 The impact of risk-taking on performance of Islamic and conventional banks in Qatar, Saudi Arabia and UAEHenda Amri and Taher Hamza International Journal of Accounting, Auditing and Performance Evaluation, 2025, vol. 21, issue 1/2, 42-64 Abstract: This paper investigates the effect of risk-taking on performance for Islamic and conventional banks in Qatar, Saudi Arabia and UAE during the period 2003-2014. First, our findings reveal a slight outperformance of Islamic banks compared to their conventional counterparts, especially during the subprime crisis. Second, Islamic banks exhibit lower credit, liquidity and idiosyncratic risks. However, conventional banks have the least average of systematic risk. Third, we underline a positive effect of capital adequacy on bank performance. Nonetheless, this performance is affected negatively by credit, idiosyncratic and systematic risks. Furthermore, the insolvency and liquidity risk have no significant impact on bank performance. Moreover, the findings show a positive effect of GDP per capita and of inflation but a negative effect of bank size on bank profitability. Finally, the results show that the subprime financial crisis did not significantly affect banks' performance in Qatar, Saudi Arabia and UAE. Keywords: risk-taking; bank performance; Islamic banks; conventional banks. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijaape:v:21:y:2025:i:1/2:p:42-64 Access Statistics for this article More articles in International Journal of Accounting, Auditing and Performance Evaluation from Inderscience Enterprises Ltd |
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