IDEAS home Printed from https://ideas.repec.org/p/guc/wpaper/16.html
   My bibliography  Save this paper

Measuring the Performance of Islamic Banks by Adapting Conventional Ratios

Author

Listed:
  • Ahmed Mohamed Badreldin

    (Faculty of Management Technology, The German University in Cairo)

Abstract

One consequence of the current financial crisis is that many countries began to reevaluate their financial systems and recognize its flaws and drawbacks. They also began the search for alternative systems for their economies; one of the proposed systems is the current Islamic financial model. This model is still in its infancy and many modifications and additions are required. It also lacks the necessary financial performance measurement tools similar to those used by conventional banks for managers and investors alike. This paper evaluates this lack of performance measures. It then adapts a currently applied ROE Analysis Tool used in conventional banks, to the currently established model of Islamic Banks and tests its applicability and evaluates its usefulness. The findings suggest that such an adapted model would be quite successful for use in Islamic banks and would offer much better analysis and basis of comparison within the Islamic financial system. It also suggests that much of the previously measured performance of Islamic Banks is unsound and should be revised for accuracy and reliability because of the flawed methods used for measurement in the first place.

Suggested Citation

  • Ahmed Mohamed Badreldin, 2009. "Measuring the Performance of Islamic Banks by Adapting Conventional Ratios," Working Papers 16, The German University in Cairo, Faculty of Management Technology.
  • Handle: RePEc:guc:wpaper:16
    as

    Download full text from publisher

    File URL: http://mgt.guc.edu.eg/wpapers/016badreldin2009.pdf
    File Function: First version, 2009
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Achraf Haddad & Anis El Ammari & Abdelfattah Bouri, 2020. "Comparative and Demonstrative Study Between the Liquidity of Islamic and Conventional Banks in a Financial Stability Period: Which Type of Banks Is the Most Liquid?," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 252-273, January.
    2. Aliasghar Aliakbarzadeh & Akbar Alem Tabriz, 2014. "Performance Evaluation and Ranking the Branches of Bank using FAHP and TOPSIS Case study: Tose Asr Shomal Interest-free Loan Fund," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 199-217, December.
    3. Pascalis Seran & Usil Sis Sucahyo & Apriani Dorkas Rambu Atahau & Supramono Supramono, 2022. "Investigating the Efficiency of Indonesian Employee Pension Funds," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 25(83), pages 74-87, June.
    4. Al-Zuhairi Ahmed Khalaf Hussein, 2024. "Analysis of Underwriting Activity and its Impact on the Profitability Ratios of the Insurance Companies Listed in the Iraq Stock Exchange," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(2), pages 1-31, June.
    5. Dinh Xuan Cuong & Hoang Thi Hien & Tran Long, 2018. "Multi-Criteria Decision-Making Model Evaluating the Performance of Vietnamese Commercial Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 9(1), pages 132-141, January.

    More about this item

    Keywords

    Performance measurement; ratio analysis; ROE; Islamic banks;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:guc:wpaper:16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr.Dina Yousri (email available below). General contact details of provider: https://edirc.repec.org/data/fmguceg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.