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Objective: This study aims to analyze whether the number of assets differs before and after conversion to an Islamic bank. Theoretical Framework: The theoretical framework provides relevant information on Islamic banking and market structure, which forms the basis for the development of hypothesis. Method: Using regression analysis with dummy variables, the study found differences in assets between the pre and post-conversion periods. Results and Discussion: The findings suggest that conversion could be a recommended approach for the Islamic banking industry in Indonesia to accelerate asset growth. Additionally, it offers an optimal solution for smaller-sized conventional banks as an alternative to spin-offs or mergers. Research Implications: This research provides significant contributions to the study of Islamic banking. This research has the implication that conversion can be an alternative strategy for small parent banks. Originality/Value: Several conventional banks in Indonesia have chosen full conversion into Islamic banks as an exit strategy. This decision is in addition to the spin-off option. Bank of Aceh, Bank of NTB and Bank of Riau Kepri completed the full conversion in 2016, 2018 and 2022, respectively. However, research on Islamic bank conversion is still limited.

This research examines the critical influence of cash management on the financial efficacy of the conventional banking sector in Pakistan. This study represents the initial attempt to assess the influence of liquidity, debt ratio, and bank size on return on assets among five conventional banks in Pakistan. Information was obtained from audited annual reports from publicly traded banks that span from 2017 to 2021. The results indicate a significant positive correlation between liquidity and return on assets (ROA). Additionally, a significant negative association between debt ratio and ROA is examined. Furthermore, the study reveals that the size of banks exhibits a significant negative relationship with ROA. The study will provide valuable insights for financial managers, portfolio analysts, treasurers, and controllers on the practical implementation of contemporary cash management strategies.

This research examines the critical influence of cash management on the financial efficacy of the conventional banking sector in Pakistan. This study represents the initial attempt to assess the influence of liquidity, debt ratio, and bank size on return on assets among five conventional banks in Pakistan. Information was obtained from audited annual reports from publicly traded banks that span from 2017 to 2021. The results indicate a significant positive correlation between liquidity and return on assets (ROA). Additionally, a significant negative association between debt ratio and ROA is examined. Furthermore, the study reveals that the size of banks exhibits a significant negative relationship with ROA. The study will provide valuable insights for financial managers, portfolio analysts, treasurers, and controllers on the practical implementation of contemporary cash management strategies.

The impact of credit risk (CR) on bank-specific factors (BSF’s) and banks in the event of conventional and Islamic banks of Pakistan is an essential motivation behind this learning. These banks are chosen by their value commitment. The financial explanation investigation of chosen Islamic and conventional banks is contemplated from 2007 to 2017. Relapse examination of non-performing loan (NPL) proportion and Z-Score is utilized to discover the connections of BSF’s on chosen banks. The Islamic banking system consists of (return on equity (ROE), ROA, liquidity, spread and bank size) having a significant relationship toward credit risk. Therefore, the impact of the Z-score is less for Islamic banks relatively compared to conventional banks. The increased risk of bank debt reflects a strong NPL. In this examination bank, certain factors, for instance, efficiency, return on assets (ROA) and bank dimension, have a significant liaison through credit card risk in the conventional selected banking system, and this process affects overall banking performance. These findings provide valuable insights for policymakers, regulators, and banking professionals to manage credit risk effectively in the context of Pakistan's banking system. The originality of this study lies in its focus on the comparison between conventional and Islamic banks in Pakistan, which has yet to be extensively explored in the literature.

Purpose: The study aims to compare the credit risk minimization between Islamic and conventional banks in Yemen. Approach/Methodology/Design: This paper is limited to a homogeneous sample that includes the Islamic and conventional banks' coverage as they represent the most significant part of the Yemeni banking sector. Using a descriptive-analytical method, data has been collected by a questionnaire sent by post to each Islamic and conventional bank separately located in Yemen's capital city. Findings: The study concludes that credit risk is the most critical risk facing banks, and there is a significant difference in credit risk minimizing between Islamic. Originality/value: The result showed that the banks' most critical risks are credit risks, and there is a significant difference in credit risk minimisation between Islamic and conventional banks. Also, conventional banks possessed a credit risk minimizing system better than Islamic banks. Several recommendations identified where the Yemeni banks, whether Islamic or conventional, should use advanced methods to measure and analyze credit risks.

