We perform principal component analysis (PCA) on an array of 20 financial ratios to explore and compare conventional and Islamic banks' financial characteristics. In contrast to the existing literature, this is the first study to use PCA to derive four components to examine the financial...

The paper provides robust evidence that compliance with Basel Core Principles (BCPs) has a strong positive effect on the Z-score of conventional banks, albeit less pronounced on the Zscoreof Islamic banks. Using a sample of banks operating in 19 developing countries, the results appear to be...

This study examines the impact of the Basel III regulatory framework on the efficiency of Islamic and conventional banks using conditional quantile regressions. We find that Islamic banks are significantly more efficient than conventional banks. We also find that, relative to conventional banks,...

The paper provides robust evidence that compliance with Basel Core Principles (BCPs) has a strong positive effect on the Z-score of conventional banks, albeit less pronounced on the Zscore of Islamic banks. Using a sample of banks operating in 19 developing countries, the results appear to be...

We investigate whether and how political systems affect the financial soundness of conventional and Islamic banks. Using factors extracted from principal component analysis, we find that Islamic banks underperform their conventional counterparts in more democratic political systems but...

Using a sample of banks operating in 24 countries, we provide robust evidence that stronger creditor rights are associated with higher capital adequacy ratios of conventional banks but not of Islamic banks. Such results are more effective on bank core capital, suggesting that bank managers tend...