IntroductionBanking is a process that is involved in many ways in business and commerce. There are different types of banking services in today's world. The two main types are conventional banks and Islamic banks. Both banking systems play a very important role in commerce and business. The objective of this discussion is an evaluation of these two banking systems. The chapters will discuss important bank characteristics that will be included in the regression models. The ordinary least squares method will be used to identify the impact of bank characteristics on their profitability. The adopted methodology examines the sensitivity of the bank's internal characteristics on profitability indicators. The profitability study is carried out on the Islamic banking system and is compared to the conventional banking system. The discussion begins with a literature review and moves to critical evaluation and analysis, definition of variables, model and data, advantages, disadvantages, points of agreement, points of disagreement , reasons and evidence. Literature Review The study of profitability compares Islamic banks. to conventional banks. The research paper studies the effectiveness of a sample of Islamic and conventional banks in different countries operating Islamic banking services over the last two decades using a distance output function approach. We will obtain efficiency measures after taking into account environmental influences such as state macroeconomic conditions, accessibility of banking services, and different types of banks. Although these factors are assumed to directly influence the shape of technology, we assume that the government dummies and bank size also directly influence technical inefficiency. The parameter estimates...... middle of paper ......ation, because the whole idea is a myth and cannot be introduced in a country where a normal banking system exists and claims to be secular . Creating legislation that does not allow any payment or receipt of interest would mean subjecting ordinary savers to enormous risks – which certainly cannot be the intention of Islamic banking. If Islamic banks cannot invest in bonds, treasury bills and commercial paper, nor lend to finance stocks or projects against interest, this defeats the very purpose of the banking sector. Even in Muslim countries, the so-called Islamic banking system is – in the dismissive words of a Western critic – “a normal banking system sprinkled with holy water”. At best, Islamic banking is a means of denying the existence of interest and making it easier for Muslims to accept the idea of ​​banking since the Quran contains strong injunctions against giving or to take “riba” – the benefit..