Analysis of Differences in Financial Performance Indicators of Yemeni Islamic and Conventional Banks before and during the 2008 Global Financial Crisis

The study aimed to compare the financial performance indicators of Yemeni Islamic and conventional banks before and during the global financial crisis prior to 2008. It also analyzed the differences between Islamic banks and conventional banks during and after the financial crisis through a sample consisting of four Yemeni banks –two Islamic banks and two conventional ones- based on the descriptive approach and econometric analysis parametric and non-parametric tests were applied to quarterly data covering the period 2005-2010 to test the research hypothesis. The study eached several findings, the most important of which are that there were statistically significant differences in most financial performance indicators (Profitability, Liquidity, and Solvency) of Yemeni banks before and during the 2008 global financial crisis. It also found differences in performance indicators between Islamic banks and conventional banks during the financial crisis. The differences in profitability and solvency indicators were in favor of conventional banks، whereas the differences in liquidity indicators were in favor of Islamic banks.