This document summarizes a research paper that compares the performance of Islamic and conventional banks in Pakistan between 2007-2011. The paper finds that Islamic banks performed better than conventional banks during this period. Key differences noted were that Islamic banks promote equity financing, while conventional banks rely solely on debt financing. Return on assets was also higher for Islamic banks, indicating they operate more efficiently. In conclusion, the paper finds that Islamic banks have a bright future within Pakistan's banking industry.
3 body part-61dd1aab-1c40-4fa8-b711-6ade24efd150Sharif Sardar
This document summarizes a study on the prospects and problems of Islamic banking in Bangladesh from the perspective of Islamic and conventional bankers. The study found high demand among Bangladeshis for interest-free banking in accordance with Islamic principles. However, Islamic banks face criticisms that they do not fully apply Islamic rules and include some interest in their dealings. The study also notes lack of legal support, expertise, and training as impediments to the growth of Islamic banking in Bangladesh. Through surveys of Islamic and conventional bankers, the study aimed to assess views on opportunities and challenges for Islamic banking and inform policies to support its development.
The document discusses foreign equity investment in Pakistan's Islamic banking system. It provides background on the introduction of interest-free banking in Pakistan in the 1970s. It then analyzes performance measures for Islamic, government, and private banks in Pakistan from 2006-2010 based on ratios like return on assets, equity, and liquidity. Overall, Islamic banks showed gradually increasing balance sheets but zigzagging income statements, while government banks grew steadily except for reserves. The conclusion is that Islamic banking provides an alternative to conventional systems and attracts foreign investment due to its adherence to strong beliefs.
Presentation on summer training projectpallavisaggar
This document presents a summary of Pallavi Saggar's six-week industrial training at Standard Chartered. It introduces the company, describing its founding, leadership, financial performance, and strategic focus on participation, competitive positioning, customers, people, and communities. The organizational structure of Standard Chartered is outlined, from the Chairman of the Board down to various divisions for Asia, Risk Management, Wholesale Banking, and more. A SWOT analysis identifies strengths in diverse products and profitability, weaknesses in human resources, and opportunities in expanding branches. The document also provides an introduction to mutual funds in India, including types, current industry trends, and the future outlook for growth.
Factors affecting selection of Islamic banks over conventional banksMuhammad Abbas
This document is a research paper on factors affecting the selection of Islamic banks over conventional banks among business school graduates in Karachi, Pakistan. The paper includes an introduction, literature review, conceptual framework, methodology, results and analysis, conclusion, and recommendations. The methodology section describes how data was collected through a questionnaire of 234 respondents rated on a scale of 1 to 5. Results of chi-square and t-tests found the independent variables of Islamic banking concepts, Sharia compliance, contract-based relationships, and bank personnel behavior influence the dependent variable of selection of banking system. The conclusion is these factors affect graduates' selection and more education is still needed on Islamic banking concepts.
Report on Foreign exchange market of hsbc bangladesh ltdAsad Saimon
The foreign exchange market has played a vital role in the last decade or so in guiding the purchase and sale of goods, services and raw materials globally. The market directly affects country’s bond, equities, private property, manufacturing and all assets that are available to foreign investors. The market is a stabilizing factor in the world system of monetary exchange and was created not by design but necessity.
Financial Performance Analysis of Islamic Bank in Bangladesh: A Case Study on...Premier Publishers
Banking sector is an important sector of an economy of a country, so it is necessary to monitor and evaluate the performance of it. The aim of this paper was to examine the performance of Islamic banking of Bangladesh in particular the experience for Al-Arafah Islamic Bank Limited. The paper goes further to explore some experience on the domestic and global challenges which are facing Islamic banking sector. Performance evaluation methodology used to ascertain the objectives in terms of profit maximization, capital structure and liquidity ratios. We used the financial data of bank from 2010 to 2014 and observed that the trend of all the indicators are positive. The ability, efficiency and number of products of Al-Arafah Islamic Bank Limited are increasing gradually. The investment of Al-Arafah Islamic Bank Limited is mostly on short term basis which is generally similar to other Islamic banks in Bangladesh. Islamic banks are facing some difficulties in their operations especially for non-shariah structure of their stakeholders. This study suggests that Islamic banks of Bangladesh should increase Islamic capital market, Islamic financial instruments, and proper zakat distribution and employment opportunities for the betterment of the society.
A comparative study on islamic banking in bangladeshMd. Shahinuzzaman
A banking system that is based on the principles of Islamic law (also known Shariah) and guided by Islamic economics. Two basic principles behind Islamic banking are the sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest. Collecting interest is not permitted under Islamic law. Where the conventional banking follows conventional interest-based principle.
3 body part-61dd1aab-1c40-4fa8-b711-6ade24efd150Sharif Sardar
This document summarizes a study on the prospects and problems of Islamic banking in Bangladesh from the perspective of Islamic and conventional bankers. The study found high demand among Bangladeshis for interest-free banking in accordance with Islamic principles. However, Islamic banks face criticisms that they do not fully apply Islamic rules and include some interest in their dealings. The study also notes lack of legal support, expertise, and training as impediments to the growth of Islamic banking in Bangladesh. Through surveys of Islamic and conventional bankers, the study aimed to assess views on opportunities and challenges for Islamic banking and inform policies to support its development.
The document discusses foreign equity investment in Pakistan's Islamic banking system. It provides background on the introduction of interest-free banking in Pakistan in the 1970s. It then analyzes performance measures for Islamic, government, and private banks in Pakistan from 2006-2010 based on ratios like return on assets, equity, and liquidity. Overall, Islamic banks showed gradually increasing balance sheets but zigzagging income statements, while government banks grew steadily except for reserves. The conclusion is that Islamic banking provides an alternative to conventional systems and attracts foreign investment due to its adherence to strong beliefs.
Presentation on summer training projectpallavisaggar
This document presents a summary of Pallavi Saggar's six-week industrial training at Standard Chartered. It introduces the company, describing its founding, leadership, financial performance, and strategic focus on participation, competitive positioning, customers, people, and communities. The organizational structure of Standard Chartered is outlined, from the Chairman of the Board down to various divisions for Asia, Risk Management, Wholesale Banking, and more. A SWOT analysis identifies strengths in diverse products and profitability, weaknesses in human resources, and opportunities in expanding branches. The document also provides an introduction to mutual funds in India, including types, current industry trends, and the future outlook for growth.
Factors affecting selection of Islamic banks over conventional banksMuhammad Abbas
This document is a research paper on factors affecting the selection of Islamic banks over conventional banks among business school graduates in Karachi, Pakistan. The paper includes an introduction, literature review, conceptual framework, methodology, results and analysis, conclusion, and recommendations. The methodology section describes how data was collected through a questionnaire of 234 respondents rated on a scale of 1 to 5. Results of chi-square and t-tests found the independent variables of Islamic banking concepts, Sharia compliance, contract-based relationships, and bank personnel behavior influence the dependent variable of selection of banking system. The conclusion is these factors affect graduates' selection and more education is still needed on Islamic banking concepts.
Report on Foreign exchange market of hsbc bangladesh ltdAsad Saimon
The foreign exchange market has played a vital role in the last decade or so in guiding the purchase and sale of goods, services and raw materials globally. The market directly affects country’s bond, equities, private property, manufacturing and all assets that are available to foreign investors. The market is a stabilizing factor in the world system of monetary exchange and was created not by design but necessity.
Financial Performance Analysis of Islamic Bank in Bangladesh: A Case Study on...Premier Publishers
Banking sector is an important sector of an economy of a country, so it is necessary to monitor and evaluate the performance of it. The aim of this paper was to examine the performance of Islamic banking of Bangladesh in particular the experience for Al-Arafah Islamic Bank Limited. The paper goes further to explore some experience on the domestic and global challenges which are facing Islamic banking sector. Performance evaluation methodology used to ascertain the objectives in terms of profit maximization, capital structure and liquidity ratios. We used the financial data of bank from 2010 to 2014 and observed that the trend of all the indicators are positive. The ability, efficiency and number of products of Al-Arafah Islamic Bank Limited are increasing gradually. The investment of Al-Arafah Islamic Bank Limited is mostly on short term basis which is generally similar to other Islamic banks in Bangladesh. Islamic banks are facing some difficulties in their operations especially for non-shariah structure of their stakeholders. This study suggests that Islamic banks of Bangladesh should increase Islamic capital market, Islamic financial instruments, and proper zakat distribution and employment opportunities for the betterment of the society.
A comparative study on islamic banking in bangladeshMd. Shahinuzzaman
A banking system that is based on the principles of Islamic law (also known Shariah) and guided by Islamic economics. Two basic principles behind Islamic banking are the sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest. Collecting interest is not permitted under Islamic law. Where the conventional banking follows conventional interest-based principle.
A comparative study commonalities of job stress factors in conventional banki...Alexander Decker
This document compares job stress factors in conventional and Islamic banking in southern Punjab, Pakistan. It conducted a survey of 150 employees from each type of bank across 10 districts. Nine potential stress factors were identified: over workload, technological problems, high targets, salary issues, public dealing, peer behavior, subordinates' inefficient work, non-fixed timing, and market competition. The survey found that four factors were commonly highly stressful in both bank types: over workload, public dealing, long work hours, and market competition. One additional factor was uniquely high for each bank type.
This document provides an introduction to a master's thesis examining the efficiency of Islamic banking in Malaysia from 2000 to 2009. It begins with background information on the growth of Islamic banking globally and in Malaysia. It then states the problem being examined is that while Islamic banking has grown rapidly, analysis of efficiency at the cross-country level is still limited. The objectives are to measure the efficiency of Islamic banks in Malaysia during this period and compare the efficiency of full-fledged Islamic banks to Islamic windows. The methodology to be used is data envelopment analysis to evaluate input and output variables from Islamic banks.
Determinants of Profitability of Commercial Banks in BangladeshPremier Publishers
The paper examined the profitability determinants of private commercial banks of Bangladesh for the year 2014 and 2015. The study employed annual data for all the 11 private commercial banks of Bangladesh for the year 2014 and 2015. Multiple regression analyses were run to capture the significant determinants of profitability and to test hypothesis. The empirical findings from this study suggested that asset size and Net Interest Margin ratio had no significant effect on the profitability. But the impact of non-performing loans to total loans (NPL) on profitability was observed as the most significant among various variables. Furthermore, investment activities, mainly in shares and debentures of private sectors also have some positive impact on return on equity (ROE). The findings also suggested that diversified banking activities including the investment activities made these banks more profitable. Diversified banking activities are welcomed but if these activities include higher proportion of volatile trading activity rather than low risk income streams like fees and commission, the risk may become higher. The policy direction should be directed in such a way which will enhance the resilience and efficiency of the financial institutions with the aim of intensifying the sturdiness as well as strength of the banking sector.
