The performance of islamic banks versus conventional banks / Aeindatul Aeishah Daud

The paper compared and examined the financial performance of Islamic banks against conventional banks for the period 2001 to 2011 in Malaysia. The data was based on selected financial statement and balance sheet of selected banks in Malaysia. Financial performance measures were expressed in terms of various financial ratios in which were categorized into profitability, liquidity, and risk and solvency. The choice of this particular focus is justified by the fact that banks in Malaysia have experiences a significant increase in the number of Islamic
banking activities, evident by high growth rate of Islamic assets. Financial ratios are applied in measuring this performance. To test the hypotheses, T- test are
used in determining their significance. The study found that no major difference in financial performance between Islamic banks and conventional banks