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Comparative Analysis of Qatari Islamic Banks Performance versus Conventional Banks Before , During and After the Financial Crisis
| Content Provider | Semantic Scholar |
|---|---|
| Author | Elsiefy, Elsayed |
| Copyright Year | 2013 |
| Abstract | The objective of this study is to provide an empirical assessment of the performance of Islamic banks (IBs) in Qatar in comparison with their conventional counterparts (CBs) over the period 2006-10 using financial ratio analysis. In our analysis we try to address two broad questions. First, have Islamic banks been able to maintain sustainable growth rates and efficiently compete with conventional banks? Second, have Islamic banks been affected differently than the conventional banks before during and after the financial crisis in 2008? To answer the first question, the paper tries to highlight growth trends pre and post the financial crisis of the two groups of banks’ profitability, total assets, credit, and deposits. In an attempt to address the second question, we try to examine the overall performance of the two groups of banks using 5 sets of financial ratios measuring specific performance areas related to profitability, asset quality, efficiency, liquidity, and risk and solvency. Our analysis suggests that IBs have maintained stronger total assets, credit, and deposits growth rates than CBs pre and post the crisis, but less sustainable profitability rates. Asset quality indicators imply that IBs have sustained lower Nonperforming Loans NPLs ratio, however had underprovided for NPLs compared to CBs. Efficiency indicators show that IBs were more efficient in utilizing assets than CBs. Furthermore, liquidity indicators reveal that IBs are less liquid than CBs. Interestingly, CBs have constantly maintained higher ratio of liquid assets to total assets than IBs, which is inconsistent with the general view that IBs suffer from excess liquidity. Finally risk indictors demonstrate that IBs are more adequately capitalized and less leveraged than CBs. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://ijbcnet.com/3-3/IJBC-13-3301.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
