Abstract
Islamic banking and finance is a multitrillion-dollar industry, which offers interest-free banking arrangements that entail risk sharing and cater to all sections of society, thereby bringing about stability, equality and prosperity. Although the ethical underpinnings of the Islamic banking business model, guided by Shariah law, have enabled Islamic banks to compete successfully with conventional banks, there remains a paucity of work that examines the contributing factors to the corporate performance of Islamic and conventional banks operating in dual banking systems. This paper investigates the relative importance of the Islamic banking business model, alongside its conventional counterparts, in relation to financial and market-based performance. Based on empirical data gathered from Islamic and conventional banks operating in five Gulf Cooperation Council (GCC) member states with dual banking systems, the study reveals that human capital exerts a significant positive impact upon the financial performance (measured by ROAA) of both Islamic and conventional banks.
DOI
10.1504/IJBGE.2017.090215
Publication Date
2018-02-28
Publication Title
International Journal of Business Governance and Ethics
Volume
12
Issue
4
Publisher
Inderscience
ISSN
1741-802X
Embargo Period
2024-11-19
First Page
330
Last Page
330
Recommended Citation
Nawaz, T. (2018) 'Conventional vs. Islamic banks in dual-banking systems: business model, outlay stratagems and economic performance', International Journal of Business Governance and Ethics, 12(4), pp. 330-330. Inderscience: Available at: https://doi.org/10.1504/IJBGE.2017.090215
