A comparative analysis of financial performance of Islamic banks vis-à-vis conventional banks : evidence from Pakistan
Joint Authors
Majid, Muhammad Tariq
Zaynab, Ubaydah
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 13, Issue 3 (31 Dec. 2021), pp.331-346, 16 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2021-12-31
Country of Publication
Malaysia
No. of Pages
16
Main Subjects
Abstract EN
Purpose-In recent years, the fast growth of Islamic banks (IBs) has generated debates among policymakers and economists about the sustainability and performance of these institutions.
This paper aims to undertake a comparative analysis of the financial performance of IBs and conventional banks (CBs) in Pakistan over the period 2008–2019 to evaluate how IBs are faring compared to their conventional peers.
Design/methodology/approach-This paper considers Financial Ratio Analysis (FRA) to analyse and compare the performance of the top-10 IBs and CBs operating in Pakistan.
The sample includes five full-fledged IBs and five CBs which offer Islamic windows in Pakistan.
The top-five performing CBs offering Islamic windows have been selected in this study.
Findings-The results show that IBs are better capitalized, less risky and have higher liquidity as compared to CBs.
In contrast, the profits of IBs are found to be lower than those of CBs.
Research limitations/implications-The study has provided an analysis of financial performance only for Pakistan.
A cross-country analysis could be more representative of the performance of IBs.
Practical implications-The study infers that the size of the Islamic banking industry in Pakistan should be enhanced by opening new branches and promoting Islamic financial literacy.
Originality/value-The study assists investors, creditors, debtors and managers in making better decisions.
It also provides the latest valuable information to regulators and policymakers that can be used to make rules and policies for the finance industry in Pakistan.
American Psychological Association (APA)
Majid, Muhammad Tariq& Zaynab, Ubaydah. 2021. A comparative analysis of financial performance of Islamic banks vis-à-vis conventional banks : evidence from Pakistan. ISRA International Journal of Islamic Finance،Vol. 13, no. 3, pp.331-346.
https://search.emarefa.net/detail/BIM-1429801
Modern Language Association (MLA)
Majid, Muhammad Tariq& Zaynab, Ubaydah. A comparative analysis of financial performance of Islamic banks vis-à-vis conventional banks : evidence from Pakistan. ISRA International Journal of Islamic Finance Vol. 13, no. 3 (2021), pp.331-346.
https://search.emarefa.net/detail/BIM-1429801
American Medical Association (AMA)
Majid, Muhammad Tariq& Zaynab, Ubaydah. A comparative analysis of financial performance of Islamic banks vis-à-vis conventional banks : evidence from Pakistan. ISRA International Journal of Islamic Finance. 2021. Vol. 13, no. 3, pp.331-346.
https://search.emarefa.net/detail/BIM-1429801
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 343-346
Record ID
BIM-1429801