Purpose: The study aims to compare the credit risk minimization between Islamic and conventional banks in Yemen. Approach/Methodology/Design: This paper is limited to a homogeneous sample that includes the Islamic and conventional banks' coverage as they represent the most significant part of the Yemeni banking sector. Using a descriptive-analytical method, data has been collected by a questionnaire sent by post to each Islamic and conventional bank separately located in Yemen's capital city. Findings: The study concludes that credit risk is the most critical risk facing banks, and there is a significant difference in credit risk minimizing between Islamic. Originality/value: The result showed that the banks' most critical risks are credit risks, and there is a significant difference in credit risk minimisation between Islamic and conventional banks. Also, conventional banks possessed a credit risk minimizing system better than Islamic banks. Several recommendations identified where the Yemeni banks, whether Islamic or conventional, should use advanced methods to measure and analyze credit risks.

The health of the financial system has vital influence on the economic growth and development of a country. Banking systems are a key component of the financial systems and therefore, the economic importance of banks should never be underestimated. However, it is not just the financial performance of these banks that determines their success in the economic arena but also, their resilience levels. This study looks at Islamic banks and conventional banks in the Middle East and Northern Africa region to better understand (1) how and if these systems differ regarding financial performance and resilience and (2) what some of the key determinants are (both internal and external) of financial performance and resilience in the region. This study looks at 67 banks over the time 2012-2021. Several quantitative techniques including, a Manova test, logistic regressions, pooled OLS regressions and random effects models are used to differentiate between the two banking systems as well as to understand what factors determine financial performance and resilience overall. The study finds that there is no differentiation between Islamic and Conventional banks both in terms of performance and resilience. However, there are other internal and external factors that do have a statistically significant impact in determining both financial performance and resilience, respectively. Furthermore, this study finds that resilience is a key determinant of financial performance however, the causal relationship does not work the same way when reversed.

Globalization, financial crisis, security and other major reasons why banking activities are growing every day. Bangladesh's banking sector is a vital component of the country's financial system.  The analysis was conducted to assess profitability of selected conventional banks in Bangladesh by financial ratios.  The ratio review was carried out to ascertain whether these banks are moving further and how these banks are responsible for managing development of other participants in the field. While reviewing the financial statements of the selected four banking institutions from 2015 to 2019, it was discovered that the reviewed financial statements contained secondary information. Secondary data sources provide some profitability metrics for banks, including (ROA), (ROE), (ROD), (EPS), (PER) and (NPM). For extra conclusion, mean value, standard deviation and Average Annual Growth rate (AAGR) are also used to compare profitability performance among selected banks. The study’s findings conclude that Dhaka Bank Ltd is best performing bank among the selected conventional banks. However, the study shows that AB Bank Ltd is performing worse than expected. The study's findings will help to increase the confidence and the understanding in the Bangladeshi banks regarding the financial transactions. Finally, it included a list of suggestions for improving bank profitability and efficiency.

Globalization, financial crisis, security and other major reasons why banking activities are growing every day. Bangladesh's banking sector is a vital component of the country's financial system.  The analysis was conducted to assess profitability of selected conventional banks in Bangladesh by financial ratios.  The ratio review was carried out to ascertain whether these banks are moving further and how these banks are responsible for managing development of other participants in the field. While reviewing the financial statements of the selected four banking institutions from 2015 to 2019, it was discovered that the reviewed financial statements contained secondary information. Secondary data sources provide some profitability metrics for banks, including (ROA), (ROE), (ROD), (EPS), (PER) and (NPM). For extra conclusion, mean value, standard deviation and Average Annual Growth rate (AAGR) are also used to compare profitability performance among selected banks. The study’s findings conclude that Dhaka Bank Ltd is best performing bank among the selected conventional banks. However, the study shows that AB Bank Ltd is performing worse than expected. The study's findings will help to increase the confidence and the understanding in the Bangladeshi banks regarding the financial transactions. Finally, it included a list of suggestions for improving bank profitability and efficiency.

