Islamic banking, conventional banking, banks financial performance measures, profitability, Egypt.
There is no doubt that banks have significant position in the welfare of any economy. In the last few decades, Islamic banking sector was introduced. This new banking type has demonstrated a competitive position with the traditional conventional banks. It has acquired the interest in many countries and regions. Islamic banking system has accelerated its growth globally in terms of total assets and market share. Egypt is the birthplace for this new system, although, it is not taking a leading role in the implementation as well as the academic research. A summary of Islamic banking principles and instruments are introduced before going through the details of the empirical study to compare the financial performance of both types of banks. The focus of this research is to investigate the effect of the inter-bank factors along with the size of banks on the financial performance of these banks working in the Egyptian market. The research main aim is to perform a comparative analysis on the financial performance of both Islamic and conventional banks. Research analyses adopted in this study are descriptive, correlation and regression analyses to test the research hypotheses. Findings of this research provide evidence that some of the inter-bank factors found to have significant effect on the financial performance of these banks; however, no considerable differences between the two groups were found which suggests that bank type is not a significant variable and that conventional an
Full Text : PDF
- Al-Jarrah, I. and Molyneux, P., 2007. Efficiency in Arabian Banking. Jordan Journal of Business Administration, 3(3), 373- 360.
- Alkassim, F. A., 2005. The profitability of Islamic and conventional banking in the GCC countries: a comparative study. Journal of Review of Islamic Economics, 13, 5-30.
- Botis, S., 2013. Shari’ah Concepts in Islamic Banking. Economic Sciences, 6, (55), 140-148.
- Ernst and Young report, 2014. World Islamic Banking Competitiveness Report 2013–14 [online]
- http://www.ey.com/Publication/vwLUAssets/EY_World_Islamic_Banking_Competitiveness_Report_2013%E2%80%9314/$FILE/EY-World-Islamic-Banking-Competitiveness-Report-2013-14.pdf [Accessed Feb 2015].
- Faizulayev, A., 2011. Comparative Analysis between Islamic Banking and Conventional Banking Firms in terms of Profitability for the period 2006-2009. MSc/MA Dissertation, Eastern Mediterranean University.
- Fayed, M. E., 2013. Comparative Performance Study of Conventional and Islamic Banking in Egypt. Journal of Applied Finance & Marketing, 3(2), 1-14.
- Hamedian, B., 2013. Financial Performance of Islamic Banks vs. Conventional Banks: The Case of Malaysia. MSc/MA Dissertation, Eastern Mediterranean University.
- Iqbal, M., 2001. Islamic and Conventional Banking in the Nineties: A Comparative Study, Islamic Economic Studies, 8(2). p1-27
- Iqbal, M., and Molyneux, P., 2005. Thirty years of Islamic banking: History, performance, and prospects. New York: Palgrave Macmillan.
- Islamic Financial Services Industry Stability Report, 2013. [online ] http://www.ifsb.org/docs/IFSB%20%20IFSI%20Stability%20Report%202013%20%28Final%29.pdf [Assessed Feb 2015].
- Khan, T. N., 2011. A study of customers' perception and attitude to Islamic banking: products, services, staff, shari'ah board and marketing in five countries: Pakistan, Malaysia, Saudi Arabia, UAE and UK. Ph.D. Thesis, University of Aberdeen.
- Kothari, C. R., 2004. The research methodology methods and Technique, second edition, New Age International Publisher.
- Mashal, A. M., 2012. Islamic Financial in the Global Financial System. Asian Economic and Social Society, 2(1), 207-223.
- Ramin, B., Reza, M. p., Vahid, K., 2014. The Profitability of Islamic Banking in Iran vs. Conventional Banking in Turkey. International Journal of Management and Humanity Sciences, Vol., 3 Available [online] at http://www.ijmhsjournal.com.
- Samad, A., 2004. Performance of Interest-Free Islamic Banks Vis-À-Vis Interest-Based Conventional Banks of Bahrain. IIUM Journal of Economics and Management, 12(2), 1-15.
- Elise, S., 2015. Islamic Banks Takes Upward Trends [online] http://www.dailynewsegypt.com/2015/01/10/islamic-banking-takes-upward-trend-egypt/ [Accessed Feb 2015].
- Siddiqi, M. N., 2006. Islamic Banking and Finance in Theory and Practice: A Survey of State of the Art. Islamic Economic Studies, 3(2), 1-48.
- Siraj, K. K. and Pillai, P. S., 2012. Comparative study on performance of Islamic banks and conventional banks in GCC region. Journal of Applied Finance & Banking, 3(2), 123-161.
- Sreejash, S., Mohapatra, S., Anusree, M. R., 2014. Business Research Methods: An Applied Orientation, Springer Publication.
- Zikmund, W. G., Babin, B. J., Carr, J. C., Griffin, M., 2009. Business Research Methods, Eighth Edition, Cengage Learning Publications.