Performance Assessment and Social Functions of the Islamic Bank： A Study Based on Entropy Method
In recent years, the Islamic Bank features rapid development and stable performance under the increasingly intense financial crisis. The most distinctive feature of the Islamic Bank is the prohibition of interest charging. Thus by a comparison of no-interest loan transactions in the Islamic Bank and conventional loan transactions, this paper intends to appraise the difference in banking performance with the entropy method, and eventually finds that the Islamic Bank generates much lower operating benefits than the traditional commercial banks. In the conclusion, the paper points out the drawbacks of no-interest loan transactions as well as illustrates its social functions and future development, serving as a reference to China＇s improvement of her banking development.
the Islamic Bankno-interest loancommercial bankentropy method
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