Corporate governance and banking performance: a comparative study between islamic and conventional banks in Sri Lanka

The recent global financial crises emphasized this idea and shown that the problem of bank governance is very severe. Therefore, this study was carried out as a comparative study of Islamic and conventional banks‘ corporate governance and banking performance in Sri Lankan context. This study‘s main objective is to compare the different corporate governance and banking performance practice of Islamic and conventional bank of Sri Lanka and also identify the relationship between corporate governance and banking performance in conventional and Islamic bank of Sri Lanka. The study is based on secondary data, which covers a period of four years, i.e. 2011-2014.Two banks are selected for this study. One is for Islamic Banks and other one bank is from Conventional banks. To analyze the data and find out Ratio analysis, descriptive statistical techniques and Correlation Analysis were used as a method of analysis. Key findings of this study, there is a different corporate governance practice and banking performance between Islamic and conventional banks. The results revealed that, variables of corporate governance are positively correlated with ROA in conventional bank as well as , Islamic bank except BS and NED other variables have normal negative relation with ROA which is not significant. Similarly, except BS and NED other variables have negative association with ROE in both banks. BS has strong negative with ROE in conventional banks, But Islamic bank has a normal negative relationship. Further corporate governance has a moderate impact on the performance of both Islamic and conventional banks. Practice of Islamic bank‘s corporate governance poorer than Practice of conventional banks‘ corporate governance in Sri Lanka. The implication of this research will guide for the decision makers, policy makers as well as a future researcher

Study on financial performance analysis of islamic banking in Srilanka (special reference to Amana bank)

The Islamic banking industry is one of the most important and growth industry of Sri Lankan economy, not only the Sri Lankan economy but whole world also. There are many banking sectors such as commercial, private and public banks working in Sri Lanka. Banking sectors are growing faster and competition.This study investigates the financial performance Amana Bank, Sri Lanka during the period of 2011-2015.Gradual development of Islamic banking had created competition among Islamic windows and conventional banks. Since Islamic banks offered products under Islamic principles, most of Muslim preferred Islamic banks rather than conventional banks. Currently, even non-Muslim prefer Islamic banking as the banks starting to offer an attractive products and services. However, some people still in doubt and argued on Islamic banks’ performance. That is why, considering the performance of Amana bank, on attempt has been made in this paper to study the financial analysis of Amana bank. Researchers have rendered their knowledge to present this study on all Performance of Amana bank PLC. In this study, it is shown that various operational activities can be used in the evaluation of the operation of this Bank. This study’s main objective is tostudy the current assets and current liabilities so as to know whether the shareholders and normal customers could invest in Amana Bank or notand also evaluate how effectively the bank is utilizing its assets against the industry average, as well as measure the profitability,financial positionand liquidity position of the bank. The study is based on secondary data, which covers a period of five years, i.e. 2011-2015. To analyze the data and find out Ratio analysis was used as a method of analysis.Considering the productivity ratio, current ratio, quick ratio, profitability ratio, solvency ratio. This study found through its last year (2015) performance that this bank is trying to increase its performance efficiency.The findings of the study show the fluctuation of the financial position for Amana Bank and some of their financial factors influence the financial performance of the bank. Then, it is found that the overall financial performance of Amana Bank is fluctuating in terms of liquidity ratios, asset quality ratios and profitability ratios (ROA, ROE). This study suggests a set of recommendations regarding the development and enhancing of some banking operations, which will boost the bank's profitability and improve the financial performance of the bank

Effect of corporate social responsibility on financial performance of banks in Sri Lanka

Corporate social responsibility (CSR) is not a new concept in the banking sector, but nowadays, it becomes highly typical since the crisis has significantly highlighted the need for integration of moral principles in the banking business. CSR describes as “Doing all those activities which are not forced by law of those countries in which they are running their business and which are not for the primary benefits of the business but for the benefits of the society.” This study examined the effect of corporate social responsibility for the financial performance of selected Licensed Commercial Banks in Sri Lanka. The objective of this study is to examine the impact of corporate social responsibility on financial performance for the period of 2010 to 2014 in selected Commercial Banks of Sri Lanka. They are Amana Bank PLC, People‟s Bank, Commercial Bank of Ceylon PLC, Hatton National Bank, Nations trust Bank, Bank of Ceylon, DFCC Bank PLC, National Development Bank PLC, Pan Asia Banking Corporation and Sampath Bank PLC. This study utilizes the secondary data. The data were collected from annual reports of the selected banks and Directors‟ reports. Other sources such as newsletters, news articles, journals and websites were also used. The data were analyzed using correlation, regression analysis and hypothesis testing by SPSS 20.0 software. In addition, the regression model shows that there is a positive impact between CSR and the dimensions of financial performance (ROA, ROE, EPS and Net Profit). The finding of this study shows that there is a positive and significant relationship between corporate social responsibility and financial performance, which demonstrates that there is positive impact of corporate social responsibility for the financial performance of selected Licensed Commercial Banks of Sri Lanka. This study concludes that CSR for the success of Commercial Bank since it helps to improve financial performance. The study recommends that banks may portray themselves as socially responsible firms it will lead to improve the overall financial performance of the Banks. Government should play its role to motivate the banks to spend for the welfare of the societies, nations and environment where banks operate their businesses and earn profits

Perception toward islamic and conventional banking among educated people in muslim community: a study based Akkaraipattu division in Ampara district

The one of prominent industries worldwide is banking. In the context of Sri Lanka, above 25 licensed commercial banking institutions consist both Islamic and conventional banking play major role in economy under regulatory, Central bank of Sri Lanka. Among the multi religious society of Sri Lanka, the Islamic institution was launched in 1995 and the first Islamic banking institution was established in 2008 that is having rapid growth year by year. As a minority people in Sri Lanka, there is a need to find out the perceptions of Muslims about this prominent industry. This study was examined the real perception among educated Muslim people of Ampara district which have maximum number of Muslim minority. And had a study about perception on Islamic and conventional banking. Quantitative method was carried out which include only questionnaire data material. The population for this study considers the all educated people in Muslim community of Akkaraipattu of Ampara district. A sample random sampling technique was used to select the responses survived for this study for the data analysis.in this study covered perception on usage of conventional and Islamic banking facilities ,knowledge of the Islamic banking system, potentiality of Islamic banking and affective(feelings) of Islamic banking