Download or read book Comparative Study of Income and Cost Efficiency of Islamic and Conventional Banks of Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays an important role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and non-Islamic banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic sariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and non-Islamic 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.

Download or read book A Comparison of Financial Performance of Islamic and Conventional Banks in Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays a key role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and conventional banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic shariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and conventional 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.

Download or read book Sectoral Distribution and Islamic Finance written by Mohammad Omar Farooq and published by . This book was released on 2019 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proponents of Islamic finance argue that unlike conventional finance it emphasizes the real economy. Such emphasis should be reflected in the sectoral distribution in an economy. In this paper, in light of a conceptualization of the real economy, the sectoral distribution of financial activities of conventional and Islamic banks in Bahrain is explored. The paper uses the data available from the Central Bank of Bahrain (CBB) regarding the sectoral distribution in both conventional and Islamic banks. The breakdown of banks into both retail and wholesale banks as well as onshore and offshore banks is examined to identify any important trends or patterns in light of the conceptualization of the real economy. The analysis of data finds certain concentration in the real estate sector. Islamic banks also have a bias toward consumer finance, which has implications in promoting a debt culture. Several other gaps between the commonly proclaimed merits of Islamic finance and the praxis in reality are also identified. The research is based on a single country, Bahrain, a financial hub for both conventional and Islamic banks. Even though Bahrain has a diversified economy, it is still limited in terms of some key sectors, such as manufacturing and agriculture. Thus, broader study including other countries with major presence of Islamic banks would be the next step in this research. Bias to certain sectors can be problematic in case of a potential crisis. Also, in certain respects, such as bias of Islamic banks toward consumer finance, it might be serving to promote debt culture that many developed countries are already beset with. The research can create better awareness about various patterns of sectoral distribution.

Download or read book Comparative Efficiency Study Between Islamic and Traditional Banks written by Mohamed H. Rashwan and published by . This book was released on 2016 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic banking caught attention due to its resilience to the significant shocks that hit the economy in late 2008. This research aims to evaluate the efficiency of a sample of 66 banks including both Islamic and traditional banks in various countries ranging from Egypt, Pakistan, Bangladesh, Saudi Arabia, Kuwait, Qatar, Iraq, Emirates, Sudan, Turkey, Bahrain and Jordan throughout 2009-2014. 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 impact of efficiency of the performance of the banks in terms of Return on Assets (ROA) and Return on Equity (ROE) is also evaluated through multiple regression analysis. Lastly, inflation's effect on the different banking efficiency measures will be tested using regression analysis. 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. The overall results imply the superiority of traditional banks to the relatively new banking system.

Download or read book Are Islamic Banks More Cost Revenue and Profit Efficient Than Commercial Banks written by Amine Abi Aad and published by . This book was released on 2009 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effects of the Global Crisis on Islamic and Conventional Banks written by Jemma Dridi and published by . This book was released on 2005-10-31 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the performance of Islamic banks (IBs) and conventional banks (CBs) during the recent global crisis by looking at the impact of the crisis on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share. Our analysis suggests that IBs have been affected differently than CBs. Factors related to IBs‘ business model helped limit the adverse impact on profitability in 2008, while weaknesses in risk management practices in some IBs led to a larger decline in profitability in 2009 compared to CBs. IBs‘ credit and asset growth performed better than did that of CBs in 2008-09, contributing to financial and economic stability. External rating agencies‘ re-assessment of IBs‘ risk was generally more favorable.

Download or read book An Empirical Analysis of Financial Performance of Retail and Wholesale Islamic Banks in Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic banking, as an alternative to conventional banking system, is currently one of the most rapidly growing segments of the global financial market industry operating with more than 300 institutions spread over 75 countries. Undoubtedly, Islamic banks has cogent contribution towards the economic growth of any nation. This paper explores the analysis of the financial performance of retail and wholesale Islamic Banks operating in the Kingdom of Bahrain. For the empirical investigation, six retail and seven wholesale Islamic banks were selected for the study. Financial ratio analysis, standard deviation and correlation analyses were employed for the time period 2009-2013. The study found that there is a negative relationship among asset utilization ratio with staff cost to income ratio, operational efficiency ratio and cost to income ratio of retail Islamic Banks. Empirical results for wholesale Islamic banks revealed that there is a positive relationship among staff cost to income ratio, operational efficiency ratio and cost to income ratio.

