Global Journal of Economics and Business

Volume 13 - Issue 2 (4) | PP: 152 - 164 Language : English
DOI : https://doi.org/10.31559/GJEB2023.13.2.4
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Evaluating the Efficiency and Profitability of Islamic and Conventional Banks: Case Study of the GCC Region

Tariq Hassan Alshehri
Received Date Revised Date Accepted Date Publication Date
13/10/2022 24/11/2022 16/3/2023 8/5/2023
Abstract
This study aims to discuss the concept of both Islamic and commercial banks, in order to illustrate the similarities and differences between Islamic and commercial banking systems. Additionally, this research evaluates the profitability of the Islamic and commercial banks in the GCC region and examines the impact of the subprime global financial crisis on both banking sectors during the period 2005-2013. The analysis of the financial information revealed significant findings in the profitability levels of the Islamic and commercial banks. The findings indicate that the Islamic banking system is more efficient in using its assets to generate profit; while commercial banks are more efficient than Islamic banks in terms of controlling their operating costs, conventional banks suffered significant losses in the financial market instruments, which led to reduce the profitability levels.


How To Cite This Article
Alshehri , T. H. (2023). Evaluating the Efficiency and Profitability of Islamic and Conventional Banks: Case Study of the GCC Region. Global Journal of Economics and Business, 13 (2), 152-164, 10.31559/GJEB2023.13.2.4

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