Analyzing the Attitude of Customers towards Islamic Banking and Conventional ...iosrjce
Bangladesh is a country where both Islamic and conventional banks contribute to the economic
development. Although relatively new in Bangladesh and contributing to a small portion of the banking sector,
Islamic banks have played a pivotal role in improving the banking sector by providing services which are more
based on the beliefs of the Muslims. This study aims to compare the attitude of Islamic and conventional banks’
customers towards various aspects of banking in order to identify which bank has better performance in
customer’s perspective. To develop this descriptive study a total of 250 customers were interviewed. A
structured questionnaire consisting of 18 questions incorporated in 6 categories were used. The study reveals
that Islamic banks precede conventional banks on all factors. The study will help not only conventional banks
but also Islamic banks to understand in which sectors they need to focus to develop more positive attitude in the
minds of the customers.
This document analyzes the efficiency of conventional and Islamic banks in Indonesia using data envelopment analysis from 2002-2006. The study finds that Islamic banks are slightly more efficient than conventional banks, though both are improving. Income is the most efficient factor for both bank types, while labor is always inefficient. Deposits are improving in conventional banks but worsening in Islamic banks, while financing has been a problem for conventional banks but high for Islamic banks. The document recommends Islamic banks focus more on attracting floating customers and improving human resources.
11.the tendency of customers towards the acceptance of islamic banking in bah...Alexander Decker
This document summarizes a research study examining customer tendencies toward Islamic banking compared to conventional banking in Bahawalpur, Pakistan. The study used both descriptive and analytical research designs, collecting data through a questionnaire of 125 customers of Islamic banks. Key findings were that factors like interest-free banking, mutual participation, transparency, service quality and marketing strategies significantly influenced customer use of Islamic banking services over conventional services. However, the study was limited by its small sample size and focus only on one region of Pakistan. It suggests expanding the study nationally to gain more implications. In conclusion, the study found high acceptance and growing interest in Islamic banking in Bahawalpur, but that improvements could still be made through better marketing and customer services.
11.[39 50]the tendency of customers towards the acceptance of islamic banking...Alexander Decker
This document summarizes a research study examining customer tendencies toward Islamic banking compared to conventional banking in Bahawalpur, Pakistan. The study used both descriptive and analytical research designs, collecting data through questionnaires with 125 customers of Islamic banks. Key findings were that factors like interest-free banking, mutual participation, transparency, service quality and marketing strategies significantly influenced customer use of Islamic banking services over conventional services. However, the study was limited by its small sample size and focus only on the Bahawalpur region. It suggests expanding the study to the whole of Pakistan. In conclusion, the study found high acceptance and growing interest in Islamic banking in Bahawalpur, but that improvements could still be made through better marketing and customer services.
This document provides an overview of IFIC Bank Limited, a commercial bank in Bangladesh. It discusses the bank's history, objectives, departments, products/services, and financial performance. Some key points:
- IFIC Bank was established in 1976 and converted to a commercial bank in 1983. It has 99 branches within Bangladesh and joint ventures abroad.
- The bank aims to earn profits by providing banking services like deposits, loans, remittances, and trade financing to support economic growth.
- Major departments include retail banking, corporate banking, treasury, operations, IT, and credit. The bank offers services like deposits, loans, trade financing, and remittances.
- In 2010,
This document provides background information on Allied Bank Limited (ABL) in Pakistan. It discusses the early development of banking in Pakistan after independence, with very few branches and most resources controlled by non-Muslim bankers who left for India. The State Bank of Pakistan was established in 1948 as the central bank. ABL was the first Muslim bank established in the territory of Pakistan in 1942. The document outlines the objectives and methodology of a study conducted on ABL's operations and performance. It discusses the importance of banks in mobilizing savings and providing finance to drive economic growth. It also briefly traces the history of banking from merchants and goldsmiths to the establishment of modern commercial banks in Pakistan.
This study analyzes factors influencing customer choice of banks in Pakistan. It surveyed customers of private, nationalized, and privatized banks in Lahore. The most important factors identified were customer service, convenience, and overall bank environment. The study aims to help banks better understand customer needs and improve service quality. It used questionnaires and interviews to collect data from bank customers and employees. Statistical analysis identified key aspects like account opening time, funds transfer time, and statement delivery time that impact customer satisfaction. The results provide insights to help banks like Habib Bank Limited enhance their marketing and better meet customer expectations.
Functional Difference of bank and non bankHr Shamim
The document provides an overview of a report comparing the functional differences between EXIM Bank and LankaBangla Finance. It includes an introduction outlining the objectives and methodology of the study. It also provides background information on EXIM Bank, including its history and performance. Similarly, it provides an overview of LankaBangla Finance, including its history and achievements. The document outlines the organization of the full report through a table of contents and executive summary. It aims to analyze and compare the two financial institutions.
Do Islamic rural banks consider Islamic morality in assessing credit applicat...UniversitasGadjahMada
This study aims to investigate how moral issues are considered in Islamic rural banks credit application analysis. To examine what factors are to be considered, this study applies a mixed approach (qualitative and quantitative), using focus group discussions, analysis of documents, interviews, and survey methods. The findings of this study have shown some essential aspects that are considered in the financing analysis of Islamic Rural Banks (BPRS). The results also reveal that the managers of the BPRS have very similar perceptions of the importance of the 5Cs. As revealed in the findings, all BPRS concede that they are applying this model with a different level of significance. Most BPRS only focus on some key aspects that are considered more important than others.
The document discusses investment trends at Islami Bank Bangladesh Limited (IBBL) from 2009-2013. It analyzes key metrics such as deposits, investments, and modes of investment. Deposits and investments grew steadily over this period at annual growth rates of 17-25% and 16-24% respectively. The most common forms of investment were Murabaha, which increased from 53% to 59% of total investments, and HPSM, which declined from 35% to 26% over the period. The document provides detailed analysis on the performance of various banking activities and investment schemes of IBBL during 2009-2013.
Customer awareness and satisfaction of islamic retail products in kuwaitAlexander Decker
This study examines customer awareness and satisfaction with Islamic retail banking products in Kuwait. A questionnaire was distributed to 150 Kuwaiti clients of Islamic banks to identify factors influencing customer choice of bank and level of awareness of Islamic banking principles and retail services. The study found 23 factors were important in choosing an Islamic bank, with bank reputation for Sharia compliance ranking last. Customers were aware of some products but not fully aware of others. Despite overall satisfaction, customers were still not fully satisfied with some areas like adherence to Sharia principles. The banking sector in Kuwait includes both conventional and Islamic banks and is growing more competitive. The study aims to understand customer preferences and satisfaction to help Islamic banks improve customer experience and loyalty.
The document is a letter summarizing a student's research report on the SWOT analysis of City Bank in Bangladesh. The student conducted research on City Bank as assigned by their lecturer. The student followed the lecturer's guidelines in preparing the report and believes the knowledge gained will help with their future career. The student thanks those who provided assistance and hopes the report fulfills the course requirements.
This document analyzes the commercial banking sector in Pakistan by categorizing banks based on assets and examining their performance metrics like profits, non-performing loans, assets, and CASA ratios. Large banks like HBL and MCB performed well with increased profits and improved CASA ratios and asset quality. NBP struggled with low profits and increased bad loans. Medium banks like SCB and new entrants performed well, while Askari and Summit Bank had high costs. Islamic banks improved profits and ratios compared to prior years. The banking industry faces high taxes affecting profitability and attracting new entrants. Recent updates include Meezan Bank acquiring HSBC Pakistan and potential Habib Bank acquisition of Barclays Pakistan operations.
Islamic Finance a Tool to Achieve Financial Inclusion in Indiasubhaan7
This document discusses the potential for Islamic finance to promote financial inclusion in India. It notes that India's large Muslim population of 180 million currently has limited access to financial services due to religious prohibitions on interest. Islamic finance models that avoid interest could help address this exclusion. The document reviews literature on Islamic microfinance initiatives elsewhere and their success in promoting inclusion. It outlines the current problem of financial exclusion faced by Indian Muslims and argues that establishing Islamic banking in India in line with Shariah principles could help address this issue by providing new options for banking and investment that are currently unavailable. The prospects and challenges of implementing Islamic banking in India are discussed.
Efficiency of islamic banking industry in malaysiaazlina ahamat
This document discusses several studies on the efficiency of the Islamic banking industry in Malaysia. It provides background on the development of Islamic banking in Malaysia, beginning with the establishment of Bank Islam Malaysia Berhad in 1983 as the first Islamic bank. Several key points are summarized:
- Studies have found that Islamic banks in Malaysia have achieved levels of technical and cost efficiency that are comparable to conventional banks, though efficiency scores are sometimes lower for Islamic banks given they have less experience.
- Factors like bank size, credit risk, and operational costs can influence efficiency levels. Studies recommend Islamic banks find ways to reduce costs to improve efficiency.
- Customer satisfaction and aligning with Islamic principles (maqasid al-sharia
This document provides background information on a study of the foreign exchange performance of Shahjalal Islami Bank Ltd. It discusses the objectives of the report, which are to evaluate the bank's foreign exchange services including import, export, remittance and to identify any problems and provide suggestions. The methodology, sources of data, scope and limitations of the study are also outlined. It then provides an overview of the company including its mission, vision and features to give context to the foreign exchange analysis that will be presented.
This document provides an internship report submitted by Razia Hameed to Dr. Sahar Munir about her internship at Allied Bank Limited's D-Ground Branch in Faisalabad. It begins with an acknowledgment thanking various individuals for their support and guidance. The executive summary outlines that the report discusses the bank's departments, products/services, financial analysis, SWOT analysis, and findings/recommendations from the internship. The introduction provides background on the meaning of banks and banking, and the history of Allied Bank Limited from its founding in 1942 as Australasia Bank through various mergers and name changes.
