Abstract

This paper empirically investigates whether the cross-country Islamic banks#x2019; financial performances are immune by the global financial crisis (GFC). Banks#x2019; financial performances#x2014;the pre GFC and the GFC period#x2014;are measured by return on assets (ROA). The comparison of mean and the median return on return on asset (ROA) show that Islamic banks#x2019; ROA prior to GFC were 0.031 and 0.012 respectively and they were 0.01 and 0.12 respectively during the GFC. The significance of the parametric mean test,- t-test, and non-parametric median test,- Kruska-Wallis, and Mann-Whitney demonstrates a significant difference between the mean and the median performance of Islamic bank during the pre GFC and the GFC periods. This difference suggests that Islamic banks#x2019; financial performance is not immune from the GFC.