Installing Islamic banking windows in conventional bank: Effects on performance

Mohamed Bechir Chenguel, Abdelkader Derbali and Meriem Jouiro
Additional contact information
Mohamed Bechir Chenguel: Higher Institute of Informatics and Management of Kairouan, Kairouan University, Tunisia
Abdelkader Derbali: Higher Institute of Informatics and Management of Kairouan, Kairouan University, Tunisia2Community College, Taibah University, Saudi Arabia
Meriem Jouiro: Higher Institute of Informatics and Management of Kairouan, Kairouan University, Tunisia

International Journal of Financial Engineering (IJFE), 2019, vol. 06, issue 04, 1-11

Abstract: Islamic finance products have become very common in financial transactions, and thus offer new business opportunities. The objective of our study was to investigate the effect of distributing Islamic banking products on the financial performance of commercial banks, over a period of seven years (2010–2017). We use a Correlation analysis to carry out the strength of the relationship between our dependent variable: bank performance variable: return on assets, and independent variables which are Islamic products. Studying the variables collected, we found evidence that there was a significant positive relationship between bank performance: return on asset and Murabaha, Mudaraba, although Ijara had a positive relationship with return on assets but not significant. We notice that all the available Islamic products in commercial banks used, had a positive significant relation with the exclusion of Ijara which had positive insignificant relationship. This implies that an increase in using Islamic banking products in commercial banks will lead to increase in conventional Banks performance.

Keywords: Islamic bank; financial performance; conventional banks (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2424786319500336
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijfexx:v:06:y:2019:i:04:n:s2424786319500336

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2424786319500336

Access Statistics for this article

International Journal of Financial Engineering (IJFE) is currently edited by George Yuan

More articles in International Journal of Financial Engineering (IJFE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().