PDHPE (Personal Development, Health and Physical Education) is an important but often forgotten subject area that teaches skills like moving, problem-solving, interacting, decision-making, and communicating. PE is important for both physical and mental health as it encourages physical activity and allows kids to socialize in a team environment. Developing healthy habits at a young age makes them more likely to continue into adulthood. PDHPE classes aim to be inclusive and fun for all students by recommending moderate to vigorous physical activity for both children and adults.
This document summarizes a research article that analyzes how Chinese companies operating in Shanghai incorporate social, environmental, and economic measures into their strategic performance measurement systems. The researchers surveyed 81 Chinese companies. Their findings show that while more companies are promoting sustainability measures as part of their long-term business strategies, the effective integration of these non-financial measures varies across companies. The researchers examine what factors determine the differences in how companies incorporate sustainability measures into their performance systems and business strategies.
A comparative study commonalities of job stress factors in conventional banki...Alexander Decker
This document compares job stress factors in conventional and Islamic banking in southern Punjab, Pakistan. It conducted a survey of 150 employees from each type of bank across 10 districts. Nine potential stress factors were identified: over workload, technological problems, high targets, salary issues, public dealing, peer behavior, subordinates' inefficient work, non-fixed timing, and market competition. The survey found that four factors were commonly highly stressful in both bank types: over workload, public dealing, long work hours, and market competition. One additional factor was uniquely high for each bank type.
This document provides an introduction to a master's thesis examining the efficiency of Islamic banking in Malaysia from 2000 to 2009. It begins with background information on the growth of Islamic banking globally and in Malaysia. It then states the problem being examined is that while Islamic banking has grown rapidly, analysis of efficiency at the cross-country level is still limited. The objectives are to measure the efficiency of Islamic banks in Malaysia during this period and compare the efficiency of full-fledged Islamic banks to Islamic windows. The methodology to be used is data envelopment analysis to evaluate input and output variables from Islamic banks.
Determinants of Profitability of Commercial Banks in BangladeshPremier Publishers
The paper examined the profitability determinants of private commercial banks of Bangladesh for the year 2014 and 2015. The study employed annual data for all the 11 private commercial banks of Bangladesh for the year 2014 and 2015. Multiple regression analyses were run to capture the significant determinants of profitability and to test hypothesis. The empirical findings from this study suggested that asset size and Net Interest Margin ratio had no significant effect on the profitability. But the impact of non-performing loans to total loans (NPL) on profitability was observed as the most significant among various variables. Furthermore, investment activities, mainly in shares and debentures of private sectors also have some positive impact on return on equity (ROE). The findings also suggested that diversified banking activities including the investment activities made these banks more profitable. Diversified banking activities are welcomed but if these activities include higher proportion of volatile trading activity rather than low risk income streams like fees and commission, the risk may become higher. The policy direction should be directed in such a way which will enhance the resilience and efficiency of the financial institutions with the aim of intensifying the sturdiness as well as strength of the banking sector.
Analyzing the Attitude of Customers towards Islamic Banking and Conventional ...iosrjce
Bangladesh is a country where both Islamic and conventional banks contribute to the economic
development. Although relatively new in Bangladesh and contributing to a small portion of the banking sector,
Islamic banks have played a pivotal role in improving the banking sector by providing services which are more
based on the beliefs of the Muslims. This study aims to compare the attitude of Islamic and conventional banks’
customers towards various aspects of banking in order to identify which bank has better performance in
customer’s perspective. To develop this descriptive study a total of 250 customers were interviewed. A
structured questionnaire consisting of 18 questions incorporated in 6 categories were used. The study reveals
that Islamic banks precede conventional banks on all factors. The study will help not only conventional banks
but also Islamic banks to understand in which sectors they need to focus to develop more positive attitude in the
minds of the customers.
This document analyzes the efficiency of conventional and Islamic banks in Indonesia using data envelopment analysis from 2002-2006. The study finds that Islamic banks are slightly more efficient than conventional banks, though both are improving. Income is the most efficient factor for both bank types, while labor is always inefficient. Deposits are improving in conventional banks but worsening in Islamic banks, while financing has been a problem for conventional banks but high for Islamic banks. The document recommends Islamic banks focus more on attracting floating customers and improving human resources.
11.the tendency of customers towards the acceptance of islamic banking in bah...Alexander Decker
This document summarizes a research study examining customer tendencies toward Islamic banking compared to conventional banking in Bahawalpur, Pakistan. The study used both descriptive and analytical research designs, collecting data through a questionnaire of 125 customers of Islamic banks. Key findings were that factors like interest-free banking, mutual participation, transparency, service quality and marketing strategies significantly influenced customer use of Islamic banking services over conventional services. However, the study was limited by its small sample size and focus only on one region of Pakistan. It suggests expanding the study nationally to gain more implications. In conclusion, the study found high acceptance and growing interest in Islamic banking in Bahawalpur, but that improvements could still be made through better marketing and customer services.
11.[39 50]the tendency of customers towards the acceptance of islamic banking...Alexander Decker
This document summarizes a research study examining customer tendencies toward Islamic banking compared to conventional banking in Bahawalpur, Pakistan. The study used both descriptive and analytical research designs, collecting data through questionnaires with 125 customers of Islamic banks. Key findings were that factors like interest-free banking, mutual participation, transparency, service quality and marketing strategies significantly influenced customer use of Islamic banking services over conventional services. However, the study was limited by its small sample size and focus only on the Bahawalpur region. It suggests expanding the study to the whole of Pakistan. In conclusion, the study found high acceptance and growing interest in Islamic banking in Bahawalpur, but that improvements could still be made through better marketing and customer services.
This document provides an overview of IFIC Bank Limited, a commercial bank in Bangladesh. It discusses the bank's history, objectives, departments, products/services, and financial performance. Some key points:
- IFIC Bank was established in 1976 and converted to a commercial bank in 1983. It has 99 branches within Bangladesh and joint ventures abroad.
- The bank aims to earn profits by providing banking services like deposits, loans, remittances, and trade financing to support economic growth.
- Major departments include retail banking, corporate banking, treasury, operations, IT, and credit. The bank offers services like deposits, loans, trade financing, and remittances.
- In 2010,
This document provides background information on Allied Bank Limited (ABL) in Pakistan. It discusses the early development of banking in Pakistan after independence, with very few branches and most resources controlled by non-Muslim bankers who left for India. The State Bank of Pakistan was established in 1948 as the central bank. ABL was the first Muslim bank established in the territory of Pakistan in 1942. The document outlines the objectives and methodology of a study conducted on ABL's operations and performance. It discusses the importance of banks in mobilizing savings and providing finance to drive economic growth. It also briefly traces the history of banking from merchants and goldsmiths to the establishment of modern commercial banks in Pakistan.
This study analyzes factors influencing customer choice of banks in Pakistan. It surveyed customers of private, nationalized, and privatized banks in Lahore. The most important factors identified were customer service, convenience, and overall bank environment. The study aims to help banks better understand customer needs and improve service quality. It used questionnaires and interviews to collect data from bank customers and employees. Statistical analysis identified key aspects like account opening time, funds transfer time, and statement delivery time that impact customer satisfaction. The results provide insights to help banks like Habib Bank Limited enhance their marketing and better meet customer expectations.
Functional Difference of bank and non bankHr Shamim
The document provides an overview of a report comparing the functional differences between EXIM Bank and LankaBangla Finance. It includes an introduction outlining the objectives and methodology of the study. It also provides background information on EXIM Bank, including its history and performance. Similarly, it provides an overview of LankaBangla Finance, including its history and achievements. The document outlines the organization of the full report through a table of contents and executive summary. It aims to analyze and compare the two financial institutions.
Do Islamic rural banks consider Islamic morality in assessing credit applicat...UniversitasGadjahMada
This study aims to investigate how moral issues are considered in Islamic rural banks credit application analysis. To examine what factors are to be considered, this study applies a mixed approach (qualitative and quantitative), using focus group discussions, analysis of documents, interviews, and survey methods. The findings of this study have shown some essential aspects that are considered in the financing analysis of Islamic Rural Banks (BPRS). The results also reveal that the managers of the BPRS have very similar perceptions of the importance of the 5Cs. As revealed in the findings, all BPRS concede that they are applying this model with a different level of significance. Most BPRS only focus on some key aspects that are considered more important than others.
The document discusses investment trends at Islami Bank Bangladesh Limited (IBBL) from 2009-2013. It analyzes key metrics such as deposits, investments, and modes of investment. Deposits and investments grew steadily over this period at annual growth rates of 17-25% and 16-24% respectively. The most common forms of investment were Murabaha, which increased from 53% to 59% of total investments, and HPSM, which declined from 35% to 26% over the period. The document provides detailed analysis on the performance of various banking activities and investment schemes of IBBL during 2009-2013.
Customer awareness and satisfaction of islamic retail products in kuwaitAlexander Decker
This study examines customer awareness and satisfaction with Islamic retail banking products in Kuwait. A questionnaire was distributed to 150 Kuwaiti clients of Islamic banks to identify factors influencing customer choice of bank and level of awareness of Islamic banking principles and retail services. The study found 23 factors were important in choosing an Islamic bank, with bank reputation for Sharia compliance ranking last. Customers were aware of some products but not fully aware of others. Despite overall satisfaction, customers were still not fully satisfied with some areas like adherence to Sharia principles. The banking sector in Kuwait includes both conventional and Islamic banks and is growing more competitive. The study aims to understand customer preferences and satisfaction to help Islamic banks improve customer experience and loyalty.
The document is a letter summarizing a student's research report on the SWOT analysis of City Bank in Bangladesh. The student conducted research on City Bank as assigned by their lecturer. The student followed the lecturer's guidelines in preparing the report and believes the knowledge gained will help with their future career. The student thanks those who provided assistance and hopes the report fulfills the course requirements.
This document analyzes the commercial banking sector in Pakistan by categorizing banks based on assets and examining their performance metrics like profits, non-performing loans, assets, and CASA ratios. Large banks like HBL and MCB performed well with increased profits and improved CASA ratios and asset quality. NBP struggled with low profits and increased bad loans. Medium banks like SCB and new entrants performed well, while Askari and Summit Bank had high costs. Islamic banks improved profits and ratios compared to prior years. The banking industry faces high taxes affecting profitability and attracting new entrants. Recent updates include Meezan Bank acquiring HSBC Pakistan and potential Habib Bank acquisition of Barclays Pakistan operations.
