COMPARATIVE ANALYSIS OF THE RELATIONSHIP BETWEEN BANK SIZE AND PROFITABILITY: ISLAMIC VERSUS CONVENTIONAL BANKS

This paper examines the relationship between bank size and profitability in both Islamic and conventional banking sectors. Using a dataset of 180 conventional banks and 59 Islamic banks across ten countries, this study employs t-tests and regression analysis to explore how bank size influences profitability, focusing on metrics such as Return on Assets (ROA) and Return on Equity (ROE). The findings reveal that while larger banks tend to be more profitable in both sectors, Islamic banks display more stable profitability. This research highlights the nuances of bank size's impact on profitability, suggesting that Islamic and conventional banks exhibit different dynamics.