Islamic Banking versus Conventional Banking, During the Global Financial Crisis: Bahrain

Abstract

Banks are the most influential sector in the economy with ability toaffect a country's growth. Once global financial crisis hit, many corporationas well as banks are affected. The research objective is to study theperformance of both Islamic and Conventional banking when crisis happen.Several performance indicator are used to evaluate performance with the help ofthe Statistical Package for the Social Sciences (SPSS) version 20.0 software toanalyze the quantitative data collected from annual report of selected banksstretching from year 2005 to 2013 in Bahrain. For the outcome, Islamic bankingmay perform better than conventional banking during the crisis, but in the longrun the result is reversed due to conventional banking size of business.Keywords:Islamic banking, Conventional banking, Bahrain, Global financial crisis.