Performance Evaluation of Conventional and Islamic Banks in Bangladesh
Ullah, M.H, Kamruzzaman, A.S.M, Rahman, S.M.M (2019). Performance Evaluation of Conventional and Islamic Banks in Bangladesh. Journal of Business Studies, Volume 12, No. 2, pp. 16-29
14 Pages Posted: 2 Apr 2021
Date Written: January 01, 2021
This study aims to evaluate the financial performances of Conventional banks and Islamic banks operating in Bangladesh and compare the financial performance based on some selected variables. The study has used panel data from the period 2010 to 2018 published in the annual reports of these banks and the Bangladesh Bank. The study had a sample of 10 commercial banks consisting of 5 Conventional and 5 Islamic banks. This study has chosen a common set of 7 balance sheet variables to test the performance of both groups of banks and used the OLS regression method and the correlogram to measure the relationships and the contributions of these variables on the profitability of both groups of banks. The study results reveal that balances with other banks, money at call, investment in securities, total loans, borrowings from other banks, and total deposits had significant contributions to operating profits of the group of conventional banks. On the other hand balances with other banks, investment in securities, and total deposits had significant contributions to operating profits of the group of Islamic banks.
Keywords: Performance evaluation of banks, Conventional Bank, Islamic Bank
JEL Classification: G
Suggested Citation: Suggested Citation