4- Islamic Banking

What is the main objective of the study on the performance of Islamic banks and conventional banks in OIC countries?

• To predict future trends in global finance

• To study the historical development of Islamic banking

• To analyze the impact of COVID-19 on the banking sector

• To compare the reaction, resilience, and recovery of IB's and CB's during various crises

What is the significance of the study on Islamic banking and conventional banking performance?

• To estimate the impact of COVID-19 on IB's and CB's in OIC countries

• To analyze the impact of inflation on banking systems

• To compare the profitability of different banking models

• To study the history of banking regulations

What type of financial intermediaries are Islamic banks and conventional banks?

• Islamic banks operate only in OIC countries, while conventional banks are global

• Islamic banks are government-owned, while conventional banks are private

• Islamic banks focus on long-term growth, while conventional banks focus on short-term gains

• Islamic banks follow Shariah-compliant principles, while conventional banks do not

What is the main reason for the lack of implementation of equity-based financing in Islamic banking?

• Lack of customer interest

• Risk mismatch with sources of funds

• Regulatory restrictions

• Lack of government support

What is the primary difference in the business model between Islamic banks and conventional banks?

• Islamic banks operate on Profit and Loss Sharing (PLS), while conventional banks rely on interest-based lending

• Islamic banks offer higher interest rates, while conventional banks offer lower rates

• Islamic banks have more branches, while conventional banks have fewer

• Islamic banks focus on short-term gains, while conventional banks focus on long-term growth

What is the main implication for Islamic banks in terms of capital requirements during financial crises?

• Islamic banks are exempt from capital requirements

• Islamic banks benefit from lower capital requirements

• Capital requirements may have adverse implications on sustainability

• Capital requirements have no impact on Islamic banks

What do the Calmar ratio results indicate about the performance of Islamic banks and conventional banks?

• Islamic banks perform better pre-COVID-19, but conventional banks perform better post-COVID-19

• Conventional banks are more resilient to financial shocks

• Islamic banks have higher volatility than conventional banks

• Conventional banks outperform Islamic banks in all scenarios

What is the average maximum drawdown of Islamic banks during the COVID-19 period?

• 46.08%

• 22.29%

• 25.84%

• 45.44%

What is the average Calmar ratio of conventional banks for the COVID-19 period?

• 0.025%

• 0.100%

• 0.185%

• 0.230%

What is the main conclusion drawn from the study on Islamic banking and conventional banking performance?

• Islamic banks are more resilient to financial crises

• Conventional banks outperformed Islamic banks in all scenarios

• Conventional banks are more aligned with regulatory requirements

• Islamic banks depicted better performance pre-COVID-19, but faced challenges post-COVID-19