Title: Comparative study between solvencies of Islamic and conventional banks in a financial stable period: evidence from heterogeneous countries

Authors: Achraf Haddad; Anis El Ammari; Abdelfettah Bouri

Addresses: Department of Finance and Accounting, Faculty of Economics and Management of Sfax, Sfax 3018, Tunisia ' Department of Finance and Accounting, Faculty of Economics and Management of Mahdia, Hiboun, Mahdia 5111, Tunisia ' Department of Finance and Accounting, Faculty of Economics and Management of Sfax, Sfax 3018, Tunisia

Abstract: Knowledge value is produced in particular by the methodological challenges of the comparative study. Based on a process of bibliographic research, available conditional observation and necessary statistical tests, we innovated an equiprobable comparison between the solvencies of conventional and Islamic banks over the period (2010-2018). In our study, we analysed the inherent difficulties that may affect the evaluation of these banks' solvencies. To solve this gap, the choice is limited to countries whose banking systems incorporate both Islamic and conventional banks. Using a filtering process, each conventional bank has its Islamic equivalence with a 95% rate. This restriction reduced the sample size to 63 banks each. The selected banks are all large and listed in different stock exchanges around the world. In the end, we found that conventional banks are more solvent than Islamic banks in a mixture of heterogeneous contexts during a financial stable period.

Keywords: conventional banks; Islamic banks; solvency; comparative study; financial stable period; heterogeneous contexts.

DOI: 10.1504/IJFSM.2021.115737

International Journal of Financial Services Management, 2021 Vol.11 No.1, pp.50 - 74

Received: 18 Aug 2019
Accepted: 01 Jul 2020
Published online: 18 Jun 2021 *

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