Fluent Essays - Revisions are needed on the paper I submitted for school. I have uploaded a file titled default.pdf which explains. Any section that scored less than a 3 needs to be revised. Please read teachers comments. Aspects B3, B5, C2

REVISIONS ARE NEEDED ON THE PAPER I SUBMITTED FOR SCHOOL. I HAVE UPLOADED A FILE TITLED DEFAULT.PDF WHICH EXPLAINS. ANY SECTION THAT SCORED LESS THAN A 3 NEEDS TO BE REVISED. PLEASE READ TEACHERS COMMENTS. ASPECTS B3, B5, C2 - C2F, D1 AND D2 REQUIRE ADDRE

Revisions are needed on the paper I submitted for school. I have uploaded a file titled default.pdf which explains. Any section that scored less than a 3 needs to be revised. Please read teachers comments. Aspects B3, B5, C2 - C2f, D1 and D2 require addre - Management

PLACE ORDER

Revisions are needed on the paper I submitted for school. I have uploaded a file titled default.pdf which explains. Any section that scored less than a 3 needs to be revised. Please read teachers comments. Aspects B3, B5, C2 - C2f, D1 and D2 require addressing, completion and additional details in order to satisfy the task requirements. Please confirm this received and please let me know when I will get revisions back. Also if something is not understood please let me know. I also attached another document that was sent by my professor that provided tips on how to complete the sections. Thanks! Financial Statements Financial Statment BANK NAME EXPLANATION OF PARTS ISLAMIC OR CONVENTIONAL 2006 2007 2008 2009 2010 SHARJAH ISLAMIC BANK UAE ISLAMIC FORMULA: Z = 6.56X1+ 3.26X2 +6.72X3 + 1.05X4 WORKING CAPITAL 2,414,298.00 2,572,611.00 4,311,836.00 4,694,946.00 3,168,386.00 TOTAL ASSETS 7,641,560.00 10,883,510.00 15,535,880.00 15,974,548.00 16,667,161.00 GROWTH IN ASSETS IN PERCENTAGE 29.79\% 29.95\% 2.75\% 4.16\% EBIT 303,292.00 488,106.00 661,289.00 598,219.00 579,543.00 GROWTH IN PERCENTAGE IN EBIT 37.86\% 26.19\% -10.54\% -3.22\% MARKET VALUE OF EQUITY 2,109,339.00 2,226,357.00 4,159,197.00 4,264,311.00 2,425,500.00 MARKET VALUE OF DEBT 5,532,221.00 8,657,153.00 11,376,683.00 11,710,237.00 361,110.00 RETAINED EARNINGS 22,161.00 329,250.00 317,544.00 421,303.00 370,572.00 PROFITS 200,648.00 301,839.00 231,579.00 260,135.00 266,409.00 DUBAI ISLAMIC BANK ISLAMIC WORKING CAPITAL 4,674,159.00 14,110,978.00 12,198,014.00 14,470,755.00 23,758,041.00 TOTAL ASSETS 64,433,936.00 84,359,911.00 85,031,113.00 87,864,798.00 90,137,771.00 GROWTH IN ASSETS IN PERCENTAGE 23.62\% 0.79\% 3.23\% 2.52\% EBIT 3,341,576.00 1,895,652.00 1,730,290.00 1,773,877.00 1,025,608.00 EBIT GROWTH -76.28\% -9.56\% 2.46\% -72.96\% MARKET VALUE OF EQUITY 8,824,250.00 10,665,117.00 8,925,354.00 8,894,284.00 3,797,054.00 MARKET VALUE OF DEBT 55,609,686.00 73,694,794.00 76,105,759.00 78,970,514.00 11,754,817.00 RETAINED EARNINGS 43,197.00 53,654.00 29,478.00 852,768.00 748,428.00 PROFITS 1,577,843.00 2,512,821.00 1,730,290.00 823,249.00 812,633.00 DUBAI COMMERCIAL BANK UAE CONVENTIONAL WORKING CAPITAL 3,497,347.00 4,598,066.00 5,825,050.00 6,389,375.00 6,728,899.00 TOTAL ASSETS 18,704,778.00 30,436,017.00 35,757,301.00 36,783,052.00 38,511,248.00 TOTAL ASSETS GROWTH IN PERCENTAGE 38.54\% 14.88\% 2.79\% 4.49\% EBIT 880,155.00 1,342,933.00 1,258,992.00 1,338,642.00 1,890,043.00 34.46\% -6.67\% 5.95\% 29.17\% MARKET VALUE OF EQUITY 3,810,092.00 4,758,898.00 4,703,183.00 5,349,960.00 1,941,287.00 MARKET VALUE OF DEBT 14,894,686.00 25,677,119.00 31,054,118.00 31,433,092.00 3,113,372.00 RETAINED EARNINGS 70,948.00 178,676.00 227,015.00 583,154.00 1,008,446.00 PROFITS 601,372.00 935,917.00 771,381.00 803,345.00 820,589.00 Mashreq Bank UAE CONVENTIONAL WORKING CAPITAL 703,336.00 4,631,087.00 22,212,469.00 2,106,907.00 10,031,419.00 TOTAL ASSETS 46,542,631.00 87,627,397.00 93,243,521.00 23,099,864.00 84,845,803.00 TOTAL ASSETS GROWTH IN PERCENTAGE 46.89\% 6.02\% -303.65\% 72.77\% EBIT 3,106,856.00 3,850,486.00 3,983,938.00 4,962,065.00 4,386,874.00 GROWTH IN EBIT 19.31\% 3.35\% 19.71\% -13.11\% MARKET VALUE OF EQUITY 866,195.00 1,126,054.00 1,463,870.00 1,610,257.00 1,690,770.00 MARKET VALUE OF DEBT 2,326,290.00 5,250,722.00 5,245,863.00 7,187,882.00 5,912,358.00 RETAINED EARNINGS 4,160,362.00 7,068,366.00 8,231,655.00 2,532,042.00 9,300,191.00 PROFITS 2,012,072.00 2,125,995.00 1,732,069.00 1,064,539.00 836,602.00 BAHRAIN ISLAMIC BANK (in BD,000) ISLAMIC BANK WORKING CAPITAL 378,774.00 591,017.00 855,879.00 809,036.00 713,328.00 TOTAL ASSETS 436,476.00 658,969.00 873,967.00 911,950.00 935,674.00 GROWTH IN ASSETS IN PERCENTAGE 33.76\% 24.60\% 4.17\% 2.54\% EBIT 22,355.00 25,025.00 17,428.00 16,882.00 17,394.00 GROWTH IN EBIT 10.67\% -43.59\% -3.23\% 2.94\% MARKET VALUE OF EQUITY 74,924.00 658,969.00 166,447.00 140,501.00 72,859.00 MARKET VALUE OF DEBT 57,434.00 403,212.00 83,401.00 91,156.00 12,571.00 RETAINED EARNINGS 9,589.00 13,633.00 13,889.00 747.00 167.00 PROFITS 11,355.00 25,025.00 38,210.00 7,010.00 - 1,344.00 AL BARKA ISLAMIC BANK (in USD, 000) BAH ISLAMIC WORKING CAPITAL 5,833,211.00 7,808,134.00 8,302,604.00 9,981,974.00 12,299,976.00 TOTAL ASSETS 7,625,827.00 10,103,979.00 10,920,288.00 13,166,277.00 15,879,933.00 GROWTH IN ASSETS IN PERCENTAGE 24.53\% 7.48\% 17.06\% 17.09\% EBIT 166,903.00 229,008.00 313,531.00 324,572.00 658,574.00 GROWTH IN EBIT IN PERCENTAGE 27.12\% 26.96\% 3.40\% 50.72\% MARKET VALUE OF EQUITY 1,211,124.00 1,569,658.00 1,550,161.00 1,736,845.00 790,500.00 MARKET VALUE OF DEBT 1,717,337.00 2,311,500.00 2,637,386.00 3,190,808.00 915,465.00 RETAINED EARNINGS 42,672.00 109,153.00 157,615.00 189,401.00 236,750.00 PROFITS 123,716.00 200,842.00 201,013.00 167,386.00 193,163.00 WORKING CAPITAL/TOTAL ASSETS MBI BAHRAIN (IN BD,000) CONVENTIONAL WORKING CAPITAL 24,263.00 63,048.00 169,854.00 159,047.00 138,095.00 TOTAL ASSETS 362,027.00 510,166.00 814,861.00 673,445.00 590,502.00 GROWTH IN ASSETS IN PERCENTAGE 29.04\% 37.39\% -21.00\% -14.05\% EBIT 5,105.00 5,416.00 4,810.00 4,427.00 17,922.00 GROWTH IN EBIT 5.74\% -12.60\% -8.65\% 75.30\% MARKET VALUE OF EQUITY 28,956.00 38,544.00 128,582.00 112,637.00 58,530.00 MARKET VALUE OF DEBT 319,876.00 458,427.00 686,279.00 560,808.00 76,700.00 RETAINED EARNINGS - 0 - 0 - 0 - 0 - 0 PROFITS 5,105.00 4,879.00 - 2,981.00 - 16,943.00 - 26,487.00 BAHRAIN NATIONAL BANK (IN BD,000) CONVENTIONAL WORKING CAPITAL 205,040.00 229,560.00 200,530.00 224,510.00 245,950.00 TOTAL ASSETS 1,676,380.00 1,903,710.00 2,034,100.00 2,117,750.00 2,274,005.00 GROWTH IN ASSETS IN PERCENTAGE 11.94\% 6.41\% 3.95\% 6.87\% EBIT 36,860.00 41,560.00 38,650.00 46,500.00 71,880.00 PERCENTAGE GROWTH IN EBIT 11.31\% -7.53\% 16.88\% 35.31\% MARKET VALUE OF EQUITY 222,140.00 243,630.00 217,390.00 241,370.00 77,760.00 MARKET VALUE OF DEBT 1,454,240.00 1,660,080.00 1,816,710.00 1,876,380.00 1,779,250.00 RETAINED EARNINGS 168,140.00 178,830.00 68,350.00 92,330.00 113,930.00 PROFITS 36,860.00 41,560.00 34,740.00 42,820.00 43,020.00 EPS BOUBYAN BANK(IN KD,000) ISLAMIC WORKING CAPITAL 89,488.00 46,461.00 131,974.00 87,345.00 186,669.00 TOTAL ASSETS 504,339.00 745,928.00 840,461.00 964,779.00 1,316,258.00 GROWTH IN ASSETS IN PERCENTAGE 32.39\% 11.25\% 12.89\% 26.70\% EBIT 24,220.00 39,658.00 45,930.00 27,883.00 - 23,238.00 GROWTH IN EBIT 38.93\% 13.66\% -64.72\% 219.99\% MARKET VALUE OF EQUITY 120,41 0 13 9,490 137,541.00 89,106.00 174,824.00 MARKET VALUE OF DEBT 383,929.00 606,438.00 702,920.00 875,673.00 955,294.00 RETAINED EARNINGS 13 ,659 22,38 7 13,250.00 - 38,445.00 - 32,336.00 PROFITS 10,314.00 18,632.00 - 1,953.00 - 48,331.00 5,995.00 EPS KUWAIT FINANCE HOUSE (IN KD,000) ISLAMIC WORKING CAPITAL 115,687.00 196,265.00 591,919.00 857,439.00 407,149.00 TOTAL ASSETS 403,044.00 735,291.00 1,284,675.00 11,290,694.00 12,548,499.00 GROWTH IN ASSETS IN PERCENTAGE 45.19\% 42.76\% 88.62\% 10.02\% EBIT 21,963.00 34,332.00 33,539.00 29,641.00 239,172.00 GROWTH IN EBIT 36.03\% -2.36\% -13.15\% 87.61\% MARKET VALUE OF EQUITY 87,103.00 153,782.00 348,833.00 351,114.00 248,985.00 MARKET VALUE OF DEBT 269,135.00 517,939.00 625,368.00 522,972.00 602,135.00 RETAINED EARNINGS 10,827.00 17,925.00 16,743.00 6,239.00 534,078.00 PROFITS 20,763.00 32,670.00 35,686.00 6,132.00 71,780.00 BURGAN BANK (IN KD,000) CONVENTIONAL WORKING CAPITAL 208,460.00 396,067.00 301,609.00 288,658.00 469,616.00 TOTAL ASSETS 2,210,215.00 2,847,547.00 3,942,999.00 4,093,984.00 4,149,909.00 GROWTH IN ASSETS IN PERCENTAGE 22.38\% 27.78\% 3.69\% 1.35\% EBIT 63,867.00 24,393.00 41,065.00 28,336.00 27,869.00 GROWTH IN EBIT -161.83\% 40.60\% -44.92\% -1.68\% MARKET VALUE OF EQUITY 86,060.00 351,140.00 385,801.00 428,274.00 140,133.00 MARKET VALUE OF DEBT 123,166.00 2,496,407.00 3,557,198.00 3,665,710.00 232,446.00 RETAINED EARNINGS 49,733.00 69,405.00 38,363.00 33,795.00 37,464.00 PROFITS 55,728.00 23,565.00 35,734.00 20,604.00 15,522.00 EPS COMMERCIAL BANK OF KUWAIT (IN KD,000) CONVENTIONAL WORKING CAPITAL 350,088.00 576,410.00 384,021.00 432,707.00 479,472.00 TOTAL ASSETS 2,917,233.00 4,289,293.00 4,306,651.00 3,595,297.00 3,622,603.00 GROWTH IN ASSETS IN PERCENTAGE 31.99\% 0.40\% -19.79\% 0.75\% EBIT 52,544.00 124,840.00 71,346.00 - 5,619.00 93,609.00 GROWTH IN EBIT 57.91\% -74.98\% 1369.73\% 106.00\% MARKET VALUE OF EQUITY 115,376.00 527,016.00 497,393.00 440,755.00 127,202.00 MARKET VALUE OF DEBT 113,430.00 3,762,277.00 3,809,258.00 3,154,542.00 2,330,221.00 RETAINED EARNINGS 35,981.00 44,372.00 91,814.00 91,960.00 113,333.00 PROFITS 50,629.00 120,356.00 71,346.00 - 5,619.00 40,535.00 EPS AL RAJHI BANK SAUDI ARABI (IN SR,000) WORKING CAPITAL ISLAMIC 10,815,962.00 10,682,188.00 31,007,478.00 38,350,512.00 31,378,688.00 TOTAL ASSETS 105,208,744.00 124,886,482.00 163,373,224.00 170,729,729.00 184,840,910.00 GROWTH IN ASSETS IN PERCENTAGE 15.76\% 23.56\% 4.31\% 7.63\% EBIT 9,509,898.00 9,321,096.00 10,575,267.00 11,505,292.00 11,661,132.00 GROWTH IN EBIT -2.03\% 11.86\% 8.08\% 1.34\% MARKET VALUE OF EQUITY 20,179,476.00 23,606,112.00 27,031,799.00 28,740,884.00 15,000,000.00 MARKET VALUE OF DEBT 85,029,268.00 101,280,370.00 136,341,425.00 141,988,845.00 6,040,903.00 RETAINED EARNINGS 5,547,650.00 1,588,326.00 121,286.00 744,248.00 205,905.00 PROFITS 7,301,898.00 6,449,657.00 6,524,604.00 6,767,228.00 6,770,829.00 AL BILAD BANK SAUDI ARABIA (KSA) IN SR,000 ISLAMIC WORKING CAPITAL 3,423,305.00 3,946,553.00 2,743,038.00 2,754,524.00 3,115,587.00 TOTAL ASSETS 11,281,364.00 16,635,838.00 16,051,789.00 17,411,192.00 21,116,686.00 GROWTH IN ASSETS IN PERCENTAGE 32.19\% -3.64\% 7.81\% 17.55\% EBIT 654,899.00 778,568.00 888,376.00 907,780.00 92,320.00 GROWTH IN EBIT 15.88\% 12.36\% 2.14\% -883.30\% MARKET VALUE OF EQUITY 3,024,345.00 3,104,107.00 3,212,840.00 3,002,182.00 3,000,000.00 MARKET VALUE OF DEBT 8,257,019.00 13,531,731.00 12,838,949.00 14,409,010.00 698,881.00 RETAINED EARNINGS 35,498.00 89,842.00 183,644.00 - 0 69,240.00 PROFITS 178,119.00 72,459.00 763,307.00 1,156,169.00 92,320.00 ARAB NATIONAL BANK KSA (IN SR,000) CONVENTIONAL WORKING CAPITAL 11,016,029.00 10,913,595.00 14,435,112.00 15,318,332.00 16,126,628.00 TOTAL ASSETS 78,035,383.00 94,467,561.00 121,307,142.00 110,297,320.00 116,034,765.00 GROWTH IN ASSETS IN PERCENTAGE 17.39\% 22.13\% -9.98\% 4.94\% EBIT 3,855,372.00 3,956,259.00 2,493,076.00 2,365,411.00 1,894,902.00 GROWTH IN EBIT 2.55\% -58.69\% -5.40\% -24.83\% MARKET VALUE OF EQUITY 7,980,138.00 10,524,597.00 12,671,298.00 14,478,267.00 6,500,000.00 MARKET VALUE OF DEBT 70,055,245.00 83,942,964.00 108,635,844.00 95,819,053.00 4,342,664.00 RETAINED EARNINGS 260,297.00 86,979.00 1,217,080.00 2,265,638.00 2,705,637.00 PROFITS 2,504,725.00 2,461,202.00 2,486,124.00 2,370,012.00 1,907,502.00 SAUDI HOLLANDI BANK KSA (IN SR,000) CONVENTIONAL WORKING CAPITAL 4,923,557.00 5,527,211.00 7,242,778.00 6,979,177.00 6,103,766.00 TOTAL ASSETS 46,740,064.00 50,411,314.00 61,436,183.00 59,109,718.00 53,882,413.00 GROWTH IN ASSETS IN PERCENTAGE 7.28\% 17.95\% -3.94\% -9.70\% EBIT 1,946,460.00 1,776,157.00 2,111,174.00 2,146,561.00 783,951.00 GROWTH IN EBIT -9.59\% 15.87\% 1.65\% -173.81\% MARKET VALUE OF EQUITY 4,257,743.00 4,546,794.00 5,715,151.00 5,632,822.00 3,307,600.00 MARKET VALUE OF DEBT 42,482,321.00 45,864,520.00 55,721,032.00 53,476,896.00 3,034,826.00 RETAINED EARNINGS 25,335.00 141,038.00 825,329.00 228,260.00 820,691.00 PROFITS 952,794.00 438,569.00 1,223,741.00 85,931.00 790,431.00 Qatar International Islamic Bank Islamic WORKING CAPITAL 6,075,108.00 7,398,064.00 8,976,878.00 13,590,800.00 16,015,343.00 TOTAL ASSETS 8,397,934.00 9,951,209.00 12,842,464.00 15,520,911.00 18,178,941.00 GROWTH IN ASSETS IN PERCENTAGE 15.61\% 22.51\% 17.26\% 14.62\% EBIT 679,973.00 59,784.00 75,309.00 957,940.00 1,085,381.00 GROWTH IN EBIT -1037.38\% 20.62\% 92.14\% 11.74\% MARKET VALUE OF EQUITY 424,224.00 700,782.00 1,261,408.00 1,387,546.00 1,387,546.00 MARKET VALUE OF DEBT 1,800,558.00 322,434.00 897,933.00 2,451,729.00 2,836,131.00 RETAINED EARNINGS 101,532.00 16,637.00 81,746.00 30,005.00 176.00 PROFITS 577,389.00 193,411.00 204,438.00 782,218.00 888,297.00 Doha Bank Conventional WORKING CAPITAL 2,190,627.00 2,204,179.00 4,067,848.00 8,209,067.00 34,246,351.00 TOTAL ASSETS 21,696,260.00 30,058,201.00 39,002,974.00 45,996,182.00 47,229,611.00 GROWTH IN ASSETS IN PERCENTAGE 27.82\% 22.93\% 15.20\% 2.61\% EBIT 1,494,266.00 1,501,364.00 1,746,704.00 2,044,329.00 2,095,773.00 GROWTH IN EBIT 0.47\% 14.05\% 14.56\% 2.45\% MARKET VALUE OF EQUITY 1,248,175.00 1,248,175.00 1,722,482.00 1,808,606.00 1,894,730.00 MARKET VALUE OF DEBT 1,787,237.00 2,024,952.00 2,652,938.00 1,766,186.00 1,689,739.00 RETAINED EARNINGS - 0 40,452.00 52,162.00 106,539.00 148,027.00 PROFITS 926,464.00 926,464.00 946,502.00 973,619.00 1,054,245.00 Al Ahli Bank of Qatar Islamic WORKING CAPITAL 9,358,771.00 2,578,455.00 3,454,920.00 2,608,842.00 3,369,563.00 TOTAL ASSETS 9,556,360.00 15,576,381.00 17,799,276.00 18,449,561.00 17,965,718.00 GROWTH IN ASSETS IN PERCENTAGE 38.65\% 12.49\% 3.52\% -2.69\% EBIT 334,392.00 302,652.00 425,781.00 510,045.00 687,999.00 GROWTH IN EBIT -10.49\% 28.92\% 16.52\% 25.87\% MARKET VALUE OF EQUITY 1,182,470.00 1,523,847.00 1,640,383.00 613,184.00 642,383.00 MARKET VALUE OF DEBT 199,203.00 603,135.00 557,616.00 498,156.00 546,135.00 RETAINED EARNINGS 16,577.00 10,855.00 30,486.00 24,409.00 112,324.00 PROFITS 202,241.00 302,652.00 425,781.00 300,515.00 412,329.00 Commercial Bank of Qatar WORKING CAPITAL 8,796,721.00 11,390,065.00 14,961,371.00 20,281,910.00 23,066,281.00 TOTAL ASSETS 30,357,935.00 45,379,279.00 61,301,751.00 57,317,359.00 62,520,074.00 GROWTH IN ASSETS IN PERCENTAGE 33.10\% 25.97\% -6.95\% 8.32\% EBIT 1,354,697.00 1,942,612.00 