Examining Performance Disparities in Palestinian Banks: A Comparative Analysis of Islamic and Conventional Banks

Authors

Ra'fat Al-Jallad, Department of Accounting, Faculty of Business and Communication, An-Najah National University, Nablus, Palestine.Follow
Luai Antari, Department of Accounting, Faculty of Business and Communication, An-Najah National University, Nablus, Palestine.Follow

DOI

https://doi.org/10.35552/0247.38.9.2252

Abstract

The study investigates the performance differentials between Islamic and conventional banks operating in Palestine across a number of dimensions. Research Problem: The study addresses the lack of comparative analysis between Islamic and conventional banks in Palestine, specifically examining performance disparities using the CAMEL approach. This is critical due to the recent trend of conventional banks acquiring Islamic banks, raising questions about the underlying performance differences. Purpose: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Methodology: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Results: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Recommendations: Islamic banks should refine their business models to adopt higher-risk, higher-profitability strategies and diversify their financing beyond Murabaha. Conventional banks should continue strengthening their liquidity positions and capital management to maintain their competitive edge.

Recommended Citation

Al-Jallad, Ra'fat and Antari, Luai (2024) "Examining Performance Disparities in Palestinian Banks: A Comparative Analysis of Islamic and Conventional Banks," An-Najah University Journal for Research - B (Humanities): Vol. 38: Iss. 9, Article 7.
DOI: https://doi.org/10.35552/0247.38.9.2252
Available at: https://digitalcommons.aaru.edu.jo/anujr_b/vol38/iss9/7