The Development of Islamic Banking in the UK – A Comparison of Islamic and Conventional Banking

Abstract

The purpose of the article is to compare the development of several Islamic banks and conventional banks operating in the UK in 2014–2021. A statistical method of linear ordering of objects characterized by several variables, which is simple in interpretation, was used. The main difficulty was to take into account the time-varying quotation of the values of the considered variables. A novel method was proposed to take into account both the value of several variable and their variability over time. In this method, the emphasis can be placed on the final reslut, that is, consider only the values of the variables at the beginning and end of the period under study but the smoothness of the systematic development of the bank can be taken into account by placing emphasis on the analysis of the variable-stimulants from year to year. In the obtained ordering, Islamic banks grew more dynamically than conventional banks in all considered configurations of variables.