Islamic Finance a Tool to Achieve Financial Inclusion in Indiasubhaan7
This document discusses the potential for Islamic finance to promote financial inclusion in India. It notes that India's large Muslim population of 180 million currently has limited access to financial services due to religious prohibitions on interest. Islamic finance models that avoid interest could help address this exclusion. The document reviews literature on Islamic microfinance initiatives elsewhere and their success in promoting inclusion. It outlines the current problem of financial exclusion faced by Indian Muslims and argues that establishing Islamic banking in India in line with Shariah principles could help address this issue by providing new options for banking and investment that are currently unavailable. The prospects and challenges of implementing Islamic banking in India are discussed.
Efficiency of islamic banking industry in malaysiaazlina ahamat
This document discusses several studies on the efficiency of the Islamic banking industry in Malaysia. It provides background on the development of Islamic banking in Malaysia, beginning with the establishment of Bank Islam Malaysia Berhad in 1983 as the first Islamic bank. Several key points are summarized:
- Studies have found that Islamic banks in Malaysia have achieved levels of technical and cost efficiency that are comparable to conventional banks, though efficiency scores are sometimes lower for Islamic banks given they have less experience.
- Factors like bank size, credit risk, and operational costs can influence efficiency levels. Studies recommend Islamic banks find ways to reduce costs to improve efficiency.
- Customer satisfaction and aligning with Islamic principles (maqasid al-sharia
This document provides background information on a study of the foreign exchange performance of Shahjalal Islami Bank Ltd. It discusses the objectives of the report, which are to evaluate the bank's foreign exchange services including import, export, remittance and to identify any problems and provide suggestions. The methodology, sources of data, scope and limitations of the study are also outlined. It then provides an overview of the company including its mission, vision and features to give context to the foreign exchange analysis that will be presented.
This document provides an internship report submitted by Razia Hameed to Dr. Sahar Munir about her internship at Allied Bank Limited's D-Ground Branch in Faisalabad. It begins with an acknowledgment thanking various individuals for their support and guidance. The executive summary outlines that the report discusses the bank's departments, products/services, financial analysis, SWOT analysis, and findings/recommendations from the internship. The introduction provides background on the meaning of banks and banking, and the history of Allied Bank Limited from its founding in 1942 as Australasia Bank through various mergers and name changes.
PDHPE (Personal Development, Health and Physical Education) is an important but often forgotten subject area that teaches skills like moving, problem-solving, interacting, decision-making, and communicating. PE is important for both physical and mental health as it encourages physical activity and allows kids to socialize in a team environment. Developing healthy habits at a young age makes them more likely to continue into adulthood. PDHPE classes aim to be inclusive and fun for all students by recommending moderate to vigorous physical activity for both children and adults.
This document summarizes a research article that analyzes how Chinese companies operating in Shanghai incorporate social, environmental, and economic measures into their strategic performance measurement systems. The researchers surveyed 81 Chinese companies. Their findings show that while more companies are promoting sustainability measures as part of their long-term business strategies, the effective integration of these non-financial measures varies across companies. The researchers examine what factors determine the differences in how companies incorporate sustainability measures into their performance systems and business strategies.
Determinants of financial sustainability of microfinance institutions in east...Alexander Decker
This document examines the determinants of financial sustainability of microfinance institutions (MFIs) in East Africa from 2004 to 2009. It uses regression analysis to analyze data from 23 MFIs. The key findings are that MFI sustainability is positively associated with loan intensity and size, but negatively associated with management inefficiency and portfolio at risk levels. Breadth of outreach and deposit mobilization did not significantly impact financial sustainability. Thus, loan intensity, size, management efficiency and loan portfolio quality are important factors influencing the financial sustainability of MFIs in East Africa.
Gabon Corridors Performance Evaluation: New Strategic Approach Based-Supply C...World-Academic Journal
This paper is aimed at evaluating Gabonese corridors’ supply chain and transport logistics efficiency. The main purposes of this paper are to: (a) carry out investigations and develop enabling environment strategies; (b) suggest a strategy for boosting investment to ameliorate efficiencies. The scope of the measurement includes: supply chain efficiency (corridor infrastructure; enabling environment; stakeholders; the transport industry) and transport logistic. The principal objective of this study is to help the Gabonese Government in developing the strategic plan for the Gabonese corridors. Results from the present study obviously show that the inter-connection between the enabling environment (road, transport industry services, port and rail transport infrastructure, and the level of services) available to stakeholders have all combined to have an unfavorable effect on transport logistics services in the Gabonese corridors.
Sustainability of Microfinance: A Case of Tea SACCOs in Kericho, Buret and Bo...World-Academic Journal
Tea SACCOs are tea based rural SACCOs formed by tea growers, whose functions are to keep member’s savings in form of shares, savings accounts and deposit accounts among others. Little is known about the factors influencing financial sustainability of Tea SACCOs. The study covered all six Tea SACCOs in Kericho, Bomet and Buret districts in the Rift valley province of Kenya. Analysis involved evaluating growth in net worth, administrative efficiency, loan portfolio quality, staff productivity and transaction costs. The study found that the growth of net assets had been on the decline over the years, loan portfolio was poor and default rates were high. According to the indicators evaluated, Tea SACCOs had not yet reached their full potential in outreach and that high transaction costs hindered their financial sustainability.
The document outlines a lesson plan for teaching students about the simple past tense in English. It includes objectives to help students understand the usage and rules of the simple past, resources like a grammar lesson and activities, a PowerPoint presentation explaining the simple past, an assignment for students to practice, and a grammar exam to evaluate learning along with a scoring rubric.
Factors affecting financial sustainability of microfinance institutionsAlexander Decker
This document discusses factors that affect the financial sustainability of microfinance institutions (MFIs). It begins with background on microfinance programs and defines financial sustainability. The study aims to identify factors influencing MFI financial sustainability and develop a financial sustainability index. Regression analysis of MFI data from India and Bangladesh found that capital/asset ratio, operating expenses/loan portfolio, and portfolio at risk >30 days influence sustainability. The document proposes a financial sustainability index model based on these factors and operational self-sufficiency, assigning weights based on various agencies' use of the indicators. The model converts indicator data to a common scale to calculate total standard scores as a sustainability index.
This document provides an overview of a final year project that conducts a comparative analysis of Islamic banking and conventional banking in Pakistan. The study examines the growth, performance, assets, deposits, financing, investments and returns of both Islamic and conventional banks from 2007-2012. It aims to determine which banking stream is more profitable and growing faster. The methodology involves collecting quantitative secondary data from annual reports of the banks and State Bank of Pakistan. Tables of data on market share, ratios and distributions within banks are presented. The document outlines hypotheses that Islamic banking is gradually eroding the market share of conventional banking and increasing competition is negatively impacting conventional banks.
A comparison of financial performance of bankingAlexander Decker
This document analyzes the financial performance of Pakistan's banking industry from 2009-2013. It divides the banking industry into four sectors - public commercial banks, private commercial banks, specialized banks, and foreign banks. Various financial ratios are used to assess the performance of each sector, including return on assets, return on equity, growth in total assets, fixed assets, operational assets, and equity. The results show that private commercial banks generally had the best financial performance, while foreign banks tended to have the lowest returns and growth rates. The study aims to determine if banks with larger assets, fixed assets, and equity achieved higher growth and returns.
A comparison of financial performance of bankingAlexander Decker
This document analyzes the financial performance of Pakistan's banking industry from 2009-2013. It divides the banking industry into four sectors - public commercial banks, private commercial banks, specialized banks, and foreign banks. Various financial ratios are used to evaluate each sector's performance based on total assets, fixed assets, operational assets, and equity. The results found that private commercial banks generally had higher average total assets, growth rates, and returns on assets compared to other sectors. However, specialized banks achieved higher returns than their total assets would suggest. Overall, the study aims to determine if banks with larger assets and equity see higher growth and returns.
This study examines customer satisfaction levels with Islamic and conventional banks in Bahawalpur, Pakistan. 85 customers of 2 Islamic banks and 4 conventional banks were surveyed. The findings showed that customers were satisfied with both bank types but conventional bank customers reported higher satisfaction. Economic benefits, interest rates, and reputation were main motivators for conventional banks. Interest-free loans, Islamic principles, and religious environment motivated customers to Islamic banks. Overall, the study aimed to compare customer satisfaction and motivational factors between Islamic and conventional banking in the region.
This study examines the factors that determine the financing supply of Islamic banks in multiple countries. It uses panel data from Islamic banks in Pakistan and Malaysia over several years. The study finds that increases in total deposits and GDP positively impact financing, while increases in the market rate of return, money supply, and bank equity negatively impact financing. The results indicate Islamic banks do not always proportionally increase financing when deposits and equity rise, suggesting excess liquidity. Overall the model explains about 31% of the variation in Islamic bank financing.
Growth of islamic banking in pakistan a comparative studyAlexander Decker
1) The study analyzed the growth of Islamic banking in Pakistan from 2004-2009 compared to conventional banks in terms of deposits, investments, assets, and equity.
2) The results found that Islamic banking grew at a higher average rate than conventional banks for deposits, assets, and equity, though the growth rates for investments were not statistically significant.
3) Specifically, the growth rates of deposits and assets for Islamic banks were statistically significantly higher than for conventional banks, indicating Islamic banking in Pakistan grew faster in these areas during the period studied.
11.growth of islamic banking in pakistan a comparative studyAlexander Decker
1) The study analyzed the growth of Islamic banking in Pakistan from 2004-2009 compared to conventional banks in terms of deposits, investments, assets, and equity.
2) The results found that Islamic banking grew at a higher average rate than conventional banks for deposits, assets, and equity, though the growth rates for investments were not statistically significant.
3) Specifically, the growth rates of deposits and assets for Islamic banks were statistically significantly higher than for conventional banks, indicating Islamic banking in Pakistan grew faster in these areas during the study period.
