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Factors Influencing Performance Of The Uae Islamic And Conventional National Banks

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  • Hussein A. Hassan Al-Tamimi

Abstract

The objective of this study is to investigate some influential differences in UAE’s Islamic and conventional national banks during the period 1996-2008. UAE Islamic banks have a small market share, though there is an increasing demand for their services. This gives rise to an examination of the factors that influence the performance of these banks compared with conventional banks. A regression model was used in which ROE and ROA were used alternatively as dependent variables. A set of internal and external factors were considered as independent variables including: GDP per capita, size, financial development indicator (FIR), liquidity, concentration, cost and number of branches. The results indicate that liquidity and concentration were the most significant determinants of conventional national banks’ performance. On the other hand, cost and number of branches were the most significant determinants of Islamic banks’ performance.

Suggested Citation

  • Hussein A. Hassan Al-Tamimi, 2010. "Factors Influencing Performance Of The Uae Islamic And Conventional National Banks," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(2), pages 1-9.
  • Handle: RePEc:ibf:gjbres:v:4:y:2010:i:2:p:1-9
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    References listed on IDEAS

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    2. Gary C. Zimmerman, 1996. "Factors influencing community bank performance in California," Economic Review, Federal Reserve Bank of San Francisco, pages 26-40.
    3. Hsiu‐Ling Wu & Chien‐Hsun Chen & Fang‐Ying Shiu, 2007. "The impact of financial development and bank characteristics on the operational performance of commercial banks in the Chinese transitional economy," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(5), pages 401-414, October.
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    Cited by:

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    2. Saiful Hidayat & Margono Setiawan & Fatchur Rohman & Ananda Sabil Hussein, 2022. "Development of Quality Digital Innovation by Optimally Utilizing Company Resources to Increase Competitive Advantage and Business Performance," Administrative Sciences, MDPI, vol. 12(4), pages 1-16, November.
    3. Abuzarqa Rawan, 2019. "Evaluating Banks Financial Performance Using Financial Ratios: A Case Study Of Kuwait Local Commercial Banks," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(2), pages 56-68, September.
    4. Julius B. Adesina & Barine M. Nwidobie & Oluwatosin O. Adesina, 2015. "Capital Structure and Financial Performance in Nigeria," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(2), pages 21-31, February.
    5. Stoyu I. Ivanov, 2014. "Performance Analysis Of Banks Headquartered In Hollywood Versus Silicon Valley," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(2), pages 33-43.
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    7. Vincent Okoth Ongore & Gemechu Berhanu Kusa, 2013. "Determinants of Financial Performance of Commercial Banks in Kenya," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 237-252.
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    9. Julius B. Adesina & Barine M. Nwidobie & Oluwatosin O. Adesina, 2015. "Capital Structure and Financial Performance in Nigeria," International Journal of Business and Social Research, LAR Center Press, vol. 5(2), pages 21-31, February.

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    More about this item

    Keywords

    Bank performance; UAE Islamic banks; UAE conventional national banks;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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