Abstract
The development of banking in particular, and the financial system as a whole, is associated with many transformations and transformations that relate not only to certain aspects of the activities of financial institutions, but also to the processes of forming new models for organizing financial transactions. One of these models is the Islamic system of organizing financial activities, which has been actively developing over the past 30 years. However, the question of comparing Islamic finance and the traditional approach to organizing banking activities in terms of their efficiency, stability and liquidity remains open. This study is aimed at identifying and systematizing the main approaches to the comparative assessment of the effectiveness of the two models of financial activity. As a result of the study, it was revealed that the Islamic bank has both differences from traditional banking institutions, which is associated with the specifics of individual states and the architecture of national banking systems, and similar identical characteristics, which indicate an insignificant difference in the efficiency and sustainability of the two models.
Highlights
Researches devoted to the effectiveness of banking interest a wide variety of scientists and professionals for a long time
Efficiency studies provide comparative information that will be of interest to bank managers and policymakers in order to improve the efficiency of the banking system
If we consider various approaches to the comparative assessment of the effectiveness of a particular banking system, the researches were based on comparing the national banking systems of different countries, methods of monetary and macroprudential regulation, general macrobanking policy, or comparing multi-level and single-level types of banking
Summary
Researches devoted to the effectiveness of banking interest a wide variety of scientists and professionals for a long time. Banking performance and related with it dynamics are closely linked to banking risks and capitalization, while everincreasing competition in the financial services sector makes efficiency a top priority for bank managers, regulators and policymakers. If we consider various approaches to the comparative assessment of the effectiveness of a particular banking system, the researches were based on comparing the national banking systems of different countries, methods of monetary and macroprudential regulation, general macrobanking policy, or comparing multi-level and single-level types of banking. Taking into account the fundamental principles of the functioning of Islamic financial institutions, there is an objective expediency to use the expanding experience of this model of financial activity in order to ensure sustainable dynamic development of individual national economies and their territorial units in the form of subjects of the country. An important aspect in this case is the need for researches aimed to identifying the features of the development of the Islamic finance industry in the world economy in comparison with the general trends in the development of traditional models of banking
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