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Profitability Determinants of Islamic and Conventional Banks During the Global Financial Crises: The Case of Emerging Markets

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Emerging Trends in Banking and Finance

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Abstract

This paper performs empirical analysis on determinants of profitability in Islamic and Conventional Banks. The main focus of this study is to evaluate and measure of financial performance of Islamic and conventional banks during the global financial crises in emerging market economies. To evaluate empirically performance of the banks, various financial ratios are employed. We measure performance in terms of liquidity, profitability, solvency, and efficiency. Our findings reveal that there are similarities and differences in profitability determinants of Islamic and Conventional banking firms. The cost to revenue ratio has inverse relationship with profitability indicators in both banking systems. However, there are differences in financial performances between Conventional Banks and Islamic banks which are found in overall picture of all banks in terms of net income margin.

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Correspondence to Alimshan Faizulayev .

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Faizulayev, A., Bektas, E. (2018). Profitability Determinants of Islamic and Conventional Banks During the Global Financial Crises: The Case of Emerging Markets. In: Ozatac, N., Gökmenoglu, K. (eds) Emerging Trends in Banking and Finance. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-01784-2_17

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