The Performance Analysis of Private Conventional Banks: A Case Study of Bangl...IOSR Journals
This study attempts primarily to measure the financial performance of some selected private
commercial banks in Bangladesh for the period 2006-2011 and to identify whether any relationship exists
between a bank’s years of operation and its performance. For this purpose five banks have been selected from
different generations. The financial performances of these banks have been scrutinized from the following four
dimensions: (1) profitability (2) liquidity (3) credit risk and (4) efficiency. The study concluded that there is no
specific relationship between the generation of banks and its performance. The performances of banks are
dependent more on the management’s ability in formulating strategic plans and the efficient implementation of
its strategies. The study findings can be helpful for management of private commercial banks in Bangladesh to
improve their financial performance and formulate policies that will improve their performance. The study also
identified specific areas for each bank to work on which can ensure sustainable growth for these banks
The purpose of this study is to determine the factors that influence risk management, capital, GCG,
and efficiency on the financial performance of Islamic commercial banks in Indonesia. The population in this
study were Islamic commercial banks in Indonesia and selected by purposive sampling and selected 10 Islamic
commercial banks.
Credit exposure and lending decision quality of private commercial banks in b...Alexander Decker
This document summarizes a research study that examined the level of credit exposure and lending decision quality of local private commercial banks in Bangladesh from 2007-2011. The study used five financial ratios to measure credit performance: non-performing loan to total loan ratio, loan loss reserve to total loan ratio, loan loss reserve to non-performing loan ratio, capital adequacy ratio, and tier 1 capital ratio. An analysis of variance found that the non-performing loan to total loan ratio, loan loss reserve to total loan ratio, and loan loss reserve to non-performing loan ratio differed significantly between conventional and Islamic banks, while the capital adequacy ratio and tier 1 capital ratio did not differ significantly. The study also found an
A STUDY ON THE FINANCIAL PERFORMANCE OF FOREIGN COMMERCIAL BANKS IN SRI LANKA...ectijjournal
Banks serve as backbone to the financial sector, which facilitate the proper utilization of financial
resources of a country. The banking sector is increasingly growing and it has witnessed a huge flow of
investment. The banking sector of developing countries is different from the developed countries in term of
performance. The banking sector, especially commercial banks of Sri Lanka plays a vital role in the Sri
Lankan economy. The focus of this study was to investigate the financial performance of foreign
commercial banks in Sri Lanka. Many studies are conducted in different countries to study the financial
performance of banking sector using the various statistical methods. In this study, the CAMEL rating
system is used to study the financial performance of foreign commercial banks in Sri Lanka. The study
selects three foreign banks for the analysis. Data was collected for the time period of 2008-2014.
According to the findings foreign sector banks are good in the performance of capital adequacy and
earnings while other variables show an average performance.
This document appears to be a student project report on analyzing working capital in the banking sector, specifically focusing on Jammu & Kashmir Bank. It includes an introduction to the bank, outlining its history and operations. Several chapters are proposed to cover conceptual discussions of working capital, the financials and analysis of working capital at J&K Bank through ratio analysis, funds flow analysis and budgeting. Case studies on working capital management at the bank are also mentioned. The objective is to understand how working capital is managed in corporate banking.
A study on effect of liquidity management on profitability with select privat...Supriya Mondal
This document provides background information and a literature review for a study on the relationship between liquidity and profitability in select public and private sector banks in India. It begins with an introduction to the topic, outlining the trade-off between liquidity and profitability for banks. It then reviews 10 previous research papers on similar topics, analyzing factors like liquidity ratios, efficiency, and performance comparisons between public and private sector banks. The reviewed papers examine issues like the effect of liquidity on profitability, comparing liquidity positions between bank types, and evaluating banks' financial health using the CAMEL model.
An Impact of Capital Adequacy Ratio on the Profitability of Private Sector Ba...Dr. Amarjeet Singh
Profitability being one of the cardinal principles of bank lending acts as a game changer for the survival and success of private sector banks in India. In order to stay profitable, banks have to capitalise on every penny advanced to yield the expected returns. However, considering the constraints laid down by the Reserve Bank of India, banks have to maintain a minimum capital adequacy ratio, as per the current BASEL III regulations active in India. With the mergers of public sector banks, the challenge has got just tougher for the private sector banks in India. Expansion and Diversification are the key strategies adopted by the key players from the private banking sector, however, with the minimum capital adequacy ratio observed by them, it is necessary to understand its actual impact on the bank’s profitability. This research paper aims to throw light upon the linkage that capital adequacy has with the bank’s profitability. It attempts to establish a relation between the Capital Adequacy Ratio with the Net profits of the bank. For the purpose of this study, data from the past 5 years of the leading private sector banks has been collected, namely, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, AXIS Bank and YES Bank. The collected data has been analysed using Pearson’s Correlation to establish a relation between the CAR Ratio & the bank’s profitability. Hypothesis testing has been further done to study the quantum of proportionate change in the profitability with a change in the CAR Ratio for private sector banks using applicable research tools. The said research tools are applied to achieve the desired results while maintaining the required quantum of accuracy. It also aims to understand the proportionate impact of changes in CAR to the bank’s profitability, which can act as a suggested measure for banks to develop a reliable framework for efficient capital management and increase overall efficiency. The results derived from the data collected and analyzed aim to provide scope for further study on the subject matter.
This document summarizes a research study that compares liquidity risk management between conventional and Islamic banks in Pakistan. The study uses data from 12 banks (6 conventional, 6 Islamic) over 2006-2009. It finds that size of bank and networking capital are positively but insignificantly related to liquidity risk in both models. Capital adequacy ratio is positively significant for conventional banks, while return on assets is positively significant for Islamic banks. The results indicate some differences in factors impacting liquidity risk between conventional and Islamic banking models in Pakistan.
This document is the index page of a seminar report on analyzing the performance of public sector banks in India using the CAMEL framework. The index lists the following chapter titles: introduction, literature review, history of the CAMEL framework, industry profile of the banking sector in India, description of the CAMEL model, and conclusions. It provides a brief overview of the topics to be discussed in each chapter, including definitions of key terms like scheduled commercial banks. The industry profile section gives a high-level history of banking in India from 1786 to present day and describes the three phases of development and nationalization of banks.
Analysis of Financial Health of the New Private Sector Banks in India throug...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Financial sector plays a pivotal role in the economic development, but, in recent time, it has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. The banking sector has always been one of the important sectors for investment. In the time of uncertainty, some are arguing that the economies are in the process of recovery, and while others are opining that the world is set for another recession soon. In order to resist negative shocks and maintain financial stability, it is important to identify the Performance of Indian Banking Sector. The current study is mainly concerned with the analysis of Performance Of banking sector in India, that reflects the impact of new competitive environment on the bank’s performance in terms of various selected parameters. The article considered the variables like balance sheet operations, efficiency, profitability ,Capital Adequacy, Asset Quality, Sect oral deployment of bank credit, Technological Development, Customer services and Financial Inclusion for a period of 6 years from 2011 to 16. The Data was collected through secondary sources from Statistical Tables relating to banks in India. The results have found strong evidence poor profitability and inefficiency of managing the assets in the year 2016.
Customer-based brand equity has many dimensions, however a general acceptance as to which dimensions to use when measuring customer-based brand equity has not being decided. This study reviews empirical results of literatures that utilized Aaker’s and Keller’s model in measuring brand equity and sum up the main or significant customer-based brand equity. The findings indicate that it is empirical difficult differentiating between brand awareness and brand association.
Exploring trends of tourism demand from the past is essential in measuring the different tourism movement volatility which occurred either nature or man-made. This study analyzes the volatility of tourism demand by data mining tourist numbers arriving in Hong Kong from 1999 to 2010. Eight different markets will be examined, both short haul and long haul, to compare and contrast the characteristic tourist profile and the behavior and attitude changes of each market according to the volume of visitors that come to Hong Kong. There have been significant changes over the past 12 years in different countries with some positive and negative impacts from natural disasters, an economic crisis and mega-events. This paper will compare and contrast different markets and analyze the tourism demand with regards to volatility in relation to the profile characteristics, spending pattern behaviors with tourist’s satisfaction level.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
Exposure to solar radiation can have positive effects on the human body, but it can also cause damages and melanoma is the most significant among those. The aim of the present study was to gather information about the effects of solar radiation on the human body and to update available knowledge in accordance with new international data. A systematic literature review took place and included both Greek and international books, articles, studies and related papers on the internet (PubMed, Cinahl, Scopus and Iatrotek databases), published from 1998 to this day. Dissertations and “gray literature” (e.g. conference proceedings) were not included in this study. The following terms (“Ultraviolet radiation, skin cancer, sun, sun exposure, electromagnetic spectrum, conjunctiva, cataract, squamous cell cancer , basal cell cancer, cutaneous melanoma”) were used as key-words. UVR may have an impact on the human body according to wavelength. UVA and UVB exposure may cause photoaging and sunburns, and UVC may induce DNA mutations leading to skin cancer. Ozone is the main protective mechanism since it absorbs most of UVR. Ozone layer depletion in the last decades has lead to increased rates of sun-related damages. Most significant damages include cataract and skin damages such as photoaging and skin cancers. Among skin cancers, melanoma has the highest incidence in ever younger ages reducing life expectancy.
A good part of the international literature focuses on primary prevention measures and interventions that include mole monitoring.
Sustainability of Microfinance: A Case of Tea SACCOs in Kericho, Buret and Bo...World-Academic Journal
Tea SACCOs are tea based rural SACCOs formed by tea growers, whose functions are to keep member’s savings in form of shares, savings accounts and deposit accounts among others. Little is known about the factors influencing financial sustainability of Tea SACCOs. The study covered all six Tea SACCOs in Kericho, Bomet and Buret districts in the Rift valley province of Kenya. Analysis involved evaluating growth in net worth, administrative efficiency, loan portfolio quality, staff productivity and transaction costs. The study found that the growth of net assets had been on the decline over the years, loan portfolio was poor and default rates were high. According to the indicators evaluated, Tea SACCOs had not yet reached their full potential in outreach and that high transaction costs hindered their financial sustainability.
This document provides information on the World Academic Journal of Business & Applied Sciences for March-September 2013. It includes the editorial board, an international editorial review board, a call for papers, and a table of contents for the journal issues in that period. The call for papers describes the journal's mission of publishing academically robust papers on topics related to business, management, and applied sciences. It provides examples of topics of interest and submission guidelines. The table of contents lists the title, authors, and page numbers for research articles published across various journals in the specified issues.
Studies and mechanical tries regarding the cutting process by punching of the...World-Academic Journal
In this paper we analyzed in first part on a virtual model made in SolidWorks, mechanical stresses occurring in the mechanism for cutting the dressing, determining optimal cutting force and in second part, on physical model built I determined, using specialized measuring devices, cutting forces. This paper is intended as an analysis of the technical solutions adopted in virtual construction phase by the physical model based on achieved results.