Globalization, financial crisis, security and other major reasons why banking activities are growing every day. Bangladesh's banking sector is a vital component of the country's financial system.  The analysis was conducted to assess profitability of selected conventional banks in Bangladesh by financial ratios.  The ratio review was carried out to ascertain whether these banks are moving further and how these banks are responsible for managing development of other participants in the field. While reviewing the financial statements of the selected four banking institutions from 2015 to 2019, it was discovered that the reviewed financial statements contained secondary information. Secondary data sources provide some profitability metrics for banks, including (ROA), (ROE), (ROD), (EPS), (PER) and (NPM). For extra conclusion, mean value, standard deviation and Average Annual Growth rate (AAGR) are also used to compare profitability performance among selected banks. The study’s findings conclude that Dhaka Bank Ltd is best performing bank among the selected conventional banks. However, the study shows that AB Bank Ltd is performing worse than expected. The study's findings will help to increase the confidence and the understanding in the Bangladeshi banks regarding the financial transactions. Finally, it included a list of suggestions for improving bank profitability and efficiency.

This study aim is to investigate and compare the factors affecting conventional and Islamic bank’s capital structure choice as well as their financial characteristics. According to the best of my knowledge, this is the first paper that mainly concentrated in comparing the determinants of capital structure of conventional and Islamic banks using a cross-country data and for a long period of time (20 years). The study revealed several findings. Firstly, descriptive statistics (equality of means test) showed that conventional banks more leveraged and liquid than Islamic banks. In contrast, Islamic banks are larger and more profitable (ROA) than conventional banks. The results also indicated that Islamic banks are not riskier than conventional banks. Secondly, the regression results showed that all variables, except tax-shield, had the same impact on both banking types capital structure. It been found that profitability, tangibility, business risk and age correlated negatively and significantly with capital structure. In the other direction, size, liquidity and inflation had significant and positive relation with capital structure. Vis-à-vis tax-shield, this variable had a weak impact (positive) on Islamic bank’s capital structure but had no effect on conventional banks and this attributed to Islamic banks sample.

This study aims to find the best set of financial ratios that can be used to predict the financial distress of private conventional banks in Syria and to distinguish between distressed and non-distressed banks in the first and second year before the distress. In order to warn the concerned parties to intervene and take corrective actions in a timely manner and to restore the health of these banking institutions. To achieve this, a stepwise discriminant analysis was used and 21 financial ratios were calculated for a sample of 11 banks for a period between the years (2010-2016). The following proposed model was reached: Z = 14.746 (D/A) + 35.069 (L/A) -15.899 (NFE/A) -5.134 (NPM) -26.076. Test of the model has been done, and it was found to be able to predict the financial distress and distinguish between distressed and non-distressed banks with an accuracy rate 100% in the first and second year before the distress.

This study aims to find the best set of financial ratios that can be used to predict the financial distress of private conventional banks in Syria and to distinguish between distressed and non-distressed banks in the first and second year before the distress. In order to warn the concerned parties to intervene and take corrective actions in a timely manner and to restore the health of these banking institutions. To achieve this, a stepwise discriminant analysis was used and 21 financial ratios were calculated for a sample of 11 banks for a period between the years (2010-2016). The following proposed model was reached: Z = 14.746 (D/A) + 35.069 (L/A) -15.899 (NFE/A) -5.134 (NPM) -26.076. Test of the model has been done, and it was found to be able to predict the financial distress and distinguish between distressed and non-distressed banks with an accuracy rate 100% in the first and second year before the distress.

Operational risk has a great impact on the functions of financial institutions. As the complexity and size of firms in increasing, it also enhancing the operations risk in more harmful ways. If a firm is not able to perform its operational activities properly, then it is not possible for banks to get high profitability ratio. Firstly, the operational risk has not achieved the greater importance but with the passage of times all financial institutions have come to know that it is very important for all institutions to cover up the rate of risk in financial operations. By selecting 15 banks (Islamic & Commercial Banks) from the year 2007 to 2011 focused on the internal factors of the banks which are mostly affected by the operational risk. Regression and correlation methods are used to evaluate the impact of Return on Asset, Debt/Equity Ratio, Spread Ratio, Capital Ratio and Asset management on the Return on Equity. The empirical results are shown that the awareness regarding operations risk has greater impact on the management of operational risk. Results are also shown that the operational risk disclosure also vary among different banks.

