Comparative Analysis of Financial Performance of Conventional and Islamic Banks by using CAMEL Analysis

Abstract

This research compared and evaluated the fmancial performance of Islamic banks and conventional banks that are working inside Pakistan, during the year "20 14 to 20 18" by examining elements such as Management Quality, Capital adequacy, Liquidity position, asset quality, and earning ability. Information is extracted from the bank's financial reports existing on the banks site. A sample of five conventional and five Islamic banks are taken. Few Islamic Banks in the sample does not have any financial information of five years so the mean ratios of each year was considered. To find out the performance of Conventional banks and Islamic banks the elements such as liquidity, management quality, Capital adequacy, asset quality and earning ability, are taken to determine the performance of these two different modes of banking Islamic and Conventional. This study concludes that Conventional banks are better in performance in earning ability, asset quality and Management quality and Islamic banks have better capital adequacy and liquidity performance