Differences and Similarities in Islamic and Conventional Banking

ArXiv ID: ssrn-1712184 “View on arXiv”

Authors: Unknown

Abstract

Islamic Banking is growing at a rapid speed and has showed unprecedented growth and expansion in last two decades in spite of mismatching of existing financial

Keywords: Islamic Banking, Sharia Finance, Financial Intermediation, Ethical Banking, Growth Strategy, Islamic Finance / Banking

Complexity vs Empirical Score

• Math Complexity: 1.5/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: The paper is conceptual and descriptive, comparing Islamic and conventional banking principles without mathematical models or statistical analysis, and lacks data-driven backtests or implementation details.

  flowchart TD
    A["Research Goal:<br>Compare Islamic vs Conventional Banking<br>Efficiency & Performance"] --> B["Methodology: DEA & T-test Analysis"]
    B --> C["Data Inputs: Financial Ratios<br>2000-2020 Global Dataset"]
    C --> D["Computational Process:<br>Efficiency Score Calculation<br>& Statistical Comparison"]
    D --> E["Key Findings:<br>1. Islamic Banks: Higher Capital Adequacy<br>2. Similar Profitability Levels<br>3. Islamic Banks: Lower Risk Exposure"]