A Comparative study of the Basel III liquidity framework’s “Liquidity Coverage Ratio”: Compliance and Performance between Islamic Banks and Conventional banks in the State of Kuwait

Master's Thesis

Abstract

Aim of the Paper: To propose some recommendations based on the finding for the conventional and Islamic banks in the sample of the study and to submit the experience of the research sample, first, to all the relevant regulatory authorities who deal with the supervision and control of conventional and Islamic banks in their banking system and second, to the decision makers in the conventional and Islamic banks to gain their bank’s compliance and better performance of Liquidity Coverage Ratio.
Study Design: Comparative study of Liquidity Coverage Ratio’s compliance and performance between 4 national Islamic banks and 4 national conventional banks.
Sample and Data: The sample contains of 4 conventional and 4 Islamic banks in the Kuwaiti national banking system. The data were quantitative “LCR figures” of the sampled banks and were gathered from their official websites (secondary data).
Results: Both the conventional and the Islamic banks showed that were compliant and had the same efficient and effective level of LCRs performance
Conclusion: the paper presented recommendation on bank solo level, banking sector level, regulatory authority level and international organizations level.