CHAPTER – 2 LITERATURE REVIEW The studies done on the empirical examination of the financial

The primary model of Islamic managing an account framework came into picture in 1963 in Egypt. Ahmed al Najjar was the boss originator of this bank and the key peculiarities are

11 Sheikh, N. A. and Karim, S., “Determinants of profitability of Islamic commercial banks: Evidence from Pakistan”, Pakistan Journal of Islamic Research, Vol. 17

Prashanta Athma (2000), in his Ph D research submitted at Usmania University Hyderabad, “Performance of Public Sector Banks – A Case Study of State Bank of Hyderabad, made an attempt to evaluate the performance of Public Sector Commercial Banks with special emphasis on State Bank of Hyderabad. The period of the study for evaluation of performance is from 1980 to 1993-94, a little more than a decade. In this study, Athma outlined the Growth and Progress of Commercial Banking in India and. analyzed the trends in deposits, various components of profits of SBH, examined the trends in Asset structure, evaluated the level of customer satisfaction and compared the performance of SBH with other PSBs, Associate Banks of SBI and SBI. Statistical techniques

This study examined the financial performance of National bank and Allied bank of Pakistan during (2008-2012). In this research project financial ratios are used for data analysis and financial performance is measured by bank size and financial ratios. These financial ratios are return on asset, return on equity, earning per share, capital adequacy, cash to total asset, investment to total asset, advance to total asset, total liabilities to total asset, Non-Performing loan to gross advance and Non-performing loan to equity. Financial ratios of both banks are different which creates difference in the financial performance of both banks. These ratios return on asset, earning per share, capital adequacy ratio, cash to total asset ratio, investment to total assets ratio and bank size are comparatively greater for National bank moreover Allied bank

Lebanon has many leading banks which are in competition with each other. The banking sector has been known for its banking secrecy, something many Arabs and non-Arabs have found appealing and got them to open Bank Accounts in Lebanon; just to benefit from the bank secrecy term. Mr. Riad Salameh president of the Banque du Liban (Lebanon’s Bank) has been striving and doing his best to keep the worth of the Lebanese Lira high, keep Lebanese commercial banks in business, and encourage customers to take loans from those banks. Thus, Mr. Salameh is the major reason behind the flourishment of the banking sector in Lebanon. “The banking sector is one of the most vibrant sectors of the Lebanese economy

Financial statements for banks present a different analytical problem than manufacturing and service companies. As a result, analysis of a bank's financial statements requires a distinct approach that recognizes a bank's somewhat unique risks. Banks take deposits from savers, paying interest on some of these accounts. They pass these funds on to borrowers, receiving interest on the loans. Their profits are derived from the spread between the rate they pay for funds and the rate they

In most Islamic countries, they tend to practice two types of financing in banking industry which are conventional and Islamic banking. The country like in Malaysia has successfully developed an Islamic banking system that operates in parallel with the conventional banking system. There is similarity between conventional banking and Islamic banking which helps to promote economic growth provided financing services such as credit facilities for business activity, mortgage, securities, etc. in order to achieve their same ultimate profit objectives. However, there are also having differences in practicing financial services due to most investors having their own preferences on their investments and

The National Bank of Ethiopia’s directive came into force in October 2011 about first Islamic Financial Institution in Ethiopia, However, the implementation of this banking system was started only in 2013 by few commercial banks like Oromia international bank S.C, Commercial Bank of Ethiopia and united bank S.C. Customers who are interested in the interest free banking are assured that they will obtain all those services that they would get from a fully-fledged interest free banking.

By reviewing several literatures, it was found that several researchers identified some common factors which influence profitability of a bank. Summarizing the results from numerous studies, bank specific financial ratios representing capital adequacy, cost efficiency, income expenditure mix, asset quality, and size are mostly used internal variables. So I included the following bank specific variables to capture the determinants of profitability:

Din and Khawaja (1995) investigated the determinants of interest spread of the banking industry in Pakistan. by using cross section data model, data variables Concentration, Inelasticity, Liquidity, Market Share, Equity, Nonperforming Loans, Administrative cost, GDP growth, Inflation, Interest rate. Feasible Generalized Least Square (GLS) on pooled data technique has been used. Results shows that there is no evidence of interest spread which influence the performance factors of banking industry that also includes the other financial sectors example of which are DFI and investments funds that can serve as an alternate to banks for small savers,

For this paper, selected financial data for East West Bank (“EWB” or the “Bank”) and its Peer Group (“peers”) was obtained from the December 31, 2013 Uniform Bank Performance Report (“UBPR”) and various EWB documents ; as well as from interviews conducted with EWB management .

These Short Essays are partial fulfillment of Paper IE1001 of Part 1 of Certified Islamic Finance Professional (CIFP) [DRAFT V0.4]

The main objective of this study is: (a) to find out the extent of using profit-and-sharing paradigm in Islamic banks in Jordan; (b) to search about the main principles of Islamic interest – free banking and operations compared to interest – based banking system in Jordan; and (c) to compare between conventional deposit rates and Islamic investment rates.

Many authors agree that Islamic finance industry has a long way to become globally successful industry. To achieve its potential for solid growth, Islamic finance must improve number of areas including: improving regulatory supervision in the industry, adaptation of tax treatment to Islamic banking products, establishing liquidity control, introducing risk management tools, supporting standardization of financial products and others.

Berdirinya Islamic Development Bank (IDB) pada tahun 1975 di Jeddah telah memotivasi banyak negara Islam untuk mendirikan lembaga keuangan syariah. Pada awal periode 1980-an bank-bank syariah bermunculan di Mesir, Sudan, Pakistan, Iran, Malaysia, Bangladesh, serta Turki. Secara garis besar lembaga tersebut dapat dibagi dua kategori: bank Islam komersial, dan lembaga investasi dalam bentuk international holding companies.