Miah, Mohammad Dulal and Uddin, Helal,(2017), Efficiency andstability:Acomparativestudybetweenislamic and conventionalbanksinGCCcountries. , Future Business Journal, UNSPECIFIED
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Abstract
This researchaimsatexaminingthedifferencesbetweenIslamicandconventionalbanksintermsofbusinessorientation,
stability, andefficiency. Dataforthisresearcharecollectedfrom48conventionalbanksand28IslamicbanksoftheGulf
Cooperative Council(GCC)countriesovertheperiod2005to2014.Collecteddataareanalyzedusingaccountingratios,
Stochastic FrontierAnalysis(SFA),andordinaryleastsquare(OLS)regressiontechnique.Resultsshowthatconventionalbanks
are moreefficient inmanagingcostthantheirIslamiccounterparts.However,Islamicbanksaremoresolidintermsofshort-term
solvency butnosuchdifferenceexistsasfarasthelong-termstabilityisconcerned.Regressionestimationfurthershowsthatthe
operations ofIslamicbanksaredifferentfromtheirconventionalcounterpartsandtheresultsremainstatisticallysignificant even
after controllingforbankspecific variables.Moreover,largerbankshavelessintermediationratiowhichindicatesdiseconomiesof
scale. Resultsalsoindicatethathighlycapitalizedbanksaremorestablebutcostinefficient whichprovesthatcapital-richbanks
have failedtocapitalizeontheleverageeffect.
| Keywords : | Cost efficiency; Financialstability;Financialcrisis;Islamicbanks;GCC, UNSPECIFIED |
|---|---|
| Journal or Publication Title: | Future Business Journal |
| Volume: | 3 |
| Number: | UNSPECIFIED |
| Item Type: | Article |
| Subjects: | Ekonomi Islam |
| Depositing User: | Nila Nurjanah |
| Date Deposited: | 30 Dec 2019 08:59 |
| Last Modified: | 30 Dec 2019 08:59 |
| URI: | https://repofeb.undip.ac.id/id/eprint/1227 |
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