2,768,629.00 2,777,622.00 2,561,888.00 GROWTH IN EBIT 30.26\% 29.83\% 0.32\% -8.42\% MARKET VALUE OF EQUITY 1,401,579.00 1,401,579.00 2,062,053.00 2,165,156.00 2,268,258.00 MARKET VALUE OF DEBT 4,823,127.00 8,496,005.00 8,214,563.00 11,644,293.00 13,186,157.00 RETAINED EARNINGS 44,349.00 196,401.00 1,348.00 135,214.00 110,806.00 PROFITS 862,686.00 1,390,715.00 1,702,442.00 1,523,594.00 1,635,281.00 Z-Score APPENDIX 1-A ALTMAN Z SCORE 2006 2007 2008 2009 2010 S.NO. BANK NAME TYPE COUNTRY 2006 2007 2008 2009 2010 1 Dubai Islamic Bank ISLAMIC BANK UAE 1 1.4 1.202 1.37 2.231 2 Sharjah Islamic Bank ISLAMIC BANK UAE 2.749 2.22 2.56 2.68 1.551 3 Commercial Bank of Dubai CONVENTIONAL BANK UAE 1.82 1.5 1.48 1.61 2.216 4 Mashreq Bank CONVENTIONAL BANK UAE 1.23 1.13 2.43 3.056 1.35 5 Bahrain Islamic Bank ISLAMIC BANK BAH 7.48 7.92 8.7 7.65 5.17 6 Albaraka Bank ISLAMIC BANK BAH 5.92 5.97 5.85 6.76 5.548 7 MBI CONVENTIONAL BANK BAH 0.63 0.97 1.6 1.8 6.792 8 BAHRAIN NATIONAL BANK CONVENTIONAL BANK BAH 1.43 0.608 1.0095 1.12 3.476 9 Boubyan Bank ISLAMIC BANK KUW 1.904 1.105 1.65 0.765 3.178 10 Kuwait Finance House ISLAMIC BANK KUW 2.68 2.45 3.83 0.667 JANJUA: It Went down dramatically because of too fast growth in total assets in 2009 and 2010 0.497 11 Burgan Bank CONVENTIONAL BANK KUW 0.995 1.19 0.71 0.66 0.97 12 Commercial Bank of Kuwait CONVENTIONAL BANK KUW 1,035 1.25 0.9 1.0091 3.19 13 Al Rajhi Bank ISLAMIC BANK KSA 1.7 1.34 1.89 2.15 1.644 14 Al-Bilad Bank ISLAMIC BANK KSA 2.76 2.13 1.8 1.6 1.105 15 Arab National Bank CONVENTIONAL BANK KSA 1.38 1.17 1.07 1.28 1.143 16 Saudi Hollandi Bank CONVENTIONAL BANK KSA 1.08 1.06 1.16 0.92 1.024 17 Qatar Internation Islamic Bank ISLAMIC BANK QTR 5.989 5.023 4.853 6.674 6.689 18 Al Ahli Bank of Qatar ISLAMIC BANK QTR 6.727 1.343 JANJUA: Because of 38.65\% growth in total assets 1.536 1.201 1.587 19 Doha Bank CONVENTIONAL BANK QTR 1.394 1.036 1.595 5.172 1.587 20 Commercial Bank of Qatar CONVENTIONAL BANK QTR 2.719 2.545 2.341 3.309 3.383 ALTMAN Z-SCORE FORMULA: Z = 6.56X1+ 3.26X2 +6.72X3 + 1.05X4 X1 = working capital/total assets, < 1.10 BANKRUPTCY X2 = retained earnings/total assets, 1.10 - 2.60 GRAY AREA X3 = earnings before interest and taxes/total assets, >2.60 NONBANKRUPTCY X4 = market value equity/book value of total liabilities, FORMULA: Z = 6.56X1+ 3.26X2 +6.72X3 + 1.05X4 Z SCORE COLCULATOR ALTMAN Z SCORE AMOUNTS WORKING CAPITAL 2,414,298.00 TOTAL ASSETS 7,641,560.00 Growth EBIT 303,292.00 MARKET VALUE OF EQUITY MARKET VALUE OF DEBT 2,109,339.00 RETAINED EARNINGS 5,532,221.00 22,161.00 Z SCORE 4.699 Excel Formula 6.56*(D43/D44)+3.26*(D49/D44)+6.72*(D46/D44)+1.05*(D47/D48) Z-Score Analysis APPENDIX 01 ISLAMIC BANKS Z-SCORE S.NO. BANK NAME TYPE COUNTRY 2006 2007 2008 2009 2010 1 Dubai Islamic Bank ISLAMIC BANK UAE 1 1.4 1.202 1.37 2.231 2 Sharjah Islamic Bank ISLAMIC BANK UAE 2.749 2.22 2.56 2.68 1.551 3 Bahrain Islamic Bank ISLAMIC BANK BAH 7.48 7.92 8.7 7.65 5.17 4 Albaraka Bank ISLAMIC BANK BAH 5.92 5.97 5.85 6.76 5.548 5 Boubyan Bank ISLAMIC BANK KUW 1.904 1.105 1.65 0.765 3.178 6 Kuwait Finance House ISLAMIC BANK KUW 2.68 2.45 3.83 0.667 JANJUA: It Went down dramatically because of too fast growth in total assets in 2009 and 2010 0.497 7 Al Rajhi Bank ISLAMIC BANK KSA 1.7 1.34 1.89 2.15 1.644 8 Al-Bilad Bank ISLAMIC BANK KSA 2.76 2.13 1.8 1.6 1.105 9 Qatar Internation Islamic Bank ISLAMIC BANK QTR 5.989 5.023 4.853 6.674 6.689 10 Al Ahli Bank of Qatar ISLAMIC BANK QTR 6.727 1.343 JANJUA: Because of 38.65\% growth in total assets 1.536 1.201 1.587 Average Z-Score of Islamic Banks 3.891 3.090 3.387 3.152 2.920 APPENDIX 1.1 CONVENTIONAL BANKS Z-SCORE S.NO. BANK NAME TYPE COUNTRY 2006 2007 2008 2009 2010 1 Commercial Bank of Dubai CONVENTIONAL BANK UAE 1.82 1.5 1.48 1.61 2.216 2 Mashreq Bank CONVENTIONAL BANK UAE 1.23 1.13 2.43 3.056 1.35 3 MBI CONVENTIONAL BANK BAH 0.63 0.97 1.6 1.8 6.792 4 BAHRAIN NATIONAL BANK CONVENTIONAL BANK BAH 1.43 0.608 1.0095 1.12 3.476 5 Burgan Bank CONVENTIONAL BANK KUW 0.995 1.19 0.71 0.66 0.97 6 Commercial Bank of Kuwait CONVENTIONAL BANK KUW 1 1.25 0.9 1.0091 3.19 7 Arab National Bank CONVENTIONAL BANK KSA 1.38 1.17 1.07 1.28 1.143 8 Saudi Hollandi Bank CONVENTIONAL BANK KSA 1.08 1.06 1.16 0.92 1.024 9 Doha Bank CONVENTIONAL BANK QTR 1.394 1.036 1.595 5.172 1.587 10 Commercial Bank of Qatar CONVENTIONAL BANK QTR 2.719 2.545 2.341 3.309 3.383 Average Z-score of Conventional Banks 1.3713 1.2459 1.42955 1.99361 2.5131 APPENDIX 02 < 1.10 BANKRUPTCY 1.10 - 2.60 GRAY AREA >2.60 NONBANKRUPTCY DISTRIBUTION OF ISLAMIC BANKS IN ABOVE THREE CLASSES <1.10 1.10-2.60 >2.60 YEAR Years <1.10 1.10-2.60 >2.60 2006 1 2 7 2006 10\% 20\% 70\% PERCENTAGE OF TOTAL 10\% 20\% 70\% 2007 0\% 60\% 40\% 2007 0 6 4 2008 0\% 60\% 40\% PERCENTAGE OF TOTAL 0\% 60\% 40\% 2009 20\% 40\% 40\% 2008 0 6 4 2010 10\% 50\% 40\% PERCENTAGE OF TOTAL 0\% 60\% 40\% 2009 2 4 4 PERCENTAGE OF TOTAL 20\% 40\% 40\% 2010 1 5 4 PERCENTAGE OF TOTAL 10\% 50\% 40\% Years <1.10 1.10-2.60 >2.60 2006 40\% 50\% 10\% Years <1.10 1.10-2.60 >2.60 2007 40\% 60\% 0\% 2006 10\% 20\% 70\% 2008 50\% 50\% 0\% 2007 0\% 60\% 40\% 2009 20\% 50\% 30\% 2008 0\% 60\% 40\% 2010 20\% 40\% 60\% 2009 20\% 40\% 40\% 2010 10\% 50\% 40\% APPENDIX 03 DISTRIBUTION OF CONVENTIONAL BANKS IN ABOVE THREE CLASSES <1.10 1.10-2.60 >2.60 YEAR 2006 4 5 1 PERCENTAGE OF TOTAL 40\% 50\% 10\% 2007 4 6 0 PERCENTAGE OF TOTAL 40\% 60\% 0\% 2008 5 5 0 PERCENTAGE OF TOTAL 50\% 50\% 0\% 2009 2 5 3 PERCENTAGE OF TOTAL 20\% 50\% 30\% 2010 2 4 6 PERCENTAGE OF TOTAL 20\% 40\% 60\% Years <1.10 1.10-2.60 >2.60 2006 40\% 50\% 10\% 2007 40\% 60\% 0\% 2008 50\% 50\% 0\% 2009 20\% 50\% 30\% 2010 20\% 40\% 60\% Full Analysis sheet APPENDIX 04 Growth is Total Assets of Islamic Banks EXPLANATION OF PARTS Name of the Bank Country Type 2006 2007 2008 2009 2010 GROWTH IN ASSETS IN PERCENTAGE SHARJAH ISLAMIC BANK UAE ISLAMIC 29.79\% 29.95\% 2.75\% 4.16\% GROWTH IN ASSETS IN PERCENTAGE DUBAI ISLAMIC BANK UAE ISLAMIC 23.62\% 0.79\% 3.23\% 2.52\% GROWTH IN ASSETS IN PERCENTAGE BAHRAIN ISLAMIC BANK (in BD,000) BAH ISLAMIC 33.76\% 24.60\% 4.17\% 2.54\% GROWTH IN ASSETS IN PERCENTAGE AL BARKA ISLAMIC BANK (in , 000) BAH ISLAMIC 24.53\% 7.48\% 17.06\% 17.09\% GROWTH IN ASSETS IN PERCENTAGE BOUBYAN BANK(IN KD,000) KUW ISLAMIC 32.39\% 11.25\% 12.89\% 26.70\% GROWTH IN ASSETS IN PERCENTAGE KUWAIT FINANCE HOUSE (IN KD,000) KUW ISLAMIC 45.19\% 42.76\% 88.62\% 10.02\% GROWTH IN ASSETS IN PERCENTAGE AL RAJHI BANK SAUDI ARABI (IN SR,000) KSA ISLAMIC 15.76\% 23.56\% 4.31\% 7.63\% GROWTH IN ASSETS IN PERCENTAGE AL BILAD BANK SAUDI ARABIA (KSA) IN SR,000 KSA ISLAMIC 32.19\% -3.64\% 7.81\% 17.55\% GROWTH IN ASSETS IN PERCENTAGE QATAR INTERNATIONAL ISLAMIC BANK QTR ISLAMIC 15.61\% 22.51\% 17.26\% 14.62\% GROWTH IN ASSETS IN PERCENTAGE AL AHLI BANK OF QATAR QTR ISLAMIC 38.65\% 12.49\% 3.52\% -2.69\% Average Growth in Total Assets 29.15\% 17.17\% 16.16\% 10.01\% APPENDIX 05 Growth is Total Assets of Conventional Banks EXPLANATION OF PARTS Name of the Bank Country Type 2006 2007 2008 2009 2010 GROWTH IN ASSETS IN PERCENTAGE DUBAI COMMERCIAL BANK UAE CONVENTIONAL 38.54\% 14.88\% 2.79\% 4.49\% GROWTH IN ASSETS IN PERCENTAGE MASHREQ BANKS UAE CONVENTIONAL 46.89\% 6.02\% -303.65\% 72.77\% GROWTH IN ASSETS IN PERCENTAGE MBI BAHRAIN (IN BD,000) BAH CONVENTIONAL 29.04\% 37.39\% -21.00\% -14.05\% GROWTH IN ASSETS IN PERCENTAGE BAHRAIN NATIONAL BANK (IN BD,000) BAH CONVENTIONAL 11.94\% 6.41\% 3.95\% 6.87\% GROWTH IN ASSETS IN PERCENTAGE BURGAN BANK (IN KD,000) KUW CONVENTIONAL 22.38\% 27.78\% 3.69\% 1.35\% GROWTH IN ASSETS IN PERCENTAGE COMMERCIAL BANK OF KUWAIT (IN KD,000) KUW CONVENTIONAL 31.99\% 0.40\% -19.79\% 0.75\% GROWTH IN ASSETS IN PERCENTAGE ARAB NATIONAL BANK KSA (IN SR,000) KSA CONVENTIONAL 17.39\% 22.13\% -9.98\% 4.94\% GROWTH IN ASSETS IN PERCENTAGE SAUDI HOLLANDI BANK KSA (IN SR,000) KSA CONVENTIONAL 7.28\% 17.95\% -3.94\% -9.70\% GROWTH IN ASSETS IN PERCENTAGE DOHA BANKS QTR CONVENTIONAL 27.82\% 22.93\% 15.20\% 2.61\% GROWTH IN ASSETS IN PERCENTAGE COMMERCIAL BANK OF QATAR QTR CONVENTIONAL 33.10\% 25.97\% -6.95\% 8.32\% Average Growth 26.64\% 18.19\% -33.97\% 7.84\% APPENDIX 06 Growth is Operating Profit of Islamic Banks EXPLANATION OF PARTS Name of the Bank Country Type 2006 2007 2008 2009 2010 EBIT GROWTH SHARJAH ISLAMIC BANK UAE ISLAMIC 37.86\% 26.19\% -10.54\% -3.22\% EBIT GROWTH DUBAI ISLAMIC BANK UAE ISLAMIC -76.28\% -9.56\% 2.46\% -72.96\% EBIT GROWTH BAHRAIN ISLAMIC BANK (in BD,000) BAH ISLAMIC 10.67\% -43.59\% -3.23\% 2.94\% EBIT GROWTH AL BARKA ISLAMIC BANK (in , 000) BAH ISLAMIC 27.12\% 26.96\% 3.40\% 50.72\% EBIT GROWTH BOUBYAN BANK(IN KD,000) KUW ISLAMIC 38.93\% 13.66\% -64.72\% 219.99\% EBIT GROWTH KUWAIT FINANCE HOUSE (IN KD,000) KUW ISLAMIC 36.03\% -2.36\% -13.15\% 87.61\% EBIT GROWTH AL RAJHI BANK SAUDI ARABI (IN SR,000) KSA ISLAMIC -2.03\% 11.86\% 8.08\% 1.34\% EBIT GROWTH AL BILAD BANK SAUDI ARABIA (KSA) IN SR,000 KSA ISLAMIC 15.88\% 12.36\% 2.14\% -883.30\% EBIT GROWTH QATAR INTERNATIONAL ISLAMIC BANK QTR ISLAMIC -1037.38\% 20.62\% 92.14\% 11.74\% EBIT GROWTH AL AHLI BANK OF QATAR QTR ISLAMIC -10.49\% 28.92\% 16.52\% 25.87\% Average Growth -95.97\% 8.50\% 3.31\% -55.93\% APPENDIX 07 Growth is Operating Profit of Conventional Banks EXPLANATION OF PARTS Name of the Bank Country Type 2006 2007 2008 2009 2010 EBIT GROWTH DUBAI COMMERCIAL BANK UAE CONVENTIONAL 34.46\% -6.67\% 5.95\% 29.17\% EBIT GROWTH MASHREQ BANKS UAE CONVENTIONAL 19.31\% 3.35\% 19.71\% -13.11\% EBIT GROWTH MBI BAHRAIN (IN BD,000) BAH CONVENTIONAL 5.74\% -12.60\% -8.65\% 75.30\% EBIT GROWTH BAHRAIN NATIONAL BANK (IN BD,000) BAH CONVENTIONAL 11.31\% -7.53\% 16.88\% 35.31\% EBIT GROWTH BURGAN BANK (IN KD,000) KUW CONVENTIONAL -161.83\% 40.60\% -44.92\% -1.68\% EBIT GROWTH COMMERCIAL BANK OF KUWAIT (IN KD,000) KUW CONVENTIONAL 57.91\% -74.98\% 1369.73\% 106.00\% EBIT GROWTH ARAB NATIONAL BANK KSA (IN SR,000) KSA CONVENTIONAL 2.55\% -58.69\% -5.40\% -24.83\% EBIT GROWTH SAUDI HOLLANDI BANK KSA (IN SR,000) KSA CONVENTIONAL -9.59\% 15.87\% 1.65\% -173.81\% EBIT GROWTH DOHA BANKS QTR CONVENTIONAL 0.47\% 14.05\% 14.56\% 2.45\% EBIT GROWTH COMMERCIAL BANK OF QATAR QTR CONVENTIONAL 30.26\% 29.83\% 0.32\% -8.42\% Average Growth -0.94\% -5.68\% 136.98\% 2.64\% Variance Analysis: APPENDIX 08 PRODUCTIVITY OF THE BANKS ASSETS: EBIT/TOTAL ASSETS ISLAMIC BANKS EXPLANATION OF PARTS Name of the Bank Type Country 2006 2007 2008 2009 2010 EBIT/ TOTAL ASSETS SHARJAH ISLAMIC BANK ISLAMIC UAE 3.97\% 4.48\% 4.26\% 3.74\% 3.48\% EBIT/ TOTAL ASSETS DUBAI ISLAMIC BANK ISLAMIC UAE 5.19\% 2.25\% 2.03\% 2.02\% 1.14\% EBIT/ TOTAL ASSETS BAHRAIN ISLAMIC BANK (in BD,000) ISLAMIC BAH 5.12\% 3.80\% 1.99\% 1.85\% 1.86\% EBIT/ TOTAL ASSETS AL BARKA ISLAMIC BANK (in , 000) ISLAMIC BAH 2.19\% 2.27\% 2.87\% 2.47\% 4.15\% EBIT/ TOTAL ASSETS BOUBYAN BANK(IN KD,000) ISLAMIC KUW 4.80\% 5.32\% 5.46\% 2.89\% -1.77\% EBIT/ TOTAL ASSETS KUWAIT FINANCE HOUSE (IN KD,000) ISLAMIC KUW 5.45\% 4.67\% 2.61\% 0.26\% 1.91\% EBIT/ TOTAL ASSETS AL RAJHI BANK SAUDI ARABI (IN SR,000) ISLAMIC KSA 9.04\% 7.46\% 6.47\% 6.74\% 6.31\% EBIT/ TOTAL ASSETS AL BILAD BANK SAUDI ARABIA (KSA) IN SR,000 ISLAMIC KSA 5.81\% 4.68\% 5.53\% 5.21\% 0.44\% EBIT/ TOTAL ASSETS QATAR INTERNATIONAL ISLAMIC BANKS ISLAMIC QTR 8.10\% 0.60\% 0.59\% 6.17\% 5.97\% EBIT/ TOTAL ASSETS AL AHLI BANK OF QATAR ISLAMIC QTR 3.50\% 1.94\% 2.39\% 2.76\% 3.83\% AVERAGE 5.32\% 3.75\% 3.42\% 3.41\% 2.73\% APPENDIX 09 PRODUCTIVITY OF THE BANKS ASSETS: EBIT/TOTAL ASSETS CONVENTIONAL BANKS EXPLANATION OF PARTS Name of the Bank Type Country 2006 2007 2008 2009 2010 EBIT/ TOTAL ASSETS DUBAI COMMERCIAL BANK CONVENTIONAL UAE 4.71\% 4.41\% 3.52\% 3.64\% 4.91\% EBIT/ TOTAL ASSETS MASHREQ BANK UAE CONVENTIONAL UAE 6.68\% 4.39\% 4.27\% 21.48\% 5.17\% EBIT/ TOTAL ASSETS MBI BAHRAIN (IN BD,000) CONVENTIONAL BAH 1.41\% 1.06\% 0.59\% 0.66\% 3.04\% EBIT/ TOTAL ASSETS BAHRAIN NATIONAL BANK (IN BD,000) CONVENTIONAL BAH 2.20\% 2.18\% 1.90\% 2.20\% 3.16\% EBIT/ TOTAL ASSETS BURGAN BANK (IN KD,000) CONVENTIONAL KUW 2.89\% 0.86\% 1.04\% 0.69\% 0.67\% EBIT/ TOTAL ASSETS COMMERCIAL BANK OF KUWAIT (IN KD,000) CONVENTIONAL KUW 1.80\% 2.91\% 1.66\% -0.16\% 2.58\% EBIT/ TOTAL ASSETS ARAB NATIONAL BANK KSA (IN SR,000) CONVENTIONAL KSA 4.94\% 4.19\% 2.06\% 2.14\% 1.63\% EBIT/ TOTAL ASSETS SAUDI HOLLANDI BANK KSA (IN SR,000) CONVENTIONAL KSA 4.16\% 3.52\% 3.44\% 3.63\% 1.45\% EBIT/ TOTAL ASSETS DOHA BANK CONVENTIONAL QTR 6.89\% 4.99\% 4.48\% 4.44\% 4.44\% EBIT/ TOTAL ASSETS COMMERCIAL BANK OF QATAR CONVENTIONAL QTR 4.46\% 4.28\% 4.52\% 4.85\% 4.10\% AVERAGE 4.01\% 3.28\% 2.75\% 4.36\% 3.12\% APPENDIX 10 RETENTION RATIO: RETAINED EARNINGS/TOTAL ASSETS FOR ISLAMIC BANKS EXPLANATION OF PARTS Name of the Bank Type Country 2006 2007 2008 2009 2010 RETAINED EARNINGS/TOTAL ASSETS SHARJAH ISLAMIC BANK ISLAMIC UAE 0.29\% 3.03\% 2.04\% 2.64\% 2.22\% RETAINED EARNINGS/TOTAL ASSETS DUBAI ISLAMIC BANK ISLAMIC UAE 0.07\% 0.06\% 0.03\% 0.97\% 0.83\% RETAINED EARNINGS/TOTAL ASSETS BAHRAIN ISLAMIC BANK (in BD,000) ISLAMIC BAH 2.20\% 2.07\% 1.59\% 0.08\% 0.02\% RETAINED EARNINGS/TOTAL ASSETS AL BARKA ISLAMIC BANK (in , 000) ISLAMIC BAH 0.56\% 1.08\% 1.44\% 1.44\% 1.49\% RETAINED EARNINGS/TOTAL ASSETS BOUBYAN BANK(IN KD,000) ISLAMIC KUW 2.70\% 3.00\% 1.58\% -3.98\% -2.46\% RETAINED EARNINGS/TOTAL ASSETS KUWAIT FINANCE HOUSE (IN KD,000) ISLAMIC KUW 2.69\% 2.44\% 1.30\% 0.06\% 4.26\% RETAINED EARNINGS/TOTAL ASSETS AL RAJHI BANK SAUDI ARABI (IN SR,000) ISLAMIC KSA 5.27\% 1.27\% 0.07\% 0.44\% 0.11\% RETAINED EARNINGS/TOTAL ASSETS AL BILAD BANK SAUDI ARABIA (KSA) IN SR,000 ISLAMIC KSA 0.31\% 0.54\% 1.14\% 0.00\% 0.33\% RETAINED EARNINGS/TOTAL ASSETS QATAR INTERNATIONAL ISLAMIC BANKS ISLAMIC QTR 1.21\% 0.17\% 0.64\% 0.19\% 0.00\% RETAINED EARNINGS/TOTAL ASSETS AL AHLI BANK OF QATAR ISLAMIC QTR 0.17\% 0.07\% 0.17\% 0.13\% 0.63\% AVERAGE 1.55\% 1.37\% 1.00\% 0.20\% 0.74\% APPENDIX 011 RETENTION RATIO: RETAINED EARNINGS/TOTAL ASSETS FOR CONVENTIONAL BANKS EXPLANATION OF PARTS Name of the Bank Type Country 2006 2007 2008 2009 2010 RETAINED EARNINGS/TOTAL ASSETS DUBAI COMMERCIAL BANK CONVENTIONAL UAE 0.38\% 0.59\% 0.63\% 1.59\% 2.62\% RETAINED EARNINGS/TOTAL ASSETS MASHREQ BANK UAE CONVENTIONAL UAE 8.94\% 8.07\% 8.83\% 10.96\% 10.96\% RETAINED EARNINGS/TOTAL ASSETS MBI BAHRAIN (IN BD,000) CONVENTIONAL BAH 0.00\% 0.00\% 0.00\% 0.00\% 0.00\% RETAINED EARNINGS/TOTAL ASSETS BAHRAIN NATIONAL BANK (IN BD,000) CONVENTIONAL BAH 10.03\% 9.39\% 3.36\% 4.36\% 5.01\% RETAINED EARNINGS/TOTAL ASSETS BURGAN BANK (IN KD,000) CONVENTIONAL KUW 2.25\% 2.44\% 0.97\% 0.83\% 0.90\% RETAINED