Performance and Risk Analysis of the Islamic Banks:The Case of Bahrain Islamic Bank

Autor: Seref Turen
Rok vydání: 1995
Předmět:
Zdroj: Journal of King Abdulaziz University-Islamic Economics. 7:3-14
ISSN: 1658-4244
1018-7383
Popis: The purpose of this paper is to investigate quantitatively and also at micro level the claim that Islamic banking offers high performance and stability. In order to evaluate the risk-return characteristics of the Islamic banks, Bahrain Islamic Bank (BIB) has been taken as an example. Research is conducted through three different methods: Financial ratio analysis and stock analysis both indicate that BIB offers a higher return and a lower coefficient of variation than the other commercial banks. Portfolio analysis, too, shows that BIB's stock is the best for the purpose of portfolio diversification. The results of the investigation can be used as a partial but quantitative explanation to the arguments whether the profit sharing concept of Islamic banking can achieve a higher profitability and lower risk than conventional commercial banks.
Databáze: OpenAIRE