This study aims to evaluate and compare the financial performance of the Jordanian
Islamic and conventional banks using the five financial indicators of the "CAMEL"
method represented by: Capital Adequacy index, Asset Quality index, Management
Qua
lity index, Profitability index, and the Liquidity index. This comparison will detect
which of the two banks Islamic or Conventional achieves a better performance than the
other. In order to study the reflection of financial performance on customers at the level of
public trust, and to achieve these purposes, we select a total of thirteen Jordanian
Conventional banks and two Islamic banks as a sample for this study during the period of
(2006-2012). We employ a test “t-test” to study the significance of the differences between
the averages of financial ratios and the use of multiple linear regression analysis to show
the impact of financial performance indicators individually and collectively on the level of
public trust. The result of this study clearly shows that Conventional banking achieves a
better financial performance than Islamic banking, although the level of public trust of
customers in Islamic banking stems mainly from its achieved financial performance,
contrary to what has been obtained during this study for Conventional banking.
This research aims to shed light on the motives and the challenges of the application
of Basel II in banks operating in Syria. To achieve this goal, the researcher used the survey
methodology, where the data was collected using a questionnaire and
then analyzed by
applying a set of statistical methods using the SPSS program. The results revealed that the
banks operating in Syria are applying the Basel II Accord in response to regulatory and
international requirement. With respect to the challenges of the application of the Accord,
these banks face the challenges associated with the application of the first pillar (minimum
capital requirements), as these banks do not have comprehensive historical data that can be
relied on to measure credit, operational and market risks. In addition to the fact that they do
not hold any international credit rating. There are also challenges associated with applying
the second pillar (supervisory review), particularly related to the low number of workingstaff
in the field of banking supervision, in addition to the challenges of the political
circumstances and the prevailing economic conditions. Finally, the results showed an
inverse relationship between the reality of the Basel II application in conventional banks
operating in Syria and between each of the challenges associated with implementing the
three pillars of the Accord and those associated with political and economic conditions.
There is also an inverse relationship between the reality of the implementation and the
challenges associated with the material and human resources merely in public banks.