This document summarizes a study on student satisfaction and service quality at private universities in Bosnia and Herzegovina. The study surveyed 300 students from 4 private universities. Descriptive statistics were used to analyze student perceptions of service quality. Overall, students had a slightly positive opinion of service quality, with average ratings around 5 on a 7-point scale. Students were most satisfied with caring academic staff and least satisfied with the education/experience levels of academic staff. The study provides statistics on student ratings of various university services including academic staff, administrative staff, facilities, and programs. The results suggest private universities need to improve quality standards to better meet student needs and expectations.
In this paper, the impact of stock market reforms is analyzed on foreign portfolio investment. Time series data is collected on these variables and correlation and regression test is applied on this data. E-views version 7 is used to analyze the data. Correlation shows positive relationship between variable which suggest that reforms are deriving factors of foreign investment. Results show the positive relationship between SMR and FPI.
Lean thinking literature review and suggestions for future researchWorld-Academic Journal
The research provides a literature overview from a timespan of more than 60 years with articles historically and thematically organized about the application of “Lean thinking” (LT) concept and the main research findings through different industries. Lean thinking is an important but yet still under researched aspect of strategic management. By collecting research records from ISI web of knowledge naming directly the lean thinking issue; 34 Web of science records, 10 Medline records and 2 Chinese citation database records were found. Results show that the main focus areas on lean thinking researches are mainly applied in health care industry (with the 48% of the collected records) followed by manufacturing industry (17%), construction (10%), product development (7%), training and education (7%) and supply chain (2%). Other industries (9%) are also starting to apply lean thinking philosophy according to the particularities of their domain. We find research gaps and provide directions for further investigation.
International Inter-institutional Partnerships in Higher Tourism Education: ...World-Academic Journal
Though internationalization of higher education is now well documented in the developed nations, there is a dearth of literature in this area in Africa. In Kenya, the few studies available focus on inter-institutional partnerships between higher institutions of learning offering tourism education and so little is known about these partnerships. And yet Kenya being a leading tourist destination in Africa, it has increased engagements with other parts of the world including academic partnerships motivated by its position in tourism. Consequently, Kenyan universities have introduced academic programs in tourism and hospitality which are now attracting more inter-institutional partnerships. Using the case of Moi University, this study seeks to establish the extent to which staff and student exchanges resulting from these partnerships serve the interest of the collaborating departments in Kenyan universities.
La théorie des jeux et de la décision en présence d’asymétrie d’information d...World-Academic Journal
Les relations au sein de l’entreprise tendent à se complexifier depuis quelques années. L’ouverture internationale multiplie en effet le nombre d’incitations entre les différents agents qui constituent la base relationnelle de l’entreprise. Cette dernière peut donc s’appréhender comme un nœud vers lequel les liaisons convergent et ou chaque relation (Entreprise/Actionnaires ; Entreprise/Clients ; Entreprise/Salariés ; Entreprise/Fournisseurs ; Entreprise/Banques…)
Cet article s’inscrit dans le contexte actuel ou les PME ne pouvant s’autofinancer et n’ayant pas accès au marché financier, restent fortement dépendantes des banques. Nous montrons dans le cadre d’une revue de la littérature, l’importance du financement de la PME par les banques sur les marchés du crédit. En effet, elles rencontrent des difficultés du fait de leur petite taille. Ce qui conduit à l’asymétrie d’information et le problème d’anti-sélection et d’incitation contraire qui amènent les banques a une mauvaise appréciation du risque PME.
Pour améliorer sa structure d’information sur la PME, la banque peut utiliser la méthode prêt-observation dans l’optique d’observer les signaux dégager sur son niveau d’effort. C’est le principe Bayésien qui permettra d’améliorer sa structure d’information sur la PME et de fait,s’engager à offrir des contrats aux meilleurs conditions et de limiter les situations d’asymétries d’informations ex post et le rationnement du crédit qui en découle.
Activation of Spent Bleaching Earth for Dehumidification Application World-Academic Journal
This document summarizes research on activating spent bleaching earth (SBE) for use in dehumidification applications. The researchers conducted experiments to regenerate SBE through three steps: 1) solvent extraction with hexane to remove entrained oil, extracting up to 25% of oil; 2) oxidation with hydrogen peroxide to remove remaining carbonaceous materials; and 3) heat reactivation at 550°C to remove hydrocarbons and open clay adsorption sites. Batch experiments tested the regenerated SBE and found sorption capacities of 27.07-26.63% at activation temperatures of 550-650°C, higher than commercial clay desiccants. The regenerated SBE shows potential as a low-
This document summarizes a research study on the impact of physical evidence on customer perceptions of service quality at Transnational Bank in Nakuru, Kenya. The study examined how the bank's interior and exterior environment (spatial layout, ambient conditions, signage/artifacts) influence customer views of the reliability, responsiveness, assurance and empathy of bank services. A sample of 95 bank customers completed questionnaires. The results showed significant relationships between the physical branch environment and customer perceptions of service quality. Specifically, ambient conditions, spatial layout, and signage/symbols were found to influence how customers rate the service at the bank. The document provides context on the competitive pressures facing Kenyan banks and the importance of differentiating service quality.
1. The document summarizes research on internal marketing, which focuses on motivating and committing employees through marketing approaches applied internally within organizations.
2. It reviews literature on internal marketing from various industries, finding the most research in healthcare (48%), services (21%), technology (8%), education (6%), and financial (4%).
3. Internal marketing aims to develop customer-consciousness among frontline employees to better serve external customers. The commitment and satisfaction of employees is important for internal marketing success and positive effects on customer service.
This document summarizes a journal article about the impact of professional bodies on training and development at Nation Media Group in Kenya. It finds that professional bodies play an important role in improving employee skills and making them more effective. However, Nation Media Group lacks policies supporting training through professional bodies. There are also challenges like lack of career paths, high employee turnover, and difficulties selecting which professional bodies to partner with given the diverse professions within the company. The document recommends that Nation Media Group conduct training needs analyses, require membership in professional bodies, and establish partnerships to facilitate continual training and advance professional standards among its employees.
This summary provides the key points from the document in 3 sentences:
The document discusses a study on the impact of liquidity on the capital structure of Pakistan's textile sector. The study finds that liquidity has some impact on capital structure but not a significant impact. While liquidity is important for companies to access additional capital, increasing inventory levels increases leverage while higher cash levels decrease short and long-term debt levels.
This document summarizes a research study on factors affecting effective management of the procurement function in Nakuru North Sub-County, Kenya. The study aimed to evaluate how project financing, accountability, ICT adoption, internal processes, and the internal control system influence procurement management. A literature review covered theories of the principal-agent relationship and general systems to provide a framework. The researcher conducted a census of department heads in the sub-county using questionnaires. Preliminary findings showed procurement management was slightly effective and attributed to the factors studied. The document discusses the procurement system and cycle in more detail.
This summary provides an overview of a research article that examines factors affecting innovation capacity in the manufacturing industry in Nakuru County, Kenya, using Buzeki Dairy Limited as a case study. The study found that management style had the strongest influence on innovation capacity, with a consultative, idea-encouraging style that motivates employees being most conducive to innovation. Almost half of employees reported low involvement in decision-making. The study recommends more employee involvement in decisions through suggestion boxes or meetings. The research article provides context on innovation and its importance for competitiveness. It also reviews literature on how organizational factors like management style and culture can influence innovation capacity.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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1. WORLD ACADEMIC JOURNAL OF BUSINESS & APPLIED SCIENCES-MARCH-SEPTEMBER 2013 EDITION
Journal of Economics & Finance (JEF)
APRIL 2013 VOL.1, No,2
Does Islamic Banking Have Any Future? A Comparative Study
Ammar Ali Gull (Corresponding author)
MBA/ MS (Banking & Finance)
GC University Faisalabad, Pakistan
Rehan Nasir
MBA/ MS (Banking & Finance)
GC University Faisalabad, Pakistan
Muhammad Bilal
MBA/ MS (Banking & Finance)
GC University Faisalabad, Pakistan
Asad Zaman
MBA/ MS (Banking & Finance)
GC University Faisalabad, Pakistan
Saqib Iqbal
MBA/ MS (Banking & Finance)
GC University Faisalabad, Pakistan
Accepted 10 April 2013
Abstract
The purpose of this research was to assess the future growth of Islamic banking. Study is based on
comparative analysis of both interest and Sharia based banks listed at Karachi stock exchange over the
period of 2007 to 2011 by applying regression analysis. Financial data regarding key performance
indicators of banking industry was collected from websites of KSE, State bank of Pakistan and sample
banks. Findings of analysis suggested that performance of non-interest banks is much better as
compare to conventional banks of Pakistan. Key difference is that Islamic banks are promoting equity
financing on the other hand lending procedure of conventional banks is totally based on debt financing.
Return on assets for Islamic banks is higher than conventional banks, it represents that working style
of these banks is efficient than interest base banks. In nutshell Islamic banks had bright future within
banking industry of our country.
Key Words: Islamic Banks, Conventional Banks, Return on Assets and Return on Equity.
1.
Introduction
Islamic and conventional banks both are operating for providing financial intermediary services.
Financial intermediary mean that banks working for two types of customers. First are those who need
money to meet their expenditures because their expenditures are higher than their income. That’s why
they need more money in shape of further capital or borrowing. Banks provide facility of lending to
customers meeting their needs easily without effecting the operations of business. Second type of
customers has income higher than their expenditures. So they have surplus money after meeting their
40
2. WORLD ACADEMIC JOURNAL OF BUSINESS & APPLIED SCIENCES-MARCH-SEPTEMBER 2013 EDITION
expenditures and those deposit surplus money in banks. Banks use this surplus money for lending
purpose to needy customers, who have higher expenditures than income for fulfilling their needs. So
banks are working as middle men and take commission from borrowing customer and pay to
depositing customer according to their packages and provide many more financial facilities.
Interest free banking system is fully based on Islamic rules and its banking operations are performed
in accordance with Islamic principles and its functional utilization was continued by creating Islamic
economic system. In the era of 1940 Islamic banks intensified their growth and became a new rival in
banking sector. Islamic banking reached its peak level and expanded in all Muslim and non-Muslims
countries. Islamic banks became an alternative for economy and majority of countries were adapting
to Islamic banking.
