Islamic finance in Europe (159)

Continuation

There is a substantial body of literature on comparing:

-      Islamic

-      and conventional

financial institutions.

For the sake of simplicity, this section considers this literature in terms of two main themes:

-      efficiency and profitability;

-      stability and resilience

of Islamic institutions, including the default of individual financing.

4.1 EFFICIENCY AND PROFITABILITY OF ISLAMIC BANKS

With a few exceptions, existing studies that predate the crisis indicate that there are no significant differences between:

-      Islamic

-      and conventional

banks as far as their:

-      business orientation

-      and efficiency

is concerned.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena