Document Details
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Document Type |
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Thesis |
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Document Title |
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The financial performance of Islamic banks compared to conventional banks cases study in Saudi Arabia الأداء المالي للبنوك الإسلامية مقارنة بالبنوك التقليدية: دراسة حالة في المملكة العربية السعودية |
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Subject |
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Faculty of Economics and Management - Department of Economics |
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Document Language |
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Arabic |
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Abstract |
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This research examined the financial performance of Islamic banks compared to conventional banks during the period of (2003-2012). The research community included the Islamic banks represented in Al-Rajhi Bank and the conventional banks represented in Samba Financial Group.
Analyzing average performance ratios methods is used to measure the difference financial performance between the two concerned . Since the averages are dominated by the bias of the values extremist proceeded, the researcher used, perhaps for the first time, the statistical analysis of the implementation in this study so, it assumes that the financial ratios subjected to the normal cumulative distribution and the study used the hypotheses testing of the difference between two means at the level of significance of 5% and 1%.
The researcher used the following ratios to compare the performance of the two concerned liquidity ratios, profitability ratios, activity ratios, risk ratios, debt ratios, return on investment deposits ratio, off balance sheet ratio.
The study showed that There is no statistically significant differences between the two banks in the following ratios: legal reserve ratio, legal liquidity ratio, cash ratio, net profit margin ratio, return on asset ratio, return on equity ratio, deposit to investment ratio, debt to investment ratio, off balance sheet ratio and loans to total assets at the level of significance of 5% and 1%. It showed also statistically significant differences represented in the following ratios: equity to investment ratio, return on investment deposit ratio, disclosure risk credit ratio, and capital risk ratio, when the level of significance of 5% and 1%. While the results showed a difference in statistical significance at the level of 5% in the utilization of resource ratio, and credit risk ratio and no statistically significant differences at the level of significance 1%.
The results showed high Equity to investment ratio based on property rights for Al Rajhi Bank compared to Samba Financial Group, where this result is consistent with literary studies due to the fact that Islamic banks include a large participations (musharaka) also it showed the decrease of the investment deposit ratio based on property rights for Al Rajhi Bank compared to Samba Financial Group due to the depreciation of investment turnovers obtained by Al Rajhi Bank for investment in the short term.results proved. It showed increase of the disclosure credit risk ratio for Al Rajhi Bank compared to Samba Financial Group due to the different nature of the two banks in absorbing the contractions that occur on assets. The results showed the increase in the credit risk ratio at Samba Financial Group compared to Al Rajhi Bank, and it is a result consistent with the assumptions in the fact that literary traditional banks rely on government bonds significantly and this element out of risky assets which increases the value of capital risk proportion.
Keywords: Islamic banks, conventional banks, Islamic finance, financial analysis, financial ratios, hypotheses testing of the difference between two means. |
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Supervisor |
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Prof. Dr. Abdulraheem Abdulhammed Alsaati |
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Thesis Type |
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Master Thesis |
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Publishing Year |
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1434 AH
2013 AD |
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Added Date |
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Thursday, November 7, 2013 |
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Researchers
| زينب مشهور المدودي | Almadoudi, Zainab Mashhour | Researcher | Master | |
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