Performance indicators of banks in a total Islamic banking system: the case of Sudan

Abuzar M.A. Eljelly and Ahmed Abdelgadir Elobeed

International Journal of Islamic and Middle Eastern Finance and Management, 2013, vol. 6, issue 2, 142-155

Abstract: Purpose - The purpose of this paper is to describe the common performance traits of banks operating in a whole Islamic banking system in Sudan. Sudan is among the few economies in which a whole Islamic banking system is in place. Design/methodology/approach - Nine banks representing the most active and large banks are used as a sample for this analysis. The study applied factor analysis to a large set of financial ratios that are commonly used in financial analysis of banks. Findings - The study found that six factors are able to explain most of the variation of the financial ratios used in the study. These factors ranked according to the percentage of variation explained are: liquidity risk, coverage, efficiency (utilization), profitability, capital adequacy, and control. The study also tested for the stability of these factors over time and found that both the extracted factors and their loadings are stable over time. Practical implications - Thus, this study provides a reduced set of indicators of performance of Islamic banks that operate in a total Islamic banking system that may be beneficial to a large group of stakeholders and parties that have interest in Islamic banking. Originality/value - This study provides an opportunity to interested researchers in the area of Islamic banks about an important aspect of a total Islamic banking system, such as Sudan.

Keywords: Islamic banks; Sudan; Performance indicators; Financial ratios; Factor analysis (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
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:eme:imefmp:v:6:y:2013:i:2:p:142-155

DOI: 10.1108/17538391311329833

Access Statistics for this article

International Journal of Islamic and Middle Eastern Finance and Management is currently edited by Dr Syed Aun Raza Rizvi

More articles in International Journal of Islamic and Middle Eastern Finance and Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().