Islamic and conventional banks differ in basic philosophy and objectives although both perform the same service. This study used cognitive, affective, and conative sequence to examine antecedents and consequences of corporate image of conventional and Islamic banks in Pakistan. Self-administered questionnaires collected empirical data from 320 respondents. It was found that non-firm communication and corporate social responsibility significantly relate to brand familiarity and corporate image in case of Islamic banks. Brand familiarity significantly builds corporate image, which confirms the cognitive, affective, and conative sequence. Corporate image creates positive brand attitude and intention to use banking services. In case of conventional banks, only firm communication significantly relates to corporate image and brand familiarity. The relationship of corporate image with brand attitude and intention to use the service are similar to Islamic banks. This study can help banks to invest in building respective antecedents which can increase intention to use their services., Bancos islâmicos e convencionais diferem em termos de filosofia e objetivos básicos, embora ambos desempenhem o mesmo serviço. Este estudo utilizou a sequência cognitiva, afetiva e conativa para examinar os antecedentes e consequências da imagem corporativa de bancos convencionais e islâmicos no Paquistão. A partir do uso de questionários auto-aplicados, foram coletaram dados empíricos de 320 entrevistados. Verificou-se que no caso de bancos islâmicos a comunicação não relacionada à firma e a responsabilidade social corporativa estão significativamente relacionadas à familiaridade com a marca e imagem corporativa. A familiaridade da marca tem participação significativa na criação da imagem corporativa, o que confirma a sequência cognitiva, afetiva e conativa. A imagem corporativa é responsável pela criação de uma atitude positiva em relação à marca e pela intenção de usar serviços bancários. No caso dos bancos convencionais, somente a comunicação da firma está relacionada de forma significativa à imagem corporativa e à familiaridade da marca. A relação da imagem corporativa com atitude da marca e intenção de uso do serviço é semelhante para os bancos islâmicos. Este estudo pode ajudar os bancos a investirem no desenvolvimento de seus respectivos antecedentes, o que pode aumentar a intenção de uso de seus serviços., Los bancos islámicos y convencionales difieren en su filosofía básica y objetivos, aunque ambos realizan el mismo servicio. Este estudio usó la secuencia cognitiva, afectiva y conativa para analizar antecedentes y consecuencias de la imagen corporativa de bancos convencionales e islámicos en Paquistán. Los cuestionarios autoadministrados colectaron datos empíricos de 320 entrevistados. Se encontró que la comunicación no corporativa y la responsabilidad social corporativa se relacionan significativamente con la familiaridad de la marca y con la imagen corporativa en el caso de los bancos islámicos. La familiaridad de la marca construye significativamente la imagen corporativa, que confirma la secuencia cognitiva, afectiva y conativa. La imagen corporativa crea actitud e intención positivas para usar servicios bancarios. En el caso de bancos convencionales, solamente la comunicación corporativa se relaciona significativamente con la imagen corporativa y la familiaridad de la marca. La relación de la imagen corporativa con la actitud y la intención de la marca de usar el servicio son semejantes a las de bancos islámicos. Este estudio puede ayudar a los bancos a invertir en construir sus respectivos antecedentes que pueden aumentar la intención de usar sus servicios.