Within few decades the Islamic economy concept rapidly promoted in four continents likes Asia,
Africa, Europe and North America. Presently approximately 300 financial institutions are working as
Islamic banks in 70 countries of world and their investment reached up to $500 Billion to $800 Billion.
In recent era Islamic banks are having $4 trillion market value. In Arab countries this concept has
become a popular economic concept. Bahrain is from those countries who rapidly adopted Islamic
economic system and Malaysia is on second due its excellent policies regarding Islamic banking. In
Pakistan Islamic banks had 7% market participation and six Islamic banks are operating in Pakistan.
Conventional Banking is fully based on financial model which follow capitalistic economy, in this
system banks mainly borrow from Savers who have surplus money and lend to enterprises or
individuals who need money for meeting their needs. In conventional banks the profits of banks is
interest spread which is difference among interest earning and interest expenses. In this system banks
also gain revenue from secondary sources by providing services for international trading such as letter
of credit and letter of guarantee. In these transactions they work as middle men between exporters and
importers and receive commission. Financial sector of Pakistan consist of conventional banks
including domestic and foreign, financial institution, Islamic banks, insurance companies and stock
exchange.
In furthermore, although interest free base and conventional banks are operating in the same
intermediation function, the basis utilized by Islamic Banks is the profit or revenue sharing principle,
differ from conventional banks that based on market interest. The revenue sharing basis might
influence the Islamic bank’s capital structure. The efficient working of banking operations contributes
in economic growth of country because banks play a major and vital role as financial intermediaries.
Banks in Pakistan provide financial services and demand commission as reward for these services.
Important point is that the funding of banks is financed by deposits the expense of which is also
interest rate. Margin of bank’s profit is the difference between the amount earned as interest from
lenders and amount paid to depositors.
1.1. Problem statement
Banking industry promotes saving and investment activities for growth of business and trade
activities in country. Pakistani banking sector had experienced worst changes in six decades of its life.
The start of Islamic banking created a competitive environment for banking sector especially for
conventional banks due to its rapid growth in Pakistan. This study will investigate the service quality
of banks and its effect on proficiency of interest based and interest free baking.
1.2. Objectives of study
Following are the major purposes of this research.
To describe the concept of Islamic banking.
Performance comparison of Islamic and conventional banks operating in Pakistan.
To measure the performance efficiency and growth of Pakistan’s banking sector.
2. Literature Review
The study of Jaffar and Manarvi (2011) showed the effectiveness and efficiency of conventional
and Islamic banks working in Pakistan by using CAMEL technique and its sub factors such as capital
structure, asset management of banks, efficiency of management, earnings and effective liquidity of
banks. Financial data used for financial evaluation of Islamic and conventional banks was collected
from financial statements of banks. Financial statements were available on websites of concerned
bank and State Bank of Pakistan. CAMEL technique was used for assessing financial proficiency of
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3. WORLD ACADEMIC JOURNAL OF BUSINESS & APPLIED SCIENCES-MARCH-SEPTEMBER 2013 EDITION
banks. The paper concluded that the conventional banks were founder of banking and had excellent
earning ability and Islamic banks were more dependent on equity finance rather than debt finance and
also active in liquidity. Asset quality management among the banks was almost similar.
The purpose of this paper written by Qureshi and Shaikh (2012) was to analyze the relevant
proficiency of Pakistani banking sector, which consist of Islamic and conventional banks. For this
determination they used two techniques for assessment, first one was financial ratios to evaluate the
production and revenue efficiency and second was envelopment analysis for relevant analysis of banks.
They find out that Islamic banks were able to overcome on cost for banking services and have less
ability to generate efficient income. They claimed that Islamic Banks could be fortified to become an
outstanding leader in financial sector by decreasing bank’s wastage than conventional banks.
The study of Shahid, Rehman and Raoof (2010) evaluated the competency of Islamic banks and
conventional banks in Pakistan. History of conventional banks in Pakistan from last sixty years was
compared with Islamic banks. Islamic banks had short term history in Pakistan and less than seven
Islamic banks which are following fully Islamic rules. For conducting research total ten banks were
selected which includes five Islamic and five conventional banks from 2005 to 2009. A DEA model
was functional to assess the extra outcomes of banking industry. The fallouts were presented that the
TE of interest base banks was favorable but in CE and AE both factors were describing that there was
a heavy rivalry.
Ansari and Rehman (2011) described the financial efficiency of Pakistani Islamic and interest
base banks. For this description they considered five interest free and five interest base banks. Key
measurement element was return on total assets and with other helping factors assessment of banking
sector was done. The research presented a unique aspect of financial service provider firms which
were working as middle men between lender and borrower in Pakistan. Profitability assessment
measure was same for both types of banks. At the end of study, they finalized that Islamic banks were
providing excellent results than interest base banks and furthermore Islamic banks had bright
opportunity and capacity for market share.
Bilal, Saeed, Gull and Akram (2013) conducted a study to investigate the impact of bank related
and macroeconomic factors on performance of banks. Findings of their research revealed that net
interest margin have a favorable impact on ROA and ROE, while return on equity is adversely
affected by inflation and non-performing loans to total advances ratio.
The study of Siraj and Pillai (2012) compared the output of Islamic and non-Islamic banks which
were working in gulf and Arab countries for last five years. They said that assessment factors had
similarity for Islamic and conventional banks which were established in Arab countries. For this
comparative measurement six interest base and six interest free banks were selected. In this study the
return on equity, return on total assets, operating income, operating expenses, deposits to total equity
and net profit were used as performance indicators. They examined that Islamic banks were more
dependent on owner’s equity than debt financing but conventional banks like debt financing. Interest
base bank’s growing well but they did not achieve desired outcomes due to increase in unsecured
loans. The study notifies that evaluating elements may be affected due to financial crises for the year
2007.
Research of Syafri (2012) analyzed the factors affecting profitability of commercial banks in
Indonesia. Secondary data of commercial banks listed on the Indonesia Stock Exchange between 2002
and 2011 was used for analysis. Bank’s profitability was measured by return on assets as a function of
banks specific determinants. Analysis technique used was pooling data regression model. The
empirical results showed that loan to total assets; total equity to total assets, loan loss provision to total
loan had positive effect on profitability, while inflation rate, the size of bank and cost-to-income ratio
(BOPO) had a negative effect on profitability. Economic growth and non-interest income to total
assets had no effect on bank profitability.
Gull, Akram, Bilal and Muzaffar (2013) studied the importance of board independence in
banking sector of Pakistan. Outcomes of analysis suggested that banks with independent board
structures have outperformed the banks having dependent boards.
In this article Safiullah (2010) emphasized on the financial performance analysis of both stream of
banks to measure superiority and efficiency. The study indicated that liquidity efficiency, financial
42
4. WORLD ACADEMIC JOURNAL OF BUSINESS & APPLIED SCIENCES-MARCH-SEPTEMBER 2013 EDITION
structure, surviving in economy and participation in operations were notable. The outcomes were
based on economic obligations, optimal productivity and attractive services revealed that interest base
banks were operating well than Islamic banks. However Islamic bank’s efficiency was reward able in
banking growth and profitability than interest base banks. After comparative research the results
suggested that Islamic banks were growing rapidly.
Basic theme of study conducted by Saeed, Gull and Rasheed (2013) was to assess the impact of
capital structure on banking performance of Pakistan. Study was conducted by applying regression
analysis on a sample of 25 banks listed at KSE over the period of 2007 to 2011. Results of study
revealed a positive relationship between performance of Pakistani banks and measures of capital
structure.
Samad (2004) captured the efficiency results of interest free and interest base banks of Bahrain
during the Gulf war. He also evaluated leverage, liquidity and operation of banks. He used financial
ratios for assessment of services. He applied student’s financial statement analysis projects on Bahrain
banks for ten years trend analysis. The paper finalized that interest base banking and Islamic banking
have minor difference in liquidity, efficiency and services. But his investigation revealed that there
was a fundamental difference in lending of both banks.
The study of Viverita (2012) was aimed to evaluate the efficiency of Indonesian Islamic banks by
using individual banking data for the last 4 years. He used different financial ratios such as cost,
revenue and profit efficiency ratios. He observed that Islamic banks have impressive improvement
within banking sector. He examined in his research with the help of T-test and F-test that Islamic bank
had high cost of production than interest based banks. Furthermore, he investigated that Islamic
banks were more active and efficient in their operations than commercial banks and earned more
dividend. He lastly described that the profitability of large scale Islamic banks was much better than
the huge conventional banks.
Awan (2009) observed that in discouraging global financial conditions, Islamic banking has
become an outstanding substitute for financial market. It had noticed the rapid growth within two
decades. He conducted a vertical analysis of Islamic banking and then compared it with commercial
banks. For the purpose of study he selected new Islamic and commercial banks for the sake of
assessment. Primary and secondary data resources were used for measurement of efficiency of banks
for 3 years. He used different ratios to analyze the performance of both kinds of banks.
Islamic Banks were working on the profit or revenue sharing principle, which was different from
conventional banks that were based on market interest. The profit /revenue sharing basis might
influence the Islamic bank’s capital structure but it was also helpful in international banking crises to
reduce capital risk. Mostly conventional banks have defaulted due to high liquid liabilities but Islamic
banks survived in worst conditions due its unique capital structure.
3. Data and methodology
Data for the purpose of this research is collected from secondary sources such as websites of
Karachi Stock Exchange (KSE), State Bank of Pakistan (SBP) and concerned banks for the period of
five years from 2007 to 2011. This five years period was selected because during this period banking
sector passed through worst economic conditions. Five Islamic banks and five conventional banks
were selected as sample from the banking sector of Pakistan. All these banks are well known, listed at
KSE and have a big market share. For analysis of data collected from above mentioned sources
descriptive statistics, correlation and regression analysis are applied as Statistical techniques.
3.1 INDEPENDENT VARIABLES
3.1.1 Capital Adequacy Ratio (CAR)
It is an indicator which measures the strength of bank’s capital. It shows the risk weight of credit
exposure. CAR ratio is very useful for checking the capital of financial institutions.
3.1.2 Return on Equity (ROE)
This ratio is used to measure the return of total capital of a company. ROE is calculated by using
firm’s net profit and total equity finance. ROE is shown in percentage.
