Professor Thorsten Beck of Cass Business School and Tilburg University gave the keynote speech at the 4th Islamic Banking and Finance Conference, hosted by Lancaster University Management School.
In his speech he explained the role of Islamic banking in the modern world. He highlighted the results of a research study comparing the performance of both Islamic and conventional banks from around 22 countries, with aspects of business orientation, efficiency, asset quality and stability.
Islamic banks were revealed to be more capitalized but less cost-efficient, which could be due to differences in the business model. As to lines of future research enquiry, those might include the drivers of the expansion of the industry, its role in financial inclusion, and the type of customers who uses Islamic banking services, as well as the type of products offered, given a choice in the market between competing systems.