EARNINGS/TOTAL ASSETS COMMERCIAL BANK OF KUWAIT (IN KD,000) CONVENTIONAL KUW 1.23\% 1.03\% 2.13\% 2.56\% 3.13\% RETAINED EARNINGS/TOTAL ASSETS ARAB NATIONAL BANK KSA (IN SR,000) CONVENTIONAL KSA 0.33\% 0.09\% 1.00\% 2.05\% 2.33\% RETAINED EARNINGS/TOTAL ASSETS SAUDI HOLLANDI BANK KSA (IN SR,000) … Title: An Empirical Study Islamic and Conventional Banking Paper type Dissertation Deadline ( Remaining :: 8 Days, 7 Hrs, 26 Min ) Paper format Harvard Course level Undergraduate Subject Area Finance # pages 58 ( or 15950 words Minimum) Spacing Double Spacing Cost 13,920/= # sources 80 Paper Details English UK Total words for dissertation 12000 Total words for reflective summary 4000. I need dissertation chapter by chapter. I have attached research proposal and excel sheet. [I prepared this excel sheet for another student] and guess it will be useful. Please ask writer to send me introduction chapter. All guidelines are there. There must be 4000 words reflection essay at the end. All LSC guidelines are in [10 b DISS feb 16.zip] and follow all instructions. I have also attached a dissertation done on same topic [Dissertation - Final]. If you need any further information please feel free to contact me. He can use other bankruptcy models as well. Research Proposal: An Empirical Study Islamic and Conventional Banking Table of Contents Introduction 3 Rationale for the Proposed Research 4 Research Questions 5 Research Objectives and Framework 5 Literature Review 5 Research Methodology and Design 11 Measuring Bank Stability 11 Data 13 Ethical Considerations 13 Outcomes 14 Timeline and Gantt chart 15 Reference List 16 Introduction This study weights on the connection of the Islamic banks with conventional banks to measure bankruptcy connected execution regarding the credit crisis. The faithfully developing surprise of globalization has created the thought of potency a lot of important each for commercial enterprise and monetary fund institutions, banks being slightly of them. Banks are, figuratively speaking, driven by a centered propulsive system that picks the extent of their prosperity and headway. The modalities of the saving cash business have modified an excellent allot remained from the approach they wont to be. numerous fragments seem, from each angle, to be crushing endlessly in such approach, e.g. outlines towards mergers and acquisitions, deregulating of cash connected markets as well as banks, a speedier pace of styles of progress, the beginning of recent financial things, conflict within the thick of neighborhood and remote banks and therefore the modification of e-managing a record works out. Once the overall cash connected emergency that started before the top of 2007, a beautiful wise speak among monetary fund controllers exploring the financial irresponsibleness of all endeavors as well as banks. In Gregorian calendar month 2010 (redesigned in June 2011), urban center III was familiar with fortify general capital and liquidity rules with the target of pushing a lot of grounded saving cash division. The goal of the movements of urban center III is to update the keeping cash parts capability to carry incapacitates ascending out of money connected and financial uneasiness to diminish the impact from the monetary fund division to the real economy if theres chance of a happening of emergency. The economies of the state people from the Gulf Cooperation Council (GCC) supply numerous focuses. Each one of them is oil exporters. Within the interim they need clearing premiums in zone trade that was usually supported by the banks within the zone. On these lines, theyre familiar with the emergency from 2 sides: the drop of the oil prices amidst the subsidence and would be full of the zone half that go away the emergency. All Gulf Cooperation Council (GCC) nations were influenced by the emergency. Their money connected markets born with a compass between 20-60\%. Here there are unit 2 varieties of banks i.e. customary and Islamic banks, they share 2 or 3 points of read nevertheless at identical times they need specific systems for doing their business. Islamic banks and Islamic execs usually guarantee on paper that since Islamic banks contribute their preferences through the true blue economy they need a superior snapping point than ingest any cash connected emergency. Yet, this can be to be displayed accurately. This paper is associate endeavor to observationally take a look at the variables that impact banks trade connected security out Gulf Cooperation Council (GCC) nations pre and post-emergency and to check whether or not Islamic banks area unit steadier than Conventional banks. Here there are a unit 2 varieties of banks i.e. customary and Islamic banks, they share 2 or 3 edges but at identical times they need clear methodologies for doing their business. Islamic banks and Islamic researchers by and enormous state hypothetically that since Islamic banks contribute their points of interest through the true blue economy they need a superior cutoff than hold any cash connected emergency. Yet, this can be to be incontestable properly. This paper is a shot to observationally take a look at the variables that impact banks money connected soundness in Gulf Cooperation Council (GCC) nations pre and post-emergency and to check whether or not Islamic banks area unit steadier than Conventional banks. The general emergency of 2008 – 2009 have enlarged the massiveness of constructing a stable and setting financial structure guaranteeing that the students feel safe and do not lose the trust within the keeping cash trade. All around, associate travail is did to diminish the chance that profit trade delicate additionally got wind of a paid methodology for managing a record so developing capability within the monetary fund framework and exchange. Islamic banks and normal banks are obtaining a handle on clear systems that will facilitate them with growing their proficiency levels and complete a better piece of the overall business. Thusly, these papers can ahead many-sided nature the execution of Islamic banks and normal banks over the season of 2008 – 2011 within the Gulf Cooperation Council (GCC). Further, the goal of the paper would be to handle and separate the developments as for the conduct of the Islamic and basic banks once the top of the emergency. this could supply America some facilitate with understanding the ways in which the banks have modified as per evening out the criticality that are sent amidst the season of recent developing aborting crisis. Rationale for the Proposed Research The main objective of this study is to explore the money performance of the Islamic and Conventional banks to live the bankruptcy attributable to the credit crisis. This study is critical to investigate the money conditions of the Islamic with Conventional banks over the past years. This exploration is useful to seek out whether or not the Islamic banks area unit so much long established because the Conventional banks. Another vary value cross-check is that the determinants of the execution of Islamic banks and ancient banks. This triggers the current study to distinction Islamic banks execution and ancient banks (Zeitun, 2012). Research Questions · How will the money performance of the Islamic banks compare with Conventional banks? · How each Islamic and Conventional bank will sustain the money performance? · How challenges area unit handled by Islamic and Conventional banking throughout credit crisis? Research Objectives and Framework · To determine the money performance of Islamic and Conventional bank throughout the credit crisis in gulf countries · To live the economic property in each banking sector Islamic and Conventional · To employ the challenges that featured by Islamic and Conventional bank throughout credit crisis The Altzman’s Z score model is that the best suited in context to the current study for conducting comparative analysis of the Islamic and Conventional banking within the Gulf countries with reference to credit crisis. This framework are going to be influence be fully effective in conducting comparison of the 2 banking sectors with regards to money performance because it could be a tool to judge the protection problems associated with credit risks. Literature Review Abduh, Hasan and Pananjung (2013) tries to for the preeminent half, focusing on the capability between the customary and in this manner the Islamic banks in Gulf Cooperation Council (GCC) ranges from 1997 to 2004. The study went by the running with results: principal, a great deal of monstrous standard banks zone unit less beneficial; conjointly, higher capital degrees create Islamic banks advantage, thirdly, mix propels for every assortments of dealing with a record upgrades benefit, fourthly, stores sway on Islamic banks efficiency is negative while it adds to Conventional banks profit, fifthly, blend costs for routine banks effect advantage unfavorably however mix costs for Islamic banks encourage productivity, and, finally, non-premium value helps each Islamic and run of the mill keeping money profitability. They found that, to the degree formal, Islamic banks accomplished higher benefit than Conventional banks inside of the thick of the per-general emergency. On the other hand, Islamic banks contained the disagreeable effect on benefit in 2008 in any case rehearsed greater diminishment in addition in 2009 than Conventional banks. Islamic banks credit and resources progression were doubly more than Conventional banks inside of the thick of the emergency. Beck, Demirgüç-Kunt, and Merrouche (2010) composed a greater illustration of Islamic and Conventional banks to evaluate their course of action of movement, increase, and quality. They utilize 2 cases tremendous and modest. The greater one joins 141 nations and a couple of 956 banks, out of that ninety nine territory unit Islamic banks. This occasion secured nations with (an) only Conventional, (b) basically Islamic and (c) each standard and Islamic bank. The little example wires 486 banks crosswise over very twenty nations, out of that eighty nine zone unit Islamic banks. It contained singularly nations with each standard and Islamic bank. Every representations secured the sum from 1995 to 2007 henceforward those 2 were pre-emergency. To conceal the post-emergency sum, they joined a third sample that had twenty two nations with 397 Conventional and eighty nine Islamic banks. Out of those 486 banks, 112 territory unit recorded, seventy four standard and thirty eight Islamic. The creators thought about that their information based estimations showed insignificant basic separations in the midst of Islamic and Conventional banks. These pointers demonstrated that a great deal of critical competition is additionally profitable for strength, however appalling for money related asset toughness. Ansari and Rehman (2011) pointed that the on-going emergency uncovers that the structure got wind of before the center year 2007 was lost for profiting joined security against a general peril going from each the vital and money associated economies round the globe. All lines of steel on self for uneven qualities making to general degrees neglect to fill in not amazingly or beyond any doubt each non-open and electrical cables of resistance. The pros split the execution of Islamic banks and standard banks inside of the thick of the late general emergency by assembling a goose at the aftereffects of the emergency on power, credit and quality headway, and out of entryways appraisals amid an occasion of states wherever the 2 assortments of banks have imperative smidgen of the general business. The examination of their study recommends that Islamic banks are influenced amazingly as restriction routine banks. components connected with Islamic banks plan of action constrained the unfavorable effect on point of interest in 2008, though shortcomings in hazard association hones in some to Islamic banks exasperated a greater diminishing in benefit in 2009 seemed generally in importance CBs. It had been examined and measured the inclination of Islamic banks inside of the thick of money related asset and budgetary disadvantages, and to search out regardless of whether Islamic banks were proficient and stable. The study utilized the on-parametric system; data acquaintance analysis with the hypotheses. The paper broadens investigation that endorses that fundamental Islamic banks indicated partner increase in sufficiency inside of the thick of 2006 to 2008 and rot inside of the thick of 2009. The aftereffects of the study showed that the power of Islamic banks works in geographic locale and non-Middle Eastern Counties have reached out inside of the thick of money associated emergency. The specialists, their study surveys and takes a goose at execution of standard banks and Islamic banks working in GCC locale inside of the thick of 2005-10. The examination found that Islamic banks region unit a great deal of regard bolstered than routine banks. Traditional banks noncommissioned change in pay inside of the thick of the sum, however couldnt end overhauled advantage as an aftereffects of higher acquisitions towards credit mishaps and check difficulties. The execution markers were loaded with cash joined emergencies as is additionally noted from the latent cases result after 2007. Conventional Banks The analysts isolated the cash connected position and execution of the banking concern party utilizing even-toed ungulate model. They analysts realized with the help of their speculation on six banks on the rationale that theres no huge separation in execution utilizing twenty monetary fund degrees. Their disclosures showed that varied banks noninheritable clear positions regarding even-toed ungulate degrees. Their pack in like approach delineated that thought of arrangement degrees is clear for varied banks in state bunch. Regardless, theres no genuinely elementary separation between banks the even-toed ungulate degrees. It suggests that general execution of state get-together is same. Kumbrai et al. (2010) investigated the execution of Gulf countries business saving cash domain for the amount 2005-2009. They utilize monetary fund degrees to gage the superiority, liquidity and credit quality execution of 5 immense Gulf countries primarily based business banks. The outcomes displayed a modification within the bank execution to the degree proficiency, liquidity, and credit quality from 2005 to 2007. They comparably discovered essential complexities in purpose of preference execution for the amount 2005-2006 and therefore the period 2008-2009. Fish (2013) tried to quantify the money connected nature of 2 banks in land for the season of 2008-2012, utilizing 5 analysis elements of the even-toed ungulate model (Capital, Asset, Management, Earnings, and Liquidity). The t-Test has been used to think about the separations between the 2 banks. The outcomes during this examination discovered no immense contrasts concerning bank soundness between the 2 banks. Gupta (2014) assessed the execution of open piece banks in Asian country. He used even-toed ungulate approach for a 5-year amount 2009-2013. The outcomes showed that theres a honestly elementary separation between the even-toed ungulate degrees shockingly all things thought of half banks in Asian country. During this manner, the overall execution of open bit banks is clear. To see picked determinants of advantage in six initial European managing a record item used cross-sectional, pooled cross-sectional time game-plan and section burden up models. They destroyed info on 665 banks from six European nations for the amount 1992-1998. The attainable results of the take a look at examination advocate that, paying very little reference to the modification in conflict in European cash connected markets, theres still elementary bold nature of purpose of interest from one year to the going with. Al Tamimi (2010) examined some seductive elements in UAEs Islamic and customary national banks amidst the amount 1996-2008. 