Does diversification improve bank performance in dual-banking systems?
Conventional intermediation theories argue that imperfections in financial markets are raison d'etre for financial intermediaries such as banks. Islamic banks are no different from their conventional counterparts in this regard as they too perform similar intermediary functions. However, unlike their conventional counterparts, the principles of Islamic banks are different as they are operated on Shariah-based precepts of riba avoidance and risk sharing. In practice, however, Islamic banks are claimed to be likened to conventional banks, which raises concerns about possible convergence of these two banking systems over time.
Diversification , Islamic banks , Bank performance , Islamic countries
Seho, M. (2018). Does diversification improve bank performance in dual-banking systems? CIAWM Bulletin, 3 (2017), 11-13.
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