vol 19 no 3,2019

A Comparion between the Performance of Islamic Banks and Conventional Banks in the Kingdom of Saudi Arabia (KSA) During the Period (2008_2017)

Hits: 2769

A Comparion between the Performance of Islamic Banks and Conventional Banks in the Kingdom of Saudi Arabia (KSA) During the Period (2008_2017)

• Riffat Fathi Mutawali Yousif
• Business Administration Department
• Shaqra University, KSA
• This email address is being protected from spambots. You need JavaScript enabled to view it.
• Received 22/12/2018                                            Accepted 24/09/2019
• https://doi.org/10.12816/0054695
• Abstract:
• This study aims at comparing the performance of Islamic Banks and conventional banks in the Kingdom of Saudi Arabia By applying to a sample of 10 Islamic and traditional banks during the period from 2008 to 2017 using financial analysis of a number of indicators and financial ratios. The results of the analysis have been concluded using the (t) test in the presence of differences between the performance of Islamic banks and the performance of conventional banks in terms of ratios representing liquidity, profitability and volume of activity. Specifically, the results have revealed the ability of Islamic banks to make profit (on equity and investment) just like conventional banks, and that the volume of Islamic banks' activity is greater than conventional ones. The study proposes a set of recommendations most important of which are: Islamic banks have got to increase their fast volume in order to fulfil their commitments during emergencies without breaking future deposits. This can be obtained through channeling their money in short – term investment and through maintaining their profits by employing financial assets in an efficient way, not to mention enhancing their competitive merits and abilities so as to be able to cope and contest with conventional banks in the Saudi markets.
  Keywords: Islamic Banks – Conventional Banks – Liquidity ratio – Profitability ratios – Activity ratios.
• Download