Download or read book Economic Efficiency and Profitability of Islamic Bank written by Mohamad Akbar Noor Mohamad Noor and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study is among the first few studies on Islamic banking that will provide comprehensive cross countries between Islamic banks in the world using more than one analytical approach. Hence, the study also provides contribution in term of rigorousness of the methodology used as compared to previous studies on Islamic banks. This study will contribute findings for 3 different methods used from efficiency, determinants of the efficiency, the profitability and the relationship between efficiency determinants and profitability. Hence, it provides a more comprehensive analysis whereas most studies in the past applied specific model such as Data Envelopment Analysis (DEA) or Tobit or Fixed Effect Model (FEM) on an individual basis instead of employing the three methods in one study. The findings from this comparative study will add an interesting dimension to the existing literature and body of knowledge in relevant manners. This study is novel in presenting new finding on the impact to the Islamic banks on several latest issues such as Financial Crisis (AFC), 2008 Global Financial Crisis (GFC), region in MENA and ASIA, and GNI country income based on 2003 World Bank Atlas method.

Download or read book An Empirical Analysis of Performance of Retail and Wholesale Conventional Banks in Bahrain written by Iqbal Thonse Hawaldar and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The main purpose of this study is to examine the financial performance of retail and wholesale conventional banks in Bahrain. The study covers a period of five years from 2009 to 2013. Ratio analysis was used to analyse the comparative financial efficiency of banks under study and correlation analysis was used to test the significance. Descriptive statistical analysis was used to measure the dispersion and the stability-variability of the ratios. The results indicate that wholesale banks are more efficient than retail banks in terms of overall cost to income and asset utilisation whereas retail banks are more efficient than wholesale banks in staff cost to income and operations. Correlation analysis showed a high positive correlation of staff cost to income ratio with operational efficiency ratio and cost to income ratio in retail banks and positive correlation of staff cost to income ratio with operational efficiency ratio and cost to income ratio in wholesale banks.

Download or read book Comparative Performance Evaluation of Selected Commercial Banks in Kingdom of Bahrain Using CAMELS Method written by Dr. Jyothi Venkatesh and published by . This book was released on 2014 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aim of this paper is to analyse the financial efficiency of selected commercial banks in kingdom of Bahrain. Bahrain which is considered as the financial hub of Middle East, play significant role in the economic activities in the Mena Region. Financial sector play a significant role in Bahrain as 16% of the GDP of Bahrain originates from financial sector. The financial efficiency of banks under study is measured by CAMELS analysis. There are 4 retail conventional banks that used as samples in this research out of the 28 conventional and Islamic retail banks in the country. Results show that National Bank of Bahrain, the government bank in the country, has attained highest efficiency compared to its peers in the market.

Download or read book An Overview of Islamic Finance written by Mr.Mumtaz Hussain and published by International Monetary Fund. This book was released on 2015-06-02 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.

Download or read book Comparative Analysis of Financial Performance of Islamic and Conventional Banks written by Faiza Khalil and published by . This book was released on 2019 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article investigates the performance of Islamic banks versus conventional counterparts in Pakistan over the period (2007-2017) using financial ratio analysis. A total of 18 banks (13 conventional and 5 Islamic) were considered. A comparative study is undertaken based on performance indicators, 12 financial ratios were estimated used to measure performances in terms of profitability, liquidity, risk and solvency, and efficiency. T-test is used in determining their significance. The results show that there are differences in performance between Islamic and conventional banks in Pakistan during study period in terms Islamic banks are less profitable, more liquid, less risky, and less efficient comparing to conventional banks. However, there was no significant difference in profitability ratios, but there was a significant difference in liquidity ratios and risk and solvency ratios between conventional and Islamic banks.