2 wards variables were used unreservedly against 5 free variables that area unit the cash connected movement pointer, liquidity, focus, cost, and branch range in utilizing descend into sin examination. For Islamic banks, his outcomes imparted that the luring parts area unit the expense and therefore the branch range. The examiners isolated the cash connected clarification of 5 Omani banks for the monetary fund amount 1999-2003. In like approach, he used direct descend into sin to summary the impact of superiority association, operation ability, and bank size on the cash connected execution of those banks. The outcomes showed that monetary fund execution of the banks was without ambiguity and definitely influenced by the operational profit, resource association, and bank size. Jha and Hui (2012) contemplated the cash connected execution of specific sorted out banks in Kingdom of Nepal utilizing even-toed ungulate system. The study secured the years 2005-2010 to judge the cash connected execution of the eighteen business banks in Kingdom of Nepal. The examination was fabricate transcendently with reference to the precise cash connected examination to delineate, measure, look at, and cluster the money connected circumstances. The producers then used variable lose the religion model to check the importance of the variables used. They found that section on resources (ROA) of open half banks were more than those of joint try and personal open banks. Moreover, the qualities set for the cash connected degrees uncovered that joint try and personal open banks were in like approach not terribly solid in Kingdom of Nepal to affect the conceivable expansive scale stun to their accounting report. Ferrouhi (2014) examined the execution of tremendous Moroccan financial relationship for the amount 2001-2011 utilizing even-toed ungulate approach. He used one cash connected degree for every of capital adequacy, resources quality, association quality, obtaining cutoff, and liquidity position measures. The testing of the higher than estimations on six Moroccan affiliations uncovered that each one the six banks did brim over the season of study. His exposures trusted once arrangement the regular of each degree, incontestable that 2 or 3 banks area unit in associate immaculate condition than others. Ibrahim (2014) eviscerated the cash connected execution of 2 UAE primarily based banks between the years 2004 and 2009, by taking a goose at modified game-plan of degrees that area unit used to measure the bank execution. The examination uncovered that each banks did brim over the higher than period; each bank scored weird state of execution in one venue than another. Islamic Banks Ahmed (2010) assessed the execution of Islamic banks in Asian country. During this study, Ahmed joined non-budgetary measures in context of associate eight factor scales to backtalks the execution of the Islamic banks. The research worker picked six sure Islamic banks associated measured their execution by utilizing modified sort of an eight-thing examination instrument created by (Sanwari and Zakaria, 2013). The reactions were recorded considering so as respecting bank execution specific points of read. Every respondent was asked for to rank variety from views regarding his/her bank. These reactions were recorded from 432 monetary fund masters through direct self-assured reviewing system. The outcomes demonstrate that monetary fund authorities think about factor quality, advantage, and capability as a lot of essential pointers of execution with developing progress towards these items. The work power deliberate turmoil associated employees non-appearance area unit organized low as an aftereffect of decreasing progress among banks. Abduh et al. (2013) examined the profit and execution of 5 Islamic banks in Bangladesh. Their info was accumulated through the scattered yearly reports of the 5 banks from the year of 2006 to 2010. To gage the suitableness and execution, the specialists used degree examination for measuring the execution and knowledge introduction examination with Malmquist Index to assess the proficiency of the Islamic bank. The end result reasons that Shajalal Islamic bank has performed superior to something different Islamic banks relatively as degree isolated. The aftereffect of knowledge introduction examination uncovers that the sample of all Islamic banks was on the rising stage amidst year 2006 to year 2010, proposing that the Islamic banks have increased their capability over the study amount. Ibrahim et al. (2014) have used cash connected info got from the yearly reports of the illustration banks the study has studied the execution of six Islamic banks recorded at each national capital stock market and Chittagong stock market. Their destinations were to check the execution of those banks, associated to form an association among specific Islamic banks from classified variables. The outcomes demonstrate that a number of banks area unit in associate impeccable state of affairs than others utilizing clear degrees. The overall execution of all Islamic banks is charming. The analysts settle for that the ensuing predetermination of Islamic keeping trade framework out Bangladesh is exceptional. In any case, to look at the business portion chance the Islamic banks should create business division driven technique. The researchers used info introduction examination framework to form a hinterland set by experienced banks and complexities it and wasteful banks to depart this world practicability scores. The agent found that the overall productivity crosswise over quite eighteen Islamic banks is no at fairly quite 100\%, that is by and enormous low emerged from totally different routine associates. Islamic banks within the delineation practiced the overall emergency in 1998-1999, but performed unfathomably well once the difficult periods. What is a lot of; the disclosures exhibit that there are a unit diseconomy of scale for tiny to-medium Islamic banks. Sanwari and Zakaria (2013) thought of the Islamic bank execution in relationship with the impact of each within conditions and therefore the outside elements on Islamic banks execution. General Islamic banks info were picked up from the yearly provide bits of information relating to Islamic keeping cash from Bank Scope info. Board info of seventy four Islamic banks from round the globe was poor down for the amount 2000-2009. Their revelations uncovered that the execution of those banks depends a lot of on bank specific attributes, for occasion, capital, resources quality and liquidity, whereas economic science elements do not on a very elementary level impact Islamic banks leverage. Akhter et al. (2011) measured the sufficiency of Islamic bank in relationship with 2 routine banks in Asian country. They used the money connected degrees to gage gain, liquidity peril and credit hazard for the years 2006-2010. Define examination was to boot wont to check the cases of the money record and wage elucidation numbers. Their divulgences reason that no principal separation is seen between the 2 varieties of banks in valuation for superiority and a inequality in liquidity and credit execution. The illustration examination incontestable a not all that awful sample of purpose of preference report of the Islamic bank whereas in pay elucidation; there was no basic capability (Miniaoui and Gohou, 2011). Research Methodology and Design Measuring Bank Stability The forlorn variable is that the z-score as a live of bank quality. Entirely unexpected late papers utilized the z-score as a basic evaluation of a bank danger. As a case, the globe Bank and along these lines the International cash (IMF) utilized z-score to synopsis security of banks. The measure of the z-score relies on upon the recorded clerking information removed from the banks money joined brightening. Its a blend of capital ampleness, benefit and terrible quality measures. The z-score is worked out as z = (k+μ)/σ wherever k is worth capital and stores as a for each capita of blend assets, μ is standard web compensation as a for every capita of mix assets, and σ is change of favorable position for assets (conventional web pay as an endowment of purposes of enthusiasm) as a center individual of come slant. A superior z-score shows a lower default risk and consequently the partner substitute methodology. a superior σ demonstrates insecurity of a banks pay that hacks down its z-score (Ferrouhi, 2014). There is another z-score format that reviews nature of banks. Altmans z-score uses 5 degrees to suspect money related torment. These degrees are designed by using the banks money associated brightening. It predicts the shot of segment eleven by using entirely unexpected discriminant examinations (Hasan and Dridi, 2010). Not underneath any condition simply like the z-score utilized as to a little level of this paper, Altmans z-score does not exhibit the degrees eccentricity reliably. Definitely once applying to Islamic banks, z-score is possibly advised as estimation to area eleven risks. The higher than z-score course does not take into the record the motivation behind containments of Islamic banks to blessing threats to its cash associated specialists, monetary powers, and record holders. This begins from the course that, for occasion, Islamic banks contribute the stinting and store records in setting of Gupta (2014) by that motivation behind premium and hardship is shared between the bank and record holders. As necessities be, disregarding once Islamic banks ability scenes, they will go before a proposition of those fiascos to the cash associated stars as opposed to completely borne by the shareholders. As requirements are, respect and additional items zone unit less sensitive against misfortunes in Islamic banks than Conventional banks. A possible response to the present inquiry is that Conventional banks zone unit in like methodology sorted out to set out on risks to their customers by conforming store and push rates. Furthermore, banks go before failures by suggestion to analysts by having stores in the midst of wonderful years and pay from these stores in the midst of unpalatable years. To reflect this improvement on z-score, stores range unit marginally of the z-score for Conventional and Islamic banks. In like methodology, z-score is in light-weight of current circumstances an exemplary evaluation of the default risk for Conventional and Islamic stinting cash segment (Hasan and Dridi, 2010). Data The tallies amid this paper trusted upon and detached from Bank Scope information that contains the money related asset declarations of every 30,000 banks the globe over. The outline covers all Conventional and Islamic banks that region unit musical gathering in Gulf Cooperation Council (GCC) areas. Banks were requested separated from Conventional (business as appeared by Bank-Scope) or Islamic, were hindered from the learning set. Some particular gets some data concerning engineered these 2 assortments of banks, for event, business and Islamic banks (Kristo and Gruda, 2010). On the other hand, partner Islamic bank could be a business bank considering Shariah-strife dealing with a record. Consequently, its gotten a kick out of the opportunity to advice business banks as Conventional banks amid this paper in light-weight of the methodology that its a ton of right. Banks that were crumbled or not dynamic for any reason before the highest point of 2010 were to boot denied from the learning set. Banks that have underneath 3 perceptions were disposed of. The outline covers all the League of Iroquois in Gulf Cooperation Council (GCC). Theyre (in dynamic sales demand): Bahrain, Kuwait, Oman, Qatar, Kingdom of Saudi Arabia, and United Arab Emirates. Routine banks tiny bit of the pie is reliably 100\% for Oman in light-weight of the methodology that there arent any standalone Islamic banks. On the inverse hand, Oman opened the least difficult on account of influence make Islamic banks inside of the country in 2011 (Husein, 2014). There are unit 3 capacities for using these areas. Notwithstanding, (beside Oman) these countries have Islamic banks and Conventional banks in their dealing with a record structure. Second, the Islamic banks bits of the pie in these countries zone unit broadly expanding. It expanded considering all things from entirely 12-tone framework in 2003 to very twenty third in 2010. Third, this locale holds around forty eighth of the Islamic banks assets round the globe in 2010. Ethical Considerations Amid the procedure of examination technique, a soul has to take once a collection of accepted rules that helps in recognizing the incorrect and right arrangement of practices needed to be received amid the procedure (Ibrahim, 2015). The analyst for examining the money connected execution of Islamic and Conventional banks tried to require one number of ethical contemplations that may facilitate in adding institutionalization to the exploration purpose. · Respondents Involvement: The specialist