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A Comparison between Islamic and Traditional Banks: Pre and Post the 2008 Financial Crisis

14 Pages Posted: 17 Dec 2010 Last revised: 16 Jun 2015

Mohamed H. Rashwan

The British University in Egypt

Date Written: December 12, 2010

Abstract

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.

Keywords: Islamic Banking, Listed Banks, Financial Crisis, MANOVA

JEL Classification: B19, C12, G21

Suggested Citation

Rashwan, Mohamed H., A Comparison between Islamic and Traditional Banks: Pre and Post the 2008 Financial Crisis (December 12, 2010). Available at SSRN: https://ssrn.com/abstract=1724451 or http://dx.doi.org/10.2139/ssrn.1724451

Mohamed H. Rashwan (Contact Author)

The British University in Egypt ( email )

ElSherouk City
Cairo, 11837
Egypt

HOME PAGE: http://www.bue.edu.eg/index.php/business-adminstaff/mohamed-h-rashwan

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