Performance analysis of conventional banking and Islamic banking in Bangladesh: A comparative study

Islamic banking is getting so much popularity in Bangladesh though there are huge number of conventional banks compared to Islamic banks in the country. This research work analyses the overall performance of Islamic banks verses Conventional banks in Bangladesh over the period of 2017-2018.The objectives of this research is to compare the financial performance of Islamic banks to conventional banks in Bangladesh. The study includes as profitability ratios: Return on Average Assets (ROAA), Return on average equity (ROAE), and Profit expense ratio (PEM). And as liquidity ratios: Current Ratio (CR), Current Asset Ratio (CAR), Loan Deposit Ratio (LDR) and Net Loan/ Total Asset Ratio (NLTA). This study shows that the overall performance of Islamic banks is better than that of Conventional banks and the standard deviation of conventional banks is greater than that of Islamic banks.