Abstract:
The aim of the study is to evaluate the impact of international banking reforms on conventional and Islamic bank performance. The primary goal of this research was is to identify the Impact of Basel regulations on the profitability and risk of the conventional and Islamic banks and to find out why there is need for banks to implement these regulations. Since banks performance depends on profitability and risk. The dependent variables included using ROA and ROE, as well as credit risks. The independent variables were the Basel capital ratios Tier 1 as well as the net capital ratio along with liquidity ratios which are cash to deposit ratio and Total loan to capital ratio. The study is quantitative in nature. Data is collected through banks ' annual financial statements. The research used regression analysis, correlation and descriptive statistics techniques for testing the hypotheses. The results shows that Basel Capital ratios have Positive Correlation with the Profitability of both conventional and Islamic banks. Whereas liquidity ratios shows insignificant relationship with the performance.
