Samad (2004) used profitability, liquidity risk, and credit risk in his search to counterweight the performance of the Islamic banks and commercial banks of Bahrain through the period of 1991-2001. By the use of the t-test he figured that there is no significant distinction in profitability and liquidity amidst Islamic banks and conventional banks. In addition, he pointed that regardless of the Islamic banks’ fresh entrance to the trade market they are giving the same performance as conventional banks. Moreover, Islamic banks are at a lower risk for outrunning conventional banks with regard to credit risk.
Jaffar and Manarvi (2011) surveyed the execution of Islamic banks and conventional banks in Pakistan through 2005-2009. They used CAMEL framework to resolve capital adequacy, …show more content…
As their regain on assets is high due to their lower overhead expenses, it does not necessarily imply that their competence is higher than conventional banks. In addition they saw that there is no matchmaking between their low asset employment and investment margin ratios. Thus, this study denotes that Islamic banks do not rely on interest-like products as much as conventional banks rely on efficiency