PERFORMANCE OF INTEREST-FREE ISLAMIC BANKS VIS-À-VIS INTEREST-BASED CONVENTIONAL BANKS OF BAHRAIN

Authors

  • Abdus Samad Assistant Professor, Department of Finance and Economics, Utah Valley State College, 800 W University PKWY, Orem, UT 84057, USA (e-mail: abdus_samad@hotmail.com)

Abstract

This paper examines the comparative performance of Bahrain’s interest-free Islamic banks and the interest-based conventional commercial banks during the post Gulf War period with respect to (a) profitability, (b) liquidity risk, and (c) credit risk. Nine financial ratios are used in measuring these performances. Applying Student’s t-test to financial ratios for Islamic and conventional commercial banks in Bahrain for the period 1991-2001, the paper concludes that there is no major difference in performance between Islamic and conventional banks with respect to profitability and liquidity. However, the study finds that there exists a significant difference in credit performance.

JEL classification: G20, G21

Key words: Banks, Comparative performance, Bahrain

How to Cite

Samad, A. (1). PERFORMANCE OF INTEREST-FREE ISLAMIC BANKS VIS-À-VIS INTEREST-BASED CONVENTIONAL BANKS OF BAHRAIN. International Journal of Economics, Management and Accounting, 12(2). Retrieved from https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/99

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Section

Articles