Islamic and conventional banks differ in basic philosophy and objectives although both perform the same service. This study used cognitive, affective, and conative sequence to examine antecedents and consequences of corporate image of conventional and Islamic banks in Pakistan. Self-administered questionnaires collected empirical data from 320 respondents. It was found that non-firm communication and corporate social responsibility significantly relate to brand familiarity and corporate image in case of Islamic banks. Brand familiarity significantly builds corporate image, which confirms the cognitive, affective, and conative sequence. Corporate image creates positive brand attitude and intention to use banking services. In case of conventional banks, only firm communication significantly relates to corporate image and brand familiarity. The relationship of corporate image with brand attitude and intention to use the service are similar to Islamic banks. This study can help banks to invest in building respective antecedents which can increase intention to use their services., Bancos islâmicos e convencionais diferem em termos de filosofia e objetivos básicos, embora ambos desempenhem o mesmo serviço. Este estudo utilizou a sequência cognitiva, afetiva e conativa para examinar os antecedentes e consequências da imagem corporativa de bancos convencionais e islâmicos no Paquistão. A partir do uso de questionários auto-aplicados, foram coletaram dados empíricos de 320 entrevistados. Verificou-se que no caso de bancos islâmicos a comunicação não relacionada à firma e a responsabilidade social corporativa estão significativamente relacionadas à familiaridade com a marca e imagem corporativa. A familiaridade da marca tem participação significativa na criação da imagem corporativa, o que confirma a sequência cognitiva, afetiva e conativa. A imagem corporativa é responsável pela criação de uma atitude positiva em relação à marca e pela intenção de usar serviços bancários. No caso dos bancos convencionais, somente a comunicação da firma está relacionada de forma significativa à imagem corporativa e à familiaridade da marca. A relação da imagem corporativa com atitude da marca e intenção de uso do serviço é semelhante para os bancos islâmicos. Este estudo pode ajudar os bancos a investirem no desenvolvimento de seus respectivos antecedentes, o que pode aumentar a intenção de uso de seus serviços., Los bancos islámicos y convencionales difieren en su filosofía básica y objetivos, aunque ambos realizan el mismo servicio. Este estudio usó la secuencia cognitiva, afectiva y conativa para analizar antecedentes y consecuencias de la imagen corporativa de bancos convencionales e islámicos en Paquistán. Los cuestionarios autoadministrados colectaron datos empíricos de 320 entrevistados. Se encontró que la comunicación no corporativa y la responsabilidad social corporativa se relacionan significativamente con la familiaridad de la marca y con la imagen corporativa en el caso de los bancos islámicos. La familiaridad de la marca construye significativamente la imagen corporativa, que confirma la secuencia cognitiva, afectiva y conativa. La imagen corporativa crea actitud e intención positivas para usar servicios bancarios. En el caso de bancos convencionales, solamente la comunicación corporativa se relaciona significativamente con la imagen corporativa y la familiaridad de la marca. La relación de la imagen corporativa con la actitud y la intención de la marca de usar el servicio son semejantes a las de bancos islámicos. Este estudio puede ayudar a los bancos a invertir en construir sus respectivos antecedentes que pueden aumentar la intención de usar sus servicios.

Operational risk has a great impact on the functions of financial institutions. As the complexity and size of firms in increasing, it also enhancing the operations risk in more harmful ways. If a firm is not able to perform its operational activities properly, then it is not possible for banks to get high profitability ratio. Firstly, the operational risk has not achieved the greater importance but with the passage of times all financial institutions have come to know that it is very important for all institutions to cover up the rate of risk in financial operations. By selecting 15 banks (Islamic & Commercial Banks) from the year 2007 to 2011 focused on the internal factors of the banks which are mostly affected by the operational risk. Regression and correlation methods are used to evaluate the impact of Return on Asset, Debt/Equity Ratio, Spread Ratio, Capital Ratio and Asset management on the Return on Equity. The empirical results are shown that the awareness regarding operations risk has greater impact on the management of operational risk. Results are also shown that the operational risk disclosure also vary among different banks.

The aim of this study is to assess the impact of strategic planning and management practices (SPM practices) on the performance of banks in the United Arab Emirates and the challenges they face in developing and implementing their strategic plans. Although banks in the UAE were able to recover smoothly after the 2008 financial crisis, they still face challenges due to globalization, low oil prices, and political instability in the region. The situation calls for efficient strategic planning and management by the authorities of the banks. This study, therefore, aims to contribute to improving the effectiveness of SPM practices within the banking sector in the UAE. The study critically examines the UAE’s banking industry in the context of strategic planning and management practices with a focus on five key dimensions: 1) institutionalizing the planning process, 2) establishing the strategic foundation, 3) conducting strategic situational diagnosis, 4) developing a strategic plan and 5) managing the strategic plan implementation. Further, based on a critical review of the available empirical evidence, a conceptual model is developed to consider the five key dimensions, six financial ratios and one non-financial factor (customer satisfaction) and test the existing relationships between SPM practices and performance levels of banks in the country. The research covered a population of 51 conventional and Islamic banks registered on the financial markets within the UAE. A sample of 17 banks provided information for the study and data were sourced from top, middle and lower level executives of these banks. The investigation used quantitative research methods and statistical techniques such as factor analysis, analysis of variance, among others, to process data and arrive at findings. The study findings reveal that Islamic banks performed better than conventional banks in terms of most areas of strategic planning and management practices. Detailed analyses a

The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays a key role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and conventional banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic shariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and conventional banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community, efficiency and productivity of both streams of banks.

