Financial Distress, Financial Ratio, Local Size, Local Status, Logistic Regression, Report on Local Government Finances

scholarly journals ANALISIS PENGARUH TINGKAT LIKUIDITAS TERHADAP PROFITABILITAS PADA PT. PLN (Persero) KABUPATEN BULUKUMBA

2019 ◽  
Vol 1 (1) ◽  
Author(s):  
Fahira Fahira
Keyword(s):  
Quantitative Research ◽  
Coefficient Of Determination ◽  
Ratio Analysis ◽  
Return On Assets ◽  
Current Ratio ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Main Indicator ◽  
Negative Effect ◽  
Simple Regression Analysis

The main indicator of this research was how could the companies survive and develop, and the objective effort in increasing profitability. Labored between liquidity on one side and profitability on the other side is not contradictory and can achieve optimal profits without sacrificing company liquidity. This research aimd to determine the effects of liquidity as measuring using the current ratio (CR) on profitability as measuring by Return on Assets (ROA) at PT PLN (Persero) Bulukumba in the period of 2015 to 2017. This research employed quantitative research. Furthermore, the method of data analysis was using financial ratio analysis, simple regression analysis, t-test and coefficient of determination. The results of this research that was conducted at PT PLN (Persero) Bulukumba with employed data from 2015 until 2017: (1) The effect of liquidity on profitability showed a negative effect, (2) Current Ratio didn’t have a significant effect on Return on Assets.

How multiple large shareholders affect bank profitability under the dispersion and the coalition hypotheses? An insight from the MENA region

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rim Boussaada ◽  
Abdelaziz Hakimi
Keyword(s):  
Method Of Moment ◽  
Mena Region ◽  
Return On Assets ◽  
Bank Profitability ◽  
Content Type ◽  
Return On Equity ◽  
Large Shareholders ◽  
Conventional Banks ◽  
Generalized Method Of Moment ◽  
Ownership Composition

PurposeThe aim of this paper is to examine whether multiple large shareholders and their interactions affect bank profitability in the MENA region.Design/methodology/approachTo achieve this goal, we used a sample of conventional banks in the MENA region observed during the period 2004–2015. We performed the System Generalized Method of Moment as the empirical approach.FindingsEmpirical results indicate that under the dispersion hypothesis, multiple large shareholders (MLS) tend to reduce bank profitability for both return on assets (ROA) and return on equity (ROE). However, under the alignment of interests’ hypothesis, coalition between the first and the second largest shareholder increases bank profitability only for ROA. We also find that an additional large shareholder, beyond the two largest, reduces bank return equity.Originality/valueTo the best of our knowledge, to date, there is no study that investigates the effect of MLS and the bank profitability in the MENA region. Indeed, this study shows the importance of considering ownership composition among large shareholders in banking studies.

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