Table 7. Impact of the blockade on bank... | Emerald Publishing

Table 7.

Impact of the blockade on bank performance

	Islamic			Conventional
Ratio	Pre-blockade mean	Post-blockade mean	p-value	Pre-blockade mean	Post-blockade mean	p-value
Capital adequacy ratio (CAR)	17.558	17.881	0.896	15.438	17.166	0.000***
Equity multiplier ratio (EMR)	14.228	13.729	0.119	13.058	12.894	0.545
Return on assets (ROA)	1.227	1.444	0.296	0.861	1.086	0.119
Return on equity (ROE)	8.616	10.502	0.194	6.815	8.755	7.544
Operating efficiency (OEOI)	26.239	27.059	0.371	51.693	47.102	47.555
Loans to deposits ratio (LDR)	101.842	106.845	0.187	105.213	109.630	0.301
Loans to assets ratio (LAR)	67.843	66.719	0.180	63.568	65.092	0.538
Non-performing loans (NPL)	1.039	1.758	0.001***	2.387	3.287	0.000***
Loan loss provisions (LLP)	80.143	104.854	0.002***	111.327	144.088	0.006***

	Islamic			Conventional
Ratio	Pre-blockade mean	Post-blockade mean	p-value	Pre-blockade mean	Post-blockade mean	p-value
Capital adequacy ratio (CAR)	17.558	17.881	0.896	15.438	17.166	0.000***
Equity multiplier ratio (EMR)	14.228	13.729	0.119	13.058	12.894	0.545
Return on assets (ROA)	1.227	1.444	0.296	0.861	1.086	0.119
Return on equity (ROE)	8.616	10.502	0.194	6.815	8.755	7.544
Operating efficiency (OEOI)	26.239	27.059	0.371	51.693	47.102	47.555
Loans to deposits ratio (LDR)	101.842	106.845	0.187	105.213	109.630	0.301
Loans to assets ratio (LAR)	67.843	66.719	0.180	63.568	65.092	0.538
Non-performing loans (NPL)	1.039	1.758	0.001***	2.387	3.287	0.000***
Loan loss provisions (LLP)	80.143	104.854	0.002***	111.327	144.088	0.006***

Notes:

***, ** and * indicate significance level of 1, 5 and 10%, respectively

Source: Author’s own