How Shariah Compliance and Traditional Banks Are Performing? A Case of Pakistan

Yıl 2018, Cilt: 4 Sayı: 3, 6 - 20, 30.11.2018

Muhammad Hussain Qureshi Rukhsana Kalim

https://doi.org/10.25272/ijisef.416706

Cited By: 2

Öz

The study is conducted with
the objective of comparing shariah compliance and traditional banks of Pakistan
from performance perspective. The relative investigations are conducted by
means of t-test, for the period 2010-2017. Ratios based on CAMEL approach are applied
to identify the managerial and financial performance of shariah compliance and traditional
banks of Pakistan. It is observed that Shariah compliance banks are
significantly better in managing capital appropriacy, managerial competency,
earning quality and liquidity as compared to their traditional counterparts. The
findings reveal significant implications for policy makers in assessing the capabilities
of Shariah compliance and traditional banks in Pakistan, and for ascertaining
the direction of future banking system in Pakistan. Findings of the study also underpin
awareness and trust in Shariah compliance banks of Pakistan. Furthermore, according
to authors information, there is no comprehensive research in Pakistan that differentiate
the performance of Shariah compliance and traditional banks by applying CAMEL
approach on variables under study as well as on current data set.

Anahtar Kelimeler

Shariah compliance Banks, Traditional Banks

Kaynakça

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