Islamic Vs. Conventional Commercial Banking: The Resilience Avant-garde
This paper aims to examine the differences in financial resilience of Islamic and Conventional Commercial banks with respect to the short term and long-term perspectives to pliability. The selected banks are compared on their resilience quotient exhibited by Liquidity Coverage Ratio (LCR) and Z-Scor...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
CSRC Publishing
2020-01-01
|
| Series: | Journal of Accounting and Finance in Emerging Economies |
| Subjects: | |
| Online Access: | http://www.publishing.globalcsrc.org/ojs/index.php/jafee/article/view/921 |
| _version_ | 1818444980879884288 |
|---|---|
| author | Areeba Khan Imran Sharif Chaudhry Sohail Saeed |
| author_facet | Areeba Khan Imran Sharif Chaudhry Sohail Saeed |
| author_sort | Areeba Khan |
| collection | DOAJ |
| description | This paper aims to examine the differences in financial resilience of Islamic and Conventional Commercial banks with respect to the short term and long-term perspectives to pliability. The selected banks are compared on their resilience quotient exhibited by Liquidity Coverage Ratio (LCR) and Z-Scores. This study evaluates cross country panel data of 157 listed and non-listed licensed Islamic banks located in 22 countries and same number of their conventional commercial counterparts, through a period of 1998 to 2018. The data were collected through BANKSCOPE database and World Bank publications. Ratio analysis and Multiple Regression analysis were applied on data to analyze the extent of resilience of both Islamic and Conventional banks.The findings suggest that there are considerable differences in short term and long term resilience quotient of Islamic and Conventional commercial banks. Where Islamic banks have relatively enervated position than Commercial banks on liquidity frontier, they hold a more resilient position with respect to z-score. ROE and Capital adequacy are two important factors that have a significant impact on bank resilience.This research is different from all past researches with respect to methodological, aeon and acclimatization perspective. Resilience is a relatively new phenomenon adopted from complex adaptive ecosystems and most studies in this area are of theoretical nature. Moreover, the fact that this research has considered not only the long term but also short-term resilience perspective, adds to its overall value and originality. |
| first_indexed | 2024-12-14T19:24:34Z |
| format | Article |
| id | doaj.art-d535b485d8f34b2cb32cfe3f6cc3af28 |
| institution | Directory Open Access Journal |
| issn | 2519-0318 2518-8488 |
| language | English |
| last_indexed | 2024-12-14T19:24:34Z |
| publishDate | 2020-01-01 |
| publisher | CSRC Publishing |
| record_format | Article |
| series | Journal of Accounting and Finance in Emerging Economies |
| spelling | doaj.art-d535b485d8f34b2cb32cfe3f6cc3af282022-12-21T22:50:14ZengCSRC PublishingJournal of Accounting and Finance in Emerging Economies2519-03182518-84882020-01-015210.26710/jafee.v5i2.921Islamic Vs. Conventional Commercial Banking: The Resilience Avant-gardeAreeba Khan0Imran Sharif Chaudhry1Sohail Saeed2The Islamia University of Bahawalpur, PakistanDirector, School of Economics, Bahauddin Zakariya University, Multan, PakistanThe Islamia University of Bahawalpur, PakistanThis paper aims to examine the differences in financial resilience of Islamic and Conventional Commercial banks with respect to the short term and long-term perspectives to pliability. The selected banks are compared on their resilience quotient exhibited by Liquidity Coverage Ratio (LCR) and Z-Scores. This study evaluates cross country panel data of 157 listed and non-listed licensed Islamic banks located in 22 countries and same number of their conventional commercial counterparts, through a period of 1998 to 2018. The data were collected through BANKSCOPE database and World Bank publications. Ratio analysis and Multiple Regression analysis were applied on data to analyze the extent of resilience of both Islamic and Conventional banks.The findings suggest that there are considerable differences in short term and long term resilience quotient of Islamic and Conventional commercial banks. Where Islamic banks have relatively enervated position than Commercial banks on liquidity frontier, they hold a more resilient position with respect to z-score. ROE and Capital adequacy are two important factors that have a significant impact on bank resilience.This research is different from all past researches with respect to methodological, aeon and acclimatization perspective. Resilience is a relatively new phenomenon adopted from complex adaptive ecosystems and most studies in this area are of theoretical nature. Moreover, the fact that this research has considered not only the long term but also short-term resilience perspective, adds to its overall value and originality.http://www.publishing.globalcsrc.org/ojs/index.php/jafee/article/view/921IslamIslamic BankingComparisonResilienceZ-ScoreLiquidity Conversion Ratio |
| spellingShingle | Areeba Khan Imran Sharif Chaudhry Sohail Saeed Islamic Vs. Conventional Commercial Banking: The Resilience Avant-garde Journal of Accounting and Finance in Emerging Economies Islam Islamic Banking Comparison Resilience Z-Score Liquidity Conversion Ratio |
| title | Islamic Vs. Conventional Commercial Banking: The Resilience Avant-garde |
| title_full | Islamic Vs. Conventional Commercial Banking: The Resilience Avant-garde |
| title_fullStr | Islamic Vs. Conventional Commercial Banking: The Resilience Avant-garde |
| title_full_unstemmed | Islamic Vs. Conventional Commercial Banking: The Resilience Avant-garde |
| title_short | Islamic Vs. Conventional Commercial Banking: The Resilience Avant-garde |
| title_sort | islamic vs conventional commercial banking the resilience avant garde |
| topic | Islam Islamic Banking Comparison Resilience Z-Score Liquidity Conversion Ratio |
| url | http://www.publishing.globalcsrc.org/ojs/index.php/jafee/article/view/921 |
| work_keys_str_mv | AT areebakhan islamicvsconventionalcommercialbankingtheresilienceavantgarde AT imransharifchaudhry islamicvsconventionalcommercialbankingtheresilienceavantgarde AT sohailsaeed islamicvsconventionalcommercialbankingtheresilienceavantgarde |