A Comparison between Islamic and Traditional Banks: Pre and Post the 2008 Financial Crisis
Mohamed H. Rashwan
December 12, 2010
This study tests the efficiency and profitability of banks that belongs to two different sectors:a) Islamic Banks (IBs) and b) Traditional Banks (TBs). The study concentrates on the pre and post 2008 financial crisis with an aim to test if there are any significant differences in performance between the two sectors. The study applies the MANOVA techniques to analyze the financial secondary data for only publicly traded banks in the same region. The findings of the study show that there is a significant difference between the two sectors in 2007 and 2009 and there are no significant differences in 2008, which indicates the effect of the crisis on both sectors. IBs outperform TBs in 2007 and TBs outperform IBs in 2009. This result indicates the spread of the crisis to the real economy where IBs usually operate.
Number of Pages in PDF File: 14
Keywords: Islamic Banking, Listed Banks, Financial Crisis, MANOVA
JEL Classification: B19, C12, G21
Date posted: December 17, 2010 ; Last revised: December 21, 2010
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