This paper examines the relationship between financial risks and profitability of the conventional and Islamic banks in Malaysia for the period between 1996 and 2005. The measures of profitability that have been used in the study are the return on equity (ROE) and return on assets (ROA) while the financial risks are credit risk, interest rate risk and liquidity risks. This study employs panel d...

In this article, we have elaborated a study over the nature of financial intermediation in Islamic banks by comparison to those of conventional ones. We have found a striking difference between two kinds of intermediation. We tried, from another side, to study the relationship between the capital level and deficiency risk relying on econometric model, and we have obtained a positive and signifi...

This paper explores some of the issues that arise in the regulation of Islamic capital market products and services. As many of the products are distributed to retail clients by Islamic banks and through the Islamic windows of conventional banks, it is also pertinent to deal with the regulation of these institutions, not least because of the distinctive liability and asset structures of Islamic...

We compare, using data envelopment analysis (DEA), the performance of Islamic and conventional banks prior to, during and immediately after the 2008 financial crisis (2004-2009). There is no significant difference in mean efficiency between conventional and Islamic banks when efficiency is measured relative to a common frontier. A meta-frontier analysis (MFA), new to the banking context, howeve...

Banks are the financial institutions accepting deposits from the people and lending to the needy people, areas and regions for various purposes. Banking industry can be divided into two types of banks— Islamic and conventional banks. The operations of conventional banks are based on interest (sood/riba) and therefore interest constitutes the main source of earnings of these banks. While on the ...

banks' major responsibility, as the largest financial intermediaries, is to provide and allocate resources. this activity has its own risks which cause banks to seek ways of preventing or transferring them to other places. islamic banks as substitutes of conventional banks in islamic countries have, in their turn, faced similar risks. in regard to new evolutions in banking industry and man...