tried to implant no outer impact on weight over the Bank Scope info for Conventionalization within the input procedure of the exploration theme. Respondents with a way on deliberate cooperation were urged to require half within the incidental exploration theme. · Respondents Anonymity: it had been secured that any sort of mental or physical provocation wasnt enclosed with the respondents that the characters of the respondents were coated consistent with the solicitations of the members. Taking into consideration the same summation of ethical contemplations, the soul tried to stay up the basic exploration morals. Outcomes Around there are a unit break religion results is also investigated through clearing up the connection between the down and out variable and therefore the self-overseeing variables and paying very little temperament as to if this relationship is prime within the model or not. The autumn far away from the religion results are going to be disconnected into 3 segments. The key demonstrates the repudiate examination of all banks in one set from 2003 to 2010. The other covers the amount from 2003 to 2007 pre-emergency. The last one spreads post-emergency from 2008 to 2010 (Jaffar and Manarvi, 2011). The energetic fall far away from the religion are going to be used to deal with the difficulty of uncommon cases. Extreme break religion utilizes a weight set up that creates exceptional cases have less impact on the assessments of descend into sin coefficients. On these lines, sturdy lose the religion taking all things into consideration can create totally different constant gages than common minimum sq. will. The examinations during this paper are going … 1 Date: 09/01/2014 Date: 17/6/2014 Faculty of Business, Economics and Political Science Bachelors Dissertation/ Senior Year Project Module Title: Research Methods 3. Submitted by: Manar Mahmood Al-Gazzar (113035) Under the supervision of : Dr Dalia El-Mosallamy Supervised by: The Financial Performance of Islamic vs. Conventional Banks: An Empirical Study on The GCC & MENA Region 2 Abstract Due to the significance of the banking sector in the stability and welfare of any economy; it is imperative to constantly monitor and evaluate its performance. In the recent decades, a new prototype of banking, Islamic Banking, was introduced and was capable of achieving widespread and accelerating growth of total assets and market share on a global basis, including non-Muslim countries. Numerous empirical studies endeavor to measure the financial performance of the dissimilar banks in an attempt to gain more insights into Islamic banking model and the chronic reason behind its rapid success. Consequently, the purpose of this study is to compare the financial performance of Islamic vs. Conventional banks in the MENA & GCC region over the period 2009-2013, using a sample of the top 45 listed banks. Descriptive statistics will be used based on the CAMEL frameworks bank-specific performance measures in addition to external macroeconomic variables. The differences in performance will be tested for statistical significance using one- way ANOVA tests. Furthermore, using regression analysis. the study will attempt to examine the major determinants of profitability of banks in the region, and evaluate whether or not the moderating role of bank type has a significant impact on bank performance. The empirical findings of the study, revealed that Islamic banks outperformed conventional banks in terms of capital adequacy, asset quality, management quality and earnings quality, however they had a weaker liquidity position in comparison to conventional banks. Additionally, significant statistical differences were found to exist between Islamic and conventional banks in capital adequacy, management quality and asset quality. Finally, the significant determinants of bank profitability are capital adequacy, asset quality, management quality and GDP rate. Nonetheless, the moderating role of bank type does have a significant impact on bank performance in the MENA & GCC region. 3 Table of Contents Introduction…........... .................................................. 6 Background of the Study ...................................................... 6 Research Aim ....................................................................... 9 Dissertation Structure ......................................................... 10 Literature Review ..................................................... 11 Islamic Finance & Banking ................................................ 11 Challenges facing Islamic Banks ....................................... 16 Previous Studies Done ...................................................... 20 Importance of Study Sample ............................................. 24 Aims & Methodology ................................................ 25 Research Aims .................................................................. 25 Research Methodology ..................................................... 27 Data Analysis ............................................................. 35 Descriptive Statistics............................................ .............. 35 One-way ANOVA Tests ........................................... .......... 40 Correlation Analysis............................................ ............... 44 Regression Analysis........................................... ................ 46 Conclusion ................................................................. 53 Reference List.............................................................59 Appendix.....................................................................65 4 List of tables and figures Fig 1: Islamic Shariaa Illustration.….... ....................... 7 Fig 2: Schematic Diagram showing relationship.........25 Table 1: Sample of banks selected.…. ........................ 24 Table 2: Financial ratios used .…. .............................. 27 Table 3: Descriptive Statistics- All banks.…. ............. 30 Table 4: Descriptive Statistics- Islamic Banks .…. ..... 31 Table 5: Descriptive Statistics- Conventional Banks...31 Table 6: Comparative analysis of IBs and CBs.…. ..... 35 Table 7: Summary of ANOVA tests and hypothesis .. 36 Table 8: One-way ANOVA table.…. .......................... 38 Table 9: Correlation Coefficient Analysis.…. ............ 40 Table 10: Pure Regression Model.…. ......................... 42 Table 11: Moderated Regression Model.…. ............... 44 Table 12: Coefficients of Determination after moderation....................................................................46 Table 13: Variable Coefficients after Moderation.…. 46 Table 14: Summary of objective one.… ..................... 50 Table 15: Summary of objective two.…. .................... 50 Table 16: Summary of objective three.…. .................. 50 5 List of Abbreviations; IBs; Islamic Banks CBs; Conventional Banks AAOFI; Accounting Auditing Organization for Islamic Financial Institutions IFSB; International Financial Services Board ETAR; Equity to Total Assets ratio, used to measure capital adequacy LLR: Loan Loss Reserves ratio, used to measure asset quality LDR: Loan to Deposit ratio, used to measure management quality COSR: Cost to income ratio, used to measure earnings NLTA: Net Loans to Total assets, used to measure liquidity GDP: Gross Domestic Product growth rate INF: Annual Inflation rate ROA: Return on Assets used to measure profitability ROE: Return on Equity used to measure profitability NIM: Net Interest Margin used to measure profitability 6 CHAPTER 1: INTRODUCTION 1.1 Background of Study A country’s economic growth, among several other factors, is based on its financial sector’s performance, with the banking sector being the most prominent. Siraj and Pillai (2012) assert that the stability and growth of any economy to a great extent depends on the stability of its banking sector. It functions as an intermediary linking surplus and deficit units, facilitates funds for productive purpose and thereby contributes to economic development. Rose (2012) claims that although banks are identified by the discernible functions they perform such as; cash management, insurance, brokerage, credit and payment functions; they are above all else considered as financial intermediaries managing transactions between different parties. Hudgins and Rose (2013) claim that in the recent years, banks have experienced vibrant and extensive changes which are rapidly reshaping and revolutionizing the banking industry. These key trends include government deregulation, service proliferation, geographic expansion, an increasingly interest-sensitive mix of funds and many others. One of the most enormous transformations in the field was the initiation of a new prototype of banking, Islamic Banking, which has gained the attention of both Islamic and non-Islamic economies worldwide. Today Islamic banks are operating in all areas of the globe, as a practical and feasible alternative system to the conventional banking system. Srairi (2009) asserts that although it was originally developed to satisfy the requirements of Muslims, at present Islamic banking has currently achieved worldwide acceptance and is documented as one of the greatest rising areas in finance and banking as stated in the Global Finance Report (2012). The first Islamic bank launched abiding to Islamic Shariaa principles was Mit Ghamar in Egypt which commenced in 1963 but closed down in 1967. However, prior to the initiative 7 proposed by the Organization of the Islamic Conference (OIC) and the accruement of theoretical interest and knowledge in Islamic Finance; the Islamic Development Bank and Dubai Islamic Bank were both scrupulously established in 1975 as cited in Merchant (2013). Despite the fact that the majority of Islamic banks were established within the Middle East Muslim countries, many banks in developed countries have started to value the enormous demand for financial products of Islamic banks. Rashwan (2012) and Al-Mazari (2013) assert that the Islamic Banking industry has been witnessing an accelerating increase with over 614 Islamic banks operating in more 75 countries world-wide. Furthermore, it is worth noting that conventional banks such as HSBC, Citibank and UBS are currently incorporating Islamic products in their overall banking services due to the evident success of Islamic Banking as asserted by Siddiqi (2008). According to the World Islamic Banking Competitiveness report published by Ernst and Young (2012), Islamic banking assets with commercial banks globally grew to $1.3 trillion in 2011, suggesting an average annual growth of 19\% over past four years. The Islamic banking growth story continues to be positive, growing 50\% faster than the overall banking sector. Furthermore, according to the Global Islamic Finance Report (2012),Islamic finance is expected to account for 50\% of all banking assets within next 10 years in Islamic counties Pizzi (2013) also mentions that London has recently announced the establishment of a new British Islamic Market Index and the first Islamic Bond (sukuk) issued by a non-Muslim country, as its not content with being the leading capital of Islamic Finance in the West but wants to also start competing with powerhouses in the Muslim world. These recent events raise plenty of questions as to whether Islamic Finance and Banking is really successful and efficient as opposed to the conventional banking systems. A few studies have previously been done in an attempt to examine the diverse products and practices used by the two different 8 banking systems; to investigate what precisely distinguishes Islamic banks from conventional banks and determinants of the chronic reason behind their successful financial performance. Recent studies carried out by Khamis and Senhadji, (2010), Hassan and Dridi (2010), Rashwan (2012), and Merchant (2012) to empirically contrast performance of Islamic banks (IBs) and Conventional banks (CBs) pre and post the global financial crisis argue that performance of Islamic banks during the 2008 financial crisis was more efficient than their counterpart conventional banks; as their mechanism complying with Islamic Shariaa proved better resilience to negative profitability and speculation that tremendously affected conventional banks. Consequently, this led to the phenomenal widespread of Islamic Banking in an attempt to stabilize financial systems and restore investors confidence in the banking industry as affirmed by Jusufovic (2009). Due to the banking sectors significant role in the wellbeing of any economy, it is vital to constantly monitor and evaluate banks performance; to ensure that the financial sector is strong and efficient. Sayed and Hayes (2012) assert that the continuous assessment of bank performance is fundamental in order to protect the banking operations against its inherent risks or poor management that can threaten the entire financial system of any country. Furthermore, Jamali, Shar and Ali (2012) assert that bank performance is a very important subject to all the banks stakeholders including customers, investors and the general public. Consequently, numerous studies have been undertaken on financial institutions to determine their impact on the efficiency of economic growth and also discover the determinants of successful bank performance. There are various techniques and financial performance indicators used by researchers to evaluate the determinants of successful bank performance, including internal bank-specific factors (such as liquidity and asset quality) and external macroeconomic variables (such as GDP growth rate and annual inflation). The Basel Committee on Banking Supervision proposed the CAMEL framework in 1988 to be used for 9 managerial and financial assessment, to provide a comprehensive evaluation of financial organizations and help in ranking the performance of banks as cited in Awan (2009) and Akhtar (2010). The CAMEL model has previously been used by researches in foreign countries to contrast the performance of banks and identify the determinants of profitability. However, little efforts have been done to introduce this model to the Arab countries, with only a few banks adopting it to measure their performance. Hence it is not a formal method of bank evaluation recommended by the Central Bank as is done in several other countries. 