Different dimensions Bank performance comparisons IBs vs CBs – Quatar case

NEIFAR, MALIKA (2020): Different dimensions Bank performance comparisons IBs vs CBs – Quatar case.

Abstract

This paper contributes to the empirical literature on interest-free finance by investigating the feature of interest-free (IB) and conventional banks (CBs) in Quatar over the period 2005–2014. To distinguish between IBs and CBs, we use at first stage two-sided t-test. With univariate descriptive analysis, compaired to CBs, IBs are found to be riskier and less stable, but have a higher liquidity, and are more solvent. Then, multivariate regression based comparision say that IBs are found to be riskier, less liquid except for Large IBs, less solvent except large IBs, more capitalized, less profitable post GFC (except High share IBs), and more stable. At third stage, PVAR-X specifications analysis revealed that IBs are found to be more capitalized, less profitable, and less stable except Small IBs and Post GFC. It is the Small IBs wich are less solvent even post GFC while higher market share IBs are more solvent.

• Item Type: MPRA Paper
• Language: English
• Keywords: Quatar, Financial stability, Profitability, Liquidity, Credit and Insolvency risk, interest-free banking, small banks, high share banks, 2008 GFC, t-test, linear regression models, PVAR-X(1) specifications, GMM, SURE, 2LS
• Subjects: G - Financial Economics > G0 - General > G01 - Financial Crises; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z12 - Religion

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