loading failed

.

Bank Parikrama: A Journal of Banking & Finance

ISSN: 1019-7044

Volume XLVI, Nos. 3 & 4, September-December 2021

Published: April 2022

Pages: 31-45

Comparative Study of Islamic Banks Versus Traditional Banks: Evidence from the MENA Region

Samir Aguenaou, Ph.D. , Omar Farooq, Ph.D. , Jawad Abrache, Ph.D. , Ahmed Fjer

Download this Article with Valid Email

Abstract

This paper documents the difference in performance of Islamic banks and commercial banks in the MENA region during the period between 2009 and 2015. The findings indicate that Islamic banks perform better than the traditional banks during the sample period. More specifically, the findings show that the return on equity is higher for Islamic banks in comparison with traditional banks. Our findings are robust across alternate proxies of performance (return on invested capital, return on assets and net interest margin). Our results are moderated by various firm-specific characteristics that reflect managerial quality, asset quality, liquidity, and earnings quality. This paper extends the prior studies by documenting the performance difference between Islamic and traditional banks is moderated by various firm-specific characteristics.

Keywords: Default Risk ,  Debt-consolidation ,  Peer-to-Peer Lending

APA:

APA