1.2. Research Aim The purpose of this research is to critically examine the determinants of financial performance in Islamic and conventional banks in the MENA & GCC region during the period 2009-2013 following the financial crisis. A comparative study of the top 45 banks in the region was selected for our sample, with 10 Islamic banks and 35 conventional banks covering ten different countries (Egypt, Jordan, Saudi Arabia, Qatar, Kuwait, Oman, Israel, Lebanon, Bahrain and United Arab Emirates). Three stages of analysis were performed in this study. First, descriptive statistics were computed to understand the differences in characteristics of the two types of banks. Next, to determine whether these differences were significant, one-way ANOVA tests were carried out on each variable. Finally, regression analysis was carried out to analyze the effect of the variables on bank profitability. The study employs the CAMEL framework to measure and compare the financial performance of Islamic and conventional banks in order to detect whether there any significant differences in the performance indicators of the two banking systems in terms of; capital adequacy, asset quality, management quality, earnings and liquidity. In addition to that, external macro- economic factors such as GDP growth rate and annual inflation rate are also used in the model to determine their significance on bank profitability. 10 1.3 The Dissertation Structure The dissertation is divided into five subsections and elaborated below; Chapter One: A brief introduction about the topic and the subject of the research and its significant importance. Chapter Two: A thorough review on the Islamic banking model and what differentiates it from conventional banking systems; in addition to the current challenges impeding its performance. Furthermore, a review on the previous studies undertaken to highlight the comparative performance and Islamic and conventional banks and the determinants of their profitability and financial performance is presented. Chapter Three: The aims and methodology of the research will be identified in addition to identifying the sample size, data collection and analysis methods. Chapter Four: An extensive analysis of the empirical results of the study is presented with respect to the literature review to identify whether the findings are consistent or opposing to previous studies. Chapter Five: Finally the key findings of the research are presented along with their theoretical implications; while highlighting the limitations faced and suggesting some recommendations for future further research. 11 CHAPTER 2: LITERATURE REVIEW The purpose of this section is to present a comprehensive review on the Islamic banking model and what differentiates it from conventional banking systems; in addition to the current challenges impeding its performance. Furthermore, a review on the previous studies undertaken to highlight the comparative performance and Islamic and conventional banks and the determinants of their profitability and financial performance. 2.1 Islamic Finance and Banking 2.1.1 Islamic Law (Shariaa) Kettel (2011) asserts that in the uttermost belief of all Muslims, Islam is the religion revealed by Allah to his last messenger Prophet Mohammed (Peace Be Upon Him) to earth. It is a complete religion comprising all aspects of human life in this world and hereafter world. Islam is alleged as comprising of three broad concepts:  Aqidah: which concerns all forms of faith and belief by a Muslim in Allah and his will, from the fundamental faith in His being to the ordinary beliefs in His commands.  Shariaa: which concerns all forms of practical actions by Muslims manifesting their faith and belief, including man-to-man activities (Muamalat); which comprise all mankind activities (political, economic and social).  Akhlaq: concerns behaviour, attitude and work ethics, within which Muslims perform their practical day-to-day activities. Shariaa or Islamic Law , at times referred to Islamic Jurisprudence, is the instigating foundation of Islamic Banking. As illustrated in the table below, a significant portion of Muamalat is the conduct of economic activities which constitute banking and financial services that form the founding principles of Islamic Banking. 12 As shown in the table(Kettell,2011) Fig 1: Islamic Shariaa Shariaa principles are pertaining from various sources namely; Quran which is the primary source of Shariaa that was revealed exclusively to Prophet Mohammed through divine and manifest revelation, Sunnah which are the normative practices that Muslims follow in accordance to the Prophets sayings or behaviour. Furthermore, Vogel and Hayes (1998) assert that the secondary sources of Shariaa which are derived from the legal injunctions of Quran and Sunnah include; Ijma which is the consensus of opinion and agreement on various Islamic matters taken by qualified Islamic scholars, Qiyas which refers to analogical deduction to deriving logical conclusions on various matters and finally Ijtihad which is the use of ones reasoning to arrive at applied solutions of new problems not expressly regulated before in the primary sources of Shariaa. 2.1.2 Inception of Islamic Banking Islamic Finance is a dynamic execution of Shariaa (Islamic Law), consequently Islamic financial institutions base their objectives and operations on focal Shariaa principles. There are several key principles of Islamic Banking, with the central tenet being prohibition of interest (Riba) as revealed in Quran (Al-Baqarah,2:275) Allah has permitted trade and has forbidden riba. Geelani (2005) assets that Riba refers to any predetermined payment above 13 the actual amount of the loan principal; this is contrary to conventional banks that charge fixed interest rates on both deposits and loans. Uncertainty and speculation (gharar) are also forbidden, since any transaction the bank enters should have well-known outcomes that all contracting parties must have perfect knowledge of as cited in Kahf and Khan (2007). The profit and loss sharing scheme is considered extremely vital in Islamic Banking, Mashayekhi et al (2007) maintain that Islam encourages Muslims to invest their money and become partners in a business instead of becoming creditors. Consequently the depositor, the bank and the borrower all share the risks and rewards of financing a business venture as elaborated by Chapra and Ahmed (2012). Kettel (2011) also declares that Islamic banks promote risk sharing between providers of funds (investors) and users of funds (entrepreneurs), while their counterpart conventional banks assure the investor a predetermined rate of interest and pass all the risk to the entrepreneur. According to Shariaa, this kind of unjust risk distribution is prohibited. Under the PLS scheme, Islamic banks consider granting loans based on the soundness or profitability of the project and competence of the entrepreneur, in contrast to conventional banks that merely consider the credit- worthiness of the borrower. Therefore, the eventual outcome of PLS should be ethical investments that are channelled to productive ventures benefiting the whole community and leading to economic prosperity and development. All financial transactions an Islamic bank undertakes should be asset-backed; meaning that making money out of money is prohibited. Khan and Bhatti (2008), Khamis et al (2010) and Al-Janabi (2012) all confirm that money in Islam is considered a medium of exchange that represents the purchasing power of individuals and has no value on itself. Hence, it only becomes capital generating when it is invested in a productive business. This is divergent 14 with conventional banking systems that regularly use tools such as; currency derivatives, future and forward contracts that involve non-asset backed transactions. A very important distinction between the two divergent banking systems is that conventional banks are secular in their orientation, while Islamic banks follow and abide by Shariaa principles in all their transactions. Kettel (2011) argues that in Islamic banks only Shariaa approved contracts are to be accepted, any activity considered haram (prohibited in Islam) cannot be financed. To ensure that all financial transactions are in conformity to Shariaa law, a Shariaa Supervisory Board (SSB) is mandatory in all Islamic financial institutions. This supervisory board examines all the banks contracts, dealings and transactions to guarantee and certify that the banking activities are halal (permissible) and that Shariaa principles are being implemented accordingly as cited in Lewis (2005). 2.1.3 Modes and Instruments of Islamic Banks The following section describes Shariaa- compliant Islamic banking modes of financing; 2.1.3.1 Murabaha (cost-plus) refers to a sales contract, whereby the Islamic bank (IB) sells a specific asset to a customer at a pre-agreed profit mark-up on the original cost. Kettel (2011) mentions that the actual sale of a real asset is a necessary condition for the contract to comply with Shariaa principles. Al-Tiby (2012) also asserts that Murabaha is one of the most primarily used instruments by Islamic banks and constitutes over 70\% of their assets. 2.1.3.2 Salam is a forward sale, where the IB pays in advance for buying specified assets at a predetermined price, quality and quantity specifications, which the seller agrees to supply on a future date. Siddiqi (2008) declares that it is used for products that can be traded on secondary markets such as agriculture or mineral products. 2.1.3.3 Ijarah (leasing) is an agreement made by an IB to purchase an asset and lease it to a customer for an agreed period of time against fixed rental charges. The bank must retain the 15 risk and liabilities of asset ownership including maintenance. Ijarah wa iqtina, offers the lessee an option to own the asset at the end of the lease period as stated by Kahf et al (2007). 2.1.3.4 Istisnaa is an agreement to sell a non-existent asset to a customer, which is to be produced for future delivery at pre-determined prices and quality specifications. These contracts are used for financing manufacturing and construction as cited in Geelani(2005). 2.1.3.5Takaful is a Shariaa compliant system of insurance in which the participants donate part of their contribution to pay claims for damages suffered by some of the participants. Chapra (2012), Hassan (2010) and Kettel (2011) emphasize that the banks role is restricted to managing the insurance operations and investing the insurance contributions. 2.1.3.6 Mudarabah instruments are the cornerstone of Islamic Banking based on the profit- loss sharing principle. Iqbal and Mirakhor (2011) indicate that it is a contract between two parties; an Islamic bank as an investor (Rabul Mall) who provides a second party, the entrepreneur (Mudarib) with financial resources to finance a particular project. Ikha et al (2011) assert that profits are shared between the parties in a portion agreed in advance, while the losses are the sole liability of the IB because the Mudarib (entrepreneur) sacrifices only his/her efforts and expected share in profits. 2.1.3.7 Musharka refers to an equity participation contract because the bank is not the sole provider of funds. Consequently, as affirmed by Geelani (2005) two or more partners contribute to the joint capital of an investment, hence profits and losses are shared strictly in accordance to the respective capital contributions written within the terms of the contract. Chong and Liu (2009) through their investigation on IBs in Malaysia claimed that Islamic banking practised today, deviates largely from the theoretical PLS paradigm of Musharaka and Mudaraba. They discovered that adoption of the PLS paradigm has been much slower on the asset side (0.5\%) than on the liability side (70\%), and IBs generally prefer investing in non-PLS modes of financing. Furthermore, they conclude that contrary to expectation of 16 interest-free and equity-like theory of the PLS paradigm, IBs are closely pledged to the deposit rate setting of conventional banking and their investment rates are positively related to those of conventional deposits rates. 2.2. Challenges faced by Islamic banks Islamic banking is still highly nascent as compared with conventional banking, and this is an immense factor contributing to the range of challenges IBs are currently facing; 2.2.1 Lack of standardized regulatory frameworks Khalid and Amjad (2012) assert that due to the novelty of Islamic banking systems, their legal and regulatory frameworks are still quite complex and un-standardized. Therefore, they tend to follow varied accounting and other practices with no universally recognized standards. Some of them follow International Accounting Standards (IAS), others adhere to standards issued by Accounting Auditing Organization for Islamic Financial Institutions (AAOIFI), while some adopt accounting standards prevalent in their local markets. This issue results in perplexity due to the heterogeneity in accounting practices and disclosure of Islamic banks as asserted by Sultan (2006). However, it should be noted that AAOIFI and Islamic Financial Services Board (IFSB) have been working to develop universal accounting and auditing practices for Islamic banks. AAOIFI has developed more than 63 accounting standards for the guidance of and adoption by 130 member institutions, representing 30 countries as stated in IFSB (2012). 2.2.2. Unsatisfactory record for innovation Furthermore, Al-Janabi (2006), Al-Ajmi (2012) and Siddiqi (2012) all argue that Islamic banks have a very unsatisfactory record for R&D and innovation, which has lately led to a mounting pressure on them to develop genuinely Islamic and productive products that differ substantially from conventional practise. Haron and Ahmad (2010), amongst others, have provided empirical evidence that Islamic banks use conventional profitability theories in 17 determining returns on their products. Additionally, Khan and Bhatti (2008) confirm that they use the London Inter-bank Offered Rate (LIBOR) market interest rates, discounting tables and time value of money techniques to fix PLS ratios and returns on their murabaha and other investments. Islamic banks should take very seriously the challenge of coming up with a full array of genuinely distinctive, innovative and competitive products. 