Title: Can Islamic banks be sustainable with a simultaneously strong conventional banking counterpart? - A comparative study of the financial performance of Islamic and conventional banks in Bahrain

Authors: Ratnakaram Satya Pavan Kumar; P. Sheela

Addresses: Faculty of Business and Logistics, Bahrain Polytechnic, Kingdom of Bahrain ' GITAM Institute of Management, GITAM (Deemed to be University), Visakhapatnam, A.P., India

Abstract: Banking sector plays a vital role in the field of finance. Islamic banks show incredible growth across the globe in providing valuable services to the needy as compared to the counterpart of conventional banks. This paper aims to analyse the comparative financial performance of the Islamic and conventional banks in Bahrain for a period of ten years from 2007 to 2016. For this purpose, 'financial ratio analysis' tool is used to compare the profitability, liquidity, solvency and efficiency of Islamic banks and conventional banks. The percentage analysis, averages, standard deviation and 't' test are the statistical techniques employed in this study.

Keywords: financial performance; Islamic banks; conventional banks; profitability; liquidity; solvency; efficiency; Bahrain.

DOI: 10.1504/IJBEX.2023.132063

International Journal of Business Excellence, 2023 Vol.30 No.2, pp.133 - 159

Received: 06 Jul 2020
Accepted: 31 Jul 2020
Published online: 11 Jul 2023 *

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