Differences between the financial characteristics of interest‐free banks and conventional banks

Emerald - Tập 97 Số 2 - Trang 92-98 - 1997
M.M.Metwally1
1Professor in the Department of Economics, University of Wollongong, Wollongong, Australia.

Tóm tắt

Uses logit, probit and discriminant analysis to test for structural differences between the financial characteristics of interest‐free banks and conventional banks. The analysis extends to various financial dimensions which evaluate performance, namely: liquidity, leverage, credit risk, profitability and efficiency. Covers 15 interest‐free banks and 15 conventional banks. The statistical evidence suggests that the two groups of banks may be differentiated in terms of liquidity, leverage and credit risk, but not in terms of profitability and efficiency.

Từ khóa


Tài liệu tham khảo

Abdul‐Gader, A. and Al‐Ghahtani, S. (1990, “Islamic and commercial banking role in economic development: a comparative financial evaluation”, The Middle East Business and Economic Review, Vol. 2 No. 2, pp. 35‐48.

Amemiya, T. (1981, “Quantitative response model: a survey”, Journal of Economic Literature, Vol. 19, pp. 481‐536.

Brown, K. (1994, “Islamic banking: faith and creativity”, Los Angeles Times, 8 April.

Choudhry, M.A. (1992, “Islamic profit sharing system in comparative perspective”, The Middle East Business and Economic Review, Vol. 4 No. 2, pp. 14‐18.

Hair, J.F. Jr, Anderson, R.E., Tathan, R.L. and Black, W.C. (1992, Multivariate Data Analysis with Readings, 3rd ed., Macmillan, New York, NY.

Johnson, R.A. and Wichern, D.W. (1982, Applied Multivariate Statistical Analysis, Prentice‐Hall, Englewood Cliffs, NJ.

Judge, G., Griffiths, W., Hill, R., Lutkepohl, H. and Lee, T. (1988, Introduction to the Theory and Practice of Econometrics, 2nd ed., Wiley, New York, NY.

Kramer, J.S. (1991, The Logit Model for Economists, Edward Arnold, London.

Lachenbruch, P.A. (1975, Discriminant Analysis, Hafner Press, New York, NY.

Maddala, S. (1983, Linear Dependent and Quantitative Variables in Econometrics, Cambridge University Press, New York, NY.

Metwally, M.M. (1993, Essays on Islamic Economics, Academic Publishers, Calcutta.

Metwally, M.M. (1994, “Interest‐free (Islamic) banking? A new concept in finance”, Journal of Banking and Finance, Vol. 5 No. 2, pp. 119‐27.

Moore, C.H. (1990, “Islamic banks and comparative politics in the Arab world and Turkey”, Middle East Journal, Vol. 44, Spring, pp. 234‐55.

Ray, N.D. (1995, Arab Islamic Banking and Renewal of Islamic Law, Graham and Trotman, London.

Wilson, R. (1985, Islamic Business: Theory and Practice, The Economist Publications, London.

Wood, W. and R. Porter (1979, Analysis of Bank Financial Statements, Van Nostrand Reinhold, New York, NY.