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The purpose of this study is to determine the Gap between the assets and the liabilities of Islamic and conventional banks. It also finds the impact of liquidity risk, capital adequacy, management efficiency, operating cost, and transaction size on net interest margin for Conventional Banks (CBs) and net profit margin for Islamic Banks (IBs) in Pakistan, Malaysia, Bahrain, and UAE. Short-term and long-term assets and liabilities gap is further emphasized in this study. Data were extracted from the financial statements of both types of banks for the period of 2008-2014. This study finds that there is a negative short-term gap for both types of banks while the long-term gap for both types of banks is positive. Results show that the operating cost is an important factor which affects the profit margins and progress quality of the management of banks. Finally, the overall results show that the CBs have better assets and liabilities structure of profitable assets at low cost liabilities.

Ahmed Imran Hunjra, Farida Faisal, Zain-ul-Abdeen, Azfar Kama, Muhammad Ghufran, Aamir Bashir. (2017) The Asset and Liabilities Gap Management of Conventional and Islamic Banks: An Empirical Study of Pakistan, UAE, Malaysia, and Bahrain, Journal of Islamic Business and Management, Volume 7, Issue 2.
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