Comparison Between Islamic Banking and Convectional Banking Assignment Help
Islamic Banking and Finance Course Project
One member of each group should submit a soft copy through the safeassign on
BlackBoard. All the data used for the work should be submitted in a separate excel file.
Part I: Islamic Vs. Conventional Banking: A Comparison
The students will compare between the two kinds of banks by first explaining the key
differences between Islamic and a conventional banking and finance.
After identifying an Islamic and a conventional bank, students will retrieve the relevant
financial data from the annual financial statements and reports of each bank (Usually found
in the investor relations on the bank’s website). The data should cover at least 5 years for
each bank.
The student should then present the evolution of their respective Total Assets in a graph
covering at least 5 years and any other data or information they deem necessary.
The second step will consist in comparing between the two banks by performing financial
ratio analysis using the ratios listed below.
• Return On Equity
• Return On Asset
• Earnings per Share
• Profit Expenses Ratio
• Asset Utilization Ratio
• Credit Adequacy Ratio
After briefly presenting the different ratios, student should plot each ratio historical data in
a graph to highlight their evolution (each graph should include one ratios for the two
banks). Besides the requested ratios above, student can also use any other ratio they see fit
to compare between the two banks.
Part II: Islamic Modes of Financing: An Analysis
Students should list and discuss briefly the different modes of financing available for
Islamic banks to carry out its financing and investment activities.
After presenting the different “contracts”, students should retrieve, for each year, the
financing and investment assets breakdown by type when available (Murabaha,
Musawama, Ijarah, Istisna’a, Salam, Mudaraba, Musharaka….etc). Student should then
present the breakdown in an appropriate graph highlighting the evolution of the share of
different modes of financing (from the total financing assets and from total assets) over
the selected years. Students should then discuss these numbers in light of the ideal Islamic
banking model based on the profit and loss sharing paradigm.
Note:
The project must be written in Times New Roman font 12, double-spaced. All tables and
graphs must be well labeled and explained.
The project must include:
A cover page listing the students’ names and the project title.
A table of contents.
A List of Tables and Figures
Main headings (introduction, conclusion, sections) should be in 12 point and bold
typeface.
A list of references.