The aim of this study is to understand and analyse the relationship between corporate governance (CG) and banking governance (BG) in Conventional and Islamic banking systems. The reason for choosing this topic was because the regulations and banking systems within Conventional banks are differently in comparison to Islamic banks, which means that their corporate governance and banking governance are influenced by different mechanisms and therefore regulated differently. Since Conventional banks stands for a small amount of Islamic banks in their markets and Islamic countries do have Conventional banks in theirs, made this topic a good case study. Furthermore is Sweden a Conventional country where they don’t offer Islamic financial services and the UK is a Conventional country where they do, which was an interesting fact since both of them are European countries with similar regulations. The author of this thesis chose qualitative, semi-structured interviews, where six persons: three from Sweden and three from the UK stood for answers toward their banking systems. Since these respondents were standing on a high position within their organizations did they have the knowledge needed to answer the questions asked. The result showed that the relationship between CG and BC in Conventional and Islamic banking systems have an impact in the way different types of banks operate. Identifying the Conventional and Islamic banks differences and assessing on how the Corporate Governance and Banking Governance do operate solves the complexity in the system. Based on the findings, countries that are applying the Conventional system need to expand their regulations and mechanisms so that other systems could operate without a need for changes in their own. They also need to expand their knowledge, where the population needs to be familiar with other banking systems and services as well.

The aim of this research is to evaluate the impact of internal and external variables on the performance of both Islamic banks and conventional banks in the GCC. The Internal variables include capital adequacy, asset quality, management, earnings, liquidity and sensitivity of risk while the external variables are the economic growth and inflation. Return on equity and Return on asset were used in the STATA programming to identify the variable with the greatest effect or least effect on the performance of banks in GCC. Specifically, five conventional banks and five Islamic banks from 2012 to 2015 were used in the research.

The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays a key role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and conventional banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic shariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and conventional banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community, efficiency and productivity of both streams of banks.

The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays a key role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and conventional banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic shariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and conventional banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community, efficiency and productivity of both streams of banks.

The aim of this study is to understand and analyse the relationship between corporate governance (CG) and banking governance (BG) in Conventional and Islamic banking systems. The reason for choosing this topic was because the regulations and banking systems within Conventional banks are differently in comparison to Islamic banks, which means that their corporate governance and banking governance are influenced by different mechanisms and therefore regulated differently. Since Conventional banks stands for a small amount of Islamic banks in their markets and Islamic countries do have Conventional banks in theirs, made this topic a good case study. Furthermore is Sweden a Conventional country where they don’t offer Islamic financial services and the UK is a Conventional country where they do, which was an interesting fact since both of them are European countries with similar regulations. The author of this thesis chose qualitative, semi-structured interviews, where six persons: three from Sweden and three from the UK stood for answers toward their banking systems. Since these respondents were standing on a high position within their organizations did they have the knowledge needed to answer the questions asked. The result showed that the relationship between CG and BC in Conventional and Islamic banking systems have an impact in the way different types of banks operate. Identifying the Conventional and Islamic banks differences and assessing on how the Corporate Governance and Banking Governance do operate solves the complexity in the system. Based on the findings, countries that are applying the Conventional system need to expand their regulations and mechanisms so that other systems could operate without a need for changes in their own. They also need to expand their knowledge, where the population needs to be familiar with other banking systems and services as well.

The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays a key role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and conventional banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic shariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and conventional banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community, efficiency and productivity of both streams of banks.

The development of service sector is crucial in contributing to the GDP of any nation. The banking system plays a key role in the development of a country. The commercial banking system dominates the financial sector by dealing with the majority of financial transactions of a country. The existence of Islamic and conventional banks has contributed for the development of the economy. Commercial banks in Bahrain consist of interest-based conventional banks and interest-free Islamic banks (based on Islamic shariah). The performance of conventional and non-conventional banks is satisfactory in Bahrain. The present study focuses on the comparative analysis of financial performance of Islamic and conventional banks in terms of cost and income in Bahrain. The study uses financial tools like profitability, liquidity and solvency, commitment to economy and community, efficiency and productivity of both streams of banks.

