Investment Performance of Islamic Bank: An Empirical Study

Authors

  • Evana Nusrat Dooty International Islamic University Chittagong
  • Mohammed Syedul Islam International Islamic University Chittagong

DOI:

https://doi.org/10.18034/abr.v4i1.71

Keywords:

Islamic bank, conventional bank, profitability, deployment, liquidity, risk

Abstract

The article undertakes an empirical study on investment of Islamic Bank. The aim of the study is to examine and evaluate the performance of investment of Islamic Bank for the time period 2005-2009 in comparison with a conventional Bank. Several financial ratios are applied for this purpose. For the empirical investigation data has been collected from Islami Bank Bangladesh Limited and Mutual Trust Bank Limited. The study found that Islami Bank Bangladesh Limited (IBBL) is relatively less profitable and less risky (more solvent) during 2005-2009 compared to a conventional bank (Mutual Trust Bank Limited), however, it is improving considerably over time indicating convergence with the performance of the conventional banks.

Downloads

Download data is not yet available.

Author Biographies

Evana Nusrat Dooty, International Islamic University Chittagong

Lecturer in Economics, Department of Business Administration, International Islamic University Chittagong, BANGLADESH

Mohammed Syedul Islam, International Islamic University Chittagong

Assistant Professor in Economics, Department of Business Administration, International Islamic University Chittagong, BANGLADESH

References

Ahmed, Mareyah Mohammad & Pandey, Dayanand, 2010. Are Islamic Banks Better Immunized than Conventional Banks in the Current Economic Crisis?. Paper presented at 10th Global Conference on Business & Economics held at Rome, Italy

Al Shammari, M., and Salimi, M. (1998). Modeling the operating efficiency of banks, A parametric methodology. Journal of Logistic Information Management, Vol. 11.

American Journal of lslamic Social Sciences (9) Summer: 219-232. and Suliman, M. O. (1993), "Equity Capital, Profit-Sharing Contracts and Investment: Theory and Evidence," Journal of Business Finance and Accounting

Ariff Mohamed, ‘Research Report on Islamic Banking’, Asian Pacific Economic Literature, Vol: 2, No:2, PP.46-62, University of Malaya.

Bashir, A. M., and Darrat, A. F. (1992), "Equity Participation Contracts and Investment,"

Cihak, M. and H. Hesse (2008), Islamic Banks and Financial Stability: An empirical analysis, IMF Working Paper No. 08.

Hassan, M., (2006), The X Efficiency of Islamic banks, Islamic Economic Studies, 13(2): 49-78.

Kader, Janbota M. & Asarpota, Anju K., 2007. Comparative Financial Performance of Islamic vis-à-vis Conventional Banks in the UAE. Paper presented at 2006-2007 Annual Student Research Symposium & First Chancellor’s Undergraduate Research Award at UAE University

Samed Abdus & Hassan, M. Kabir, ‘The Performance of Malaysian Islamic Bank During 1984-1987: An Exploratory Study”, International Journal of Islamic Financial Services Vol.1, No.3

Yudistira, Donsyah (2003), “Efficiency of Islamic Banks: an Empirical Analysis of 18 Banks, ”Finance No. 0406007, EconWPA

Yudistira, Donsyah, 2004. Efficiency of Islamic Banks: an Empirical Analysis of 18 Banks. Islamic Economic Studies 12(1), 1-19

--0--

Downloads

Published

2015-04-30

How to Cite

Dooty, E. N., & Islam, M. S. (2015). Investment Performance of Islamic Bank: An Empirical Study. Asian Business Review, 4(1), 37–40. https://doi.org/10.18034/abr.v4i1.71