Artikel

Efficiency and stability: A comparative study between islamic and conventional banks in GCC countries

This research aims at examining the differences between Islamic and conventional banks in terms of business orientation, stability, and efficiency. Data for this research are collected from 48 conventional banks and 28 Islamic banks of the Gulf Cooperative Council (GCC) countries over the period 2005 to 2014. Collected data are analyzed using accounting ratios, Stochastic Frontier Analysis (SFA), and ordinary least square (OLS) regression technique. Results show that conventional banks are more efficient in managing cost than their Islamic counterparts. However, Islamic banks are more solid in terms of short-term solvency but no such difference exists as far as the long-term stability is concerned. Regression estimation further shows that the operations of Islamic banks are different from their conventional counterparts and the results remain statistically significant even after controlling for bank specific variables. Moreover, larger banks have less intermediation ratio which indicates diseconomies of scale. Results also indicate that highly capitalized banks are more stable but cost inefficient which proves that capital-rich banks have failed to capitalize on the leverage effect.

Sprache
Englisch

Erschienen in
Journal: Future Business Journal ; ISSN: 2314-7210 ; Volume: 3 ; Year: 2017 ; Issue: 2 ; Pages: 172-185 ; Amsterdam: Elsevier

Klassifikation
Management
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Thema
Cost efficiency
Financial crisis
Financial stability
GCC
Islamic banks

Ereignis
Geistige Schöpfung
(wer)
Dulal Miah, Md.
Uddin, Helal
Ereignis
Veröffentlichung
(wer)
Elsevier
(wo)
Amsterdam
(wann)
2017

DOI
doi:10.1016/j.fbj.2017.11.001
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Dulal Miah, Md.
  • Uddin, Helal
  • Elsevier

Entstanden

  • 2017

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