2.2.3. Shortage of Shariaa experts and human capital resources Khamis et al (2010) emphasize that there is still an acute shortage of skilled human resources in Islamic banks and inadequate training is given to staff on how to incorporate fundamental Shariaa- complaint Islamic banking principles. Most importantly, there is an evident scarcity of competent Shariaa experts in the Islamic banking industry, with a small group of experts serving on several Shariaa boards of Islamic banks worldwide. Mathews (2008) and Tett (2009) declared that Shariaa experts earn as much as $88,500 per year per bank and in some cases, charge up to $500,000 for advice on large capital market transactions. On the other hand, Shariaa scholars at small Islamic banks have little insight into the complexities of present-day financial markets. Nevertheless, Islamic banks are urged to build up a strong base of research &training to develop a corps of Shariaa experts with high moral and professional integrity. They should also establish a central Shariaa board and an external audit committee to provide a truly independent scrutiny of the their adherence to Shariaa principles. 2.2.4. Risk … 10 b DISS feb 16/ARU-Harvard_referencing_2011.pdf http://libweb.anglia.ac.uk Cambridge & Chelmsford University Library Guide to the Harvard Style of Referencing September 2011 Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 1 Guide to the Harvard Style of Referencing Third Edition Revised September 2011 ` Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 2 1. GENERAL INTRODUCTION .................................................................................. 4 1.1 What is referencing .............................................................................. 4 1.2 The Harvard System ............................................................................ 5 1.3 Reference list or Bibliography .............................................................. 5 2. CITING REFERENCES IN-TEXT USING THE HARVARD SYSTEM..................... 6 2.1 Author’s name cited in the text ............................................................. 6 2.2 Author’s name not cited directly in the text........................................... 6 2.3 More than one author cited in the text.................................................. 6 2.4 More than one author not cited directly in the text ............................... 6 2.5 Two, three, or four authors for the same work ..................................... 7 2.6 More than four authors for a work ........................................................ 7 2.7 Several works by one author in different years .................................... 7 2.8 Several works by one author in the same year .................................... 8 2.9 Chapter authors in edited works .......................................................... 8 2.10 Corporate authors ............................................................................. 8 2.11 No author .......................................................................................... 9 2.12 No date ............................................................................................. 9 2.13 Page numbers................................................................................... 9 2.14 Quoting portions of published text................................................... 10 2.15 Secondary sources (second-hand references) ............................... 11 2.16 Tables and diagrams....................................................................... 11 2.17 Websites ......................................................................................... 13 3. COMPILING THE REFERENCE LIST AND BIBLIOGRAPHY: FROM BOOKS, JOURNALS AND NEWSPAPERS ................................................................................. 14 3.1 General guidelines, layout and punctuation ....................................... 14 3.2 Books ................................................................................................. 14 3.2.1 Books with one author....................................................................... 14 3.2.2 Books with two, three or four authors.............................................. 15 3.2.3 Books with more than four authors.................................................. 15 3.2.4 Books which are edited ................................................................... 16 3.2.5 Chapters of edited books ................................................................ 16 3.2.6 Multiple works by the same author.................................................. 17 3.2.7 Books which have been translated.................................................. 17 3.2.8 E-books and pdfs ............................................................................ 18 3.3 Journal articles and newspapers........................................................ 19 3.3.1 Print Journal articles........................................................................ 19 3.3.2 Journal articles available from a database ...................................... 19 3.3.3 Magazine or journal articles available on the internet ..................... 19 3.3.4 Journal abstract from a database..................................................... 20 3.3.5 Newspaper articles .......................................................................... 20 3.3.6 Online newspaper articles................................................................ 20 4. USING OTHER DOCUMENT TYPES ................................................................... 21 4.1 Acts of Parliament .............................................................................. 21 4.2 Statutory Instruments ......................................................................... 21 4.3 Official publications such as Command Papers ................................. 22 4.4 Law reports ........................................................................................ 22 Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 3 4.5 Annual report ..................................................................................... 22 4.6 Archive material ................................................................................. 23 4.7 British Standard and International Standards..................................... 23 4.7 Patent................................................................................................. 24 4.9 Conference report and papers ........................................................... 24 4.10 Reports by organisations ................................................................ 25 4.11 Dissertation ..................................................................................... 25 4.12 DVD, video or film ........................................................................... 25 4.13 Broadcasts ...................................................................................... 26 4.14 EU documents................................................................................. 26 4.15 Course material and Lecture notes ................................................. 27 4.16 Maps -Print Maps, Digimap and Google Earth ................................ 28 4.17 Quotations from written plays.......................................................... 28 4.18 Pictures, images and photographs.................................................. 29 4.19 Interviews ........................................................................................ 30 4.20 Press release .................................................................................. 30 4.21 Religious texts................................................................................. 31 4.22 Reference from a Dictionary ........................................................... 31 5. USING ELECTRONIC SOURCES ........................................................................ 33 5.1 Websites ............................................................................................ 33 5.2 Publications available from websites.................................................. 33 5.3 Electronic images............................................................................... 34 5.4 Email correspondence/discussion lists............................................... 35 5.5 Blogs .................................................................................................. 35 5.6 Mailing list .......................................................................................... 36 5.7 Podcast or archived tv programme .................................................... 36 5.8 YouTube video ................................................................................... 36 6. UNPUBLISHED WORKS...................................................................................... 36 6.1 Unpublished works............................................................................. 37 6.2 Informal or in-house publications ....................................................... 37 6.3 Personal communication .................................................................... 37 7. REFERENCES WITH MISSING DETAILS ........................................................... 37 8. NOTES FROM COMPILERS AND CHANGES INTRODUCED TO THIRD EDITION.......................................................................................................................... 39 Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 4 1. GENERAL INTRODUCTION 1.1 What is referencing Why do I need to provide references in my work? To show anyone who reads your work that you understand the topic and can demonstrate your own thoughts on this. To demonstrate that you have read widely and deeply. To enable the reader to locate where you obtained each quote or idea. By providing the original source you are acknowledging that you have read the work and recognise the original author(s) ideas. Referencing styles do differ and at Anglia Ruskin University we endorse the Harvard style of referencing. This is supported by the academic university policy relating to academic honesty. For more information see the University Library website at: http://libweb.anglia.ac.uk/referencing/referencing.htm How do I provide references in my work? The rest of this guide will provide detailed information on how to provide references in a variety of different circumstances. The most important thing to remember is to be consistent in the way you record your references. Academic Honesty If you understand the reasons for referencing it is evident why you should not pass off work of others as your own. Failing to reference appropriately could result in your assessors thinking you are guilty of plagiarism – the act of using somebody else’s work or ideas as your own. You will find information relating to academic honesty in various student documentation including module guides and student handbooks. The university has recently introduced Turnitin to assist you in identifying where you have used original material so that you can ensure it is correctly referenced in your submission. For more information, go to: http://web.anglia.ac.uk/anet/students/turnitin/ During the course of writing an essay, report or other assignment it is usual to support arguments by referring to, or citing, information produced by other authors. This information could be presented in journal or newspaper articles, Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 5 government reports, books or specific chapters of books, research dissertations or theses, material over the internet etc. When you cite someone’s work in the text of your essay (an in-text citation), you also need to create a full reference for it at the end of your work. This gives the full details for the information source so that it can be traced by anyone who reads your work. 1.2 The Harvard System Most Faculties at Anglia Ruskin University expect students to use the Harvard style of referencing which is an author-date system In this system, the authors surname and year of publication are cited in the text of your work. The full details of the book are included in a reference list at the end of the assignment. In-text citation “An effective structure is important” (Redman, 2006, p.22) Reference list Redman, P., 2006. Good essay writing: a social sciences guide. 3rd ed. London: Open University in assoc. with Sage. 1.3 Reference list or Bibliography The reference list should include details for everything that you cite in your assignment. It should be in alphabetical order by author with all the different types of material in one sequence( See Section 3.1 for further details). Some Departments may ask you to produce a Bibliography. This is a list of relevant items that you have used to help you prepare for the assignment but which are not necessarily cited in your text e.g. general background reading to familiarise yourself with the topic. A reference list is always required when you cite other people’s work within your assignment. The terms reference list and bibliography are sometimes used interchangeably. Make sure that you know what is required from you before you complete your assignment. Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 6 2. CITING REFERENCES IN-TEXT using the Harvard System Any intext reference should include the authorship and the year of the work. Depending on the nature of the sentence/paragraph that is being written, references to sources may be cited in the text in the following manner: 2.1 Author’s name cited in the text When making reference to an author’s work in your text, their name is followed by the year of publication of their work: In general, when writing for a professional publication, it is good practice to make reference to other relevant published work. This view has been supported in the work of Cormack (1994). Where you are mentioning a particular part of the work, and making direct reference to this, a page reference should be included: Cormack (1994, pp.32-33) states that when writing for a professional readership, writers invariably make reference to already published works. 2.2 Author’s name not cited directly in the text If you make reference to a work or piece of research without mentioning the author in the text then both the author’s name and publication year are placed at the relevant point in the sentence or at the end of the sentence in brackets: Making reference to published work appears to be characteristic of writing for a professional audience (Cormack, 1994). 