Efficiency of Islamic Banks during the Global Financial Crisis: Evidence from Sudan

Abstract

Alternative solutions have been considered by economists with a high focus on Islamic Banking and Finance as a good alternative model. This comes as a result of unsuccessful several banks because of the severe global crisis. That crisis raised a kind of controversy regarding the performance of both the Islamic Banks and the conventional ones.  Different researches affirmed better performance and security to the Islamic Banks as the suffering of the conventional banks during that crisis. Consequently, these studies have explained that both the Islamic and the conventional banks have suffered, but in different aspects; capital ratio, leverage, and average equity are the issues the Islamic Banks have suffered from. On the other hand, return on average assets and liquidity are the issues the Conventional Banks have suffered from. Where, still, the Islamic Banks showed a better performance from 2006 to 2009.