Institute of Islamic Banking

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Browsing Institute of Islamic Banking by Author "Hira Mehmood Butt"

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    Performance analysis of Islamic and conventional banks in Pakistan using camel framework
    (University of Management and Technology Lahore, 2017) Hira Mehmood Butt
    Economic condition of any country is somehow wholly or solely depends on soundness and accuracy of banking system therefore; its importance in current economic situation cannot be denied. Banking sector is basically works to give fuel to engine the progress of an economy. Therefore any kind of disruption or problem to banking sector would definitely shows a drastic affect on the economic growth of any country. Process of performance evaluation is necessary for the betterment of financial growth. Keeping in mind the importance of performance evaluation process current research study is based on comparative analysis of performance of two major banking sectors of Pakistan(Islamic and conventional sector) using the CAMEL framework. A sample of 4 Islamic banks and 16 conventional banks is used for conducting the study for the period of 2005 to 2015. Performance is taken as dependent variable whereas parameters of CAMEL model are taken as independent variables. Regression model is used to find out the impact and relationship among dependent and independent variables and to find the difference in the means of performance of these two sector banks, two sample t-test is applied. Result of regression model shows that all the variables have significant impact on performance except capital adequacy ratio. Similarly result of two sample t-test shows that no statistical difference found in means of both groups in case of capital adequacy ratio, management efficiency and earning quality whereas asset quality and liquidity shows difference among means of these two groups