Efterfrågan på räntefria banktjänster har ökat i Sverige, vilket främst beror på den utvecklande invandringen som efterföljer religiösa principer i sitt vardagsliv. Detta har vidare resulterat i att allt fler individer i det svenska samhället väljer att avstå från stora lån samt sparande då det strider mot deras religion. Individer som således är i behov utav kapital, vänder sig istället till vänner samt släktingar för att exempelvis kunna ha möjlighet till att köpa en bostad. En av de mest väsentliga faktorerna till varför konventionella banker inte utvecklar räntefria sparalternativ är på grund av reglering samt lagstiftning. Historiskt sett har det traditionella systemet i bankerna funnits under en väldigt lång tid, vilket resulterar i en effektiv reglerings- samt tillsynsorgan. Bankerna anser även att en utveckling av räntefritt sparande kräver en efterfrågan som är större än vad den är i dagsläget. Syftet med denna uppsats är att undersöka hur konventionella banker förhåller sig till räntefritt sparande samt hur den yttre omgivningen, exempelvis andra banker samt finansiella aktörer, påverkar banken. En abduktiv ansats har använts tillsammans med en hermeneuistisk kunskapssyn, med en kvalitativ metod som genomsyrar uppsatsen. Intresset kring att utreda hur konventionella banker förhåller sig till räntefritt sparande har bland annat varit för att få en djupare förståelse för ett område som det inte har forskats mycket kring. En kvalitativ metod tillämpades i sin tur genom utförande av intervjuer bestående av sex intervjupersoner. Detta för att uppfylla syftet med studien. Studien har resulterat i att bankerna tillämpar olika strategier för att ha en möjlighet att erbjuda kunder räntefritt sparande. Det är på så sätt eftersom de inte har en samlad produkt där alla banktjänster ingår. Denna studie påvisar även att bankerna påverkas av förändringar samt produktutveckling i andra banker. Vidare påverkas de också av nya regleringar samt lagar från finansiella aktörer, The demand for interest-free banking services has increased in Sweden. This is mostly due to an increased number of immigrants that practices religious principles in their everyday lives. This has also resulted in more individuals choosing to avoid large loans and savings when it goes against their religion. One example is when individuals want to buy a house and, instead of investing by taking large loans from banks they are turning to friends and relatives. One of the most significant factors to why conventional banks don’t develop interest- free savings options is because of legal inferences. Historically, the traditional system of banking has existed for a very long time, resulting in an effective regulatory and supervisory body. Even if there are banks that concider the development of interest-free savings, a greater demand would be required for it to come about. The purpose of this thesis is to investigate how conventional banks relate to interest- free savings and the surroundings both in terms of how other banks and financial players, influence the banks. An abductive approach has been used along with hermeneutics as well as a qualitative method. The choice has landed on this to get a deeper understanding of an area that is not well explored. In order to fill the important gaps in the literature and to fill the purpose of this study, six interviews were performed. Findings from the study shows that banks have different ways of offering customers interest- free savings. However, they do not have a turnkey product without designing trough customer needs. While this study shows that banks are affected greatly by what other banks are developing and changing, it also affected by new regulations and laws from financial participants as FSA. The biggest impact on banks is that the work has been limited much more than it was before, which has led more employees working differently to be able to achieve the objectives they have.

