Journal of Research in Economics and International Finance

All submissions of the EM system will be redirected to Online Manuscript Submission System. Authors are requested to submit articles directly to Online Manuscript Submission System of respective journal.

The Performance of Conventional and Islamic Banks in the United Kingdom: A Comparative Analysis

Abstract

Onakoya, Adegbemi Babatunde and Onakoya, Adekola Olaitan

The study investigates the performance efficiency of conventional banks and Islamic banks in the United Kingdom between 2007 and 2011. A comparative study of the top four Islamic and five conventional banks is undertaken based on selected financial ratios as performance indicators. The collated secondary data derived from the banks’ financial statements are transformed to percentages and ratios so that comparison can be made between the different banks and periods. Comparing conventional and Islamic banks and controlling for all other factors, the authors find few significant differences in business orientation and performance in the areas of liquidity, profitability, risk and solvency and efficiency. The conventional banks are more profitable in addition to being better able to effectively and timely meet up with financial obligations. However, Islamic banks are less exposed to liquidity risk and appear to be more cost-effective while the conventional banks depend more on external sources for funding. The study recommends the broadening of Islamic banking finance management skills. In addition, innovation and differentiation would strengthen Shari’a-compliant products and provide greater attraction to all customers as well as fostering integration with the real economy.

Share this article

escort izmir izmir bayan escort bursa bayan escort antalya rus escort balçova escort gay porno mobil porno hd porno eskişehir escort burdur escort bartın escort havalandırma firmaları escort bayan izmir bursa escort bayanlar travesti pornosu izmir escort bayan