Abstract

This paper is concerned with exploring financial strength of Islamic banks in Pakistan, Bangladesh, United Arab Emirates and Saudi Arabia on the bases of bank size. Using panel regression technique the paper also made a comparison between financial strength of Middle Eastern, as well as South Asian Islamic Banks and figured that on the bases of cost to income, loan to assets and some control variables, Middle Eastern Banks are financially stronger as compared to their South Asian counterparts. The study is pioneer in analyzing the issue on inter country level.

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