Efterfrågan på räntefria banktjänster har ökat i Sverige, vilket främst beror på den utvecklande invandringen som efterföljer religiösa principer i sitt vardagsliv. Detta har vidare resulterat i att allt fler individer i det svenska samhället väljer att avstå från stora lån samt sparande då det strider mot deras religion. Individer som således är i behov utav kapital, vänder sig istället till vänner samt släktingar för att exempelvis kunna ha möjlighet till att köpa en bostad. En av de mest väsentliga faktorerna till varför konventionella banker inte utvecklar räntefria sparalternativ är på grund av reglering samt lagstiftning. Historiskt sett har det traditionella systemet i bankerna funnits under en väldigt lång tid, vilket resulterar i en effektiv reglerings- samt tillsynsorgan. Bankerna anser även att en utveckling av räntefritt sparande kräver en efterfrågan som är större än vad den är i dagsläget. Syftet med denna uppsats är att undersöka hur konventionella banker förhåller sig till räntefritt sparande samt hur den yttre omgivningen, exempelvis andra banker samt finansiella aktörer, påverkar banken. En abduktiv ansats har använts tillsammans med en hermeneuistisk kunskapssyn, med en kvalitativ metod som genomsyrar uppsatsen. Intresset kring att utreda hur konventionella banker förhåller sig till räntefritt sparande har bland annat varit för att få en djupare förståelse för ett område som det inte har forskats mycket kring. En kvalitativ metod tillämpades i sin tur genom utförande av intervjuer bestående av sex intervjupersoner. Detta för att uppfylla syftet med studien. Studien har resulterat i att bankerna tillämpar olika strategier för att ha en möjlighet att erbjuda kunder räntefritt sparande. Det är på så sätt eftersom de inte har en samlad produkt där alla banktjänster ingår. Denna studie påvisar även att bankerna påverkas av förändringar samt produktutveckling i andra banker. Vidare påverkas de också av nya regleringar samt lagar från finansiella aktörer, The demand for interest-free banking services has increased in Sweden. This is mostly due to an increased number of immigrants that practices religious principles in their everyday lives. This has also resulted in more individuals choosing to avoid large loans and savings when it goes against their religion. One example is when individuals want to buy a house and, instead of investing by taking large loans from banks they are turning to friends and relatives. One of the most significant factors to why conventional banks don’t develop interest- free savings options is because of legal inferences. Historically, the traditional system of banking has existed for a very long time, resulting in an effective regulatory and supervisory body. Even if there are banks that concider the development of interest-free savings, a greater demand would be required for it to come about. The purpose of this thesis is to investigate how conventional banks relate to interest- free savings and the surroundings both in terms of how other banks and financial players, influence the banks. An abductive approach has been used along with hermeneutics as well as a qualitative method. The choice has landed on this to get a deeper understanding of an area that is not well explored. In order to fill the important gaps in the literature and to fill the purpose of this study, six interviews were performed. Findings from the study shows that banks have different ways of offering customers interest- free savings. However, they do not have a turnkey product without designing trough customer needs. While this study shows that banks are affected greatly by what other banks are developing and changing, it also affected by new regulations and laws from financial participants as FSA. The biggest impact on banks is that the work has been limited much more than it was before, which has led more employees working differently to be able to achieve the objectives they have.

According to the International Monetary Fund (IMF), Islamic banking is one of the fastest growing segments in the financial industry tracking a 10-15% growth over the past decade. One of the most important countries to development Islamic banking and finance is the United Kingdom (UK). Like their conventional counterpart, Islamic banks face a number of risk areas, which may affect their operation and performance. Liquidity risk is one example of increasing concern for the Islamic banks. However; compared to the conventional counterpart, managing and measuring liquidity risk management (LRM) is more challenging and unique for Islamic banks, due to the fact that most available conventional instruments used for liquidity risk management (LRM) are interest-based, and as a result, not sharia’ah compatible. Therefore, the core purpose of this research is to look into the liquidity risk management and to find out the factors that influence liquidity risk through a comparative study between Islamic and Conventional Banks of UK. The research is based on secondary data for the period 2007 - 2011. The research investigated net working capital (NWC), returns on equity (ROE), and the size of the bank, return on assets (ROA) and the capital adequacy ratio (CAR). The study found that liquidity risk (dependent variable) is positively related to (1) return on assets (ROA), return on assets (ROE) and (2) negatively related to the size of the banks, capital adequacy ratio (CAR) and net working capital (NWC) for Conventional banks. Whereas, liquidity risk is positively related to (1) the size of the banks, capital adequacy ratio (CAR) and net working capital (NWC) and negatively related to (2) return on assets (ROA), return on assets (ROE) for Islamic banks. In the process the research (1) identify the definitions of liquidity and liquidity risk from multinational institutions, (2) Liquidity risk management in Conventional and Islamic bank and finally, (3) examined the liquidity risk m