Comparison of factors influencing liquidity of European Islamic and conventional banks

Research background: The innovation in Shar??ah-compliant banking products has resulted the rapidly increasing size of assets Islamic banks worldwide. such have been growing twice as fast those conventional banks. do not depend on interest, speculation, or complex derivatives stemming from operations. Instead, their actions respect profit/risk sharing, and clarity contract are consistent with Shar??ah principles, which seek to promote a more equal society.
 Purpose article: This research aims identify compare factors influencing liquidity Europe. Candidate sought amongst profitability, credit quality, expansion capital adequacy indicators.
 Methodology: First, relevant financial ratios for 249 observations 2,306 selected compared period 2013?2017. Second, is explained separately each type by panel data regression its determinants comparative context.
 Findings & value added: results indicate that impact net interest margin ratio insignificant, obviously due prohibition use (riba). To contrary, higher reduction liquidity. Capital positive influence upon both types banks, but banking, 5.4 times greater. findings strongly suggest affected different factors.