2.3 More than one author cited in the text Where reference is made to more than one author in a sentence, and they are referred to directly, they are both cited: Smith (1946) and Jones (1948) have both shown … 2.4 More than one author not cited directly in the text List these at the relevant point in the sentence or at the end of the sentence, putting the author’s name, followed by the date of publication and separated by a semi-colon and within brackets. Where several publications from a number of authors are referred to, then the references should be cited in chronological order (i.e. earliest first): Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 7 Further research in the late forties (Smith, 1946; Jones, 1948) led to major developments … Recent research (Collins, 1998; Brown, 2001; Davies, 2008) shows that 2.5 Two, three, or four authors for the same work When there are two, three or four authors for a work, they should be noted in the text Directly using an and White and Brown (2004) in their recent research paper found … Or indirectly Recent research (White and Brown, 2004) suggests that….. Other examples using two, three or four authors………… During the mid nineties research undertaken in Luton (Slater and Jones, 1996) showed that … Further research (Green, Harris and Dunne, 1969) showed Later research demonstrated that this theory was incorrect (Smith, Davis, Singh and Green, 2000) When there are two, three or four authors for a work they should all be listed [in the order in which their names appear in the original publication], with the name listed last preceded by an and 2.6 More than four authors for a work Where there are several authors (more than four), only the first author should be used, followed by et al. meaning and others: Green, et al. (1995) found that the majority … or indirectly: Recent research (Green, et al., 1995) has found that the majority of … 2.7 Several works by one author in different years If more than one publication from an author illustrates the same point and the works are published in different years, then the references should be cited in chronological order (i.e. earliest first): Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 8 as suggested by Patel (1992; 1994) who found that … or indirectly: research in the nineties (Patel, 1992; 1994) found that … 2.8 Several works by one author in the same year If you are quoting several works published by the same author in the same year, they should be differentiated by adding a lower case letter directly, with no space, after the year for each item: Earlier research by Dunn (1993a) found that…but later research suggested again by Dunn (1993b) that … If several works published in the same year are referred to on a single occasion, or an author has made the same point in several publications, they can all be referred to by using lower case letters (as above): Bloggs (1993a; b) has stated on more than one occasion that … 2.9 Chapter authors in edited works References to the work of an author that appears as a chapter, or part of a larger work, that is edited by someone else, should be cited within your text using the name of the contributory author not the editor of the whole work. In his work on health information, Smith (1975) states … In the reference at the end of your document, you should include details of both the chapter author and the editor of the whole work Smith, J., 1975. A source of information. In: W. Jones, ed. 2000. One hundred and one ways to find information about health. Oxford: Oxford University Press. Ch.2. 2.10 Corporate authors If the work is by a recognised organisation and has no personal author then it is usually cited under the body that commissioned the work. This applies to publications by associations, companies, government departments etc. such as Department of the Environment or Royal College of Nursing. It is acceptable to use standard abbreviations for these bodies, e.g. RCN, in your text, providing that the full name is given at the first citing with the abbreviation in brackets: 1st citation: Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 9 … research in 2006 undertaken by the Royal College of Nursing (RCN) has shown that … 2nd citation: More recently the RCN (2007) has issued guidelines … Note that the full name is the preferred format in the reference list. Some reports are written by specially convened groups or committees and can be cited by the name of the committee: Committee on Nursing (1972) Select Committee on Stem Cell Research (2002) Note there are some exceptions to this such as: BBC Philharmonic Orchestra BBC News where the abbreviations or initials form part of the official name. 2.11 No author If the author cannot be identified use Anonymous or Anon. and the title of the work and date of publication. The title should be written in italics. Every effort should be made to establish the authorship if you intend to use this work as supporting evidence in an academic submission: Marketing strategy (Anon., 1999) 2.12 No date The abbreviation n.d. is used to denote this: Smith (n.d.) has written and demonstrated … or indirectly: Earlier research (Smith, n.d.) demonstrated that … Every effort should be made to establish the year of publication if you intend to use this work as supporting evidence in an academic submission. For further advice see Section 7 References with missing details 2.13 Page numbers Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 10 Including the page numbers of a reference will help readers trace your sources. This is particularly important for quotations and for paraphrasing specific paragraphs in the texts: Lawrence (1966, p.124) states “we should expect …” or indirectly: This is to be expected (Lawrence, 1966, p.124) … Please note page numbers: preceded with p. for a single page and pp. for a range of pages. 2.14 Quoting portions of published text If you want to include text from a published work in your essay then the sentence(s) must be included within quotation marks, and may be introduced by such phrases as: the author states that “……..” Or the author writes that “……..” In order for a reader to trace the quoted section it is good practice to give the number of the page where the quotation was found. The quotation should also be emphasized (where it is 50 words or more) by indenting it and enclosed in quotation marks. This clearly identifies the quotation as the work of someone else: On the topic of professional writing and referencing Cormack and Brown (1994, p.32) have stated… “When writing for a professional readership, writers invariably make reference to already published works…” Or “Outside the UK, the BBC World Service has provided services by direct broadcasting and re-transmission contracts by sound radio since the inauguration of the BBC Empire Service in December 1932, and more recently by television and online. Though sharing some of the facilities of the domestic services, particularly for news and current affairs output, the World Service has a separate Managing Director, and its operating costs have historically been funded mainly by direct grants from the UK government. These grants were determined Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 11 independently of the domestic licence fee. A recent spending review has announced plans for the funding for the world service to be drawn from the domestic licence fee”. (Jones, 1967, p.27) 2.15 Secondary sources (second-hand references) You may come across a summary of another author’s work in the source you are reading, which you would like to make reference to in your own document; this is called secondary referencing. A direct reference: Research recently carried out in the Greater Manchester area by Brown (1966 cited in Bassett, 1986, p.142) found that … In this example, Brown is the work which you wish to refer to, but have not read directly for yourself. Bassett is the secondary source, where you found the summary of Brown’s work. Or indirectly: (Brown, 1966 cited in Bassett, 1986, p.142) In the example below Bellamy is the primary or original source and Sheppard is the secondary source. It is important to realise that Sheppard may have taken Bellamys ideas forward, and altered their original meaning. If you need to cite a secondary reference it is recommended that, where possible, you read the original source for yourself rather than rely on someone else’s interpretation of a work. Bellamy (1990) as cited in Sheppard (1994) suggests that … The reference list at the end of your document should only contain works that you have read. 2.16 Tables and diagrams When reproducing selected data, or copying an entire table or diagram, a reference must be made to the source. A reference within the text to a table taken from someone else’s work, should include the author and page (Smith, 2005, p.33) to enable the reader to identify the data. If the source of the data is not the author’s own, but obtained from another source, it becomes a secondary reference and needs to be cited as such: (United Nations, 1975 cited in Smith, 2005, p.33) Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 12 If the table is reproduced in its entirety, place the citation below the table. Be particularly careful to note the original source of data, as well as the authorship of the document you are using. Full details should be included in the reference list. In the following example, a table is reproduced from page 267, of a book written by Robert Brown which is the 4th edition and published by FT Prentice Hall of Harlow, England in 2005. The title of the book is Management in the media: decision makers. If you wish to reproduce the table in your own work, • replicate the whole table • add a citation below the table acknowledging wher the table was found eg. National Statistics Office 1985 cited in Brown, 2005, p.267 If you wish to quote from a table in your essay( treat as secondary referencing): … historical figures demonstrate that only sixty percent of households had televisions in Britain by the 1970s (National Statistics Office 1985 cited in Brown, 2005, p. 267). Ensure you include details of the book in your reference list: Brown, R., 2005. Management in the media: decision makers. 4th ed. Harlow: FT Prentice Hall. Television ownership in England (Percentage of households) Source : National Statistics Office, 1985 Date 1970 1980 Percentage 60 70 Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 13 2.17 Websites When citing material found on a website, you should identify the authorship of the website. This may be a corporate author, an organisation or a company; a guide to this can be found by looking at the URL or web address. To find the date of publication, reference to this might be found at the bottom of a web page relating to copyright, or from a date headline. In this example the authorship would be BBC and the date 2009. Recent research on meningitis (BBC, 2009) has shown … This is the published or amended date This is NOT the article date but today’s date – check the bottom of the page Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 14 3. COMPILING THE REFERENCE LIST AND BIBLIOGRAPHY: from books, journals and newspapers 3.1 General guidelines, layout and punctuation The purpose of a reference list is to enable sources to be easily traced by another reader. Different types of publication require different amounts of information but there are certain common elements such as authorship, year of publication and title. Section 7 deals with references where some of the details are unknown. The Harvard style lays down standards for the order and content of information in the reference. Some variations of presentation are acceptable provided that they are used consistently. All items should be listed alphabetically by author or authorship, regardless of the format, ie. whether books, websites or journal articles etc. Where there are several works from one author or source they should by listed together but in date order, with the earliest work listed first. 3.2 Books 3.2.1 Books with one author Use the title page, not the book cover, for the reference details. Only include the edition where it is not the first. A book with no edition statement is most commonly a first edition. The required elements for a book reference are: Author, Initials., Year. Title of book. Edition. (only include this if not the first edition) Place of publication (this must be a town or city, not a country): Publisher. Reference where 1st edition Baron, D. P., 2008. Business and the organisation. Chester: Pearson. where 3rd edition Redman, P., 2006. Good essay writing: a social sciences guide. 3rd ed. London: Open University in assoc. with Sage. An intext reference for the above examples would read: Organisations have been found to differ (Baron, 2008) when there is … Anglia Ruskin University http://libweb.anglia.ac.uk/referencing/harvard.htm 15 Leading social scientists such as Redman (2006) have noted … Please note where there is likely to be confusion with UK place names; for USA towns include the State in abbreviated form e.g. birming, Alabama would be… Birmingham, AL. 3.2.2 Books with two, three or four authors For books with two, three or four authors the names should all be included in the order they appear in the document. Use an and to link the last two multiple authors. The required elements for a reference are: Authors, Initials., Year. Title of book. Edition. (only include this if not the first edition) Place: Publisher. Reference Weiss, T.D. and Coatie, J.J., 2010. The World Health Organisation, its history and impact. London: Perseus. Barker, R., Kirk, J. and Munday, R.J., 1988. Narrative analysis. 3rd ed. Bloomington: Indiana University Press. . An intext reference for the above examples would read: Leading organisations concerned with health ( Weiss and Coatie, 2010 ) have proved that………… A new theory (Barker, Kirk and Munday, 1988) has challenged traditional thinking … 3.2.3 Books with more than four authors For books where there are more than four authors, use the first author only followed by et al. The required elements for this type of …

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REVISIONS ARE NEEDED ON THE PAPER I SUBMITTED FOR SCHOOL. I HAVE UPLOADED A FILE TITLED DEFAULT.PDF WHICH EXPLAINS. ANY SECTION THAT SCORED LESS THAN A 3 NEEDS TO BE REVISED. PLEASE READ TEACHERS COMMENTS. ASPECTS B3, B5, C2 - C2F, D1 AND D2 REQUIRE ADDRE

Revisions are needed on the paper I submitted for school. I have uploaded a file titled default.pdf which explains. Any section that scored less than a 3 needs to be revised. Please read teachers comments. Aspects B3, B5, C2 - C2f, D1 and D2 require addre - Management

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