Download or read book Financial Structure and Bank Profitability written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 2000 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Countries differ in the extent to which their financial systems are bank-based or market-based. The financial systems of Germany and Japan, for example, are considered bank-based because banks play a leading role in mobilizing savings, allocating capital, overseeing investment decisions of corporate managers, and providing risk management vehicles. The systems of the United States, and the United Kingdom are considered more market-based. Using bank-level data for a large number of industrial and developing countries, the authors present evidence about the impact of financial development, and structure on bank performance. They measure the relative importance of bank or market finance by the relative size of stock aggregates, by relative trading or transaction volumes, and by indicators of relative efficiency. They show that in developing countries, both banks and stock markets are less developed, but financial systems tend to be more bank-based. The richer the country, the more active are all financial intermediaries. The greater the development of a country's banks, the tougher is the competition, the greater is the efficiency, and the lower are the bank margins, and profits. The more under-developed the stock market, the greater are the bank profits. But financial structure per se does not have a significant, independent influence on bank margins, and profits.

Download or read book Handbook of Islamic Banking written by Kabir Hassan and published by Edward Elgar Publishing. This book was released on 2009-01-01 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Handbook of Islamic Banking comprises 25 studies by leading international experts on Islamic banking and finance specially commissioned to analyse the various debates and the current state of play in the field. From its origins thirty years ago, Islamic banking has expanded rapidly to become a distinctive and fast growing segment of the international banking and capital markets. Despite this expansion, Islamic banking still remains poorly understood in many parts of the Muslim world and continues to be a mystery in much of the West. This comprehensive Handbook provides a succinct analysis of the workings of Islamic banking and finance, accessible to a wide range of readers. At the same time, it seeks to bring the current research agenda and the main issues on Islamic banking before a wider audience. Islamic banking offers, as an alternative to conventional interest-based financing methods, a wide variety of financial instruments and investment vehicles based on profit-and-loss sharing arrangements. These are all explored in detail along with other subjects such as governance and risk management, securities and investment, structured financing, accounting and regulation, economic development and globalization. M. Kabir Hassan, Mervyn Lewis and the other contributors have created an authoritative and original reference work, which will contribute to a wider understanding of Islamic banking as well as provoking further discussion and research. It will be invaluable to all scholars, researchers and policymakers with an interest in this subject.

Download or read book Islamic Finance written by Mehmet Asutay and published by . This book was released on 2015 with total page 1100 pages. Available in PDF, EPUB and Kindle. Book excerpt: This collection of new research brings together state of the art thinking by 46 experts from academia and business on all key aspects of Islamic Finance. Individual volumes deal with the key issues of: Political Economy, Values and Aspirations; Growth, Performance and Efficiency; Stability and Risk.

Download or read book Islamic Banking written by Mr.Kangni Kpodar and published by International Monetary Fund. This book was released on 2010-08-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the determinants of the pattern of Islamic bank diffusion around the world using country-level data for 1992 - 2006. The analysis illustrates that income per capita, share of Muslims in the population and status as an oil producer are linked to the development of Islamic banking, as are economic integration with Middle Eastern countries and proximity to Islamic financial centers. Interest rates have a negative impact on Islamic banking, reflecting the implicit benchmark for Islamic banks. The quality of institutions does not matter, probably because the often higher hurdle set by Shariah law trumps the quality of local institutions in most countries. The 9/11 attacks were not important to the diffusion of Islamic banking; but they coincided with rising oil prices, which are a significant factor in the diffusion of Islamic banking. Islamic banks also appear to be complements to, rather than substitutes for, conventional banks.

Download or read book Islamic Banking Regulation and Supervision written by Mr.In Song and published by International Monetary Fund. This book was released on 2014-12-12 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growing presence of Islamic banking needs to be accompanied by the development of effective regulation and supervision. This paper examines the results of the survey conducted by the International Monetary Fund to document international experiences and country practices related to legal and prudential frameworks governing Islamic banking activities. Although a number of countries have made considerable progress in creating legal, regulatory, and supervisory frameworks that accommodate Islamic banking, there are substantial differences. This paper also identifies a number of challenges faced by regulatory and supervisory agencies regarding Islamic banking.