PERFORMANCE OF INTEREST-FREE ISLAMIC BANKS VIS-À-VIS INTEREST-BASED CONVENTIONAL BANKS OF BAHRAIN

Abdus Samad ()
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Abdus Samad: Utah Valley State College, 800 W University PKWY, Orem, UT 84057, USA

IIUM Journal of Economics and Management, 2004, vol. 12, issue 2

Abstract: This paper examines the comparative performance of Bahrain’s interest-free Islamic banks and the interest-based conventional commercial banks during the post Gulf War period with respect to (a) profitability, (b) liquidity risk, and (c) credit risk. Nine financial ratios are used in measuring these performances. Applying Student’s t-test to financial ratios for Islamic and conventional commercial banks in Bahrain for the period 1991-2001, the paper concludes that there is no major difference in performance between Islamic and conventional banks with respect to profitability and liquidity. However, the study finds that there exists a significant difference in credit performance.

Keywords: Banks; Comparative performance; Bahrain (search for similar items in EconPapers)
JEL-codes: G20 G21 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (61)

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