43
5. WORLD ACADEMIC JOURNAL OF BUSINESS & APPLIED SCIENCES-MARCH-SEPTEMBER 2013 EDITION
3.1.3 Deposits to Total Assets Ratio (DTAR)
DTAR shows the credit standing of bank by considering relationship between deposits and total assets
of banks.
Advances Turnover Ratio (ATR)
Advances turnover represent that how much interest is earned from total advances of bank. It is a
useful measure to check the efficiency of bank performance
Net spread ratio (NSR)
Spread ratio is used to measure the net interest income earned by a bank. This ratio represents the
basic income of banks.
3.2 DEPENDENT VARIABLES
3.2.1 Return on Assets (ROA)
ROA is a performance indicator that is used to measure the efficiency of total assets of a
company. ROA is obtained with the use total average asset of bank and net profit after tax, ROA is
shown as a percentage. Sometimes it’s written as investment on total assets of bank.
4. Hypothesis
Ho: Islamic banks are performing better than interest base banks.
H1: Conventional banking institutions are performing efficiently than Islamic banks.
3.4, Empirical model
Yit = β0 + βXit + µit
Return on Assets
ROAit = β0it+ β1CARit + β2NSRit + β3ATRit+ β4DTARit + β5ROEit + µit
Where:
Yit is dependent variable.
β0 represents the intercept.
Xit is independent variable.
µit are the error terms.
i
is number of banking companies and
t
is number of years.
4., Results and Discussions
This segment explains the statistical results of variables related to study. This section consists of group
statistics, correlation and regression analysis of variables and furthermore theoretical discussion on
outcomes of these tests.
4.1 Group Statistics
Table- 1 and 2 are used to describe the 5 years summary of statistical analysis for Islamic and
non-Islamic banks. Combined descriptive statistics of both banks are presented in table- 3. In Islamic
and non-Islamic bank’s mean, median and standard deviation of the dependent variable ROA is
-0.3496, -3.1972 0.02, 1.21 and 1.446543, 21.48512 respectively. Return on assets of Islamic banks is
better and more consistent than conventional banks. In Islamic and conventional banks ROE, NSR,
DTAR, CAR and ATR are independent variables and their means, are 2.46,11.18, 47.7252,37.5244
72.3556,76.1204 23.9012,14.1096 and 14.2088,16.4168 respectively. In case of Islamic banks Mean
of independent variables NSR and CAR are higher than conventional banks but ROE, DTAR and ATR
are lower than conventional banks. Standard deviation of ROE, NSR, DTAR, CAR and ATR
(independent variables) for interest free and interest base banks are 8.979317,27.46183
10.79265,20.10444 13.03161,6.946273 13.73281,7.77835 and 6.91089,3.775496
respectively.
Islamic banks SD is less as compare to conventional banks which shows that Islamic banks are
performing well than interest based banks. Minor fluctuations in standard deviation are suggesting that
Islamic banks are more consistent than conventional banks.
4.2 Correlation Analysis
Table-4 and 5 represents the correlation matrix of the independent variables for Islamic and
44
6. WORLD ACADEMIC JOURNAL OF BUSINESS & APPLIED SCIENCES-MARCH-SEPTEMBER 2013 EDITION
conventional banks. Correlation research is a statistical technique which is used to check the multi co
linearity among independent variables. When Correlation is positive then values will move in same
direction but when they move in opposite direction correlation is negative.
Islamic banks ROE has a positive relation with NSR, DTAR and ATR but a negative association
with CAR. Conventional bank’s ROE having a favorable relationship with NSR, CAR and ATR, while
negatively related with DTAR. Islamic bank’s NSR is negatively correlated with all variables except
CAR. Non-Islamic bank’s NSR is found to have a positive dependence upon CAR and ATR. NSR and
DTA are adversely correlated. DTAR of interest free an interest based banks is positively associated
with ATR and negatively related with CAR. Islamic banks CAR have a positive correlation with NSR
but it is negatively associated with ROE and DTA. Conventional banks CAR have Positive correlation
with NSR and ROE but it is negatively associated with DTAR. In correlation matrix Islamic banks
ATR is positively related with ROE, DTAR and CAR and negatively related to NSR. Conventional
banks ATR having an optimistic relationship with all independent variables except CAR.
Table- 6 illustrates the combine correlation analysis of Islamic and non-Islamic banks. ROE is
having a favorable connection with all independent measures other than CAR. NSR is negatively
associated with DTAR and ATR but favorably related to CAR. DTAR have an adverse relationship
with CAR and positively correlated to ATR. Finally CAR and ATR are correlated in same direction.
4.3, Regression Results
Outcomes of regression analysis of both banks are separately given in Table-7. According to
results demonstrated in above mentioned table ROE of non-interest based banks has a positive
significant impact on dependent variable (ROA) and all other variables have an insignificant
relationship with ROA. R squared of dependent variable for Islamic banks is 0.671548, which means
67% of sample describes ROA and its F statistics is 7.769405. In case of Conventional banks ROE and
CAR are favorably associated with ROA. NSR, DTAR and ATR are having a negative insignificant
impact on ROA. R square and F statistics of conventional banks are 0.807808, 15.97187 respectively.
Combined results of regression test are elaborated in Table-8. Except ROE all other independent
variables are having an insignificant impact on dependent variable and ROE has a strong positive
association with ROA. R square and F statistics of combined regression model are 0.632108 and
15.1201.
5. Conclusion
This research is conducted on the basis of comparative analysis of both banking approaches. First
one is Islamic banking based on Sharia guidelines and other is Non-Islamic based on manmade
principles. Conventional banking institutions are working in Pakistan from four to five decades and
having penetration in their services concern. Islamic banks started their operations recently but their
position in banking industry is satisfactory. Banks working in accordance of Islamic principles are
outperforming conventional banks in recent financial crises. One logical reason is that Islamic banks
are not dependent upon debt finance like conventional banks. This is an edge for Islamic banks over
conventional banking institutions that they rely on equity financing rather than debt financing. Finally
it is reduce bank’s investment risk. This edge is very helpful for Islamic banks to survive in
international financial crises.
As per findings of this study in Pakistan Islamic banks are performing better than interest base
banks. Return on Assets of Islamic banking is at optimal level and supportive than conventional
banking organizations. Islamic banks CAR ratio is too good that is an indication of low risk and
secured financing. Conventional bank’s deposit to asset ratio is very attractive for potential customers
and also higher than non-conventional banks. It means conventional approach majorly relies on debt
financing and in contrast Islamic banks are dependent upon equity financing. Over all Islamic banks
have higher growth rate in banking industry as compare to conventional banks.
References
Ansari, S., & Rehman, K. (2011). Comparative Financial Performance of existing Islamic Banks and
Contemporary Conventional Banks in Pakistan. Paper Presented at second International Conference
on Economics, Business and Management, IPEDR 22, 45-49.
Awan, A. G. (2009). Comparison of Islamic and conventional banking in Pakistan. Proceedings second
CBRC, Lahore- Pakistan. 1-36.
45
7. WORLD ACADEMIC JOURNAL OF BUSINESS & APPLIED SCIENCES-MARCH-SEPTEMBER 2013 EDITION
Bilal, M., Saeed, A., Gull, A. A., & Akram, T. (2013). Influence of Bank Specific and Macroeconomic
Factors on Profitability of Commercial Banks: A Case Study of Pakistan. Research Journal of Finance
and Accounting, 4(2), 117-126.
Gull, A. A., Akram, T., Bilal, M., & Muzaffar, Z. (2013). Do Board Independence Carry Value? (A
Case Study of Pakistani Banks). Research Journal of Management Sciences, 2(5), 1-5.
Jaffar, M., & Manarvi, I. (2011). Performance comparison of Islamic and Conventional banks in
Pakistan. Global Journal of Management and Business Research, 11(1), 60-66.
Qureshi, M. A., & Shaikh, M. (2012). Efficiency of Islamic and Conventional Banks in Pakistan: A
Non-parametric Approach. International Journal of Business and Management, 7(7), 40-50.
Saeed, M. M., Gull, A. A., & Rasheed, M. M. (2013). Impact of Capital Structure on Banking
Performance (A Case Study of Pakistan). Interdisciplinary Journal of Contemporary Research in
Business, 4(10), 393-403.
Safiullah, Md. (2010). Superiority of Conventional Banks & Islamic Banks of Bangladesh: A
Comparative Study. International Journal of Economics and Finance, 2(3), 199-207.
Samad, A. (2004). Performance of interest-free Islamic banks vis-à-vis interest-e-based conventional
banks of Bahrain. IIUM Journal of Economics and Management, 12(2), 1-15.
Shahid, H., Rehman, R., Niazi, G. S. H., & Raoof, A. (2010). Efficiencies Comparison of Islamic and
Conventional Banks of Pakistan. International Research Journal of Finance and Economics, (49),
24-42.
Siraj, K. K., & Pillai, P. S. (2012). Comparative Study on Performance of Islamic and Conventional
Banks in GCC region. Journal of Applied Finance and Banking, 2(3), 123-161.
Syafri. (2012). Factors Affecting Bank Profitability in Indonesia, Paper Presented at The 2012
International Conference on Business and Management, Phuket- Thailand.
Viverita. (2010). Performance Analysis of Indonesian Islamic and Conventional Banks. Electronic
copy available at: http://ssrn.com/abstract=1868938.
List of Tables
Table- 1
Mean
Median
Std. Dev.
Observations
ROE
2.46
0.09
8.979317
25
Descriptive Statistics (Islamic Banks)
Table- 2
ROE
ROA
-0.3496
0.02
1.446543
25
NSR
47.7252
47.7
10.79265
25
DTAR
72.3556
78.75
13.03161
25
CAR
23.9012
17.65
13.73281
25
ATR
14.2088
13.61
6.91089
25
ROA
NSR
DTAR
CAR
ATR
Mean
9.2368
-3.1972
37.5244
76.1204
14.1096
16.4168
Median
11.18
1.21
35.83
76
11.35
16.05
Std. Dev.
27.46183
21.48512
20.10444
6.946273
7.77835
3.775496
Observations
25
25
25
25
25
25
NSR
TAR
CAR
TR
Descriptive Statistics (Conventional Banks)
Table- 3
ROE
OA
Mean
5.8484
-1.7734
42.6248
74.238
19.0054
15.3128
Median
4.865
0.51
43.3
76.89
14.365
14.995
20.50823
15.13897
16.77996
10.50844
12.10218
5.623013
Std. Dev.
46